MS HB1411

Modifies liability provisions for stockholders owning 10% or more of corporations or 10% interest in limited liability companies with 35 or fewer owners who exercise fiscal management responsibilities to be derivative of the corporation's or LLC's liability for income withholding taxes.

Changes the three-year assessment period for income withholding tax liability to begin running after the corporation's or LLC's liability becomes final, rather than from an earlier date.

Applies the same derivative liability and thirty-six-month assessment period rules to sales tax liability for qualifying stockholders and LLC members.

Allows persons assessed under these provisions to appeal solely on the issues of ownership interest percentage and management responsibility requirements.

Effective date: July 1, 2010.