- Bulk sales occur when a business sells its assets outside of its normal operations
- Purchasers can become liable for sales and use taxes owed by the seller in bulk sales
- Business assets include real property, intangible assets, and tangible personal property
- Purchasers must determine if the seller is required to collect sales tax in New York
- Sellers must provide prospective purchasers with a tax form informing them of bulk sale notice requirements and potential liability for sales taxes
- Purchasers must notify the New York State Department of Taxation and Finance at least 10 days before paying for or taking possession of any business asset subject to bulk sales tax
- The Tax Department will contact the purchaser about any potential claim for unpaid taxes and may issue forms indicating the seller’s tax obligations
- If the Tax Department fails to issue forms in a timely manner, the purchaser is relieved of withholding obligations and protected from successor liability, but the purchased assets may still be subject to the Tax Department’s lien.
Source: mondaq.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
