Katzman v. Essex Waterfront Owners LLC
2011 U.S. App. LEXIS 22324
| 2d Cir. | 2011Background
- Katzman has resided at Liberty Towers since 2005.
- Renewal is the ground lessee of Liberty Towers and related entities are involved.
- Katzman alleges deposits were pledged as collateral for Renewal's loan and not held as promised.
- Interest on deposits allegedly exceeded $10 in 2005–2008 and Renewal allegedly failed to issue Form 1099-INT.
- Plaintiff asserted nine claims including IRC sections 6049(a), 6722, and 7434, plus New Jersey law claims.
- The district court dismissed Katzman’s federal claims, declined supplemental jurisdiction for state claims, and entered final judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Katzman states a § 7434 claim. | Katzman argues Renewal willfully filed fraudulent information returns. | Defendants contend § 7434 only covers willful filing of information returns, not non-filing. | No; § 7434 requires willful filing of a fraudulent information return. |
Key Cases Cited
- United States v. Ron Pair Enters., Inc., 489 U.S. 235 (1989) (statutory interpretation; plain meaning governs)
- Davis v. Mich. Dep't of Treasury, 489 U.S. 803 (1989) (section 6721/6722 context within tax statute scheme)
- Abrahams v. MTA Long Island Bus, 644 F.3d 110 (2d Cir. 2011) (distinguishes failure to file from willful filing of fraudulent returns)