In Matter of Martin M. Hopwood, Jr., DTA No. 827112 (N.Y.S. Div. of Tax App., Nov. 16, 2017), a New York State Administrative Law Judge upheld the assessment of sales and use tax against the petitioner, an officer and shareholder of a family business engaged in the mechanical contracting business. The company had encountered financial difficulties, arising from a bid on a $15 million project that had been underestimated by the petitioner's brother by approximately $4 million, causing the business to file a voluntary petition for relief under Chapter 11 of the Bankruptcy Code. The ALJ found that Mr. Hopwood had not demonstrated that he was not responsible for the activities of the business, but had relied solely upon arguments that the business was in a dire financial situation, which did not absolve an otherwise responsible person from liability for unpaid sales tax. The ALJ also noted that Mr. Hopwood had relied on the hearing record from a prior proceeding involving the same business for earlier years, in which Mr. Hopwood had been found to be a responsible party.