It's a Matter of Trust Funds—the Responsible Person Penalty

Ed Zollars' Tax Update Podcast

This week we look at a case dealing with the trust fund recovery penalty under §6672. In the case of Richard A. Smith v. United States, 2009 TNT 30-6, CA10, (http://ca10.washburnlaw.edu/cases/2009/02/07-4210.pdf) the Tenth Circuit refused to overturn the holding in the US District Court of Utah that Mr. Smith was a responsible person, even though he had no ownership interest in the entity in question. The case highlights the dangers for employees in accounting functions when the organization they work for begins to have cash flow problems, and payroll tax payments begin to be skipped.The materials are available at http://www.edzollars.com/2009-02-23_Responsible.pdf .The podcast is sponsored by Leimberg Information Services, located on the web at http://www.leimbergservices.com .