Illinois Jury Instruction - 10.10.6 Section 6672 Penalty

• Category: Federal - Jury Instructions - Tax Refund Suit
• State: Multi-State
• Control #: US-11CF-10-10-6
• Format: Word; Rich Text

Description

This form contains sample jury instructions, to be used across the United States. These questions are to be used only as a model, and should be altered to more perfectly fit your own cause of action needs.

Illinois Jury Instruction — 10.10.6 Section 6672 Penalty, also known as the "Trust Fund Recovery Penalty," is an essential legal instruction used in Illinois courts when addressing cases involving the potential imposition of penalties under section 6672 of the Internal Revenue Code (IRC). This instruction outlines the specific provisions, guidelines, and considerations related to the penalty, ensuring that the jury understands its application and potential implications. Under Illinois Jury Instruction — 10.10.6, there are no different types of penalties specified. Instead, this instruction provides detailed guidance and explanations regarding the application and assessment of the Section 6672 Penalty, which is a federal penalty imposed by the Internal Revenue Service (IRS). The instruction emphasizes that the Section 6672 Penalty is applicable when an individual, referred to as a "responsible person," willfully fails to collect, account for, or pay over certain federal taxes owed by a business entity. The responsible person can be held personally liable for the unpaid taxes, in addition to facing the imposed penalty. Key elements covered by Illinois Jury Instruction — 10.10.6 Section 6672 Penalty may include: 1. Willfulness: The instruction clarifies that the penalty can be imposed only if the responsible person's failure to collect, account for, or pay over the taxes was willful. This means that the individual knew about the tax obligation and intentionally disregarded their duty. 2. Liability: It explains that an individual can be held personally liable for the Section 6672 Penalty if they were a responsible person and had the authority or control over the business's financial affairs, specifically concerning taxes. 3. Trust Fund Taxes: The instruction defines trust fund taxes as the federal income tax, Social Security tax, and Medicare tax withheld from employees' wages, also known as payroll taxes. It highlights that only these specific taxes can trigger the Section 6672 Penalty. 4. Knowledge: The instruction outlines that the responsible person must have had knowledge of the outstanding tax liability and the available funds to pay it. It clarifies that mere knowledge of the tax obligation is insufficient; the responsible person must also possess the authority or control over the allocation of funds. 5. Penalty Calculation: It provides information on how the Section 6672 Penalty is assessed, generally stating that it can be up to 100% of the unpaid taxes. However, the specific penalty percentage is not fixed and can vary based on the circumstances of each case. In summary, Illinois Jury Instruction — 10.10.6 Section 6672 Penalty educates the jury about the essential elements involved in imposing the Trust Fund Recovery Penalty under federal tax laws. By providing clear and comprehensive guidance, this instruction ensures that the jury can make an informed decision when considering the penalties imposed on responsible individuals in cases related to unpaid trust fund taxes.