1. (a) Except as provided in the limited relief provided for marketplace facilitators in IC 6-2.5-9-3.5 (before its expiration), a responsible person that holds taxes in trust for the state is personally liable for the payment of those taxes, plus any penalties and interest attributable to those taxes, to the state. If the individual knowingly fails to collect or remit those taxes to the state, the individual commits a Level 6 felony.
2. (b) A business and each responsible person for a particular tax held in trust for a period are jointly and severally liable for that tax, including interest and penalties.

3. (c) If a business and one (1) or more responsible persons remit more than the amount due, including penalties and interest, for a tax held in trust, the following apply to refunding any overpayment:

   1. (1) If the business remitted the amount due or more than the amount due, then any amounts paid by a responsible person shall be refunded to the responsible person, and any excess remaining refunded to the business.

   2. (2) If the business remitted less than the amount due, then any amounts paid by a responsible person shall be refunded upon a refund request by a responsible person as determined in the following STEPS:

      STEP ONE: Determine the amount remitted by each responsible person.

      STEP TWO: Determine the total amount due, including interest and penalties, less the amount remitted by the business.

      STEP THREE: Determine the total amount remitted by all responsible persons in STEP ONE minus the STEP TWO amount.

      STEP FOUR: Determine the STEP ONE amount for each responsible person divided by the total amount under STEP ONE for all responsible persons.

      STEP FIVE: The amount of the refund for the responsible person is the amount determined under STEP THREE multiplied by the ratio for that person determined under STEP FOUR.

   3. (3) If the amount remitted by a business or responsible person includes amounts added pursuant to this chapter, those amounts shall not be considered for purposes of determining an overpayment under this subsection.
   4. (4) Any amount of overpayment shall be considered to be the overpayment of the business or person that remitted the tax.
   5. (5) Any state or federal law permitting application or offset of an overpayment shall apply to an overpayment under this subsection.
   6. (6) A refund under this subsection must be filed under IC 6-8.1-9-1 separately by the business and each responsible person, and the determination under this subsection shall be made separately for the business and each responsible person.

   7. (7) Notwithstanding this subsection, the business and one (1) or more responsible persons may agree to allocate or assign any overpayment between themselves, provided that:

      1. (A) the total amount allocated under the agreement does not exceed the amounts that are attributable to the business and responsible persons who are parties to the agreement under subdivisions (1) and (2); and
      2. (B) the amount of refund allocated to any party does not exceed the amount actually paid by that party.

As added by P.L.128-2026, SEC.77.