New York Car Repair Shop Owes Back Sales Taxes After Transfer

A New York couple can’t avoid over $83,000 in sales tax liability by transferring their car repair shop from husband to wife, a state tax appeals tribunal has ruled.

Relax Auto Services Inc., run by Jaiysmin Hossain, began operating a car repair shop where Arju Auto Repair & Transmission Inc., run by her husband Mohammed Mosharaf Hossain, had run a shop for eight years. The couple didn’t report the bulk transfer of business assets to the state.

That failure to report exposed Relax to personal liability for Arju’s outstanding sales taxes, Administrative Law Judge Barbara J. Russo ruled ...