Section I-4357 - Termination or Transfer of a Business (Louisiana Code of Regulations)

§ I-4357. Termination or Transfer of a Business

A. A special rule is provided for the filing of returns and payment of any taxes due in the case of any dealer who sells his business or his stock of goods or who quits a business. Under continuing operating conditions, a dealer is required to file his return and pay the amount due by the twentieth day following the close of the taxable period covered by the return. However, if a dealer discontinues business, he is required to file a final return and to make payment within 15 days after the date of selling or quitting business instead of the 20 days allowed a continuing business.

B. In order to insure that all taxes are paid by a discontinuing business, R.S. 47:308 and 47:337.21 require that the successor, successors, or assigns, if there are any, must withhold a sufficient portion of the purchase price to cover any taxes, penalties and interest due and unpaid at the time of the purchase. These funds must be withheld by the purchaser until the former owner can produce a receipt from the collector showing that the taxes have been paid or a certificate from the collector stating that there are no taxes, interest, or penalties due. If the purchaser of the business or of the stocks of goods fails to withhold sufficient funds with which to pay any taxes, penalties, or interest found to be due, he shall be held personally liable for the payment of the amount due.

(Promulgated by the Department of Revenue and Taxation, Sales Tax Section, LR 13:107 (February 1987), amended by the Department of Revenue, Policy Services Division, LR 31:100 (January 2005).)

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:308, R.S. 47:337.2, R.S. 47:337.21, and R.S. 47:1511.

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