Texas § 111.0611 PERSONAL LIABILITY FOR FRAUDULENT TAX EVASION.

Texas Statutes

§ 111.0611 — PERSONAL LIABILITY FOR FRAUDULENT TAX EVASION.

Texas § 111.0611

Code TXTax Code

This text of Texas § 111.0611 (PERSONAL LIABILITY FOR FRAUDULENT TAX EVASION.) is published on Counsel Stack Legal Research, covering Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tex. Tax Code Code Ann. § 111.0611 (2026).

Text

Sec. 111.0611. PERSONAL LIABILITY FOR FRAUDULENT TAX EVASION.

(a)An officer, manager, or director of a corporation, association, or limited liability company, a partner of a general partnership, or a managing general partner of a limited partnership or limited liability partnership who, as an officer, manager, director, or partner, took an action or participated in a fraudulent scheme or fraudulent plan to evade the payment of taxes due under Title 2 or 3 is personally liable for the taxes and any penalty and interest due. The personal liability of an individual includes liability for the additional 50 percent fraud penalty provided by Section 111.061 (b). The comptroller shall assess individuals liable under this section in the same manner as other persons or entities may be assessed und

Free access — add to your briefcase to read the full text and ask questions with AI

Sec. 111.0611. PERSONAL LIABILITY FOR FRAUDULENT TAX EVASION. (a) An officer, manager, or director of a corporation, association, or limited liability company, a partner of a general partnership, or a managing general partner of a limited partnership or limited liability partnership who, as an officer, manager, director, or partner, took an action or participated in a fraudulent scheme or fraudulent plan to evade the payment of taxes due under Title 2 or 3 is personally liable for the taxes and any penalty and interest due. The personal liability of an individual includes liability for the additional 50 percent fraud penalty provided by Section 111.061 (b). The comptroller shall assess individuals liable under this section in the same manner as other persons or entities may be assessed under this chapter.
(b) For purposes of this section, actions that may indicate the existence of a fraudulent scheme or a fraudulent plan to evade the payment of taxes include:
(1) filing, or causing to be filed, a fraudulent tax return or report with the comptroller on behalf of the business entity;
(2) intentionally failing to file a tax return, report, or other required document with the comptroller when the business entity is under a legal obligation to file;
(3) filing, or causing to be filed, a tax return or report with the comptroller on behalf of the business entity that contains an intentionally false statement that results in the amount of the tax due exceeding the amount of tax reported by 25 percent or more; and
(4) altering, destroying, or concealing any record, document, or thing, presenting to the comptroller any altered or fraudulent record, document, or thing, or otherwise engaging in fraudulent conduct with the intent to affect the course or outcome of a comptroller audit or investigation, a redetermination hearing, or another proceeding involving the comptroller.
(c) To the extent the comptroller can verify and secure sufficient unencumbered assets of the corporation, association, or partnership to satisfy the liability, an individual's personal liability under Subsection (a) is limited to the amount by which the total tax, penalty, and interest due under this section exceeds those assets.

Sanadco Inc., a Texas Corporation Mahmoud Ahmed Isba Broadway Grocery, Inc. And Shariz, Inc. v. Glenn Hegar, in His Individual and Official Capacity as Comptroller of Public Accounts Office of Comptroller of Public Accounts for the State of Texas And Ken Paxton, in His Official Capacity as Attorney General of the State of Texas

(Court of Appeals of Texas, 2015)

Office of the Comptroller of Public Accounts for the State of Texas Glenn Hegar, Individually and in His Official Capacity as Comptroller of Public Accounts of the State of Texas And Ken Paxton, Attorney General of Texas v. Farshid Enterprises, L.L.C. And Abul Hasnat

(Court of Appeals of Texas, 2017)