Kenneth Lee McDonald Plaintiff-Counter-Defendant v. United States of America, Defendant-Counter-Plaintiff

In this appeal, the United States seeks reversal of a judgment absolving appellee Kenneth McDonald from liability under § 6672 of the Internal Revenue Code for nonpayment of federal employment taxes from the wages of the employees of Environmental Protection Systems, Inc., a company that McDonald partially owned and of which he was president. The district court entered judgment in favor of McDonald on the basis of special interrogatory findings by a jury that although McDonald was responsible for the withholding and payment of the unpaid employment taxes, he had not “willfully” failed to pay…