Ala. Admin. Code r. 810-14-1-.26 - Release Of Information Necessary To Comply With Sections 40-23-25, 40-23-82, and 40-12-224, Code of Ala. 1975
(1) SCOPE. This regulation relates to the
authority of the Department to release information necessary for sellers of a
business or stock of goods to comply with Code of Ala.
1975, Sections
40-23-25,
40-23-82,
and
40-12-224.
(2) DEFINITIONS. The following terms have the
meanings ascribed to them for purposes of this regulation.
(a) Taxes. Unless otherwise stated, this term
refers to sales, use, and leasing taxes.
(b) Purchaser. An individual, partnership or
corporation which is purchasing or has purchased a business or stock of
goods.
(c) Seller. An individual,
partnership or corporation, which is selling or has sold a business or stock of
goods.
(d) Verifiable electronic
request. A request made through telecommunication channels (i.e., facsimile
machines or modems) that has some means of verification as to the authority of
the party requesting the information.
(3) PURPOSE. The purpose of this regulation
is to establish a specific procedure whereby the purchaser or seller of a
business or stock of goods may be provided with specific information regarding
taxes paid or taxes due and unpaid by the seller so as to comply with
Code of Ala. 1975, Section
40-23-25,
40-23-82 or
40-12-224.
(4) PROCEDURE.
(a) A seller of a business or stock of goods
subject to the provisions of Section
40-23-25,
40-23-82,
or
40-12-224
Code of Ala. 1975, may obtain a certificate from the
Department within 30 days of the date he sold his business or stock of goods
showing that all taxes have been paid or that no taxes are due.
The certificate may be furnished to the seller upon payment of all taxes which have accrued prior to the date of the sale.
(b) A purchaser of a business or stock of
goods subject to the provisions of Section
40-23-25,
40-23-82,
or
40-12-224,
Code of Ala. 1975, may request and obtain a
certificate from the Department prior to the purchase showing that all
outstanding tax, penalty, and interest has been paid over to the Department as
of the date of the request.
1. Whenever a
purchaser wishes to secure information in order to comply with the provisions
of Sections
40-23-25,
40-23-82,
and/or
40-12-224,
Code of Ala. 1975, the purchaser shall provide the
Department with a written or verifiable electronic request for the
information.
2. Each written or
verifiable electronic request made by a purchaser shall provide the following:
(i) the legal name, mailing address, phone
number, and signature of the party making the request;
(ii) an affirmative statement that the
requesting party is entitled to the information requested pursuant to Section
40-2A-10,
Code of Ala. 1975, and that the request is necessary
in order for the requesting party to comply with the provisions of Sections
40-23-25,
40-23-82,
and/or
40-12-224,
Code of Ala. 1975;
(iii) the legal name and address of the party
from whom the purchaser is purchasing a business or stock of goods;
and
(iv) if available, the state
sales, state use, state rental, local sales, and/or local use tax account
number(s) and the social security number or federal employer identification
number of the party from whom the purchaser is purchasing a business or stock
of goods.
3. The
Department reserves the right to deny any request for information when it has
not been adequately established to the Department's satisfaction that the
requesting party has a legitimate need for the requested information. The
Department may contact the seller of a business or stock of goods to establish
the legitimacy of the requesting party's request for information.
(c) If the taxes are not current,
the Department may issue the purchaser or seller a "Certificate of
Noncompliance," which will specify the type of tax and the periods of tax which
have not been paid. The Department may also send a letter of noncompliance to
the purchaser or seller of the business which will contain, if known, the
amount required to bring the business into compliance with the sales and use
tax laws up to the anticipated date of purchase.
(d) In the event the Department learns, or
otherwise has reason to believe that a business or stock of goods has been sold
and that the purchaser has not complied with the provisions of Sections
40-23-25,
40-23-82,
or
40-12-224,
Code of Ala. 1975, the Department may make a demand
for payment, and, if not paid, enter an assessment against the successor. Any
demand or assessment so entered shall clearly identify the successor as such,
as well as the previous business entity.
(e) Any disclosure of amounts of tax due made
by the Department to a business entity that is believed to be a successor, and
which is subsequently determined not to be a successor as contemplated by
Sections
40-23-25,
40-23-82,
and/or
40-12-224,
Code of Ala. 1975, shall be deemed to have been made
for the proper administration of the taxes and is an exception to the
disclosure restrictions as provided at Section
40-2A-10,
Code of Ala. 1975.
Authors: George E. Mingledorff, Charla Doucet
Notes
Statutory Authority: Code of Ala. 1975, ยง 40-2A-10, Act 92-186.
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