Diversified Group Incorporated v. United States, 123 Fed. Cl. 442

DGI and James Haber created a tax shelter (OPS and FDIS) used by 193 clients between 1999–2002.
IRS assessed a $24.9 million penalty under 26 U.S.C. § 6707 for failure to register the shelter under § 6111.
Plaintiffs paid a small portion of the penalty before suit (Haber $18,310; DGI $15,450) and filed for refund and injunctive relief.
IRS notified Plaintiffs of the penalty calculation: 1% of aggregate investments; plaintiffs paid 1% for two clients, not the full amount.
Tax Court proceedings (Markell) related to the same OPS/FDIS shelter were cited to illustrate the plan and its transactions.
Court must determine whether full payment rule can be satisfied or if divisibility exceptions apply to grant jurisdiction.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the full payment rule can be satisfied by partial payment.	Haber/DGI argue the penalty is divisible by transactions.	IRS argues the penalty is a single, non-divisible act for failure to register.	No; penalty is non-divisible; full payment required.
Whether §6707 penalty is divisible like §6700 penalties.	Penalty should be divisible by each transaction under §6707.	Penalty arises from a single failure to register; not divisible.	Not divisible; full payment required.
Whether divisibility exceptions from Flora/Rocovich apply to §6707.	Exceptions allow division in excise/payroll contexts; applies to §6707.	No statutory basis for divisibility in §6707; distinctions from §6700.	Divisibility exceptions do not apply to §6707.
Whether the court has jurisdiction to hear a refund claim given partial payment.	Partial payment should confer jurisdiction via divisibility.	No jurisdiction without full payment and no applicable exception.	Court lacks jurisdiction.
Whether the Anti-Injunction Act bars relief even if jurisdiction exists.	Refund/abatement sought; injunctive relief allowed by statutory framework.	AIA prohibits suits to restrain tax assessment/collection.	Relief denied; court lacks jurisdiction.

Flora v. United States, 357 U.S. 63 (1958) (no room to litigate before payment; full payment rule applies)
Rocovich v. United States, 933 F.2d 991 (Fed. Cir. 1991) (divisible taxes/penalties exist only for multi-transaction assessments)
Korobkin v. United States, 988 F.2d 975 (9th Cir. 1993) (divisibility recognized where separate transactions yield separate assessments)
Noske v. United States, 911 F.2d 133 (8th Cir. 1990) (divisibility under §6700 prior to amendments; not applicable to §6707)
Markell Co. v. Commissioner, 2014 WL 1910052 (Tax Court) ( Tax Court discussion of OPS/FDIS context and HABER involvement)