BobSmith
Forum Regular
Join Date: 12.4.2020
Posts: 439
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Posted: 1.30.2023 11:46:25
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Why should a buyer obtain a letter of authorization?
In preparing to acquire a business, a buyer will perform a variety of due diligence, such as analyzing financial statements, inspecting real estate and calculating future projections. However, one important aspect may be overlooked: unpaid taxes. Specifically, a potential buyer should obtain a tax clearance letter from the company. If a buyer fails to conduct due diligence on the tax side of the business, it may have to pay taxes owed by the seller. This may include sales and use tax, reemployment tax and tangible property tax.
What is a liquidation letter?
To protect business buyers from being held liable for a seller''s unpaid taxes, the Department of Revenue allows buyers to request two types of documents to verify the status of the business. The first document, a Tax Clearance Letter, is used when a business applies for grants or loans. This letter indicates the status of a particular business account, but does not indicate whether the account is subject to future audits. Therefore, individuals interested in purchasing a company will want to apply for the second type of document, a Certificate of Compliance. Like the tax clearance letter, the Certificate of Compliance indicates the current status of the company and whether there are any outstanding personal tax liabilities. However, the Certificate of Compliance will also confirm that the Department of Revenue does not plan to conduct future audits of the company.
Who can request the Certificate of Tax Compliance?
To receive a copy of the certificate, the applicant must be associated with the company as an officer or registered agent. If the applicant does not fall into either of these categories, a power of attorney must be filed with the Department of Revenue.
How do I obtain a Tax Clearance Letter in Florida?
To obtain a Tax Clearance Letter or Certificate of Compliance, an individual may file an online application with the Florida Department of Revenue on its website under the heading "information for businesses and employers." The applicant must enter the business name, business address, telephone number, email address and a copy of the applicant''s license or other photo identification. Once the information is submitted, the Department of Revenue usually issues the letter of authorization within seven to ten days.
Researching a company''s tax history assures you that you are conducting all due diligence and allows you to protect yourself before purchasing a company. If the Department of Revenue reveals a company''s tax delinquency, the buyer can withhold the amount of the delinquency when negotiating the purchase price.
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pejena
Newbie
Join Date: 7.5.2023
Posts: 4
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Posted: 7.11.2023 2:44:44
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pejena
Newbie
Join Date: 7.5.2023
Posts: 4
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Posted: 11.3.2023 9:16:56
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LucasCasselman
Intermediate
Join Date: 8.11.2023
Posts: 63
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Posted: 11.3.2023 9:57:22
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Invisalign offers a discreet and effective way to straighten misaligned teeth. These clear aligners are custom made to Dentist Morley fit your teeth and gradually shift them into the desired position. Invisalign is a popular choice for adults and teens seeking orthodontic treatment without traditional braces.
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LucasCasselman
Intermediate
Join Date: 8.11.2023
Posts: 63
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LucasCasselman
Intermediate
Join Date: 8.11.2023
Posts: 63
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Posted: 11.13.2023 11:07:32
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Packing efficiently is key to a stress-free journey. Ensure you have all the necessary on travelingwithtots.blog/ documents medications and comfort items for your child. Pack a travel-friendly first aid kit and entertainment essentials like books.
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AhmedMalik
Beginner
Join Date: 3.12.2022
Posts: 19
Location: us
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elixirhtc
Intermediate
Join Date: 11.15.2021
Posts: 128
Location: Islambad
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AhmedMalik
Beginner
Join Date: 3.12.2022
Posts: 19
Location: us
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Posted: 11.20.2023 3:40:27
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MabelKarlin
Beginner
Join Date: 3.12.2022
Posts: 38
Location: USA
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Posted: 2.14.2024 6:22:10
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pejena
Newbie
Join Date: 7.5.2023
Posts: 4
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Posted: 3.1.2024 1:29:09
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