Registering a business for sales tax sounds simple. But it can be fraught with contention and bring up concerns as requirements become known. All those who are identified as “responsible parties” – the business owners, officers, directors, shareholders, and employees - can be personally liable for sales tax obligations. This begs the question, what exactly is a responsible party and why is the ask so invasive?
The short answer is because, due to per federal and other laws, these executives, owners and employees are required to relinquish their personal information before the business can be entrusted with state and local tax funds. Although legal and binding, this requirement doesn’t always go over well, particularly when these individuals realize that by signing on as responsible parties, they become personally liable for sales taxes of the business.
Join Judy Vorndran as she discusses the “why” behind the sales tax registration requirement and how can you best protect your business, people and clients from personal liability.
Why there’s risk in complying with requirement to hand over personal information in the sales tax registration process.
Assuming trustee status.
Declaring who you say you are.
Who is responsible
Best ways to protect your business and people from personal liability.
Judy Vorndran leads the state and local tax (SALT) practice at TaxOps, helping clients navigate the morass of SALT issues with the goal of making it less “Taxing!”. She is a recognized thought leader and award-winning instructor to clients and tax professionals alike with a steady focus on finding ways to simplify complex SALT issues and areas of state tax controversy. Judy monitors the legislative, judicial, and regulatory tax landscape to assess the tax impact on businesses, and has helped successfully change the laws in a number of states and jurisdictions. Previously, Judy was the first National Tax Resource at a Top 100 CPA Firm, where she launched the firm’s SALT practice. She also spent 14 years exclusively focusing on SALT at PwC and Deloitte, extensively traveling the U.S. helping clients implement best practices and reduce SALT risks.