Trust Fund Doctrine

80 Florida cases classified under this topic · sorted by citation count · see the citation graph · browse and sort

• Newsome v. United States
  431 F.2d 742· 5th Cir.· 1970-07-08 ·cited 63×
  A responsible officer's reliance on accountants and attorneys does not constitute reasonable cause for failing to pay over withheld taxes when the officer knows funds are insufficient and continues to pay other creditors.
• Cochrane v. Fla. E. Coast Ry. Co.
  107 Fla. 431· Fla.· 1932-12-19 ·cited 57×
  The Florida Supreme Court affirmed a lower court decree granting the Florida East Coast Railway Company a preferred claim against the liquidator of an insolvent bank for cashier's checks purchased days before the bank failed. The court held that the circumstances of the transacti
• Hayes v. Belleair Dev. Co.
  120 Fla. 326· Fla.· 1935-07-01 ·cited 48×
  In this equity action, a Florida corporation sought to recover funds paid to a shareholder under a 1926 settlement agreement, arguing the payments constituted a trust fund for creditors. The Florida Supreme Court reversed the lower court's denial of a motion to dismiss, holding t
• Thibodeau v. United States
  828 F.2d 1499· 11th Cir.· 1987-10-05 ·cited 42×
  The court held that the taxpayer was a responsible officer as a matter of law and that his failure to remit withheld taxes was willful, reversing the jury's verdict.
• United States v. Strebler
  313 F.2d 402· 8th Cir.· 1963-02-15 ·cited 42×
  The court held that the evidence presented by the taxpayer was insufficient to overcome the presumption of correctness of the tax assessment and did not create a jury question regarding his willfulness in failing to remit withheld taxes.
• First Nat'l Bank of St. Augustine v. Perkins
  81 Fla. 341· Fla.· 1921-03-15 ·cited 40×
  Material suppliers who furnished goods to a construction contractor sued to recover sums owed by the contractor, claiming priority over a bank's assignment of the contractor's right to payment under a public works contract. The Florida Supreme Court reversed the lower court's dec
• United States v. Huckabee Auto CO„
  783 F.2d 1546· 11th Cir.· 1986-03-10 ·cited 36×
  The court held that the bankruptcy court lacked jurisdiction to enjoin the IRS from collecting a penalty under 26 U.S.C. § 6672 from corporate officers, as their liability is separate from the corporate debtor's.
• Gray v. Standard Dredging Co.
  109 Fla. 87· Fla.· 1933-03-14 ·cited 36×
  Plaintiff Gray appealed dismissal orders seeking to enforce an equitable trust or lien against a dredge purchased by Reliable Dredging Company using $2,500 withdrawn from Standard Dredging Company's account by its president. The Florida Supreme Court affirmed the dismissal, holdi
• Smith v. United States
  894 F.2d 1549· 11th Cir.· 1990-03-01 ·cited 35×
  The court held that the evidence presented was insufficient as a matter of law to disprove willfulness, and therefore the Government was entitled to a directed verdict on that issue.
• Wood v. United States
  808 F.2d 411· 5th Cir.· 1987-01-23 ·cited 34×
  The court held that L. Ray Wood was a responsible person who willfully failed to pay withholding taxes for Red Ant Products, Inc., and thus was liable under 26 U.S.C. § 6672.
• United States v. Hill
  368 F.2d 617· 5th Cir.· 1966-11-07 ·cited 34×
  Individuals who are responsible for collecting, accounting for, and paying over taxes are liable for penalties if they willfully fail to do so, but banks and bonding companies that merely lend money or guarantee loans are not liable under Section 6672.
• Kelly v. Lethert
  362 F.2d 629· 8th Cir.· 1966-06-30 ·cited 33×
  The court held that a suit to enjoin the collection of a 100% penalty assessed under Section 6672 of the Internal Revenue Code is barred by Section 7421(a), as such penalty is a tax and not subject to judicial restraint unless the Government cannot prevail.
