Cashaw v. Commissioner
T.C. Memo. 2021-123

On October 26, 2021, the Tax Court issued a Memorandum Opinion in the case of Cashaw v. Commissioner (T.C. Memo. 2021-123). The primary issue presented in Cashaw v. Commissioner was whether the petitioner is liable for trust fund recovery penalties. Held: Yup. Background to Cashaw v. Commissioner The petitioner was presented with difficult choices during her tenure as temporary chief administrator of a hospital. The hospital was under a state order freezing its bank accounts except for the purpose of making specified payments to certain hospital staff, vendors, and creditors following the approval of a third party. The petitioner prioritized payments among the hospital's staff, vendors, and private creditors that she deemed provided “essential patient care services.” This prioritizing included her refusal at times to sign checks on behalf of Riverside where the purported purposes of the payments did not align, in her eyes, with such patient services…including payments to…

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Taxing, Briefly
Taxing, Briefly

Statutes of Limitation on Assessment and Collection

One of the most common questions I am asked by taxpayers is “How long can the IRS try to collect my liability?” It’s a good question, and one that would seem to have a quick, easy answer. Judging purely by the length of this article, however, the answer is never as simple as it might seem. On Statutes of Limitation on Assessment and Collection With the full understanding that “It depends” is the least satisfying answer to any legal question, nonetheless, it is often the most accurate. (For most lawyers “it depends” is about as automatic a response as a thirteen-year-old girl’s intercessory use of the word “like.” Like, all the time.) Though it is true that many factors play into the amount of time that the IRS can collect, nevertheless, there are two rules of thumb when it comes to the statutes of limitation on assessment and collection.  …