Tuesday, May 14, 2013

Connecticut Sales Tax Liability

In Connecticut, someone buying the assets of another company may become liable for any delinquent sales tax owed by the selling company.  Under Connecticut’s Successor Liability Statute, if you are buying all or substantially all of a business or stock of goods in a business, you will also inherit all of the company’s sales tax liability.  However, a buyer may avoid this liability by holding some of the purchase price in escrow until the seller produces a sales tax clearance letter.

Find out more about Connecticut’s Successor Liability Statute and the sales tax clearance letter on our website.