Business owners personally liable for payroll taxes, says court
According to Mondaq, the U.S. Court of Appeals for the Eighth Circuit recently ruled that two business owners were personally liable for more than $2 million in unpaid payroll taxes, despite allegedly having no idea that their accountant was embezzling money.
Trucking business owners James and Gayle Opplinger claimed that the first they knew of the unpaid taxes was when the IRS came to question them - one day after their accountant committed suicide. Following this, the couple sold the assets of their company and paid approximately $5 million to its employees and creditors, but did not remit the payroll taxes to the government. After paying $30,000 of the $2.3 million that they owed, they filed refund claims with the IRS, which were denied. A federal district court held them liable for the penalties assessed against them and the Eighth Circuit upheld the decision, specifically refuting their claim that their accountant deprived them of an opportunity to make informed decisions.
According to court records, the couple were held responsible because "they had the status, duty and authority to pay the trust fund taxes … Whether Kerkman may have been a responsible person is immaterial to the Oppligers' liability."
Trucking business owners James and Gayle Opplinger claimed that the first they knew of the unpaid taxes was when the IRS came to question them - one day after their accountant committed suicide. Following this, the couple sold the assets of their company and paid approximately $5 million to its employees and creditors, but did not remit the payroll taxes to the government. After paying $30,000 of the $2.3 million that they owed, they filed refund claims with the IRS, which were denied. A federal district court held them liable for the penalties assessed against them and the Eighth Circuit upheld the decision, specifically refuting their claim that their accountant deprived them of an opportunity to make informed decisions.
According to court records, the couple were held responsible because "they had the status, duty and authority to pay the trust fund taxes … Whether Kerkman may have been a responsible person is immaterial to the Oppligers' liability."
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