Form St 04-21 - Recommendation For Decision (Page 2 of 7) in pdf

Form St 04-21 - Recommendation For Decision Page 2

under § 735/3-7 of the Uniform Penalty and Interest Act

I find that he was not a

responsible officer or employee of ABC Corp. during the periods at issue, and, as a

result, that the NPL should be cancelled.

Findings of Fact:

ABC was a New Jersey corporation. Tr. pp. 10-11.

Taxpayer was the president and chief executive officer (“CEO”) of ABC from

November of 1995 until August of 1999 when he resigned from these

positions. Id.

As CEO of ABC, Taxpayer was in charge of executive management, strategic

direction and planning for sales expansion and marketing activities. Tr. pp.

14-15.

During Taxpayer’s tenure as CEO of ABC, it had 1400 employees and $60

million in revenues. Id.

ABC had an accounting department headed by a chief financial officer. It also

had a controller, a tax department and a human relations department. Id.

The ABC tax department prepared tax returns for the company. Id.

In August of 1999 Joe Blow (“Blow”) was appointed as president and chief

executive officer of ABC and Taxpayer resigned from those positions. Tr. p.

11, Taxpayer Ex. No. 1.

In his new position, Blow reported to Taxpayer who was the chief executive

officer of XYZ International (“XYZ”), the parent company of ABC. Taxpayer

Ex. No. 1.

Unless otherwise noted, all statutory references are to 35 ILCS 735/1, et seq., the Uniform Penalty

and Interest Act. (“UPIA”).

Form St 04-21 - Recommendation For Decision Page 2