FTB 8702 Buyer's withholding clearance certificate information and guide
Purpose
During a bulk sale, you must request an FTB 8701, Buyer’s Withholding Clearance Certificate. A certificate releases a business’s withholding tax liability. This information provides guidance for requesting an FTB 8701, Buyer’s Withholding Clearance Certificate. FTB 8701 certifies that the seller (payer) of a business being sold does not owe any withholding taxes or associated interest and penalties.
The buyer of a California business, buyer’s representative, escrow officer, or title officer may request FTB 8701.
If we issue this certificate or fail to respond to a request within 60 days, the buyer will be released from any further liability for any withholding taxes and associated interest and penalties. However, the issuance of a certificate stating that no taxes, interest, and penalties are due, or the failure to issue the certificate or statement within the period of 60 days shall not release the payer from liability on account of any taxes, interest, and penalties then or thereafter determined to be due, but shall release the successor from any further liability on account of any such taxes, interest, and penalties.
If we issue a statement showing that taxes, interest, and penalties are claimed to be due, the buyer must pay the liability within 30 days after the statement is mailed or delivered, or on the day the buyer acquires the business or assets, whichever occurs last.
If there is no withholding tax owed, we will issue the certificate to your escrow company on your behalf.
Buyer's withholding clearance certificate guide
To request a certificate, you must submit a written request and provide the following applicable information:
Buyer's information
- Name (including dba: doing business as)
- Secretary of State (SOS) corporation number and FEIN
- Sole proprietor – social security number
Escrow holder's information
- Escrow company’s name
- Complete address
- Phone and fax numbers (including area codes)
- Escrow officer’s name
- Escrow number
- Estimated closing date
Business information
About the business being transferred:
- Business name (including dba)
- Complete physical address
Seller's information
- Name (including dba)
- Complete mailing address
Seller's California state tax account number
- Partnership – federal employer identification number (FEIN)
- Corporation – California Secretary of State
- Limited liability company – California SOS file number and FEIN
- Liquor license number (if any)
Submit request
Send us your request for FTB 8701 online or by fax (allow 30 business days to process your request). Make sure to include all applicable information from the guide.
- Online
- ftb.ca.gov/bulksale
- Fax
- 916-845-9034
Limitations
The certificate or statement does not apply to any taxes, interest, and penalties that may be due to the Franchise Tax Board under California Revenue and Taxation Code (R&TC) Sections other than sections 18661-18677. The certificate or statement also does not apply to taxes, interest, and penalties due to other California state agencies or to the federal government.
The certificate does not release or relieve the seller from liability for any withholding taxes, associated interest, or penalties under R&TC Sections 18661-18677.
Important information
The certificate is not a tax clearance and does not attest to the seller’s status (good standing) with us, or the possibility of a state tax lien. If you are trying to transfer your liquor license, visit our liquor license transfer page.