Oppliger v. United States
637 F.3d 889
| 8th Cir. | 2011Background
- James and Gayle Oppliger formed Double O, Inc. in 1992 and ran it as sole owners/officers.
- In 1997 they formed Livestock Feed Company, LLC (LFC), and LFC provided payroll services to Double O.
- Kerkman, hired in 1996 to handle accounting, embezzled funds and later committed suicide in 2002.
- An IRS revenue officer notified the Oppligers on April 4, 2002, that LFC and Double O had withheld but not remitted employment taxes for multiple quarters.
- Between April and September 2002, despite notification, the Oppligers used funds to pay employees and creditors, while taxes remained unpaid.
- The IRS assessed § 6672 penalties against the Oppligers, and the district court granted summary judgment, holding them liable as responsible persons who willfully failed to pay the trusts funds; the appeals court affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Oppligers were responsible persons under § 6672 | Oppligers contend there were disputed facts about control and decision-making. | United States argues they had status, duty, and authority to pay the taxes. | Yes; they were responsible persons under § 6672. |
| Whether Oppligers willfully failed to pay the taxes | They paid employees/creditors after notice, arguing lack of funds before notice. | Continuing failure to remit after knowing liabilities constitutes willful nonpayment. | Yes; willful failure as a matter of law. |
Key Cases Cited
- Slodov v. United States, 436 U.S. 238 (U.S. 1978) (funds generated after assuming control not directly traceable to unpaid taxes; change in ownership allowed to proceed)
- Keller v. United States, 46 F.3d 851 (8th Cir. 1995) (defines 'responsible person' and willful failure framework)
- Colosimo v. United States, 630 F.3d 749 (8th Cir. 2011) (responsible person status unaffected by being duped by bookkeeper)
- Anuforo v. Commissioner, 614 F.3d 799 (8th Cir. 2010) (paying other creditors in lieu of taxes can be willful)
- Ferguson v. United States, 484 F.3d 1068 (8th Cir. 2007) (discusses factors for determining responsible person status)