Easterday

Background

Easterday operated a chain of nursing homes in Northern California through a parent corporation, Employee Equity Administration (“EEA”), and its subsidiaries. Between 1998 and 2005, the total payroll tax liability for EEA and its sub- sidiaries for the period from the fourth quarter of 1998 through the fourth quarter of 2005 was $44,864,162, of which $26,018,869 was paid. Although the companies’ tax filings accurately stated its tax liabilities, Easterday, through the cor- poration, repeatedly failed to pay over to the Internal Revenue Service (“IRS”) the full amount of payroll taxes due.

The IRS sent Easterday’s companies numerous notices requesting payment of the delinquent taxes. When those notices did not result in payment, the IRS sent notices inform- ing Easterday’s companies of an intent to levy against each company’s assets. Although Easterday was cooperative with 11516 UNITED STATES v. EASTERDAY the IRS and took full responsibility for the tax delinquency, his pattern of nonpayment continued. The IRS assessed liens against corporate accounts, but when payment was still not forthcoming, it eventually filed criminal charges. In 2005, the government…