Richard York was the former CFO of MEMS USA. York filed for chapter 13 bankruptcy relief. The IRS filed a proof of claim in York’s chapter 13 bankruptcy case, asserting that he was liable for trust fund recovery penalties assessed against him under 26 U.S.C. § 6672 for failing to pay over to the IRS payroll taxes for MEMS’ employees, Justia reported. York filed an adversary complaint challenging his liability to the IRS. York and the United States filed cross motions for summary judgment which were both denied. York, consequently, ended up stipulating to a judgment in the United States’ favor, but then appealed the denial of his motion for summary judgment. The United States prevailed on appeal before the District Court, which affirmed the bankruptcy court’s order denying York’s motion for summary judgment. York then appealed the decision to the Ninth Circuit. The Circuit ruled in the Government’s favor in a 47-page published opinion finding that York was both responsible for paying the employment taxes to the IRS and willfully failed to do so.
