Mary E. Phillips v. United States Internal Revenue Service

73 F.3d 939 77 A.F.T.R.2d 96 -379, 64 USLW 2445 , 96-1 USTC P 50,057 , Unempl.Ins.Rep. (CCH) P 15083B , 96 Cal. Daily Op. Serv. 243 , 96 Daily Journal D.A.R. 356 Mary E. PHILLIPS, Plaintiff, v. UNITED STATES INTERNAL REVENUE SERVICE, an Agency of the United States Government; United States of America, Defendants-Counter-Claimants-Appellees, and George A. Wray, Counter-Defendant-Appellant. No. 93-16619. United States Court of Appeals, Ninth Circuit. Argued and Submitted Feb. 17, 1995. Decided Jan. 10, 1996. Michael A. Pollard (on the briefs), and William M. Sneed (argued), of counsel, Baker & McKenzie, Chicago, Illinois, for counter-defendant, appellant. Frank P. Cihlar, United States Department of Justice, Washington, DC, for counter-claimants, defendants-appellees. Appeal from the United States District Court for the District of Hawaii. Before: REINHARDT, THOMPSON and KLEINFELD, Circuit Judges. Opinion by Judge KLEINFELD; Dissent by Judge REINHARDT. KLEINFELD, Circuit Judge: 1 This case involves the duty of a "responsible person" to pay his company's withholding taxes. More particularly, the issue is the definition of "willfully" failing to pay. Facts 2 Mr. Wray founded South…