Sacramento California Jury Instruction - 10.10.6 Section 6672 Penalty

• Category: Federal - Jury Instructions - Tax Refund Suit
• State: Multi-State
• County: Sacramento
• 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. Sacramento California Jury Instruction — 10.10.6 Section 6672 Penalty is a legal instruction provided to juries in Sacramento, California regarding tax-related penalties imposed under Section 6672 of the Internal Revenue Code (IRC). This instruction is specifically related to cases involving a failure to pay payroll taxes by responsible individuals, such as business owners or company officers. Section 6672 of the IRC imposes a penalty on individuals who are deemed responsible for collecting, accounting for, and paying over payroll taxes but willfully fail to do so. This penalty is known as the Trust Fund Recovery Penalty (TARP) and is a civil penalty intended to discourage the intentional withholding or diversion of payroll taxes. The TARP can be applied to individuals who had authority or control over the finances of the company, had a duty to pay the taxes, and willfully chose not to do so. This instruction guides the jury in understanding the elements necessary to find a person liable for the TARP and the potential penalties involved. Key points covered in this instruction include: 1. Definition of the TARP: The instruction explains the purpose and nature of the TARP and its application under Section 6672 of the IRC. It underlines that this penalty is a civil sanction and not a criminal charge. 2. Elements of TARP Liability: The instruction outlines the three key elements that need to be established for a person to be held liable for the TARP. These elements include the person's status as a responsible officer, willful failure to collect or pay over the taxes, and the existence of trust fund taxes. 3. Responsible Officer Determination: The instruction clarifies what qualifies an individual as a responsible officer who can be held accountable for the TARP. It considers factors such as the person's corporate role, job responsibilities, authority, and control over financial decision-making. 4. Willfulness Requirement: The instruction explores the meaning of "willfulness" within the context of TARP liability. It emphasizes that the failure to pay payroll taxes must be a deliberate and intentional act, rather than an inadvertent mistake or financial hardship. 5. Calculation of Penalty: This instruction provides guidance on the calculation of the TARP penalty where liability is found. It incorporates the legal formula used to determine the penalty amount based on the unpaid trust fund taxes. Different types or variations of this Sacramento California Jury Instruction — 10.10.6 Section 6672 Penalty may include updates or modifications to reflect changes in tax laws or legal interpretations over time. Ultimately, the precise wording and organization of the instruction may vary slightly based on the specific case and the judge's discretion.

Sacramento California Jury Instruction — 10.10.6 Section 6672 Penalty is a legal instruction provided to juries in Sacramento, California regarding tax-related penalties imposed under Section 6672 of the Internal Revenue Code (IRC). This instruction is specifically related to cases involving a failure to pay payroll taxes by responsible individuals, such as business owners or company officers. Section 6672 of the IRC imposes a penalty on individuals who are deemed responsible for collecting, accounting for, and paying over payroll taxes but willfully fail to do so. This penalty is known as the Trust Fund Recovery Penalty (TARP) and is a civil penalty intended to discourage the intentional withholding or diversion of payroll taxes. The TARP can be applied to individuals who had authority or control over the finances of the company, had a duty to pay the taxes, and willfully chose not to do so. This instruction guides the jury in understanding the elements necessary to find a person liable for the TARP and the potential penalties involved. Key points covered in this instruction include: 1. Definition of the TARP: The instruction explains the purpose and nature of the TARP and its application under Section 6672 of the IRC. It underlines that this penalty is a civil sanction and not a criminal charge. 2. Elements of TARP Liability: The instruction outlines the three key elements that need to be established for a person to be held liable for the TARP. These elements include the person's status as a responsible officer, willful failure to collect or pay over the taxes, and the existence of trust fund taxes. 3. Responsible Officer Determination: The instruction clarifies what qualifies an individual as a responsible officer who can be held accountable for the TARP. It considers factors such as the person's corporate role, job responsibilities, authority, and control over financial decision-making. 4. Willfulness Requirement: The instruction explores the meaning of "willfulness" within the context of TARP liability. It emphasizes that the failure to pay payroll taxes must be a deliberate and intentional act, rather than an inadvertent mistake or financial hardship. 5. Calculation of Penalty: This instruction provides guidance on the calculation of the TARP penalty where liability is found. It incorporates the legal formula used to determine the penalty amount based on the unpaid trust fund taxes. Different types or variations of this Sacramento California Jury Instruction — 10.10.6 Section 6672 Penalty may include updates or modifications to reflect changes in tax laws or legal interpretations over time. Ultimately, the precise wording and organization of the instruction may vary slightly based on the specific case and the judge's discretion.