Utah – Guidance for Taxpayers Purchasing or Selling a Business

2/08/2012

SALT Report 2127 – The Utah State Tax Commission updated their guidance regarding successor liability. Under Utah law, anyone selling a business must file a final tax return within 30 days of the sale, or 15 days for a special fuel tax return, close all open tax accounts, and provide the purchaser with a receipt or letter from the Commission verifying that no sales or special fuel taxes are owed.

If you are purchasing a business you are required to apply for a new tax license, have the seller provide a receipt or letter from the Commission showing that all sales and special fuel taxes have been paid, or withhold the amount of unpaid tax from the purchase price and put it in an escrow account to pay to the Commission within 30 days of the sale.  Failure to follow these procedures could result in the purchaser being held liable for any taxes that the business owes.

If a business changes ownership and the Internal Revenue Service allows the FEIN to stay the same, the new owner will not be required to apply for a new Utah tax account number. However, the new owner must provide the Commission with the new owner and officer information.

For Further Information

Utah State Tax Commission – Purchasing or Selling a Business – Successor Liability

59-12-112.   Tax a lien when selling business — Liability of purchaser

Title 59 Chapter 13 Section 302