156 T.C. 101
Tax Ct.2021Background
- Robert Rowen, a U.S. citizen and California physician, failed to pay assessed federal income taxes for tax years 1994, 1996, 1997, and 2003–2007, leaving an assessed balance of at least $474,847.
- On July 16, 2018 the Commissioner certified Rowen under I.R.C. § 7345 as having a "seriously delinquent tax debt," and the certification was transmitted to the State Department; as of the record’s close no passport action had been taken.
- Rowen petitioned the Tax Court under § 7345(e)(1) seeking a judicial determination that the certification was erroneous and moved for summary judgment asserting: (1) § 7345 is facially unconstitutional as infringing the Fifth Amendment right to international travel; and (2) § 7345 violates rights in the Universal Declaration of Human Rights (UDHR).
- The Commissioner cross-moved for summary judgment, arguing § 7345 is constitutional, UDHR claims are not judicially enforceable, Rowen’s debt remains collectible, and the certification complied with statutory requirements.
- The Court denied Rowen’s motion and granted the Commissioner’s: holding § 7345 merely authorizes certification (it does not itself restrict travel), UDHR affords no basis to invalidate the certification, Rowen abandoned procedural-due-process and statute-of-limitations arguments, and the statutory criteria for certification were satisfied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 7345 violates the Fifth Amendment/right to international travel | Rowen: § 7345 (and effects of certification) prohibits international travel and is a facial due process violation | Commissioner: § 7345 only authorizes certification of tax facts; it does not itself revoke or deny passports — passport decisions rest with Secretary of State | Court: § 7345 is only a certification mechanism and does not restrict travel; no Fifth Amendment violation shown |
| Whether UDHR creates enforceable federal rights to challenge § 7345 | Rowen: § 7345 conflicts with UDHR-protected right to leave/return to country | Commissioner: UDHR does not create judicially enforceable federal rights; regardless § 7345 imposes no travel limit | Court: UDHR claim fails — § 7345 imposes no travel restriction and provides no basis to invalidate certification |
| Whether Rowen was deprived of procedural due process or certain liabilities are time-barred | Rowen alleged inadequate notice/hearing and suggested some liabilities might be unenforceable | Commissioner: Rowen abandoned these claims by not pursuing them in briefing; administrative record (Forms 4340) shows collections periods remain open | Court: Rowen abandoned procedural-due-process claim; statute-of-limitations defense not pled/proven and record shows limitations have not run |
| Whether the Commissioner erred in certifying a "seriously delinquent tax debt" under § 7345(b) | Rowen: asserted certification erroneous (general challenge) | Commissioner: certification criteria satisfied — assessed liabilities exceed threshold, liens/levies/notices issued, no timely payment agreement or pending § 6330 proceedings | Court: certification was proper; statutory elements satisfied and certification not erroneous |
Key Cases Cited
- Norton v. Shelby County, 118 U.S. 425 (1886) (unconstitutional statute is void)
- Wash. State Grange v. Wash. State Republican Party, 552 U.S. 442 (2008) (judicial restraint—avoid broader constitutional rulings than necessary)
- Eunique v. Powell, 302 F.3d 971 (9th Cir. 2002) (discusses standards for right to international travel)
- Ruesch v. Commissioner, 154 T.C. 289 (2020) (prior § 7345 matter addressing mootness of merits)
- Kasper v. Commissioner, 150 T.C. 8 (2018) (discussing scope and standard of review for agency actions)
- Lunsford v. Commissioner, 117 T.C. 183 (2001) (Form 4340 is presumptive evidence of assessment)
- Amesbury Apartments, Ltd. v. Commissioner, 95 T.C. 227 (1990) (statute-of-limitations is an affirmative defense the claimant must plead and prove)