Valen Manufacturing Company v. United States

DAUGHTREY, Circuit Judge.

In this tax case, the plaintiff, Valen Manufacturing Company, was forced to pay substantial penalties to the Internal Revenue Service for failure to file employment tax returns, to pay employment taxes, and to make timely deposits of those taxes. The delinquencies resulted when a long-time, otherwise valued bookkeeper failed to carry out her responsibilities with regard to the company’s employment taxes and covered up the fact that the forms had not been filed or the checks deposited by doctoring the company’s books. The company argued that the penalties should be…