Corporate Officer Liability
Why am I being held responsible for a corporation's debt?
The company (corporation, LLC, partnership, etc.) where you were employed owes a tax debt to the State of Michigan. Through either an audit or investigation, it was determined that you were an officer of that company, whose responsibilities included ensuring payment of those taxes on behalf of the company. The law states since you hold the responsibility for paying the taxes and they were not paid, you become personally liable.
Public Act 3 of 2014 was enacted with immediate effect on February 6, 2014, amending section 205.27a(5) of the Revenue Act (PA 122 of 1941). It provides the following:
"If a business liable for taxes administered under this act fails, for any reason after assessment, to file the required returns or to pay the tax due, any of its officers, members, managers of a manager-managed limited liability company, or partners who the department determines, based on either an audit or an investigation, is a responsible person is personally liable for the failure for the taxes described in subsection (14). The signature, including electronic signature, of any officer, member, manager of a manager-managed limited liability company, or partner on returns or negotiable instruments submitted in payment of taxes of the business during the time period of default, is prima facie evidence that the person is a responsible person…"