ATLANTA – The U.S. Court of Appeals for the 11th Circuit has overturned a ruling by the U.S. District Court for the Middle District of Florida, clearing the way for the Internal Revenue Service to proceed with an injunction against a Sarasota medical practice that has failed to pay federal employment taxes for nearly 10 years, despite facing IRS levies and liens.
According to the May 23 appeals court filing, the federal government appealed the district court's decision to halt the IRS injunction against Askins & Miller Orthopaedics and brothers Roland V. Askins III and Philip H. Askins.
In 2017, the IRS filed suit against the Askins brothers, who run Askins & Miller Orthopaedics, for failure to withhold their employees' wages to pay for IRS federal income and Federal Insurance Contributions Act (FICA) taxes as well as their own FICA taxes. Despite Askins & Miller admitting to their tax debt on their returns, they continued to fail to pay year after year, according to the court filing.
The IRS argued it had nearly 30 meetings in addition to conversations with the Askins brothers who agreed to pay monthly installments at various points, court filings said. The IRS also said it served levies on about two dozen of the Askins' entities.
The brothers sidestepped the IRS' levies by hiding funds while keeping their balances in the practice's accounts low, court filings said. They also transferred money to RVA Trust, which operates a private hunting club for the brothers, and into an accounting business associated with their father.
The IRS also attempted asset seizure but the only target was a 2004 Cadillac worth $10,000, court filings said. The brothers continued to fall behind despite the IRS' efforts to collect and they fell behind on taxes for another business they are associated with, identified as Gulfcoast Surgery Center.
Eleventh Circuit Judges Stanley Marcus, Britt Grant and Frank Hull vacated the district court's denial of the IRS injunction against the Askins brothers. Grant said the district court "erred in applying a categorical rule that because tax liability may be calculated and sought in an action for damages, it necessarily precludes injunctive relief" under the law. Grant also said the court believes "the government will continue to suffer harm" from the brothers' failure to pay their employment taxes and would not likely recoup the losses it incurs from the attempts to bring the brothers into compliance.