I am selling a business and have $1400 in taxes to pay that are past due I am going to pay them and want to make sure irs doesn't send the new owners the notices on that since they will have a new tax id ect. I just want to make sure that they will NOT be held acountable for any thing that was during our ownership.
2006-12-18 08:42:11 · 6 answers · asked by Tracy M 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
No. When they buy your business, they will register it with the IRS, with another Federal Identification Number.
2006-12-18 08:46:49 · answer #1 · answered by jim 6 · 0⤊ 0⤋
Oh my..........
The answer to this question depends upon the form of the business and what you actually sold.
If you sold "a business" to the other party, you may have agreed to sell them all of the business, including all of it's assets and liabilities. This is why I usually recommend to clients not to do it this way.
What more often happens is that the purchaser bought your businesses assets, for example, they bought the inventory, the machines, the computer, the customer list, whatever depending upon the nature of the business. If you did this, they purchased only those business assets you sold them, and you retained the liabilities.
Frankly, this is why most people need a bit of accounting or legal advice when selling parts or all of their business -- just to get questions like this settled ahead of time.
The new tax ID number in itself is not the determining factor here, but it does indicate that they started their own business and simply transferred in the assets that they purchased from you, leaving you with your own (now mostly empty) business to close out.
2006-12-18 22:25:09 · answer #2 · answered by Bryan 2 · 0⤊ 0⤋
Well I'm sorry to inform you. That when the past due taxes were due you owned the property/ business. YES. They can sieze the property even though it has changed hands. Unfortunately they will have to pay the tax & penalties to get the property released to them.
2006-12-18 16:56:05 · answer #3 · answered by oilfieldinsultant 3 · 0⤊ 0⤋
You should give the buyer a copy of the receipt showing that the taxes (and any penalties) were paid as part of closing. That way, they will have proof that the tax obligation has been met.
2006-12-18 16:47:19 · answer #4 · answered by Thomas K 6 · 0⤊ 0⤋
The taxes either have to be paid prior to closing the loan, or they will be taken out of closing costs.
2006-12-18 16:50:38 · answer #5 · answered by Anonymous · 0⤊ 0⤋
if you use credit card.
2006-12-18 16:45:27 · answer #6 · answered by Anonymous · 0⤊ 0⤋