Fourth Circuit Affirms Liability of Individual for Closely-held Corporation's Unpaid Payroll Taxes

The Fourth Circuit Court of Appeals, in Erwin v. U.S. et al., affirmed the United States District Court for the Middle District of North Carolina's holding personally liable for payroll withholding taxes an individual who held a one-third interest in and was corporate officer and director of a closely-held corporation.  The Court affirmed that the individual "(1) was responsible for payment of these taxes and (2) willfully failed to pay them."

Posted by Neil I. Rumbak, Associate Editor, Wealth Strategies Journal