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    Subdivision 1. Liability imposed. A person who, either singly or jointly with others, has the
control of, supervision of, or responsibility for filing returns or reports, paying taxes, or collecting
or withholding and remitting taxes and who fails to do so, or a person who is liable under any
other law, is liable for the payment of taxes, penalties, and interest arising under chapters 295,
296A, 297A, 297F, and 297G, or sections 290.92 and 297E.02.
    Subd. 2. Person defined. The term "person" includes, but is not limited to, a corporation,
estate, trust, organization, or association, whether organized for profit or not, an officer or director
of a corporation, a member of a partnership, an employee, a third party (including, but not limited
to, a financial institution, lender, or surety), and any other individual or entity. "Person" does not
include an unpaid, volunteer member of a board of trustees or directors of an organization exempt
from taxation under section 290.05, if the member is solely serving in an honorary capacity, does
not participate in the day-to-day or financial operations of the organization, and has no actual
knowledge of the failure to file returns or remit taxes.
    Subd. 3. Procedure for assessment. The commissioner may assess liability for the taxes
described in subdivision 1 against a person liable under this section. The assessment may be based
upon information available to the commissioner. It must be made within the prescribed period of
limitations for assessing the underlying tax, or within one year after the date of an order assessing
underlying tax, whichever period expires later. An order assessing personal liability under this
section is reviewable under section 270C.35 and is appealable to Tax Court.
If a person has been assessed under this section for an amount for a given period and the time
for appeal has expired or there has been a final determination that the person is liable, collection
action is not stayed pursuant to section 270C.33, subdivision 5, for subsequent assessments of
additional amounts for the same person for the same period and tax type.
    Subd. 4. Right of contribution. A person who has paid all or part of a liability assessed
under this section has a cause of action against other liable persons to recover the amount paid
in excess of that person's share of the liability. A claim for recovery of contribution may be
made only in a proceeding which is separate from, and cannot be joined or consolidated with, an
administrative or judicial proceeding or investigation involving the commissioner's administration
or enforcement of this section. An order assessing liability under this section against the person
from whom contribution is being sought is not a prerequisite for bringing an action for recovery
of contribution, nor is the issuance of an order binding on the court in which the proceeding is
brought. The court can determine whether each person would be liable under this section and the
share of liability. The commissioner cannot be made a party to any proceeding for recovery of
contribution, nor is a determination in such a proceeding binding on the commissioner for the
purpose of administering or enforcing this section. An action for contribution arises when the
liability under this section is paid in full, or the liability of the person seeking contribution has
been determined by agreement between the commissioner and such person and paid, and must be
brought within the time period prescribed in section 541.05.
History: 2005 c 151 art 1 s 62

Official Publication of the State of Minnesota
Revisor of Statutes