United States v. H. W. Polk

Polk appeals his conviction under 26 U.S.C. § 7215 (a) for failure to collect and deposit into a special banking account withholding and Federal Insurance Contribution Act taxes required to be withheld from employees’ wages. We affirm.

On September 4, 1973, an Internal Revenue Service agent hand delivered to Polk a notice stating that Polk was required to establish a separate bank account in which he was to deposit all funds withheld from his employees’ wages for social security and income tax withholding. In a subsequent meeting, Polk stated that he normally had five to eight employees who were paid on a weekly basis, but that he intended to terminate all of the employees and subcontract any work he needed done. On September 19, and October 16, 1973, Polk stated to the agent that he no longer had any employees.

Polk’s workers, prior to September 19, 1973, were paid on an hourly or weekly basis, had established working hours, did not bid for their jobs, were given orders by Polk, were supplied with working materials by Polk, and all workers but one worked exclusively for Polk. Polk at all times maintained the right to discharge the workers. Except for Polk’s bookkeeping method,…