Atlas Hotels, Inc. v. United States

Appellants, Sunbelt Beverage Corporation and other companies that had contracted with Hamilton Taft and Company to perform *1246 payroll tax services, appeal the district court’s grant of summary judgment for the United States in the appellants’ action seeking a refund of late payment penalties and interest paid by Hamilton Taft to the Internal Revenue Service pursuant to 26 U.S.C. § 6656 . The district court found that appellants lacked standing to sue for refund as they did not pay the penalties, did not have a financial interest in the funds used to pay the penalties, and did not have a valid assignment of Hamilton Taft’s rights under the Assignment of Claims Act, 31 U.S.C. § 3727 . We have jurisdiction, 28 U.S.C. § 1291 , and affirm.

Facts

Appellants individually entered into written agreements with Hamilton Taft for the provision of payroll tax services. Per the agreement, Hamilton Taft was to timely deposit payroll taxes with the IRS and file any necessary payroll tax returns. Each appellant provided Hamilton Taft with the necessary information and sufficient funds for Hamilton Taft to timely pay its clients’ payroll tax liabilities. Hamilton Taft received fees for…