United States v. Norwood J. Patterson, (Two Cases)

Norwood J. Patterson was convicted by a jury on nine counts of violating Section 7512(b) of the Internal Revenue Code; i.e., of collecting taxes from the employees of Sierra Broadcasting, Inc., and failing to deposit them in trust within two banking days of the dates those sums were collected.

In a consolidated action, Patterson was also convicted of seven counts involving the collection of taxes from employees of Radio Station KBIF, Inc. He appeals both judgments.

Patterson and his wife owned all the stock of Sierra, and of Pattco, Inc., which owns KBIF. Patterson was president of both Sierra and KBIF.

The record reveals an extraordinary pattern of delinquencies during all or parts of the years 1963 through 1968, inclusive. Patterson was interviewed, warned, and repeatedly urged to comply with the withholding requirements. He was undercapitalized, and apparently operated his various corporate enterprises by standing off creditors, including the government.

In due course, Patterson was formally served with IRS forms 2481 which notified Patterson, for each of his corporations, that he must comply with four requirements :

Patterson ignored these notices, and was prosecuted. He…