Gust v. United States
789 F. Supp. 2d 58
D.D.C.2011Background
- Gust, appearing pro se, sues the United States under 26 U.S.C. § 7433 alleging six counts regarding IRS conduct.
- Defendant moves to dismiss under Rule 12(b)(1) and 12(b)(6), arguing lack of jurisdiction over Counts I–III and failure to state a claim for Counts IV–VI.
- Counts I–III are framed as tax-collection related, but defendant contends they concern assessment/investigation and thus fall outside § 7433’s waiver.
- Counts IV–VI are asserted claims of continued collection activity or procedural issues, but the court finds them conclusory and not plausibly alleging a § 7433 violation.
- The court analyzes jurisdiction before merits, concludes Counts I–III lack subject-matter jurisdiction and Counts IV–VI fail under Rule 12(b)(6); the motion to dismiss is granted.
- The opinion treats the Taxpayer’s Bills of Rights, 26 U.S.C. § 7433, as the sole vehicle for damages; the court discusses the line between tax collection and assessment throughout the analysis.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Jurisdiction under § 7433 over Counts I–III | Gust asserts § 7433 applies to IRS actions connected with tax collection. | D argues Counts I–III concern assessment/investigation, not collection, thus no waiver of sovereign immunity. | Counts I–III lack jurisdiction under Rule 12(b)(1). |
| Relation of Counts I–III to tax collection vs assessment | Counts I–III arise from IRS recordkeeping and penalties tied to collection. | Counts relate to investigation/assessment, not collection. | Court adopts narrow interpretation; Counts I–III not within § 7433. |
| Plausibility of Counts IV–VI under Rule 12(b)(6) | Counts IV–VI allege ongoing collection activity post-RRA with outdated terms still referenced. | Allegations are conclusory and fail to identify a specific statutory violation. | Counts IV–VI fail to state a plausible claim. |
| Statute of limitations as to Count IV | Lien date alleged as April 12, 2007, ongoing right to sue. | Action must be brought within 2 years of accrual; suit filed Feb 17, 2010. | Count IV barred by 2-year statute of limitations. |
| Overall jurisdiction and merits standard applied | Pro se status requires liberal construction. | Even with liberal pleadings, allegations must be plausible. | Court grants defendant’s motion to dismiss in full. |
Key Cases Cited
- Miller v. United States, 66 F.3d 220 (9th Cir.1995) (damages not recoverable for improper tax assessment under § 7433)
- Shaw v. United States, 20 F.3d 182 (5th Cir.1994) (claims unrelated to collection not actionable under § 7433)
- Gonsalves v. IRS, 975 F.2d 13 (1st Cir.1992) (§ 7433 action may not be based on alleged disregard in connection with determination of tax)
- Bean v. United States, 538 F. Supp. 2d 220 (D.D.C.2008) (§ 7433 does not provide a cause of action for actions not related to collection of income tax)
- Buaiz v. United States, 471 F. Supp. 2d 129 (D.D.C. 2007) (only actions in connection with the collection of taxes are actionable; assessment/record-keeping outside scope)