Bankruptcy and Other Court Appointments

PURPOSE: This rule explains the treatment under federal law of sales and use tax in a bankruptcy or other court appointments, and the liability of trustees, assignees and receivers for sales and use tax. (1) In general, any trustee, assignee or receiver must notify the department upon being appointed to such position by the court. The trustee, assignee or receiver is responsible for sales and use tax on behalf of the debtor. (2) Basic Application. (A) All outstanding sales and use tax, interest and penalties due the state from a debtor must be paid before any distribution to general unsecured creditors. (B) When a court appoints any person, whether trustee, assignee or receiver, to take over any business and operate or liquidate it, the person appointed must collect and remit sales tax for the debtor during such appointment. The person appointed must use the sales tax license of the debtor during such appointment. (C) The person appointed is liable for any tax, interest or penalties not paid as required by subsections (2)(A) and (B). AUTHORITY: sections 144.270 and 144.705, RSMo 2000.* Original rule filed Nov. 7, 2005, effective May 30, 2006. *Original authority: 144.270, RSMo 1939, amended 1941, 1943, 1945, 1947, 1955, 1961 and 144.705, RSMo 1959.