Kehmeier v. United States
2010 U.S. Claims LEXIS 921
| Fed. Cl. | 2010Background
- Kehmeier filed a claim for refund of zero wage income for 2008; IRS called the claim frivolous.
- He sued in federal court asserting overpayment and sought the entire amount of federal taxes withheld as damages.
- Government moved to dismiss for lack of jurisdiction, arguing an administrative refund claim is a jurisdictional prerequisite and must be a valid return.
- Court held the 2008 return was not a valid claim for refund; dismissed for lack of subject matter jurisdiction.
- Plaintiff reported zero wages and $42,251 withheld on Form 1040 with substitute W-2 and 1099-R forms; IRS data indicated $161,365 wages by World Airways.
- Court discussed that a return must be filed according to law; a zero-wage return lacks sufficient information to compute a tax; stayed proceedings pending deficiency notice, which expired in 2010.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the plaintiff exhausted administrative remedies | Kehmeier satisfied jurisdiction via the filed return. | Return must be a valid claim for refund under law and regulations. | No; the return was not a valid claim for refund. |
| Whether the Form 1040 with zero wages constitutes a valid claim for refund | Return or substitute forms should support an overpayment claim under the Constitution. | Zero-wage return lacks essential information to calculate tax and qualifies as noncompliant. | Not a valid claim for refund. |
| Whether the court has jurisdiction to hear this refund dispute | Proceed in court given alleged constitutional protections. | Refund claims require administrative completion before suit; invalid return defeats jurisdiction. | Court lacks jurisdiction; dismissal granted. |
Key Cases Cited
- United States v. Moore, 627 F.2d 830 (7th Cir. 1980) (return must contain information and intent to provide required data)
- United States v. Mosel, 738 F.2d 157 (6th Cir. 1984) (zero-entry returns may fail to provide enough information)
- Hamzik v. United States, 64 Fed.Cl. 766 (2005) (returns lacking essential financial information are not valid claims)
- Long v. United States, 618 F.2d 74 (9th Cir. 1980) (some zero-amount returns may be treated differently by circuit)
- Reynolds v. Army & Air Force Exch. Serv., 846 F.2d 746 (Fed. Cir. 1988) (jurisdictional prerequisites; exhaustion of remedies must be shown)