Corporate Officer Remained Liable Despite Delegation of Authority
In Gilbert v. Department of Treasury, Michigan Tax Tribunal, No. 328819, May 13, 2010, released November 3, 2010, the president of a Michigan restaurant chain was liable for unpaid sales and withholding tax as a corporate officer because his signature appeared on relevant tax returns and checks during the relevant period.
Though the taxpayer claimed that health problems led him to delegate corporate responsibility to others, a corporate officer cannot avoid liability by delegating authority to a non-officer.
Furthermore, though the business assets were sold, the sale did not lessen the taxpayer's liability. The taxpayer failed to submit any evidence that a statutory exception arose that would have resulted in successor liability.