I.R.C. 7402(a)

The United States District Court for the Middle District of Florida, Tampa Division, ruled in United States of America v. Askins & Miller Orthopaedics, P.A., et al. Case No: 8:17-cv-02-T-27AAS, Decided December 23, 2019, that the Defendant and all other persons and entities acting in concert or participation with them were enjoined from violating the Internal Revenue employment tax reporting and payment requirements.  More specifically, Defendant was ordered to file or cause to be filed all required employment tax returns and pay all income and FICA taxes withheld from the employees.  Further, Defendant shall segregate said funds on a semiweekly schedule in a federal deposit bank.  The order was a result of Defendant’s failure to take said action when he practiced with another entity. The Government argued there was a high likelihood of repeat activity in the future. Taxpayer’s prior business, Askins & Miller Orthopaedics, P.A. failed to deposit or made late deposits over a seven-year period.  The IRS worked with taxpayer through meetings, calls and installment agreements.  There was only sporadic compliance.  The Court indicated that where the United States demonstrates that the taxpayer has a proclivity for unlawful conduct, injunctive relief may be appropriate. Under IRC 7402(a), the United States must demonstrate: (1) a substantial likelihood of success on the merits; (2) irreparable injury will be suffered absent the injunction; (3) the threatened injury outweighs the potential damage of the proposed injunction; and (4) the injunction would not be adverse to the public interest.  The Court reviewed whether the government could be made whole through monetary relief at some point in the future. The Taxpayer’s financial status suggests that would be very unlikely.  As such, the Court ordered the injunction.