NAC360.430. Liability of successor or purchaser of business or stock of goods.

     1. The requirement in NRS 360.525 that a successor or purchaser of a business or stock of goods withhold a sufficient amount of the purchase price to cover the tax liability of the seller arises only in the case of the purchase and sale of a business or stock of goods under a contract which provides for the payment to the seller or person designated by him or her of a purchase price:

     (a) In money;

     (b) In property; or

     (c) Which provides for the assumption of liabilities.

     2. The requirement may not arise in connection with other transfers of a business such as assignments for the benefit of creditors, foreclosures of mortgages and sales by trustees in bankruptcy.

     3. The liability of the successor or purchaser of a stock of goods extends to all taxes, interest and penalties incurred during the operation of the business by the predecessor or any former owner, including:

     (a) Taxes on the sale of the business, even though the liability for the taxes was not then determined against the successor or purchaser;

     (b) Interest to the date of payment of the taxes;

     (c) Penalties for nonpayment of taxes;

     (d) Penalties for negligence or intentional disregard of the statutes or regulations which govern the sales and use tax and the business tax; and

     (e) Penalties for fraud or an intent to evade the tax determined and unpaid at the time of sale.

     4. The purchaser of a business or stock of goods is entitled to be released from further obligation to withhold the purchase price if he or she:

     (a) Obtains a certificate from the Department which states that no taxes, interest or penalties are due from a predecessor; or

     (b) Makes a written request to the Department for a certificate and the Department does not issue the certificate or mail to the purchaser a notice of the amount of the taxes, interest and penalties that must be paid as a condition of issuing the certificate within 60 days after:

          (1) The Department received the request; or

          (2) The records of the former owner were made available for audit,

Ê whichever period expires later, except that no period may exceed 90 days after the date on which the request was received.

     (Added to NAC by Tax Comm’n by R077-97, eff. 11-14-97)