Hi Country Buick GMC, Inc.

14-19

On May 20, 2011, the Department assessed the Taxpayer for CRS taxes, penalty and interest as a successor in business.   On August 4, 2011, after being granted an extension of time to protest, the Taxpayer filed a protest to the assessment.  First, the Taxpayer argued that the assessment received from the Department was not effective, as it did not clearly state the nature of the tax owed.  However, the hearing officer found that the notice was effective, as it clearly stated that it was in regard to a successor in business tax liability, listed CRS taxes (which are defined in regulation as including gross receipts, compensating and withholding tax), and the Taxpayer was actually aware that the assessment was for gross receipts tax and withholding tax at the time the Taxpayer submitted its protest letter.  Secondly, the Taxpayer argued that it was not a successor in business, but nearly all of the factors for determining a successor in business were present, including that the tangible and intangible property of the business were transferred, and that transfer was critical to the Taxpayers continued operation of the franchise. Because there was an outstanding tax liability at the time of the transfer, the total tax liability, including penalty and interest, followed the assets transferred to the Taxpayer.   The Taxpayer’s protest was denied.