Wisconsin – Business Successor Liability

SALT Report 1992 – The Wisconsin Department of Revenue’s December 2012 sales and use tax report discusses business successor liabilities and the requirements for obtaining a clearance certificate.

The Department warns that the purchaser of a business may be responsible for any Wisconsin sales and use taxes that were not paid by the former owner. To protect yourself, the Department suggests that you place a certain portion of the purchase price in an escrow account until the Department of Revenue issues you a clearance certificate.

A clearance certificate will protect the purchaser from incurring any successor liabilities as it ensures that the former owner has filed all sales and use tax returns and has paid any sales and use taxes due.

For Further Information:

Wisconsin Department of Revenue – Sales and Use Tax Report Number 4-12

Clearance Certificate Common Questions