A debtor corporation was not entitled to a refund of payroll taxes it claimed were improperly paid on behalf of nondebtor sister companies. The debtor’s argument that it did not own the nondebtor companies and was not obligated to pay taxes on their behalf and, therefore, was entitled to a refund, was rejected. The debtor was not entitled to a refund of the payments it made to the IRS on behalf of the nondebtor companies because the funds were not the debtor’s to recover. The funds deposited in the debtor’s account were the combined payroll of each corporation in the group. Moreover, commingling the funds did not transform the money into the debtor’s property under state (Florida) law and the record did not show that the nondebtor companies intended to transfer ownership of the funds to the debtor corporation.
In re Mirabilis Ventures, Inc., BC-DC Fla., 2012-1 USTC ¶50,287
Code Sec. 6871
CCH Reference – 2012FED ¶40,630.12
Tax Research Consultant
CCH Reference – TRC IRS: 33,050
CCH Reference – TRC IRS: 33,358.05