Oklahoma – Amended Business Closure Rules

SALT Report 2941 – The Oklahoma Tax Commission made several changes to the rules that govern the procedures that must be followed when closing a business due to repeated sales tax delinquencies.

Specifically noted is that a new “closure order” rule has been established.  This rule, 710:1-5-114 provides that a noncompliant taxpayer’s business will be closed if the taxpayer fails to exercise one of the options available to avoid business closure.

Other changes to the rules include:

1) The Department will issue a “pending business closure notice” when a noncompliant taxpayer fails to report or pay sales tax for a third time within a 24-month period.  Previously, the closure notice was called an “order of business closure.”

2) The Commission is authorized to seek an injunction in district court that will prevent a business from unlawfully continuing business operations after it has been served a business closure order.

Lastly, various technical changes have been made throughout, and several rules have been renumbered to accommodate the new closure order rule.

These provisions were effective July 11, 2013.

For Further Information

Oklahoma Tax Commission – Rules 710:1-5-110 through 710:1-5-123