Bonnabel v. U.S.

Jan 01, 1990

OUTCOME: Taxpayer won. Willfulness was an element of the case and plaintiff proved he willingly tried to pay the current period even if the tax was applied elsewhere.

The IRS assess the trust fund recovery penalty against plaintiff for failure to pay withheld payroll taxes. Plaintiff paid payroll taxes to the Government but they were applied to prior periods. The pa ... yments were applied to periods that were prior to plaintiff's ownership of the corporation. The current periods were therefore not paid and IRS assessed the tax against plaintiff for nonpayment of the current periods. Plaintiff contended that the funds he paid should have been applied to the currently period.