Certain types of Virginia business taxes (for example sales and employment taxes but not corporate taxes) may be assessed against individual officers of a corporation or of a limited liability company organized in Virginia. Virginia courts use several factors in order to determine whether a particular business person should be held personally liable for business taxes. For example, if an individual was specifically designated as the tax matter partner within a business, prepared and signed tax returns and was aware of the tax delinquencies, there is a good chance that he would be held personally liable for delinquent business taxes. On the other hand, mere day-to-day management of the business without actual knowledge of the delinquent Virginia sales or employment tax delinquencies may not constitute sufficient legal grounds for assessment of taxes as a responsible corporate officer.
Virginia business operators who are targeted by the Virginia Department of Taxation (‘Virginia DOT’) for assessment of trust fund taxes, should comply with strict statutory deadlines for appealing the initial findings of personal responsibility for business trust fund taxes.