Oklahoma – Business Closure Procedures

SALT Report 1953 – The Oklahoma Tax Commission issued a reminder for Taxpayers regarding sales tax delinquencies.  As of November 1, 2012 if a Taxpayer files or pays their sales taxes late three times within a 24-month period, the Commission is authorized to close that Taxpayer’s business.

Once a Taxpayer fails to make two sales tax payments or file two returns within a 24 month period, the Commission  will notify the Taxpayer in writing that a third failure within that 24-month period will result in the closure of the Taxpayer’s business.  If a third failure occurs within that 24-month period, the Commission will issue the Taxpayer a notice stating that the business will be closed within five business days of the delivery of this notice unless the vendor:

  • Provides proof that the delinquent sales tax reports or payments have already been filed or paid,
  • Files the outstanding sales tax reports and remits the delinquent sales tax, including any interest, penalties, and fees,
  • Enters into an approved installment agreement (IPA) to pay the delinquent sales tax, interest, penalties, and fees, or
  • Files a written protest and a request for an administrative hearing within five business days of the delivery or attempted delivery of the second notice

Once a business is closed, the Commission will affix written notices on all entrances to the business notifying potential customers that the business has been closed and is prohibited from opening because:

  • The vendor did not exercise any of the four options listed above,
  • The vendor did not comply with the terms of an IPA,
  • The vendor did not seek administrative or judicial review, or
  • The business closure decision was upheld following an administrative or judicial review

Any business that operates after an order of closure has been issued is subject to further legal action in a district court.

For Further Information:

Oklahoma Tax Commission – Notice

Oklahoma Tax Commission – Emergency Rule