Oklahoma ~ Sales and Use Tax: Rules on Business Closure Procedures Pending, Withdrawn

On September 11, 2012, the Oklahoma Tax Commission adopted rules governing business closure procedures related to delinquent sales tax, rules that will take effect upon the governor’s approval or on November 1, 2012, whichever is later. The rules implement procedures related to the business closure procedures enacted by S.B. 1984 , Laws 2012. (TAXDAY, 2012/06/01, S.22 ) Under that legislation, if a taxpayer fails within any consecutive 24-month period to file two sales tax reports or to remit sales tax due for any two months, the commission will give the taxpayer written notice that a third failure within any 24-month period will result in the closure of the taxpayer’s business. If a taxpayer has a third delinquency within a 24-month period, the commission will provide the taxpayer with written notice that the business will be closed within five business days from the date of the delivery or attempted delivery of the notice, unless the taxpayer enters into a payment agreement with the commission to pay the tax delinquency. The rules are part of a proposed “Part 10” of the commission rules (entitled “Business Closure Proceedings” ). Since September 11, however, the commission has withdrawn one of these rules, the rule entitled “Applicability of Part 10.” This rule stated that nothing in Part 10 should be interpreted as preventing the commission, at a regularly scheduled meeting, from granting a taxpayer relief from any action taken pursuant to the business closure proceedings. This particular rule will not be approved by the governor and will not take effect on November 1.

Rules 710:1-5-110 through 710:1-5-123, Oklahoma Tax Commission, as adopted and proposed on September 11, 2012; Rule 710:1-5-123, Oklahoma Tax Commission, as withdrawn on September 25, 2012

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