Sibbrel

MEMORANDUM *

Chapman Mechanical, Inc. (“Chapman”) faded to pay to the IRS its employees’ federal withholding taxes for the fourth quarter of 1994 and the first quarter of 1995. The Government brought this civil action against Richard Sibbrel (“Sibbrel”). It asserted that he was a “responsible person” at Chapman within the meaning of 26 U.S.C. § 6672 and sought to reduce to judgment its assessment of “trust fund” recovery penalties against him. Following a two-day bench trial, the district court made oral findings of fact and conclusions of law, entered judgment for Sibbrel, and awarded him attorneys’ fees and litigation costs under 26 U.S.C. § 7430 . A panel of this Court reversed by memorandum disposition, United States v. Chapman, 7 Fed.Appx. 804 (9th Cir.2001). The panel concluded “that the district court’s finding that Sibbrel was not a ‘responsible person’ derives from the use of improper legal standards.” Id. at 806 .

On remand, the parties stipulated to use the prior trial transcript and the documentary evidence admitted in that trial as if the case had been tried de novo. Thereafter, the district court issued lengthy and thorough written findings of fact and conclusions…