Paying Taxes Owed

If you’ve decided to buy the business, in order to avoid successor liability, you must obtain a Tax Clearance Certificate signifying that there are no unpaid taxes owed. This is required voluntary during transfers of ownership, where there is no form of currency or payment exchanged, as well. If the business still owes taxes, the buyer must include the amount in the purchase price and pay the money owed to DRS. Otherwise, the buyer becomes personally liable for the amount of taxes, interest, and penalties owed on the business.