In a recent case, Judge Jones took a jab at the IRS by asking, “Is it too much to assume the tax collectors can read bank and financial records adeptly, and that ethically, they wouldn’t make claims without factual foundations of which they ought to be aware?”
This derogatory questioning stemmed from a case regarding a now deceased physician, Robert McClendon, and his accountant. The doctor’s practice started in 1979 and shortly thereafter grew to include a whole medical staff. In the year 1995 an accountant, Richard Stephen, was hired to do the taxes and other work for the office; in 2009 the IRS assessed the office claiming that Stephen had not filed ANY payroll tax deposits and over the course of 21 quarters, Stephen had accrued the office over $11 million of unpaid withholding tax balances.
Stephen was tried in court and sentences to 10 years in prison for first-degree felony of property, however, the office was forced to shut its doors. The IRS then assessed nearly $4.3 million in penalties against the doctor personally. The doctor paid a portion and then took suit to get back a refund as he was not personally liable. However, at the time the courts ruled in favor of the IRS. Soon deceased, McClendon’s wife took it to the United States Court of Appeals, and ultimately the Judge ruled in favor of the McClendons and took a stance harshly against the IRS’s actions.
If you have tax issues and need someone to speak with, contact our law office at 816-524-4949 or visit our website at Hoorfarlaw.com.