Nev. Admin. Code § 360.430 — 360.430

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,
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)