Tex.
Tax Code Section 111.0611
Personal Liability for Fraudulent Tax Evasion
(a)
An officer, manager, or director of a corporation, association, or limited liability company, a partner of a general partnership, or a managing general partner of a limited partnership or limited liability partnership who, as an officer, manager, director, or partner, took an action or participated in a fraudulent scheme or fraudulent plan to evade the payment of taxes due under Title 2 or 3 is personally liable for the taxes and any penalty and interest due. The personal liability of an individual includes liability for the additional 50 percent fraud penalty provided by Section 111.061 (Penalty on Delinquent Tax or Tax Reports)(b). The comptroller shall assess individuals liable under this section in the same manner as other persons or entities may be assessed under this chapter.(b)
For purposes of this section, actions that may indicate the existence of a fraudulent scheme or a fraudulent plan to evade the payment of taxes include:(1)
filing, or causing to be filed, a fraudulent tax return or report with the comptroller on behalf of the business entity;(2)
intentionally failing to file a tax return, report, or other required document with the comptroller when the business entity is under a legal obligation to file;(3)
filing, or causing to be filed, a tax return or report with the comptroller on behalf of the business entity that contains an intentionally false statement that results in the amount of the tax due exceeding the amount of tax reported by 25 percent or more; and(4)
altering, destroying, or concealing any record, document, or thing, presenting to the comptroller any altered or fraudulent record, document, or thing, or otherwise engaging in fraudulent conduct with the intent to affect the course or outcome of a comptroller audit or investigation, a redetermination hearing, or another proceeding involving the comptroller.(c)
To the extent the comptroller can verify and secure sufficient unencumbered assets of the corporation, association, or partnership to satisfy the liability, an individual’s personal liability under Subsection (a) is limited to the amount by which the total tax, penalty, and interest due under this section exceeds those assets.
Source:
Section 111.0611 — Personal Liability for Fraudulent Tax Evasion, https://statutes.capitol.texas.gov/Docs/TX/htm/TX.111.htm#111.0611
(accessed Jun. 5, 2024).