Sales tax permit revoked or suspended

The most common causes are unfiled returns, unpaid assessed tax, bounced payments, failure to post a required security deposit, and no longer being actively in business. Many states send warning notices first; ignoring them is how a fixable problem becomes a shutdown.

California's Regulation 1699 says a seller's permit may only be held by someone actively engaged in business as a seller, allows the department to revoke a permit when the holder isn't, and allows it to refuse to issue a permit in specified circumstances, including where related owners have unpaid liabilities. California law also provides for revocation for failure to comply with sales tax law after notice and hearing. Your state's process may differ — see your state sales tax page or the agency, such as the Texas Comptroller or New York DTF.

Generally no. Selling taxable goods without a valid permit can bring separate penalties and, in some states, criminal charges. Suppliers may also stop selling to you on a resale basis because your resale certificate depends on a valid permit.

• File every missing return, even with zero sales.
• Pay the balance or get a written payment plan.
• Post any required security deposit or bond.
• Request reinstatement or a new permit and keep proof.

Because new permits can be refused where owners have unpaid liabilities from a prior business, opening a new entity is rarely a shortcut.

Liquor, tobacco and some local business licenses can depend on being current on state tax — see bars and gas stations. Run the free assessment to see options.