Daniel J. Mulcahy and Lessie Mulcahy v. United States of America

This suit represents the Muleahys’ second attempt to avoid the “pay now, litigate later” polcy 1 of the federal revenue laws. The Internal Revenue Service made a penalty assessment against Daniel Mulcahy in the amount of $4,610.76, representing withholding taxes collected by the Houston Steel Drum Company, which the company failed to pay over to the United States. Mulcahy was an officer and counsel of the delinquent company. The Muleahys alleged that .the making of the assessment without first granting the taxpayer an opportunity for a conference and the subsequent enforcement of the tax…