SB 54

Current law generally prohibits the Department of Revenue from divulging

information about a retailer that is included in the sales tax returns filed by the

retailer. DOR is also prohibited from disclosing information about a retailer included

in an audit or investigation of its sales tax liability. However, DOR may allow certain

persons to examine the returns, and related schedules, exhibits, and audit reports,

for purposes of administration and enforcement. Such persons include the secretary

of revenue and DOR officers, agents, and employees; the attorney general and

department of justice employees; public officers of the federal government or other

state governments, to the extent that those governments afford similar rights of

examination to Wisconsin state officials; and any person against whom DOR asserts

a sales tax liability, including a successor, guarantor or surety.

Under this bill, if a person provides evidence to DOR that the person intends

to purchase or has purchased a retailer's business or inventory or that the retailer

is quitting the business and the person will be the retailer's successor or assignee,

that person may examine the retailer's sales tax returns, and related schedules,

exhibits, and audit reports, for the purpose of determining whether the retailer is

liable for any amount of sales tax and obtaining the amount of its outstanding

liability. Current law requires the purchaser of a retailer's business or inventory to

withhold the amount of the purchase price sufficient to pay the retailer's outstanding

sales tax liability. If the purchaser does not withhold the required amount, the

purchaser becomes personally liable for payment of that amount to DOR.