Kentucky Statutes 141.340 – Liability of employer for tax payment — Corporate officers, managers of limited liability companies, and partners of registered limited liability partnerships personally liable
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(1) An employer shall be liable for the payment of the tax required to be deducted and withheld under KRS § 141.310 and KRS § 141.315, and shall not be liable to any person for the amount of any such payment.
(2) The president, vice president, secretary, treasurer or any other person holding an equivalent corporate office of any corporation subject to KRS § 141.310 or 141.315 shall be personally and individually liable, both jointly and severally, for any tax required to be withheld under this chapter from wages paid to one (1) or more employees of any such corporation, and neither the corporate dissolution or withdrawal of the corporation from the state nor the cessation of holding any such corporate office shall discharge the foregoing liability of any such person; provided that the personal and individual liability shall apply to each or every person holding such corporate office at the time such tax becomes or became obligated. No person shall be personally and individually liable under this subsection who had no authority to collect, truthfully account for, or pay over any tax imposed by this chapter at the time that taxes imposed by this chapter become or became due. “Taxes” as used in this section shall include interest accrued at the rate provided by KRS § 131.138, all applicable penalties and fees imposed under KRS § 131.180,
131.410 to 131.445, and 131.990.
(3) Notwithstanding any other provisions of this chapter, KRS § 275.150, 362.1-306(3) or predecessor law, or 362.2-404(3) to the contrary, the managers of a limited liability company, the partners of a limited liability partnership, or the general partners of a limited liability limited partnership or any other person holding any equivalent office of a limited liability company, limited liability partnership, or limited liability limited partnership subject to KRS § 141.310 or 141.315 shall be personally and individually liable, both jointly and severally, for any tax required to be withheld under this chapter from wages paid to one (1) or more employees of any such limited liability company, limited liability partnership, or limited liability limited partnership. Dissolution, withdrawal of the limited liability company, limited liability partnership, or limited liability limited partnership from the state, or the cessation of holding any office shall not discharge the liability of any person. The personal and individual liability shall apply to each and every manager of a limited liability company, partner in a limited liability partnership, and general partner of a limited liability limited partnership at the time the taxes become or became due. No person shall be personally and individually liable under this subsection who had no authority to collect, truthfully account for, or pay over any tax imposed by this chapter at the time that the taxes imposed by this chapter become or became due. “Taxes” as used in this section shall include interest accrued at the rate provided by KRS § 131.183, all applicable penalties imposed under this chapter, and all applicable penalties and fees imposed under KRS § 131.180, 131.410 to 131.445, and 131.990.
Effective: July 12, 2006
History: Amended 2006 Ky. Acts ch. 149, sec. 203, effective July 12, 2006. — Amended 2002 Ky. Acts ch. 366, sec. 17, effective January 1, 2003. — Amended
1978 Ky. Acts ch. 233, sec. 15, effective June 17, 1978. — Created 1954 Ky. Acts ch.
79, sec. 28, effective June 17, 1954.
Legislative Research Commission Note (1/1/2003). The amendments to subsection (3)
of this statute made in 2002 Ky. Acts ch. 366, sec. 17, “apply retroactively to July 15,
1994.” 2002 Ky. Acts ch. 366, sec. 19.
(2) The president, vice president, secretary, treasurer or any other person holding an equivalent corporate office of any corporation subject to KRS § 141.310 or 141.315 shall be personally and individually liable, both jointly and severally, for any tax required to be withheld under this chapter from wages paid to one (1) or more employees of any such corporation, and neither the corporate dissolution or withdrawal of the corporation from the state nor the cessation of holding any such corporate office shall discharge the foregoing liability of any such person; provided that the personal and individual liability shall apply to each or every person holding such corporate office at the time such tax becomes or became obligated. No person shall be personally and individually liable under this subsection who had no authority to collect, truthfully account for, or pay over any tax imposed by this chapter at the time that taxes imposed by this chapter become or became due. “Taxes” as used in this section shall include interest accrued at the rate provided by KRS § 131.138, all applicable penalties and fees imposed under KRS § 131.180,
Terms Used In Kentucky Statutes 141.340
- Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Corporation: means a corporation taxable under KRS §. See Kentucky Statutes 141.010
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Individual: means a natural person. See Kentucky Statutes 141.010
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Partnership: includes both general and limited partnerships. See Kentucky Statutes 446.010
- Person: means "person" as defined in Section 7701(a)(1) of the Internal Revenue
Code. See Kentucky Statutes 141.900 - State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Statute: A law passed by a legislature.
- Wages: means "wages" as defined in Section 3401(a) of the Internal Revenue
Code and includes other income subject to withholding as provided in Section
3401(f) and Section 3402(k), (o), (p), (q), and (s) of the Internal Revenue Code. See Kentucky Statutes 141.900
131.410 to 131.445, and 131.990.
(3) Notwithstanding any other provisions of this chapter, KRS § 275.150, 362.1-306(3) or predecessor law, or 362.2-404(3) to the contrary, the managers of a limited liability company, the partners of a limited liability partnership, or the general partners of a limited liability limited partnership or any other person holding any equivalent office of a limited liability company, limited liability partnership, or limited liability limited partnership subject to KRS § 141.310 or 141.315 shall be personally and individually liable, both jointly and severally, for any tax required to be withheld under this chapter from wages paid to one (1) or more employees of any such limited liability company, limited liability partnership, or limited liability limited partnership. Dissolution, withdrawal of the limited liability company, limited liability partnership, or limited liability limited partnership from the state, or the cessation of holding any office shall not discharge the liability of any person. The personal and individual liability shall apply to each and every manager of a limited liability company, partner in a limited liability partnership, and general partner of a limited liability limited partnership at the time the taxes become or became due. No person shall be personally and individually liable under this subsection who had no authority to collect, truthfully account for, or pay over any tax imposed by this chapter at the time that the taxes imposed by this chapter become or became due. “Taxes” as used in this section shall include interest accrued at the rate provided by KRS § 131.183, all applicable penalties imposed under this chapter, and all applicable penalties and fees imposed under KRS § 131.180, 131.410 to 131.445, and 131.990.
Effective: July 12, 2006
History: Amended 2006 Ky. Acts ch. 149, sec. 203, effective July 12, 2006. — Amended 2002 Ky. Acts ch. 366, sec. 17, effective January 1, 2003. — Amended
1978 Ky. Acts ch. 233, sec. 15, effective June 17, 1978. — Created 1954 Ky. Acts ch.
79, sec. 28, effective June 17, 1954.
Legislative Research Commission Note (1/1/2003). The amendments to subsection (3)
of this statute made in 2002 Ky. Acts ch. 366, sec. 17, “apply retroactively to July 15,
1994.” 2002 Ky. Acts ch. 366, sec. 19.