{"data":{"id":"us-ok/okla.-stat.-tit.-68-68-2385.31","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 68, § 68-2385.31","heading":"Amounts withheld by pass-through entities – Fiduciary","body":"duty to state – Failure to withhold, file return, pay required\n\namounts, or furnish statement – Liability for penalties and interest\n\n– Fine.\n\nA. Any amounts withheld in accordance with the provisions of\n\nSection 2385.30 of this title shall be deemed to be held in trust\n\nfor the State of Oklahoma, and, as trustee, the pass-through entity\n\nshall have a fiduciary duty to the State of Oklahoma in regard to\n\nsuch amounts and shall be subject to the trust laws of this state.\n\nAny pass-through entity who fails to pay to the Tax Commission any\n\namounts required to be withheld by such pass-through entity, after\n\nsuch amounts have been withheld from distributions to nonresident\n\nmembers, and appropriates the amount held in trust to the pass-\n\nthrough entity's own use, or to the use of any person not entitled\n\nthereto, without authority of law, shall be guilty of embezzlement.\n\nB. If any pass-through entity fails to withhold or pay required\n\nestimated payments of the amounts required to be withheld by Section\n\n2385.30 of this title and thereafter income tax is paid by the\n\nnonresident member with respect to such payment, the amount so\n\nrequired to be withheld shall not be collected from the pass-through\n\nentity, but such pass-through entity shall not be relieved from the\n\nliability for penalties or interest otherwise applicable because of\n\nsuch failure to withhold or pay such amount.\n\nC. If a pass-through entity fails to file a return or to pay to\n\nthe Tax Commission the amounts withheld or any estimated payment\n\nrequired within the time prescribed by Section 2385.30 of this\n\ntitle, there shall be imposed on the pass-through entity a penalty\n\nequal to ten percent (10%) of the amount required to be withheld or\n\npaid, or ten percent (10%) of the amount of the underpayment of the\n\namount required to be withheld or paid, if such failure is not\n\ncorrected within fifteen (15) days after the tax becomes delinquent.\n\nThere shall also be imposed on such pass-through entity interest at\n\nthe rate of one and one-fourth percent (1 1/4%) per month during the\n\nperiod such underpayment exists. For the purposes of this\n\nsubsection, \"underpayment\" shall mean the excess of the amount\n\nrequired to be paid over the amount thereof actually paid on or\n\nbefore the date prescribed therefor. Such penalty and interest\n\nshall be added to and become a part of the amount assessed.\n\nHowever, the Tax Commission shall not collect the penalty assessed\n\nif the pass-through entity remits the amount required to be withheld\n\nwithin thirty (30) days of the mailing of a proposed assessment or\n\nvoluntarily pays such amount upon the filing of an amended return.\n\nD. Any pass-through entity who is required under the provisions\n\nof subsection E of Section 2385.30 of this title to furnish a\n\nstatement to a nonresident member, but who willfully fails to\n\nfurnish such recipient the statement, shall be punished by an\n\nadministrative fine not exceeding One Thousand Dollars ($1,000.00).","path":["OK Code","Title 68"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"ac613023bf0d88430ac169b819bc68a09ed56dccb7503611a44f46eb4a932f6d","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-68-68-2385.30","next":"us-ok/okla.-stat.-tit.-68-68-2385.32"},"notice":"GroundRules: Original legal text. Not legal advice."}