Dealing with the Disarray: The Eighth Circuit Addresses Notice and Demand Applicability to Lenders' Liability for Withholding Taxes under I.R.C. 3505(b) - United States v. Messina Builders and Contractors Co.
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Authors
Hinkston, Mark R.
Issue Date
1987
Volume
20
Issue
Type
Journal Article
Language
Keywords
Alternative Title
Abstract
INTRODUCTION|Generally, only employers are liable to the government for withholding taxes due on employees' wages. However, in 1966 Congress enacted section 3505 of the Internal Revenue Code of 1954, which imposed liability on a lender, surety, or other person who is not an employer for withholding taxes when such third party (a) pays the employees directly, or (b) supplies funds to the employer with actual notice or knowledge that the employer does not intend, or will not be able, to pay the required withholding amounts to the government on time. While this provision was heralded in enactment, courts have struggled in recent years with the lack of congressional mandate...
Description
Citation
20 Creighton L. Rev. 1093 (1986-1987)
Publisher
Creighton University School of Law