Indiana Administrative Code
Title 45 - DEPARTMENT OF STATE REVENUE
Article 2.2 - SALES AND USE TAX
Rule 9 - Enforcement and Penalties
Section 9-4 - Responsible officer liability
Universal Citation: 45 IN Admin Code 9-4
Current through September 18, 2024
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.
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