Every withholder shall be liable for amounts required to be deducted and withheld by the Withholding Tax Act regardless of whether the amounts were in fact deducted and withheld, except that:

A. if the withholder fails to deduct and withhold the required amounts and if the tax against which the required amounts would have been credited is paid, the withholder shall not be liable for those amounts not deducted and withheld; or

B. if the withholder's failure to deduct and withhold the required amounts was due to reasonable cause, the withholder shall not be liable for amounts not deducted and withheld.

History: 1953 Comp., § 72-15-53, enacted by Laws 1961, ch. 243, § 5; 1990, ch. 64, § 4; 1999, ch. 14, § 2; 2010, ch. 53, § 4.

The 2010 amendment, effective May 19, 2010, in the introductory sentence, after "Every withholder", deleted "or pass-through entity"; in Subsection A, after "if the withholder", deleted "or pass-through entity"; and in Subsection B, after "if the withholder's", deleted "or pass-through entity", and after "reasonable cause, the withholder", deleted "or pass-through entity".

Applicability. — Laws 2010, ch. 53, § 19 provided that the provisions of this act are applicable to taxable years beginning on or after January 1, 2011.

The 1999 amendment, effective June 18, 1999, inserted "or pass-through entity" and "or pass-through entity's" throughout the section, and deleted "or not" following "of whether" in the introductory language.

The 1990 amendment, effective July 1, 1990, substituted "Withholder" for "Employer" in the section heading and throughout the section and made a minor stylistic change in Subsection B.

Am. Jur. 2d, A.L.R. and C.J.S. references. — 71 Am. Jur. 2d State and Local Taxation §§ 530, 531, 596 to 607.

Application of payments, made in satisfaction of employer's withholding tax liability, to employer's liability for penalties, 59 A.L.R. Fed. 484.

85 C.J.S. Taxation §§ 1719 to 1756.