Section 35.01.02.119 - SUCCESSOR'S LIABILITYSection 63-3628, Idaho Code
01.Making Inquiries. Section 63-3628, Idaho Code, provides that when a vendor sells out his business or stock of goods, the buyer is to make inquiry of the Commission and withhold from the purchase price any amount of tax that may be due until such time as the vendor, seller, produces a receipt stating that no tax is due. If the buyer fails to withhold from the purchase price the tax due, he becomes personally liable for the tax.02.Written Inquiry Required. The buyer is to make written inquiry to the Boise Office of the State Tax Commission setting forth the following: a. The name, location, and seller's permit number of the business they are purchasing.b. A statement that they are purchasing the business or stock of goods.c. An inquiry as to any sales or use tax liability of the business they are purchasing.03.Copy of Earnest Money. The buyer is to attach to the written inquiry a copy of any earnest money or similar agreement already entered into with the prospective seller. If no earnest money agreement has been entered into, then the seller must provide written authorization to the State Tax Commission to release the information to the prospective buyer.04.Written Statement from State Tax Commission. The Commission, after receiving the written inquiry from the buyer as to the amount due, will issue a written statement to the buyer setting forth the amount of tax due by the seller, if any. The Commission will advise the prospective buyer only of any amount of sales or use tax that may be due to the Commission under the Sales Tax Act. The release of any other information is not authorized. In the case that the prospective buyer requests to see the prospective seller's sales or use tax filing record in order to determine if the business is profitable, the prospective seller is to provide a Power of Attorney appointing the prospective buyer as attorney in fact to receive confidential information regarding sales or use tax filings on behalf of the prospective seller.05.Application for Seller's Permit Number. Upon final sale, the buyer files an application Form IBR-1 for a new seller's permit number with the Commission. The seller must forward his seller's permit to the Commission for cancellation.Idaho Admin. Code r. 35.01.02.119