Process for finding an individual personally liable for unpaid business debt
The process begins with determining which individuals may be held personally liable for unpaid business debt. We will make this determination within three years from the date we issued the
Notice of Assessment on the business entity for which the individual is being investigated.
Who can be held personally liable for unpaid business debt?
An officer, member, shareholder, or employee of a corporation, partnership, or other business entity may be held personally liable for debt owed by a business. In establishing personal liability, we will consider individuals with one or more,
but not limited to, the following business authorities:
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Hire or dismiss employees
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Sign or co-sign checks
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Complete tax reports
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Set employee work conditions
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Make financial decisions about the business
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Can incur debt on behalf of the business
Individuals may be considered personally liable for unpaid business debt even when one or more of the following apply:
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Maintaining full-time employment elsewhere
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Another individual is also liable for the same business debt
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A corporate bylaw or partnership agreement position description stating otherwise
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Lack of access to the business bank account
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Lack of bookkeeping or recordkeeping duties
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Lack of authority to hire, fire, and to set working conditions and schedules
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Delegation of any of your duties
For which business debts may I be held liable?
Unpaid business debt associated with the following tax programs.
Withholding Tax (ORS 316.207; OAR 150-316-0243 and 150-316-0370)
Statewide Transit Tax (ORS 316.207; OAR 150-316-0243 and 150-316-0370)
Marijuana Tax (ORS 475C.688, 475C.722; OAR 150-475-2040)
Amusement Device Tax (ORS 320.075)
Vehicle Privilege Tax (ORS 320.450)
Bicycle Excise Tax (ORS 320.450)
Heavy Equipment Rental Tax (ORS 307.883 and OAR 150-307-0906)
State Lodging Tax (ORS 320.325 and OAR 150-320-0041)
Emergency Communication Tax (E-911) (ORS 403.225 and OAR 150-403-0011)
988 Crisis Emergency Service Tax (ORS 403.225 and OAR 150-403-0011)
Petroleum Load Fee Tax (ORS 465.112 and OAR 150-465-0041)
Psilocybin Tax (ORS 475A.674 and OAR 150-475-4040)
Correspondence
In addition to the normal
collection correspondence, the following list represents the correspondence individuals, who are found personally liable for unpaid business debt, may receive.
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Investigation of Authority: This letter is used to inform you that we are conducting an investigation to determine the duties and authorities held by individuals associated with the business during a specific time period.
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Notice of Liability: This letter is used to inform you that you have been found personally liable for unpaid business debt.
What if I don’t agree with the decision to hold me personally liable for unpaid business debt?
The Notice of Liability, informing that we have found you personally liable for unpaid business debt, provides your options to appeal our decision. To appeal, follow these steps:
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Step 1: Request a conference within 30 days from the date printed on the Notice of Liability letter. For instructions on how to complete this step refer to your Notice of Liability letter.
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If we don’t receive a conference request from you within 30 days from the date on the Notice of Liability letter the notice becomes final.
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Step 2: If we deny your appeal in step 1, or you fail to request a conference timely, you have the right to appeal to the Oregon Tax Court Magistrate Division. For instructions on how to complete this step refer to your Notice of Liability letter.
You may pay the balance in full at any point during the appeal period. Payment doesn’t mean that you agree with our decision it just stops more interest from accruing. If you pay your balance and didn’t request a conference in step 1, you have 120 days from the date on the Notice of Liability letter to appeal to the Magistrate Division.