• Scott v. Commissioner OF Internal Revenue (two cases)
  117 F.2d 36· 8th Cir.· 1941-01-31 ·cited 30×
  The court held that petitioners were liable as transferees for the corporation's tax deficiency because the corporation was rendered insolvent by the asset distribution, and their motions to reopen were properly denied.
• Gustin v. United States
  876 F.2d 485· 5th Cir.· 1989-07-05 ·cited 25×
  The court held that a taxpayer's refund claim for third quarter taxes was jurisdictionally barred due to an invalid informal claim, but the government's counterclaim for those taxes could proceed. The court reversed the finding of liability for fourth quarter taxes, finding the f
• Emshwiller v. United States
  565 F.2d 1042· 8th Cir.· 1977-11-17 ·cited 25×
  The court held that the taxpayer willfully failed to pay over withheld taxes as a matter of law, affirming the judgment notwithstanding the verdict on liability. However, the court found the district court miscalculated the credit due to the taxpayer for certain IRS payments and
• Moore v. United States
  465 F.2d 514· 5th Cir.· 1972-07-20 ·cited 22×
• United States v. Preston
  352 F.2d 352· 9th Cir.· 1965-10-28 ·cited 22×
  The court held that the district court lacked jurisdiction over the United States and the individual defendants, as the claims did not fall under the cited statutes and no diversity jurisdiction existed.
• In re Slodov v. United States
  552 F.2d 159· 6th Cir.· 1977-04-05 ·cited 20×
  A person who becomes a responsible officer of a corporation and has knowledge of unpaid trust fund taxes, and who then uses corporate funds to pay other obligations, is personally liable under Section 6672, even if the funds were acquired after the tax liability accrued and the o
• Middleton v. Plantation Homes, Inc.
  71 So. 2d 503· Fla.· 1954-03-09 ·cited 20×
  The Middletons purchased a home from Plantation Homes, Inc., but received title encumbered by underlying mortgages that Plantation had covenanted to release. They sought to hold the individual directors (Gerken and Clark) personally liable for the encumbrances. The Florida Suprem
• Hercules Serv. Parts Corp. v. United States
  202 F.2d 938· 6th Cir.· 1953-04-02 ·cited 20×
  When a debtor in possession, acting as a court officer, diverts withheld taxes, the bankruptcy court, as a court of equity, can order payment of these trust funds to the United States without requiring the government to trace the specific funds into the bankrupt's assets.
• State v. Sholtz
  119 Fla. 460· Fla.· 1935-02-05 ·cited 20×
  The Florida Supreme Court held that when a state board commingles ad valorem tax funds collected specifically for highway bond debt service with other moneys in a common fund, bondholders are entitled to seek mandamus relief against the entire commingled fund to satisfy their def
• Courtright v. Tunnicliffe
  104 Fla. 720· Fla.· 1932-04-14 ·cited 20×
  The Florida Supreme Court affirmed the dismissal of a bill of complaint by bank depositors seeking to amend their filed common creditor claim to assert a preference claim for special deposit funds after the statutory period for filing claims had expired. The Court held that amend
• ST. Paul Fire & Marine Ins. Co. v. Pepsico, Inc.
  884 F.2d 688· 2d Cir.· 1989-09-08 ·cited 19×
  The court held that it had jurisdiction to hear the appeal, despite the district court's insufficient Rule 54(b) certification, because the appeal would lead to a more expeditious and just result. The court also found that PepsiCo had standing to bring its claims.
• Bolding v. The United States
  565 F.2d 663· Ct. Cl.· 1977-11-16 ·cited 18×
  Individuals with authority to disburse corporate funds are liable for unpaid payroll taxes if they willfully fail to pay them over, even if they share that authority with others or did not have exclusive control.
