Oklahoma – Business Closure Procedures Enacted for Delinquent Taxpayers

SALT Report 1546 – The Oklahoma State Legislature recently enacted legislation that allows the Oklahoma Tax Commission to close a the business of a non-compliant taxpayer.
SB 1984 states that if a taxpayer fails to file two sales tax reports or fails to remit sales tax for any two months during the previous 24-month period, the Oklahoma Tax Commission will give the taxpayer written notice that a third failure within any 24-month period will result in the closure of the taxpayer’s business.
If a taxpayer has a third delinquency, the Commission will provide the taxpayer with written notice that the business will be closed within five business days from the date of the delivery or attempted delivery of the notice unless the taxpayer enters into a payment agreement with the commission to satisfy the tax delinquency.
A non-compliant taxpayer may avoid closure of the business by:
  • Filing all delinquent reports and remitting the delinquent tax including any interest and penalty; or
  • Entering into a payment agreement approved by the Tax Commission to satisfy the tax delinquency
Non-compliant taxpayers may request an administrative hearing to dispute the closure by filing a written protest with the Tax Commission. Taxpayers can request that the hearing be held either in person or by telephone. The administrative hearing will be held within 14 days of the date of the filed request for hearing.
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