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CA Sales Tax liability extend to purchasers/successors?

The liability of the successor or purchaser of a business or stock of goods extends to amounts incurred related to the operation of the business by the predecessor and any former owner. Also included is the yet to be determined taxes, interests, and penalties even for nonpayment of taxes. Liability also extends to penalties determined and unpaid at the time of sale for negligence or intentional disregard of the Sales and Use Tax Law or authorized rules and regulations or intent to evade any of the previously mentioned.

In addition to issuing a notice of successor liability, the BOE also has the power to attach a lien to any assets available to satisfy the tax liability. This includes placing a lien on any or all of the proceeds placed in escrow to complete the purchase or sale of a business. Since these funds a readily available the BOE is highly motivated to go after them because from the state’s perspective if the amount due is not paid at time of sale it may never collect.

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Main Office

Orange County
2601 Main St. Penthouse Suite
Irvine, CA 92614
(949) 681-3502

Our headquarters is located in Irvine, CA. Our beautiful 19,700 office space is staffed full-time and always available for our clients to meet with our highly qualified and experienced staff of Attorneys, Certified Public Accountants and Enrolled Agents. We also offer virtual consultations and can travel to meet with clients in one of our satellite offices.

Outside of our 4 hour initial consultation option, we do not charge travel time or travel expenses when traveling to one of our Satellite offices, or surrounding business districts, where it is necessary to meet personally with taxing authority personnel, make court appearances, or any in person meeting deemed necessary for the effective representation of a client. To make this as flexible, efficient, and convenient as possible, David W. Klasing is an Instrument Rated Private Pilot and Utilizes the Firms Cirrus SR22 to service client’s in California and in the Southwest by air. Offices outside these areas are serviced via commercial jet airlines. None of these costs are charged to our clients.

Satellite Offices

California
(310) 492-5583
(760) 338-7035
(916) 290-6625
(415) 287-6568
(909) 991-7557
(619) 780-2538
(661) 432-1480
(818) 935-6098
(805) 200-4053
(510) 764-1020
(408) 643-0573
(760) 338-7035
Arizona
(602) 975-0296
New Mexico
(505) 206-5308
New York
(332) 224-8515
Texas
(512) 828-6646
Washington, DC
(202) 918-9329
Nevada
(702) 997-6465
Florida
(786) 999-8406
Utah
(385) 501-5934