BILL REQ. #:  S-5072.1 

READ FIRST TIME 02/03/06.   

     AN ACT Relating to personal liability for failure to report on or pay unemployment taxes or contributions in lieu of taxes; and adding a new section to chapter 50.24 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 50.24 RCW to read as follows:
     (1) Upon termination, dissolution, or abandonment of a corporate or limited liability company business, any officer, member, manager, or other person having control or supervision over the payment of unemployment tax contributions under RCW 50.24.010 or 50.24.014, or who is charged with the responsibility for the filing of reports or the payment of unemployment tax contributions or payments in lieu of contributions is personally liable for any unpaid taxes and interest and penalties on those taxes, if such officer or other person willfully fails to pay or to cause to be paid any taxes due the department from the corporation under this chapter.
     (2) For purposes of subsection (1) of this section, "willfully fails to pay or to cause to be paid" means that the failure was the result of an intentional, conscious, and voluntary course of action.
     (3) The officer, member or manager, or other person, is liable only for taxes due during the period he or she had the control, supervision, responsibility, or duty to act for the corporation described in subsection (1) of this section, plus interest and penalties on those taxes.
     (4) Persons liable under subsection (1) of this section are exempt from liability in situations in which the nonpayment of unemployment compensation taxes that were due was beyond their control as determined by the employment security department by rule.
     (5) Any person having been issued a notice of assessment under this section is entitled to the appeal procedures under this title.
     (6) This section applies only in situations where the employment security department has determined that there is no reasonable means of collecting the tax owed directly from the corporation.
     (7) This section does not relieve the corporation or limited liability company of other tax liabilities or otherwise impair other tax collection remedies afforded by law.
     (8) Collection authority and procedures described in this chapter apply to collections under this section.
     (9) In determining the amount of taxes due, and whether penalties and interest should be imposed, the commissioner may take into consideration any hardship factors, either personal or business-related, pertaining to the failure of the officer, member, manager, or other person to pay the taxes owed.