Maehr v. Koskinen
664 F. App'x 683
| 10th Cir. | 2016Background
- Appellant Jeffrey Maehr, proceeding pro se, appealed dismissal of his complaint as frivolous after he challenged assessed unpaid federal income tax liabilities and the IRS’s collection methods.
- Maehr previously raised similar challenges and the Tenth Circuit rejected them in Maehr v. IRS.
- He alleged the IRS improperly levied his bank accounts that receive Veterans’ Administration (VA) disability payments, which he contends are exempt from levy under 26 U.S.C. § 6334(a)(10).
- The government and bank (Wells Fargo) were named; Maehr sought relief against both the validity of the tax assessments and the manner of collection (including injunctive and other relief).
- The district court dismissed the complaint as frivolous; the appellate panel affirmed dismissal of most claims but found one claim non-frivolous and remanded regarding levy on the account holding VA disability payments.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Validity of underlying tax liabilities | Maehr contests assessed income tax liabilities | Government: liabilities previously adjudicated; arguments precluded/frivolous | Affirmed dismissal — claims to underlying liability frivolous |
| Authority to levy Social Security/retirement benefits | Such benefits cannot be levied under 42 U.S.C. § 407(a) | Government: § 407 is superseded by tax-collection statute § 6334(c); levy authorized | Dismissed as frivolous |
| Scope of levy authority for exempt payments deposited to bank account | Levy on all funds in account improperly captures exempt VA disability payments | Government: levy on account permissible; any remedy is post-payment refund action | Court found this theory potentially meritorious as applied to VA disability deposits and REMANDED to consider it further |
| Liability of bank (Wells Fargo) for honoring levies | Bank improperly allowed levy to seize exempt funds | Bank/Govt: no sufficient allegations to state claim against bank | Dismissed for failure to allege meritorious claim |
Key Cases Cited
- Maehr v. IRS, [citation="480 F. App'x 921"] (10th Cir. 2012) (prior rejection of similar arguments)
- James v. United States, 970 F.2d 750 (10th Cir. 1992) (IRS levy authority not limited to government employees)
- Marvel v. United States, 548 F.2d 295 (10th Cir. 1977) (Anti-Injunction Act bars injunctive relief except under narrow Williams Packing exception)
- Enochs v. Williams Packing & Navigation Co., 370 U.S. 1 (1962) (Williams Packing test for injunctive relief against tax collection)
- Comm’r v. Shapiro, 424 U.S. 614 (1976) (irreparable injury prong relevant to injunctive relief in tax context)
- Porter Aetna Casualty & Surety Co., 370 U.S. 159 (1962) (considerations about levy timing and protections for exempt funds)