§ 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.

HISTORY: 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.