Are you personally responsible for sales tax?

Are you personally responsible for the company’s sales taxes?

When a company submits a state registration form, the “responsible party” must provide their social security number. Without the registration, unremitted sales tax can generate penalties and interest and it’s considered fraud to collect sales tax without a registration.

A common misconception is that the “responsible party” is not personally liable rather the company is. By releasing the responsible party’s SSN, they too in addition to the company are now on the hook for collection and remittance of sales tax.

SALES TAX DOES NOT BELONG TO THE COMPANY. THE COMPANY IS THE MIDDLEMAN RESPONSIBLE FOR COLLECTING AND REMITTING.

If responsible parties are owners, officers, shareholders or even employees, all of these individuals can be held personally liable and liability can extend to personal assets.

 

In Florida, online only and brick and mortar locations must register to collect sales tax. If the business is a corporation, business trust, non-business trust or estate, then the requirement for social security number is exempt.