Keohane v. United States
775 F. Supp. 2d 87
D.D.C.2011Background
- Keohane, a U.S. citizen living in Malaysia, failed to timely file 1994 tax return and IRS assessed deficiency after substitute return.
- IRS sent notices of intent to levy in 2000 and 2002, which Keohane did not receive.
- From June 2005 through July 2007, the IRS levied Keohane’s Social Security payments by a single paper levy.
- Keohane learned of the levy and its 15%-plus amount in May 2005; levy exceeded 15% of monthly Social Security benefits.
- Keohane and spouse filed a joint 1994 return in May 2007; IRS accepted in June 2007 and released the levy in July 2007.
- Keohane filed an administrative claim in November 2007; IRS denied in May 2008; suit filed December 4, 2008.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the § 7433 claim is time-barred | Keohane argues timely under statute. | United States says barred by limitations. | Barred; action untimely under § 7433(d)(3). |
| Whether continuing violation doctrine saves | Keohane contends continuing violation tolls claim. | Doctrine does not apply to jurisdictional bar. | Not saved; continuing violation inapplicable. |
| Accrual date under § 7433 | Keohane learned of single levy later; argues accrual later. | Accrual occurred June 2005 when 15% levy known. | Accrued no later than June 2005; suit filed December 2008 is time-barred. |
| Damages sufficiency | Sought specific compensable damages from contested levy. | No timely, recoverable damages given dismissal. | Not reached; claim dismissed on limitations grounds. |
Key Cases Cited
- United States v. Dalm, 494 U.S. 596 (1990) (sovereign immunity; consent to sue; limitations bar jurisdiction)
- Kovacs v. United States, 614 F.3d 666 (7th Cir. 2010) (accrual begins when plaintiff can investigate violation)
- Dziura v. United States, 168 F.3d 581 (1st Cir. 1999) (continuing violations doctrine rejected for definite injuries)
- Long v. United States, 604 F. Supp. 2d 119 (D.D.C. 2009) (continuing violations doctrine generally inapplicable to timely accrual)
- Wallace v. United States, No official reporter citation provided in text (10th Cir. 2010) (continuing wrong doctrine cannot rescue readily discoverable injuries)
- Taylor v. FDIC, 132 F.3d 753 (D.C. Cir. 1997) (continuing violation considerations and discovery-related accrual)