The D.C. Circuit affirmed a district court’s dismissal of suits challenging IRS rules for transitioning from the 2012 Offshore Voluntary Disclosure Program to the 2014 Streamlined Filing Compliance Procedures, reasoning that the court lacked jurisdiction under the Anti-Injunction Act because the suits sought to restrain the collection of taxes. The D.C. Circuits summary of the case is as follows:
Eva Maze, Suzanne Batra, Margot Lichtenstein, Marie Green, May Muench, Kevin Muench, Nancy Blumenkrantz and Harold Blumenkrantz (“plaintiffs”) are taxpayers who failed to report—and pay tax on—foreign income. In 2012, the plaintiffs enrolled in a voluntary Internal Revenue Service (“IRS”) disclosure program that allowed them to become tax code compliant on relatively favorable terms. In 2014, however, the plaintiffs wanted to change course; they sought enrollment in a new IRS disclosure program with a different tax treatment. The IRS rejected the plaintiffs’ request and they then brought suit. For the reasons that follow, we conclude that the district court was without jurisdiction to resolve their claims in light of the jurisdiction-stripping provision contained in the Anti-Injunction Act (“AIA”), 26 U.S.C. §§ 7421 et seq., and therefore affirm.
See full opinion at: EVA MAZE ET AL APPELLANTS v. INTERNAL REVENUE SERVICE ET AL APPELLEES | FindLaw
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.