By law, business owners in the state of Oklahoma have to collect sales taxes on designated items and forward these funds to the Oklahoma Tax Commission. If you don't cooperate with the OTC, the state will revoke your sales permit, and you'll go out of business—which doesn't, however, mean that you are no longer liable for the uncollected taxes. The state can potentially hound you for the rest of your life!
You Don't Get a “Free Pass” on Your Sales Tax Violation
Many business owners in Oklahoma are under the mistaken impression that if they go out of business, they no longer have to pay the sales taxes due from previous years. Look at it this way: if you had a high-paying job five years ago, and you're unemployed today, does that mean you get a free pass on paying your taxes during the year you were making good money?
If you go out of business—either voluntarily or involuntarily—after failing to pay your sales taxes, the state of Oklahoma and the OTC can potentially:
- Seize your property, including your house and your car, to cover the debt
- Freeze your bank accounts, making it impossible for you to live day to day
- Garnish your salary, if you're currently employed in a salaried position
- File criminal charges, a conviction for which can mean time in prison
- Prevent you from opening a new business until you have settled the bill on your old one
- Alert the authorities of other states if you attempt to open a new business there
- If you're completely off the radar, attempt to collect the money from your spouse
Do You Owe Sales Tax to the OTC? Contact Travis W. Watkins, PC
Ideally, you want to take care of your sales tax problem before the Oklahoma Tax Commission puts you out of business, and not after. Are you a business owner in Oklahoma who is in trouble with the OTC, or anticipates receiving a dreaded “taxes due” notice? Contact the sales tax experts at Travis W. Watkins, PC today at 800-721-7054 to find out what we can do for you!