Aurora Business Brokers Firm can introduce you to a valuation partner. Arrange the tax status conversation before the closing statement is final, especially when a buyer is purchasing a retail business.
Know what the letter can tell the buyer
Colorado’s Department of Revenue uses DR 0096 for tax status requests. The seller can request a letter; a buyer requesting one needs the seller’s power of attorney.
The letter reports tax status information. It is not a promise that every possible obligation has disappeared, so counsel should review what protection the transaction still needs.
Coordinate the release of money with the documents
A retail business purchase can expose the buyer to unpaid taxes. Ask your CPA and closing attorney how the letter and any required withholding affect the distribution of proceeds.
The Colorado Department of Revenue and Aurora Tax and Licensing address separate obligations. A state letter should not be treated as a substitute for city tax confirmation.
Put the request on the closing responsibility list
Identify who submits the request, receives the response and resolves an outstanding balance. Keep the agreed evidence with the closing records.
Before signing a release of funds, confirm the current form, fee and transaction requirements with the Department and your advisors. This guide is not tax or legal advice.