United States v. Estelle Stein
2016 U.S. App. LEXIS 19931
| 11th Cir. | 2016Background
- Estelle Stein appealed the district court’s grant of summary judgment for the United States for unpaid federal income taxes, penalties, and interest for 1996 and 1999–2002.
- The government submitted tax returns, IRS account transcripts, and an IRS affidavit establishing outstanding assessments, creating a presumption the assessments were valid.
- Stein submitted an affidavit claiming she retained an accounting firm, recalled paying the taxes and penalties, and lacked bank records to prove payments.
- The district court found Stein’s affidavit insufficient to rebut the presumption of correctness and entered summary judgment for the government on liability.
- The government acknowledged Stein made a $548 payment for 1996 that the district court failed to credit; the court’s computation of the assessment therefore contained an error.
- The Eleventh Circuit affirmed liability on summary judgment, vacated the portion computing amounts for 1996, and remanded to credit the payment and recalculate that year’s assessment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Stein’s affidavit created a genuine dispute to defeat summary judgment on tax liability | Affidavit states she paid taxes and penalties; retained accountants; recollection suffices to dispute assessment | Government: affidavit is conclusory and self-serving; presumption from IRS evidence stands and shifts burden to taxpayer to produce corroborating evidence | Court: Affidavit insufficient; summary judgment for U.S. on liability affirmed |
| Whether taxpayer must corroborate self-serving testimony to rebut IRS assessment | Stein: personal knowledge and sworn statements should suffice under Rule 56(c) | U.S.: presumption of correctness requires more than uncorroborated statements (citing precedent) | Court applied precedent holding self-serving statements insufficient and required more; affirmed |
| Whether district court miscomputed assessments by failing to credit a payment | Stein: (implicitly) payment should be credited | U.S.: acknowledged $548 payment was made and district court omitted it | Court vacated the computation as to 1996 and remanded to credit payment and recalculate |
| Whether precedent (Mays) barring uncorroborated affidavits at summary judgment should be overruled | Stein (and concurrence): argued Rule 56 permits self-serving affidavits; Mays is inconsistent with summary judgment standards | Government: relied on Mays and related cases to oppose defeat of presumption | Majority: bound by Mays; concurrence argued Mays was wrongly decided and urged en banc review |
Key Cases Cited
- Avirgan v. Hull, 932 F.2d 1572 (11th Cir. 1991) (summary judgment burden-shifting framework)
- Anderson v. Liberty Lobby, 477 U.S. 242 (U.S. 1986) (summary judgment standard; judge may not weigh evidence)
- Mays v. United States, 763 F.2d 1295 (11th Cir. 1985) (self-serving affidavits insufficient to rebut IRS assessment at summary judgment)
- United States v. White, 466 F.3d 1241 (11th Cir. 2006) (IRS transcripts and affidavit create presumption of valid assessment)
- Heyman v. United States, 497 F.2d 121 (5th Cir. 1974) (uncorroborated taxpayer testimony insufficient; relied on in Mays)
- Leatherman v. Tarrant Cnty. Narcotics Intelligence & Coordination Unit, 507 U.S. 163 (U.S. 1993) (court cannot impose heightened procedural standards beyond the Federal Rules)