Vermont § 5844 - Liability; penalty; trust for the State

§ 5844. Liability; penalty; trust for the State

• (a) Withholding requirement. Any person who fails to withhold the required tax or to pay it to the Commissioner
  as required under this subchapter shall be personally and individually liable for
  the amount of such tax, and if the person is a corporation or other entity, the personal
  liability shall extend and be applicable to any officer or agent of the corporation
  or entity who, as an officer or agent of the same, is under a duty to withhold the
  tax and transmit it to the Commissioner as required in this chapter. (b) Held in trust for State. Any sum or sums withheld in accordance with this subchapter shall be deemed to be
  held by the person in trust for the State of Vermont. Such sums shall be recorded
  by such person in a ledger account so as clearly to indicate the amount of tax withheld
  and that the same are the property of the State of Vermont. (c) Withholding penalties. (1) Failure to file; failure to withhold; failure to remit. Any employer, including any corporate officer or agent, who knowingly fails to file
  a return, fails to withhold a tax, or fails to remit a tax required under this subchapter
  shall be imprisoned not more than one year or fined not more than $1,000.00, or both. (2) Failure to file; failure to withhold; failure to remit; over $500.00. Any employer, including any corporate officer or agent, who with intent to evade a
  tax liability fails to file a return, fails to withhold a tax, or fails to remit a
  tax required under this subchapter shall, if the amount of tax withheld or required
  to be withheld exceeds $500.00 in a single calendar year, be imprisoned not more than
  three years or fined not more than $10,000.00, or both. (3) False or fraudulent return. Any employer, including any corporate officer or agent, who knowingly makes, signs,
  verifies, or files with the Commissioner a false or fraudulent tax return shall be
  imprisoned not more than one year or fined not more than $1,000.00, or both. Any
  employer, including any corporate officer or agent, who with intent to evade a tax
  liability makes, signs, verifies, or files with the Commissioner a false or fraudulent
  return, if the amount of tax withheld or required to be withheld exceeds $500.00,
  shall be imprisoned not more than three years or fined not more than $10,000.00, or
  both. (4) Lien. In addition, an unpaid tax shall constitute a lien in favor of the State of Vermont
  as provided in this chapter. (d) Withholding liability. Any amount required to be deducted and withheld, and to be paid over to the Commissioner,
  by a person under this subchapter shall be considered to be a tax liability of the
  person for purposes of this chapter. The person shall be subject, with respect to
  that tax liability, to the provisions of this chapter, including the provisions governing
  returns, fees for late filing of returns, interest and penalties for nonpayment of
  tax liabilities, liens, levies, and appeals, except as those provisions conflict with
  the express provisions of this subchapter. Any report required under subsection 5842(c) of this title or rules issued under that section shall be considered to be a return for the purposes
  of this chapter. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1971, No. 73, § 17, eff. April 16, 1971; 1985, No. 266 (Adj. Sess.), § 3, eff. June 4, 1986; 1987, No. 48, § 8; 1997, No. 50, § 17, eff. June 26, 1997; 2019, No. 14, § 79, eff. April 30, 2019; 2021, No. 105 (Adj. Sess.), § 535, eff. July 1, 2022.)