David
David v. United States
Opinion
Opinion
Takasugi, J.
MEMORANDUM
This memorandum decision is filed pursuant to Rule 52(a), Federal Rules of Civil Procedure.
FACTS
Plaintiff David initiated this action seeking a refund of employment taxes, penalties and interest assessed against Grand Care Inc. (“GCI”), a California corporation, excluding any sums representing withholding and Federal Insurance Contribution Act (“FICA”) taxes deducted from the wages of GCI employees.
GCI is a corporation which commenced doing business in early 1972. It owned and operated Grand Care Convalescent Hospital in Anaheim, California and Burbank Palms Convalescent Hospital. Plaintiff was an employee and corporate officer in charge of operations and management, including the management and operation of the two convalescent hospitals. Plaintiff also owned a majority of the outstanding stock of GCI.
Grand Care Convalescent Hospital and Burbank Palms Convalescent Hospital ceased business on December 1, 1974 and February 18, 1975, respectively. GCI was not dissolved at that time but had only minimal assets to pay off its liabilities.
On or about May 5, 1975, plaintiff received a notice from the Internal Revenue Service (“IRS”) indicating that $28,811.42 in…