2018 Code of Alabama
Title 40 - REVENUE AND TAXATION.
Chapter 23 - SALES AND USE TAXES.
Article 1 - Sales Tax.
Division 1 - General Provisions.
Section 40-23-25 - Person selling out or quitting business to file return; part of purchase money to be withheld.
Any person subject to the provisions hereof who shall sell out his business or stock of goods, or shall quit business, shall be required to make out the return provided for under Section 40-23-7 within 30 days after the date he sold out his business or stock of goods, or quit business, and his successor in business shall be required to withhold sufficient of the purchase money to cover the amount of said taxes due and unpaid until such time as the former owner shall produce a receipt from the Department of Revenue showing that the taxes have been paid, or a certificate that no taxes are due. If the purchaser of a business or stock of goods shall fail to withhold purchase money as above provided the taxes shall be due and unpaid after the 30-day period allowed, he shall be personally liable for the payment of the taxes accrued and unpaid on account of the operation of the business by the former owner. If in such cases the department deems it necessary in order to collect the taxes due the state, it may make a jeopardy assessment as provided in Chapter 29 of this title.
(Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §23; Acts 1992, No. 92-186, p. 349, §66.)
