Volunteer board president "responsible person" for payroll taxes.

• Author: Nevius, Alistair M.

A Seventh Circuit decision provides a cautionary tale for taxpayers who serve as volunteer members of boards of local organizations (Jefferson, No. 06-4082 (7th Cir. 10/8/08)). In this case, the taxpayer was an Illinois state legislator who served (without compensation) as the president of a daycare center. The daycare center failed to remit federal payroll taxes for several quarters while the taxpayer was serving as its board president.

The taxpayer argued that he was not a "responsible person" under Sec. 6672 because he was not involved in the day-to-day operation of the center. The court disagreed because it found that, although he was a volunteer, he was not serving in merely an...