Section 10-906 - Tax to be withheld and paid to Comptroller.
§ 10-906. Tax to be withheld and paid to Comptroller.
(a) Required.- Except as provided in § 10-907 of this subtitle, each employer or payor shall:
(1) withhold the income tax required to be withheld under § 10-908 of this subtitle; and
(2) pay to the Comptroller the income tax withheld for a period with the withholding return that covers the period.
(b) Tax withheld deemed held in trust.- Any income tax withheld is deemed to be held in trust for the State by the employer or payor who withholds the tax.
(c) Separate account required.- An employer or payor who withholds income tax shall keep a separate ledger account for withholdings that indicates clearly:
(1) the amount of income tax withheld; and
(2) that the income tax withheld is the property of the State.
(d) Liability for failure to withhold or pay.- If an employer or payor negligently fails to withhold or to pay income tax in accordance with subsection (a) of this section, personal liability for that income tax extends:
(1) to the employer or payor;
(2) if the employer or payor is a corporation, to:
(i) any officer of the corporation who exercises direct control over its fiscal management; or
(ii) any agent of the corporation who is required to withhold and pay the income tax; and
(3) if the employer or payor is a limited liability company as defined under Title 4A of the Corporations and Associations Article or a limited liability partnership as defined under Title 9A of the Corporations and Associations Article, including a limited partnership registered as a limited liability limited partnership, to:
(i) any person who exercises direct control over its fiscal management; and
(ii) any agent of the limited liability company or limited liability partnership who is required to withhold and pay the income tax.
[An. Code 1957, art. 81, §§ 283, 312; 1988, ch. 2, § 1; ch. 110, § 1; 1989, ch. 590, § 3; 1992, ch. 536; 1993, ch. 243; 1997, ch. 654, § 2; 1998, ch. 743, § 3; 1999, ch. 34, § 1; 2003, ch. 21, § 1.]