West Virginia Hospital Board Member Sues IRS Over Unpaid Taxes

Samuel Kapourales claims he shouldn't be held responsible for the hospital's failure to remit employee tax withholdings.

Published on Feb. 22, 2026

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A West Virginia hospital board member, Samuel Kapourales, has filed a lawsuit against the federal government seeking a refund of over $386,300 in assessed penalties. Kapourales claims the IRS wrongly held him responsible for the Williamson Memorial Hospital's failure to remit employee tax withholdings, even though he had no control over the hospital's payroll decisions.

Why it matters

This case highlights the complex legal issues surrounding the personal liability of board members for a company's unpaid taxes, especially when the board member may not have direct control over the company's financial operations.

The details

According to the complaint, the IRS assessed trust fund recovery penalties against Kapourales for periods when Williamson Memorial Hospital failed to remit employee tax withholdings to the government. Kapourales claims the IRS incorrectly determined he was a 'responsible person' who willfully failed to ensure the taxes were paid.

  • The IRS assessed the penalties against Kapourales in an unspecified time period.

The players

Samuel Kapourales

A West Virginia hospital board member who is suing the federal government over $386,300 in assessed penalties related to the hospital's failure to remit employee tax withholdings.

Williamson Memorial Hospital

A West Virginia hospital that failed to remit employee tax withholdings, leading the IRS to assess penalties against board member Samuel Kapourales.

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What they’re saying

“The IRS incorrectly determined Kapourales was a 'responsible person' who willfully failed to ensure the taxes were paid.”

— Samuel Kapourales, Hospital Board Member (bloomberglaw.com)

What’s next

The judge in the case will need to determine whether Kapourales can be held personally liable for the hospital's unpaid taxes, despite his claims that he had no control over the payroll decisions.

The takeaway

This case highlights the potential legal risks and personal liability that board members can face when a company fails to meet its tax obligations, even if the board member was not directly involved in the company's financial management.