Daily Tax Report: State

Arizona Court of Appeals Finds Owner Personally Liable to Pay Company’s Unpaid Sales Tax

April 22, 2020, 5:00 AM

The Arizona Court of Appeals April 21 affirmed the tax court’s judgment finding Taxpayer personally liable for unpaid transaction privilege taxes (TPT). Taxpayer was a member-manager and the chief executive officer (CEO) of a limited liability company. The Department of Revenue (DOR) sued Taxpayer, alleging that he was liable for failing to remit the TPT sales and use tax the company collected from its customers. The tax court concluded that Taxpayer, being the membermanager and CEO of the company, was responsible and personally liable for the taxes. Taxpayer appealed. The appeals court found that: 1) Taxpayer had the power and...

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