California CDTFA Issues Proposed Sales, Excise Tax Manual Revisions Concerning Successor’s Liability, Offers in Compromise

The California Department of Tax and Fee Administration June 14 issued proposed revisions to Chapter 7 of the Compliance Policy and Procedures Manual for a successor’s liability for penalty and interest, and offers in compromise, for sales and use and excise tax purposes. The update includes: 1) relieving successors of any penalty originally imposed upon the predecessor regardless of when the notice of successor liability was issued where there is no relationship between the successor and the predecessor; 2) defining a relationship between a successor and predecessor to mean any common ownership or a successor who was a responsible person ...