• S. Ry. Co. & Morgan Guar. Tr. Co. of N.Y. v. United States
  306 F.2d 119· 5th Cir.· 1962-07-19 ·cited 18×
  The court held that tax claims are allowable as operational costs of a receivership, not based on statutory priority, and that a creditor's claim for diverted funds is not entitled to preference over tax claims. The court also affirmed the allowance of a fee to counsel who contri
• Gray v. Standard Dredging Co.
  111 Fla. 149· Fla.· 1933-06-21 ·cited 18×
  A party defendant who is actually necessary to an equity suit cannot be made a nominal party by express statement in the bill, and such attempted elimination is equivalent to complete omission of the necessary party, warranting dismissal.
• Collins v. United States
  848 F.2d 740· 6th Cir.· 1988-06-08 ·cited 15×
  The court held that the evidence conclusively showed the taxpayer willfully failed to pay over withheld taxes, entitling the government to judgment notwithstanding the jury's verdict.
• Bowen v. United States
  836 F.2d 965· 5th Cir.· 1988-02-05 ·cited 15×
  A voluntary, conscious, and intentional failure to pay over withheld taxes, even without criminal intent or bad motive, constitutes willfulness under I.R.C. § 6672.
• Murray Drabkin v. Dist. OF Columbia
  824 F.2d 1102· D.C. Cir.· 1987-07-24 ·cited 15×
  The dissenting judge believes the majority erred in its interpretation of section 547 of the Bankruptcy Code and its legislative history regarding tax payments.
• Klotz v. United States
  602 F.2d 920· 9th Cir.· 1979-08-22 ·cited 14×
  The court held that the district court's findings that Klotz and Howe did not willfully fail to pay over withheld taxes were not clearly erroneous, and thus affirmed the judgment denying the government's counterclaim. Attorney's fees on appeal were denied.
• McCULLOUGH v. United States
  462 F.2d 588· 5th Cir.· 1972-07-14 ·cited 14×
  The court held that the government failed to prove sufficient facts to establish that the taxpayer was a "responsible person" under Section 6672 when unencumbered funds were available to pay the withheld taxes.
• President & Directors of Georgetown Coll. v. Hughes
  130 F.2d 810· D.C. Cir.· 1942-06-30 ·cited 14×
  A charitable corporation is liable for the negligent acts of its employees acting within the scope of their employment, even when the injured party is a beneficiary of the charity.
• Vaughn C. Payne and Edith Pruitt Payne v. United States
  247 F.2d 481· 8th Cir.· 1957-08-08 ·cited 13×
  The court held that a wife's signature on a tax return, placed where she assisted in preparation but not intending a joint return, does not create joint and several liability. However, properties purchased with a husband's funds that render him insolvent can be subjected to his t
• Enochs v. Green
  270 F.2d 558· 5th Cir.· 1959-09-25 ·cited 12×
  The court held that the penalty for failure to remit withheld employment taxes is not a deficiency, thus no ninety-day notice or Tax Court petition is required before assessment and collection.
• Snead Constr. Corp. v. First Fed. Sav. & Loan Ass'n OF Orlando & Daytona Beach Fed. Sav. & Loan Ass'n
  342 So. 2d 517· Fla. 1st DCA· 1976-12-16 ·cited 10×
  Snead Construction, a prime contractor on three motel projects, appealed a summary judgment dismissing its claim against construction lenders who held mortgages on the projects. Snead sought to subordinate the lenders' mortgages to Snead's mechanic's liens or to have undisbursed
• In re Calton Crescent v. Becker
  173 F.2d 944· 2d Cir.· 1949-03-03 ·cited 10×
  The dissenting judge believes profits from a director's improper purchase of bonds should be distributed among creditors, not retained by the director.
• Wickes Boiler Co., Inc. v. Godfrey-Keeler Co., Inc.
  121 F.2d 415· 2d Cir.· 1941-06-21 ·cited 10×
  The court held that the New York Lien Law § 36-a renders funds received by a contractor trust funds, and the Wickes Boiler Company's claim should be allowed.
