Sarunas Abraitis v. United States
709 F.3d 641
6th Cir.2013Background
- Abraitis appeals district court dismissal for lack of jurisdiction and failure to state a claim.
- The dispute centers on administrative exhaustion under 26 U.S.C. § 7429 for an IRS jeopardy levy.
- § 7429 permits judicial review only after exhaustion or a timely administrative review request.
- Court acknowledges exhaustion is mandatory as a precondition for review but questions whether it is jurisdictional.
- Court ultimately holds exhaustion is nonjurisdictional but mandatory and declines equitable tolling or review of the levy’s reasonableness.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is § 7429’s exhaustion requirement jurisdictional? | Abraitis argues exhaustion is jurisdictional. | IRS/district court treat exhaustion as jurisdictional. | Nonjurisdictional, though mandatory. |
| Whether equitable tolling applies to the 30-day administrative-review deadline | Bad-faith IRS actions justify tolling. | No tolling shown; deadline strict. | Equitable tolling not available; deadline not tolled. |
| Whether the court may review the reasonableness of the jeopardy levy | Requests review of IRS conduct and reasonableness. | Court cannot review reasonableness under § 7429(f). | Court may not review reasonableness of the jeopardy levy. |
| Whether Abraitis forfeited other claims and could amend | Requests leave to amend to raise § 6330(e), ADA, and APA claims. | Forfeited; amendments inappropriate on appeal. | Claims forfeited; amendments rejected. |
Key Cases Cited
- Arbaugh v. Y&H Corp., 546 U.S. 500 (Supreme Court 2006) (jurisdictional label depends on clear statutory guidance; not jurisdictional here)
- Henderson v. Shinseki, 131 S. Ct. 1197 (Supreme Court 2011) (readiness of bright-line test for jurisdictional status; look to function of exhaustion rules)
- Hoogerheide v. IRS, 637 F.3d 634 (6th Cir. 2011) (exhaustion under § 7429 is nonjurisdictional, like § 7433(d))
- Wapnick v. United States, 112 F.3d 74 (2d Cir. 1997) (treats exhaustion as jurisdictional in some circuits, prompting conflict)
- Galvez v. IRS, 448 F. App’x 880 (11th Cir. 2011) (exhaustion issues under § 7429; context cited)