45 IAC 2.2-9-4 Responsible officer liability

Authority: IC 6-8.1-3-3

Affected: IC 6-2.5; IC 35-50-2-7

Sec. 4. (a) Businesses hold sales and use taxes in trust accounts for the state of Indiana. If businesses do not properly remit these taxes, responsible officers can be held personally liable for those trust fund taxes.

(b) Responsible officer is defined as an individual who:

(1) Is an individual retail merchant or is an employee, officer, or member of a corporate or partnership retail merchant; and

(2) Has a duty to remit state gross retail or use taxes to the Department of Revenue.

(c) If a responsible officer knowingly fails to remit those taxes to the state, he commits a Class D felony.

(d) As provided in IC 35-50-2-7:

(1) A person who commits a Class D felony shall be imprisoned for a fixed term of two (2) years, with not more than two (2) years added for aggravating circumstances; in addition, he may be fined not more than ten thousand dollars ($10,000).

(2) Notwithstanding subsection (1) of this section $subsection (a) of this section$, if a person has committed a Class D felony, the court may enter judgment of conviction of a Class A misdemeanor and sentence accordingly. The court shall enter in the record, in detail, the reasons for its action whenever it exercizes $sic.$ the power granted in this subsection.

(Department of State Revenue; Ch. 9, Reg. 6-2.5-9-3(010); filed Dec 1, 1982, 10:35 am: 6 IR 68)