The Commissioner then has twenty days to notify the potential new owner of any additional sales or withholding taxes (including interest and penalties); the Commissioner may also notify the potential new owner of the amount needed to satisfy the lien, or that there are no taxes due in addition to the amount shown on the lien, or that additional tax returns are due. If the Commissioner fails to give the required notice within the twenty-day period, the potential new owner is not liable for any taxes other than those shown on the lien. These rules apply to transfers of businesses or business assets, whether by sales or gift. In the case of sales transfers, the amount of the tax liability cannot exceed the purchase price. In the case of gift transfers, the tax liability is presumed to be the value of the transferred assets or business. Also, for transfers by gift, the tax liability can be avoided by returning the gifted property. These rules also apply to changes in the type of business entity or changes to the name of the business, so long as one business is being discontinued and another one started. If an IRS Notice of Federal Tax Lien has been filed, contact the IRS to apply for a Certificate of Discharge. See IRS Publication 783 for more information.
REVOCATION OR PREVENTION OF LICENSE ISSUANCE OR RENEWAL
Existing licenses can be revoked if the Minnesota Department of Revenue notifies the licensing authority that the license holder owes the state for back taxes, penalties or interest. The Commissioner of Revenue is authorized to stop, by issuing a Notice of Requirement for Tax Clearance, the issuance or renewal of any business, trade, occupational or professional license issued by the state, a county or a municipality to businesses that have a state tax liability of more than $500 (Minn. Stat. § 270C.72). If a licensing agency receives a Notice of Requirement for Tax Clearance for a business, a license may not be issued, renewed or transferred until the agency receives a tax clearance certificate from the Commissioner of Revenue. A tax clearance certificate is issued only upon resolution of the tax delinquency. The Commissioner of Revenue is responsible for all negotiations, disputes and appeals resulting from a license denial under this statute. Further information regarding the requirements or application of this law may be obtained from the Minnesota Department of Revenue’s Collection Enforcement group, at the address and telephone number provided in the Resource Directory section of this Guide.
UNEMPLOYMENT INSURANCE TAXES
Unemployment insurance taxes, paid by the employers, are funds used to pay unemployment benefits. The amount of tax paid by Minnesota employers is based on their unemployment history. Unemployment benefits provide a temporary partial wage replacement to those Minnesota workers who become unemployed through no fault of their own. These payments are an economic stabilizer/stimulator in times of economic downturn, and help to maintain an available skilled workforce for Minnesota employers.
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