State and Local Tax (SALT) attorney Bruce Ely was quoted in Bloomberg BNA on the state’s tax tribunal ruling that an employee isn’t responsible for a company’s unpaid state taxes in Alabama. The ruling adds to an area of interest for many states—namely, how to apply their own responsible person penalty statutes, particularly in cases involving LLC structures that didn't exist when many of those statutes were enacted.
“It's an important case. A lot of states have some version of a responsible person penalty statute, and they should examine their own statutes in light of this ruling,” explained Ely, who serves on Bloomberg BNA's State Tax Advisory Board.
Ely said he helped negotiate the language of Alabama's responsible person penalty statute before it was enacted in 1983.
The complete article, “Employee Doesn’t Owe Company’s Unpaid Alabama Taxes: Tribunal,” appeared in Bloomberg BNA on September 8, 2017. (login required)