Ohio Administrative Code
Title 5703 - Department of Taxation
Chapter 5703-7 - Income Tax
Section 5703-7-15 - Income tax; withholding; corporate officer liability
Universal Citation: OH Admin Code 5703-7-15
Current through all regulations passed and filed through September 16, 2024
(A) Pursuant to division (G) of section 5747.07 of the Revised Code, a person is personally liable for an employer's responsibility to file returns and make payments required under section 5747.07 of the Revised Code, if the employer is a corporation, limited liability company, or business trust and either:
(1)
The
person is an employee with control or supervision over, or charged with the
responsibility of, filing the required returns or making the required payments;
or
(2)
The person is an officer, member, manager, or trustee
responsible for the execution of the employer's fiscal
responsibilities.
(B)
(1)
Pursuant to section
5747.453 of the Revised Code, a
person is personally liable for a qualifying entity's responsibility to file
returns and make payments required under sections
5747.40 to
5747.453 of the Revised Code, if
either:
(a)
The
person is an employee of, investor in, or beneficiary of the qualifying entity
with control or supervision over, or charged with the responsibility of, filing
the required returns or making the required payments; or
(b)
The person is an
officer, member, manager, or trustee of the qualifying entity responsible for
the execution of the qualifying entity's fiscal
responsibilities.
(2)
An investor or
beneficiary with an indirect or constructive interest in a qualifying entity is
personally liable for the responsibilities described in section
5747.453 of the Revised Code if
such investor or beneficiary otherwise meets the requirements for personal
liability under that section.
(C) For the purposes of this rule and sections 5747.07 and 5747.453 of the Revised Code:
(1)
The
term "person" specifically contemplates non-individuals.
(2)
A person has
"control or supervision" over filing the required returns and making the
required payments if either:
(a)
The person directly or indirectly supervises or manages
any person described in paragraph (C)(3) of this rule; or
(b)
The person has
direct or indirect authority over any person described in paragraph (C)(3) of
this rule.
(3)
A person is "charged with the responsibility" of filing
the required returns and making the required payments if any of the following
apply:
(a)
The
person is statutorily or contractually responsible for the preparation and/ or
filing of the required returns and/or transmission of the required
payments;
(b)
The person signs and/or submits any required Ohio tax
filing or payment;
(c)
The person retains, directs, or consults with any
outside persons who are charged with filing and remitting the required Ohio tax
returns and payments;
(d)
The person performs the duties required under section
5747.06 or
5747.41 of the Revised Code, or
performs any other payroll or withholding functions, for the employer or
qualifying entity;
(e)
The person has the direct or delegated authority to
sign checks or initiate electronic funds transfers on behalf of the employer or
qualifying entity; or
(f)
The person's position is one that would ordinarily be
responsible for any fiscal duty, including but not limited to those listed in
this paragraph, even if the person does not actually participate in or
supervise said duty.
(4)
A person is
"responsible for the execution of the employer or qualifying entity's fiscal
responsibilities" if any of the following apply:
(a)
The person is
statutorily or contractually responsible for the financial affairs of the
employer or qualifying entity;
(b)
The person
performs any of the duties or functions, or has any of the authority, described
in paragraph (C)(2) or (C)(3) of this rule; or
(c)
The person
delegates, or has the power to delegate, any of the duties or functions
described in paragraph (C)(2) or (C)(3) of this rule to any other
person.
(5)
Performance of any duty by either electronic and
non-electronic means, or both, is contemplated.
(D)
(1)
Nothing in this rule or Chapter 5747. of the Revised
Code shall be construed to limit the number of persons derivatively liable for
the taxes described in paragraphs (A) and (B) of this rule.
(2)
If more than one
person described in paragraph (A) or (B) of this rule is personally liable for
any unpaid liability, their liabilities shall be joint and
several.
(E) The provisions of this rule are not exclusive or exhaustive. The commissioner may use any relevant evidence to establish the personal liability of any person for an unpaid tax liability under either section 5747.07 or 5747.41 of the Revised Code.
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