- Limited liability corporations and similar entities do not protect owners and major shareholders from sales tax liability.
- CEOs, CFOs, directors, and other executives can be held personally responsible for sales tax shortfalls.
- States have rules that impose responsibility for tax liabilities on certain parties.
- States use various methods to determine who is responsible, such as asking for personal identification or comparing individual tax returns to company returns.
- Recent cases have affirmed the personal responsibility of individuals for sales tax liabilities.
- New York’s Division of Tax Appeals considered various factors to determine personal responsibility for sales tax liability.
- In a similar case involving unpaid Ohio personal withholding taxes, the president of a corporation was held liable.
Source: taxconnex.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
