Hoogerheide v. Internal Revenue Service
2011 U.S. App. LEXIS 7423
| 6th Cir. | 2011Background
- Hoogerheide owed unpaid IRS taxes; IRS attempted collection by auctioning his real estate in May-August 2006.
- Hoogerheide sought a compromise and requested a hearing; his counsel sent fifteen letters to IRS officials and the Taxpayer Advocate Office, some seeking information under FOIA.
- The IRS sold Hoogerheide's property on August 15, 2006 to offset the unpaid taxes.
- Two years later, Hoogerheide filed suit against the IRS and several employees; the district court dismissed individual defendants and later dismissed the damages claim for lack of subject-matter jurisdiction for failure to exhaust.
- Hoogerheide appealed; the Sixth Circuit affirmed dismissal on nonjurisdictional exhaustion grounds, remanding would be unnecessary.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 7433(d) exhaustion is jurisdictional. | Exhaustion should be jurisdictional. | Exhaustion is a precondition, not jurisdictional. | Nonjurisdictional exhaustion. |
| Whether Hoogerheide substantially complied with the exhaustion requirements. | Substantial compliance should suffice. | Strict compliance required by regulation. | No substantial compliance; exhaustion not satisfied. |
Key Cases Cited
- Arbaugh v. Y & H Corp., 546 U.S. 500 (2006) (clarified 'bright-line' jurisdictional rule and nonjurisdictional character of threshold limits)
- Jones v. Bock, 549 U.S. 199 (2007) (exhaustion generally affirmative defense; not jurisdictional by itself)
- Reed Elsevier, Inc. v. Muchnick, 130 S. Ct. 1237 (2010) (threshold requirements treated as nonjurisdictional)
- Allen v. Highlands Hosp. Corp., 545 F.3d 387 (6th Cir.2008) (administrative exhaustion goes to right to relief, not jurisdiction)
- Thomas v. Miller, 489 F.3d 293 (6th Cir.2007) (numerosity requirement affects scope of liability, not jurisdiction)