Ralph Bradbury sued the federal government Thursday in an attempt to dismiss an Internal Revenue Service bill of more than $750,000. The money is for unpaid employment taxes ties to the defunct trucking company where he had been president.
Bradbury, of Little Rock, said in the lawsuit that the bill, which was for the quarter that ended Sept. 30, 2008, should have gone to the owners of Continental Express Inc. of Little Rock, Ed and Bonnie Harvey, and their financial adviser, Marvin Jones of Little Rock.
Bradbury said in the lawsuit that he ordered the officers of the company to pay the taxes before other creditors were paid.
"Mrs. Harvey and Mr. Jones, through exercise of their financial control, prevented payment," the lawsuit said. "Mrs. Harvey and Mr. Jones diverted assets from Continental in order to prevent IRS collection of unpaid Trust Fund Taxes."
Continental was sold in December 2008.
The lawsuit mirrors the accusations made in an article published in Arkansas Business in September.
Bradbury said in the lawsuit that the IRS withheld a $6,765 refund from his 2010 taxes to apply it to Continental's tax bill.
"The assessment and collection of the penalty by the IRS against Mr. Bradbury were arbitrary, discriminatory, erroneous, and illegal," the lawsuit said. Bradbury wants the tax bill thrown out against him and his refund back.
The IRS said it doesn't comment on individual cases.
Jones had told Arkansas Business in September that he wasn't responsible for paying the taxes. The Harveys' attorney, Price Gardner of Little Rock, said in an email to ArkansasBusiness.com Friday that the Harveys had no comment at this time.
