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Unformatted text preview: Tax Research Problem I:14-75 Section 6672 states that "Those persons charged with the responsibility of collecting, accounting for, and paying over the tax to the government are subject to a penalty for willful failure to collect or account for the tax." "Responsible person" has been determined by the courts by considering such factors as: 1) Did the person have day to day management responsibilities? 2) Is he an officer, director, or major stockholder? 3) Was he involved and knowledgeable concerning the affairs of the corporation? 4) Did he sign checks, approve disbursements? 5) Was he or she a founder of the corporation? "Willful conduct" has been defined as the voluntary, conscious, or intentional act to prefer other creditors over the United States. The facts in this tax research problem are based on the cited case (Ernest W. Carlson v. U.S. ). In the tax research problem Carl Jones (1) was not the one who had final word on which bills should or should not be paid; (2) did not have significant or exclusive control over the...
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This note was uploaded on 10/22/2011 for the course ACCOUNTING ACC565 taught by Professor Lindachess during the Spring '10 term at Strayer.
- Spring '10