Who's liable?
Can an officer of a legal corporation be held responsible for sales tax collected after the business was sold? The corporation has since been dissolved.
Asked on 12/27/06, 6:04 pm
1 Answer from Attorneys
Ronald Cappuccio
Ronald J. Cappuccio, J.D., LL.M.(Tax)
Re: Who's liable?
It is possible that an officer may be liable. The reason is most states require sales tax to be determined and paid on the accrual basis (even if the company is on the cash basis.) Therefore, an officer may be liable when the item is sold or the tax is actually collected.
Answered on 12/27/06, 6:38 pm
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