Illinois partner not responsible party in failure to pay withholding taxes

A former partner in a limited liability partnership that was engaged in the practice of law in Illinois was not liable for penalties and interest for the willful failure to pay the partnership’s personal income withholding taxes for the tax years at issue because he rebutted the Department of Revenue’s prima facie case that he was a responsible party. The former partner worked at locations in Illinois and Kentucky, but evidence showed that he was not involved with the day-to-day business of the partnership, he did not physically work in the Illinois partnership office, and he did not sign checks, withholding tax returns or partnership replacement tax returns. Testimony and documentary evidence clearly demonstrated that the other partner, who was identified as the managing and tax matters partner in the partnership agreement, was responsible for the business operations of the partnership, including the filing of tax returns and the payment of taxes. (Administrative Hearing Decision No. IT 15-01, Illinois Department of Revenue, February 24, 2015, released April 3, 2015.)

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