Responsible Person Assessments

Corporate officers and owners often have a fiduciary responsibility to insure that all sales and use taxes are properly collected and remitted to the government. This is true even if a business fails to collect the taxes in question. Imagine not collecting sales tax from a customer and then the government assesses the company you work at for the tax they claim to be due, plus interest and penalties.

The government can assess you personally for the amount of taxes the business could not pay as well as putting a lien on your house, seizing your bank accounts and begin garnishing your wages. All because the company you worked for erroneously failed to charge a customer sales and use tax. While this sounds very unfair, it is the law in many states.

In order to be held as a responsible person, you have to have had “the responsibility and authority to insure the collection and remittance of the applicable sales and use taxes.” The government generally assumes anyone remotely involved in the sales and use tax reporting process is a responsible person. Often the government is wrong and over reaching. Never accept being held as a responsible person without a fight. We will defend you and help preserve the lifestyle you have built for your family. But you must act quickly if assessed, there is a limited time period allowed by law for you to dispute and appeal a sales tax responsible person assessment.