Richard H. Barnett v. United States

Appellant, Richard Barnett, brought this action to recover a tax penalty of $144.20. The penalty is equal to income taxes and Federal Insurance Contributions Act taxes which the Rancho Linda School withheld from one employee’s wages but did not pay to the government. The government filed a counterclaim for unpaid penalties of $24,-459.29, because of unpaid taxes withheld from the wages of other employees. The District Court' dismissed Barnett’s action and granted summary judgment for the government.

The government assessed this penalty under a statute which provides that any responsible officer of a corporation “who willfully fails to collect [a withholding] tax, or truthfully account for and pay over such ’tax” is liable for a penalty equal to the unpaid tax. 26 U.S.C. § 6672 .

In 1962, Barnett was a fouhder of the Rancho Linda School, a school for retarded and emotionally disturbed children. He was the president of the corporation and its administrator from January 1964, until September 1965, and therefore a “responsible officer” of the corporation who could be liable for a section 6672 penalty.

Barnett contends that the government is not entitled to summary judgment because…