|
||||||||
|
||||||||
You should take the following steps when buying a business and/or business assets to avoid being held liable for any sales tax that the seller did not pay.
Be sure to review Form TP-153, Notice to Prospective Purchasers of a Business or Business Assets. (The seller is required to give you a copy of this form.)
Notify the Tax Department that you are buying the business and/or business assets.File Form AU 196.10, Notification of Sale, Transfer, or Assignment in Bulk with the Department at least 10 days before paying the seller or taking possession of the assets, whichever is earlier. The Tax Department will send you a notice stating whether or not the seller may have unpaid sales taxes. Don’t pay the seller until the Department approves the transaction.
If the seller owes unpaid sales taxes, the Department will send you Form AU 196.2, Notice of Claim to Purchaser. That notice will advise you not to pay the seller until further notice. After the Tax Department determines how much the seller owes in taxes, you may have to pay the Department instead of the seller.
If the seller does not owe unpaid sales taxes, the Department will send you Form AU 197.1, Purchaser’s and/or Escrow Agent’s Release-Bulk Sale. That notice will advise you that you may pay the seller, and that you cannot be held liable for any sales taxes that may be left unpaid by the seller.
Register as a sales tax vendor if necessary
You must register as a sales tax vendor if you will make taxable sales and issue or accept certain exemption certificates. You may register online or by filing paper Form DTF-17, Application for Registration as a Sales Tax Vendor.
For more detailed information, please see Publication 20, New York State Tax Guide for New Businesses.
Careers |
Site Index |
Electronic Services |
Publications and
Bulletins |
Web Survey
Accessibility |
Disclaimer |
Privacy |
Security
