Joint and several liability for firm tax binds partners individually despite contractual arrangements, with retiring partner notice obligations. Where a firm is liable to pay tax, interest or penalty under the Act, the firm and each partner are jointly and severally liable. A retiring partner remains liable for obligations up to the retirement date whether determined or not if written notice of retirement is given to the Commissioner; absent such notice within one month, that partner's liability continues until notice is received by the Commissioner.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Joint and several liability for firm tax binds partners individually despite contractual arrangements, with retiring partner notice obligations.
Where a firm is liable to pay tax, interest or penalty under the Act, the firm and each partner are jointly and severally liable. A retiring partner remains liable for obligations up to the retirement date whether determined or not if written notice of retirement is given to the Commissioner; absent such notice within one month, that partner's liability continues until notice is received by the Commissioner.
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