What should you do if you receive a Demand for Payment from the Indiana Department of Revenue (DOR) stating that you are a responsible officer/person for a business taxpayer and are responsible for the business’s outstanding tax liabilities?
Julie Camden, an Indianapolis tax attorney at Camden & Meridew, P.C., has been consulting with and counseling clients on this issue with increased frequency. In this blog, she explains what the responsible officer/person notice means, what needs to be done, and the consequences of not acting quickly.
Why Did I Receive a Demand for Payment—Responsible Officer/Person Notice?
The Indiana DOR appears to be pursuing outstanding taxes held in trust by businesses more aggressively, possibly as a result of the availability and use of more advanced auditing tools, like the Indiana Taxpayer Information Management Engine (INTIME) system. Trust fund taxes are taxes collected by a business for obligations like sales and use or employee withholding and held in trust by the business pending remittance to the DOR.
If you receive a letter from the DOR stating that you are liable for business back taxes, the Department has identified you as an officer, member, or responsible person based on business filings or your employment role and alleged duty to remit taxes on behalf of the business.
In the majority of cases our office has handled, the person who received the Demand for Payment—Responsible Officer/Person letter has been improperly identified as such.
Who Qualifies as a Responsible Person for Indiana Taxes?
Indiana Senate Enrolled Act (SEA) 243, effective July 1, 2026, added Section 6-8.1-1-11 to the Indiana Code and defines a “responsible person” as follows:
(1) is an individual conducting business as a sole proprietor or an employee, contractor, officer, or member of an applicable business entity; and
(2) has a duty to remit listed taxes held in trust for the department or a political subdivision.
SEA 243 also created Indiana Code § 6-8.1-8-18, which states that a responsible person is personally liable for the payment of taxes held in trust for the DOR by a business, as well as any additional costs related to penalties and interest.
If you received a Demand for Payment or other notice that asserts that you are personally liable for unpaid business taxes in Indiana, you must act quickly to protest the DOR’s decision or otherwise address the alleged liability.
What To Do If You Receive a Responsible Officer/Person Notice
As stated in the Demand for Payment, you have been identified by the DOR as personally responsible for unpaid business taxes. Failing to remit the tax once you are aware of it is classified as a Level 6 felony under Indiana law.
Within 60 days of receiving notice, you are required to pay the full amount owed, show proof of payment if available, or protest your classification as a responsible officer/person. To win a protest, you must prove you were not a responsible officer or person for the business in question during the timeframe of the original tax assessment.
The Indiana DOR Protest Submission Form may be submitted by the individual who received the Demand for Payment—Responsible Officer/Person notice or their power of attorney (POA). It is important to provide sufficient relevant facts and evidence supporting your position and protest, as you are responsible for proving the DOR has identified you as liable in error. In your protest, you may request a final determination from the DOR either with or without a final hearing.
At Camden & Meridew, we recommend consulting with an experienced Indiana tax attorney to determine the best course of action for your specific situation. As your POA, the attorney can then gather and file all necessary documentation on your behalf within the 60-day period required.
What Happens If You Don’t Act Within 60 Days?
If you receive a Demand for Payment—Responsible Officer/Person notice from the Indiana Department of Revenue and do not take the necessary actions to remit payment or protest the designation within 60 days, the DOR may issue a tax warrant and begin the collections process immediately, unless you can show that you have filed for bankruptcy within the previous three months.
The tax warrant collections process may include garnishment of wages, levying of bank accounts, and/or auctioning of your personal property. If you intend to protest your designation as a responsible person and do not do so within 60 days, you lose the right to protest.
Contact an Indianapolis Attorney for Help with Tax Liability Matters
The consequences of failing to address issues related to a Demand for Payment—Responsible Officer/Person notice are extensive and can be extremely costly. As a tax attorney in Indianapolis, Julie Camden helps clients determine their actual tax liability and protest their designation as a responsible person if warranted.
For help with responsible officer/person designations and tax liability issues, contact Julie at Camden & Meridew, P.C.’s office in Fishers, Indiana by calling 317-770-0000 or completing our online contact form.