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DOR > About Us > Resources > Tax Talk Blog > In the end, a Responsible Officer is ultimately responsible In the end, a Responsible Officer is ultimately responsible

If you’re listed with the Department of Revenue as a responsible officer of a business, then you are personally responsible for any sales and withholding tax debts that business owes – so sayeth Indiana law.

That means if the business you’re associated with doesn’t pay its tax bills, then you’re responsible for making sure they are paid. Even a business bankruptcy doesn’t absolve the responsible officers of Indiana tax debts. And any unpaid delinquent sales or withholding tax debts can show up on your personal credit report.

Of course, we like to avoid having to take such action. So, it’s important for responsible officers to have a handle on where their business is in terms of its tax standing with the Indiana Department of Revenue.

In some instances, the Department of Revenue sends a courtesy notification to a delinquent business’s responsible officers, making them aware that the Department has made multiple attempts to collect on a tax debt—or debts, in some cases. If you ever receive such a letter, it’s important to respond to it immediately. The Department does offer payment plans on tax bills, which can be set up in a matter of minutes and get your business on track to pay its past-due taxes and to keep on track with all present and future taxes.

But what if you get one of these letters and you moved on from being a responsible officer for that business a long time ago? We have a solution for that, too. It’s called an ROC-1 form, or a Change/Correction of Responsible Officer Information form. You can find it on our Web site at https://forms.in.gov/Download.aspx?id=2841 This form allows you to properly inform the Department of Revenue if you are formally no longer a responsible officer for the business.

However, it won’t absolve you of sales and withholding tax debts that the business incurred while you were a responsible officer. Indiana law sayeth, under IC 6-2.5-9-3, that you are responsible for those sales and withholding debts until they are paid in full.

In short, if you’re a responsible officer for a business, then you’re ultimately responsible for ensuring the sales and withholding taxes are paid in full and on time for your business, and if they are not, you’re legally and financially responsible. And, if you are no longer a responsible officer with that business, you’re responsible for notifying us by completing the proper paperwork.

So, if you get a friendly notification from us addressing you as a responsible officer, please give us a call. We want to see Indiana businesses succeed, and helping yours get and keep its tax filings and payments on track is all part of that effort. If you have any questions about your business taxes, please give us a call at (317) 233-4015. We’re always happy to help.