Nevada Administrative Code
NAC-360 - Revenue and Taxation: Generally
PAYMENT AND COLLECTION OF TAXES AND FEES
360.430 - Liability of successor or purchaser of business or stock of goods.
NAC 360.430 Liability of successor or purchaser of business or stock of goods. (NRS 360.090, 360.525)
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,
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)