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  Tax Clearance Certificate

Q. What is a Tax Clearance Certificate?


A. The Department of Revenue Services (DRS) issues a Tax Clearance Certificate to the purchaser of a business that releases the purchaser from any sales and use tax liability or admissions and dues tax liability of the seller, or both.  The certificate states that no sales and use taxes or admissions and dues tax, or both, are due from the seller and relieves the purchaser of a business from any further obligation to withhold all or part of the purchase price of a business.  Only the purchaser of a business or a practitioner (an attorney or accountant) who is representing the purchaser may request a Tax Clearance Certificate.  A properly completed Form LGL-001, Power of Attorney, must accompany the request from a practitioner.  For more information on Tax Clearance Certificates, please review IP 2002(16), Successor Liability for Sales and Use Taxes.

This answer is intended to provide general information concerning a frequently asked question about a current position, policy, or practice associated with the taxes administered by the Connecticut Department of Revenue Services.  It may include an informal interpretation of Connecticut tax law by the Department of Revenue Services (DRS).  However, it is not intended to serve as a legal ruling.

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