Case: Taxpayer’s Failure to Pay Trust Fund Taxes Was Willful (9th Cir.) (IRC §6672)

Taxpayer’s failure to pay trust fund taxes was willful, the U.S. Court of Appeals for the Ninth Circuit held, affirming the district court’s decision. Taxpayer, a board member and chairperson of a school, was assessed penalties under I.R.C. §6672 for the school’s failure to pay trust fund taxes. The school had failed to pay these taxes for three quarters. The IRS determined Taxpayer was a “responsible person” under §6672(a) and assessed penalties against him, requiring him to pay the outstanding trust fund taxes. Taxpayer paid a portion of the assessment and sued for a refund, while the government counterclaimed for ...