VA: Corp President not held liable for unpaid sales

The 20% owner of a tire shop who performed the duties of shop foreman was relieved of personal liability for unpaid sales taxes because he proved that, despite his standing as the President of the corp, he did not meet the VA definition of a corp officer. He did not have enough ownership/authority to control business affairs. He had no actual knowledge that the taxes were not being paid. The duty of reporting and remitting sales taxes fell to others. These factors were taken into consideration and the VA commissioner ruled in his favor. Each state will look at different criteria and apply varying weights to items of evidence but this case provides some insight on who responsible parties might be in cases of unpaid sales taxes.

State Tax Reciprocal Agreements example

From January 2010. These may not always stay the same so please confirm before depending on the info! (DE has no reciprocal agreements of this nature.)

State States with State Tax Reciprocal Agreements Exemption Form


District of Columbia All non-residents who work in DC can claim exemption from withholding for the DC income tax. D-4A

Illinois Iowa, Kentucky, Michigan, Wisconsin IL-W-5-NR

Indiana Kentucky, Michigan, Ohio, Pennsylvania, Wisconsin WH-47

Iowa Illinois 44-016

Kentucky Illinois, Indiana, Michigan, Ohio, West Virginia, Wisconsin, Virginia 42A809

Maryland District of Columbia, Pennsylvania, Virginia, West Virginia MW 507

Michigan Illinois, Indiana, Kentucky, Minnesota, Ohio, Wisconsin - Employers may create their own exemption form or use the line on MI-W4 for claiming exemption from withholding. Employee should write "Reciprocal Agreement" and the state name on that line. MI-W4

Minnesota Michigan, North Dakota MWR

Montana North Dakota NR-2

New Jersey Pennsylvania NJ-165

North Dakota Minnesota, Montana NDW-R

Ohio Indiana, Kentucky, Michigan, Pennsylvania, West Virginia IT-4NR

Pennsylvania Indiana, Maryland, New Jersey, Ohio, Virginia, West Virginia REV-420

Virginia Kentucky, Maryland, District of Columbia, Pennsylvania, West Virginia VA-4

West Virginia Kentucky, Maryland, Ohio, Pennsylvania, Virginia WV/IT-104

Wisconsin Illinois, Indiana, Kentucky, Michigan W-220