IDAPA 35.01.02.119 — SUCCESSOR'S LIABILITY (RULE 119)

Section 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.
(3-31-22)
02.
Written Inquiry Required. The buyer is to make written inquiry to the Boise Office of the State
Tax Commission setting forth the following:
(3-31-22)
a.
The name, location, and seller's permit number of the business they are purchasing.
(3-31-22)
b.
A statement that they are purchasing the business or stock of goods.
(3-31-22)
c.
An inquiry as to any sales or use tax liability of the business they are purchasing.
(3-31-22)
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.
(3-31-22)
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.
(3-31-22)
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
IDAHO ADMINISTRATIVE CODE
IDAPA 35.01.02
State Tax Commission
Idaho Sales & Use Tax Administrative Rules
Section 120
Page 113
Commission for cancellation.
(3-31-22)