Indiana –Responsible Officer Held Liable for Assessed Sales Tax

SALT Report 3152 – Indiana Letter of Findings No. 04-201301143 dated October 30, 2013 – The president of a company asserted that he was not involved in the day to day operations of the business and that he had delegated responsibility to another person (Person S).  The officer acknowledged the “illegal activities” resulting in the assessment and even personally corrected the reporting issues in the four successive months before closing the store in September 2012.  The company president did not argue the assessment amount.  The company president argued that he was not liable for the taxes owed and that Person S was.

In conclusion, Indiana found that the company president was a responsible party relying on relevant Indiana law (IC Sections 6-2.5-2-1 and 6-2.5-9-3) and on a 1995 Indiana Supreme Court decision – Dep’t of State Revenue v. Safayan, 654 N.E. 2d 270, 273 (Ind. 1995) and was therefore liable for the tax.

For Further Information:

Indiana Letter of Findings Number: 04-201301143

 Dep’t of State Revenue v. Safayan, 654 N.E. 2d 270, 273 (Ind. 1995)