George Orwell famously said that, "all animals are equal, but some animals are more equal than others." A petition for writ of cert filed on July 20, 2015 challenges the 9th Circuit's ruling upholding a District Court which found that the IRS was more equal than other creditors when it came to an alter ego determination. The case is No. 15-102, Robert A. Polittle, et al v. United States of America.
The Polittes owned several Midas franchises in California through two corporations. According to the Polittes, their CFO stopped paying employment taxes for one of their companies in 1998 and used his background as a CPA to conceal this fact from them. The IRS did not detect the non-payment until 2005. By this time, taxes of $5.3 million had accrued. After selling all of the assets of the company, the tax debt managed to grow to $11.7 million. The IRS then filed nominee liens against the Polittes and a second corporation which they owned. The IRS collected about $1.7 million from sale of two condominiums owned by the Polittes and all of the assets of their other corporation. The Polittes filed a refund suit against the IRS in U.S. District Court.