A Guide To Sales Tax In New York State - New York State Department Of Taxation And Finance Page 39
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44Publication 750 (8/04)
If the Tax Department does not issue Form AU-196.2 within 5
business days of the date of receipt of a properly completed and timely
Form AU-196.10, the purchaser cannot be held liable for any of the
seller’s unpaid sales taxes unless there are outstanding warrants or
judgments for unpaid sales taxes.
For purposes of the Tax Department’s obligation to respond within 5
business days, the date of receipt of Form AU-196.10 by the Tax
Department will be the date it was actually delivered to the Bulk Sales
Unit of the Audit Division, but no earlier than 10 days before the later
of the scheduled date of sale or the actual date of sale (The actual date
of sale is deemed to be the earlier of the date of payment or taking
possession).
A. If purchaser receives Form AU-197.1- If the purchaser receives
Form AU-197.1, the purchaser may pay the seller the full purchase
price. The Tax Department will not hold the purchaser liable for any
unpaid sales taxes, even if there are outstanding warrants or
judgments.
B. If purchaser receives Form AU-196.2- If the purchaser timely
receives Form AU-196.2, the purchaser is advised not to pay the seller
until the Department completes its review of the seller’s sales tax
account. Within 90 days of the receipt of Form AU-196.10, the Tax
Department must notify the purchaser (and the seller) of the actual
amount of sales taxes due from the seller for which the purchaser will
be held liable.
Upon receipt of Form AU-196.2, the purchaser may wish to consult a
tax practitioner about the best course of action to take.
For more information on bulk sales transactions, see TSB-M-83(6)S,
Guidelines for Bulk Sales Transactions.
Example 1: Corporation A, a person required to collect sales tax, sells
its business assets to Corporation B. Such a sale is a bulk sale
transaction.
Example 2: Corporation A, a person required to collect sales tax,
transfers all of its business assets to Corporation B in exchange for
stock in Corporation B. The transfer of Corporation A’s assets to
Corporation B is a bulk sale transaction.
Example 3: Corporation A purchases all the issued and outstanding
stock of Corporation B, a person required to collect sales tax.
Corporation A and Corporation B will continue to exist as separate
legal entities. Since the business assets of Corporation B have not
-39-
ADVERTISEMENT
0 votes
Related Articles
Related forms
Form Et-85 - New York State Estate Tax Certification - New York State Department Of Taxation And Finance
Financial
Form Au-298 - Application For A Direct Payment Permit - New York State Department Of Taxation And Finance
Business
Form Mt-200 - Tobacco Products Tax Floor Tax Return - New York State Department Of Taxation And Finance
Financial
Form Mt-903-fut - Schedule For Fuel Use Tax - New York State Department Of Taxation And Finance
Financial
Form Pr-371 - Statement Of Exemption From Mandatory Participation - New York State Department Of Taxation And Finance
Financial
Form Rp-7 - Required Supplemental Filing For Telecommunication Company - New York State Department Of Taxation And Finance
Financial
Form Pt-300 - Residual Petroleum Product Exportation Certificate Form - New York State Department Of Taxation And Finance
Financial
Form Dtf-17-i - Instructions For Form Dtf-17 - New York State Department Of Taxation And Finance
Financial
Related Categories
Parent category: Financial