A chief executive officer (CEO) was found liable for employment taxes that were not paid by a subsidiary company. In this case, the taxpayer was the CEO for a holding company. One of the holding company’s wholly-owned subsidiaries had failed to fully pay
required employment taxes. Because the CEO had authority and control over the finances of the subsidiary and he willfully failed to pay withheld taxes, the Court determined he was personally liable for the assessed employment taxes.
Points of Interest
- During the early part of 2009, the economy in the United States faced a dire situation.
- Since 2009 was a hard year for the employment scene, the Act allows the first $2400 of unemployment benefits to be tax free.
- Many political analysts believe this is only round one of a series of new laws to come out of Congress to encourage recovery and uplift new policies to fight the recession / economic downturn.
By: Basi & Basi at the Center for Financial, Legal and Tax Planning for Transworld M&A Advisors