Opinion ID: 364073
Heading Depth: 2
Heading Rank: 1

Heading: July and August

Text: 20 Treasury Regulation 31.6302(c)-1(a)(1) obligated the corporation to deposit its collected taxes in a Federal Reserve Bank each month. The corporation failed to do it; instead, it kept the money in its general account and it paid other creditors. Payments to other creditors when monthly deposits were overdue showed that the failure to pay collected taxes was willful. Sherwood v. United States, 246 F.Supp. 502, 508 (E.D.N.Y.1965); Browne v. United States, 234 F.Supp. 19 (D.Minn.1964). The District Court properly granted summary judgment against Barnett for the penalty equal to the taxes collected in the months of July and August.