Taxpayer sold a business.<\/strong> The seller filed sales and use tax returns but did not pay the amounts due. Seller received jeopardy determinations.\u00a0 \u00a0<\/p>\n Bill of sale stated that seller agrees to “take full responsibility of any taxes…”<\/p>\n Purchaser was assessed for sales and use tax liability.\u00a0\u00a0<\/p>\n Purchaser requested a redetermination.\u00a0<\/p>\n The State Office of Administrative Hearings(SOAH).\u00a0 Purchaser did not submit any exhibits, or arguments for the redetermination.\u00a0 The case was closed.\u00a0<\/p>\n When selling a business, the contract or written agreement between two privates parties does not bind the State of Texas to the contractual provisions that can shift sales tax responsibilities. Subject No. 2063<\/strong><\/p>\n If a taxpayer is liable for sales or use tax and sells the business or quit the business, the purchaser may withhold an amount from the purchase price sufficient to pay the tax due, unless the seller first obtains a receipt form the Texas Comptroller showing the amount due has been paid or a certificate stating that no amount is due. Tex. Tax Code \u00a7 111.020(a), (c); 34 Tex. Admin. Code \u00a7 3.7(a). Subject 61863<\/strong><\/p>\n When purchasing a business, you may reduce the purchase price by the amount of any unpaid assessed sales and use tax, interest and penalties.\u00a0<\/p>\n Alternatively a receipt from the Texas Comptroller showing the amount has been paid or a certificate that no tax is due.\u00a0<\/p>\nHow to indemnify a purchase from unpaid sales and use tax liabilities<\/strong><\/h4>\n