A district court has determined on summary judgment that a 50% owner of a member-managed company, who was required to sign off on all significant decisions and actions relating to the company, was liable for the trust fund recovery penalty under Code Sec. 6672.

The court found that his role in the company established that he was a responsible person, regardless of whether the other owner had primary responsibility for the company's taxes; and he was found to have acted willfully where he knew (or should have known) that the taxes were unpaid but continued to pay other creditors instead.

U.S. v.Commander, (DC NJ 4/3/2017) 119 AFTR 2d ¶2017-620