United States v. Harvis Construction Company, Inc.

The United States sued Harvis Construction Company (“Harvis”) under 26 U.S.C. § 3505 (b)(1982) to collect Vince A. Romano’s withholding taxes. The district court dismissed because the government had failed to notify Harvis of the assessment against Romano. The government appeals the dismissal and grant of attorneys’ fees to Harvis. On appeal, Harvis advances an alternative ground for dismissal, arguing that the action was barred by a six-year statute of limitation.

FACTS AND PROCEEDINGS BELOW

Romano failed in 1978 to make timely payments of federal withholding taxes required to be deducted and withheld from the wages of his employees. Accordingly, on February 9, 1979, an assessment was made against Romano for delinquent social security and withheld income taxes. Pursuant to Chapter 7 of the Bankruptcy Code, Romano filed a petition for bankruptcy on September 9, 1982. He received a discharge on January 28, 1983.

On August 21, 1985, approximately six and one-half years after the assessment, the government brought an action pursuant to 26 U.S.C. § 3505 (b) against Harvis. The government alleged Harvis had supplied funds to Romano for the purpose of paying the wages of Romano’s…