• Kyser v. MacADAM
  117 F.2d 232· 2d Cir.· 1941-01-13 ·cited 10×
  The court held that the mortgage was subordinate to the mechanics' liens due to non-compliance with New York Lien Law § 13, and that the plan of arrangement was improperly confirmed due to errors in creditor classification and voting.
• In re Brandt-Airflex Corp. v. Long Island Tr. Co., N.A.
  843 F.2d 90· 2d Cir.· 1988-03-30 ·cited 9×
  A bankruptcy court does not have jurisdiction under 11 U.S.C. § 505(a) to determine the tax liability of a non-debtor entity, even if that liability is related to the debtor's tax obligations.
• First Nat'l Bank IN Palm Beach v. United States
  591 F.2d 1143· 5th Cir.· 1979-03-23 ·cited 9×
  The IRS improperly applied partial tax deposits to interest and penalties rather than to the corporation's matured withholding tax liability, leading to an over-assessment against responsible individuals.
• In re Freedomeand, Inc.
  480 F.2d 184· 2d Cir.· 1973-06-08 ·cited 8×
  A bankruptcy trustee is considered an employer for withholding tax purposes and must withhold federal and city income taxes on wage claims paid from the bankrupt estate. These withholdings are classified as second priority wage claims.
• Davis v. Woolf
  147 F.2d 629· 4th Cir.· 1945-02-09 ·cited 8×
  The court held that the validity of a deed of trust given by an allegedly insolvent corporation to a director for indemnity cannot be determined on the current record and must be remanded for further factual findings.
• The Atl. Nat'l Bank of Jacksonville v. Pratt
  95 Fla. 822· Fla.· 1928-04-26 ·cited 8×
  The court considered whether a bank that collected checks for another bank, but failed to remit the funds before closing, was obligated to pay the collected amount as a preferential claim. The appellate court found that the bank's collections constituted a trust fund, entitling t
• Atlanta Shipping Corp., Inc. v. Chem. Bank
  818 F.2d 240· 2d Cir.· 1987-04-29 ·cited 6×
  The court held that a plaintiff who invites dismissal by refusing to post a bond may obtain appellate review of prior rulings, but that the district court correctly dismissed the admiralty, fraudulent conveyance, UCC Article 9, and corporate law claims.
• In re Johnson v. Johnson
  691 F.2d 249· 6th Cir.· 1982-10-20 ·cited 6×
  The court affirmed the bankruptcy judge's decision, holding that the debt was dischargeable because the appellant failed to prove the necessary elements for nondischargeability under Section 17(a)(4) of the Bankruptcy Act, specifically the intent to defraud required by Michigan l
• Fid. & Deposit Co. OF Md. v. Usaform Hail Pool, Inc.
  463 F.2d 4· 5th Cir.· 1972-07-03 ·cited 6×
  The court held that the misuse of funds from a premium account to pay legitimate corporate obligations does not constitute a loss under a fidelity bond, as the corporation's assets and liabilities remain unchanged.
• A. J. Jackson in Bankr. of Dale R. Peterson & Co., Inc. v. Flohr
  227 F.2d 607· 9th Cir.· 1955-06-23 ·cited 6×
• Olsen v. United States
  952 F.2d 236· 8th Cir.· 1991-12-26 ·cited 5×
  A responsible person who willfully fails to pay over withheld federal employment taxes is liable for the penalty under I.R.C. § 6672, and reliance on IRS assurances does not excuse this willful failure.
• Hall v. United States
  403 F.2d 344· 5th Cir.· 1968-11-22 ·cited 5×
  The statute of limitations for collecting taxes (§ 6502) does not bar a suit against transferees to set aside fraudulent conveyances made by taxpayers, where the government has already obtained judgments against the original taxpayers.
• Bonita Paschal v. Jackson
  936 F.2d 940· 7th Cir.· 1991-07-09 ·cited 4×
  The Eleventh Amendment bars federal courts from awarding retroactive relief from state unemployment compensation funds, even if those funds are segregated, because such an award is considered a suit against the state.