475 F. App'x 273
10th Cir.2012Background
- Wankel failed to pay 2001–2003 taxes and IRS pursued collection with a summons in 2010.
- Wankel appeared but refused to comply, claiming he is a separate “living man” and sought immunity.
- IRS petitioned the district court to enforce the summons; hearing occurred with testimony from the IRS officer.
- District court granted enforcement, found the summons reasonable and no valid defenses from Wankel.
- Wankel also asserted a counterclaim for injunctive and monetary relief; the court dismissed it for lack of jurisdiction due to sovereign immunity.
- Wankel appealed; the government moved to dismiss the appeal as untimely, which the court denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of the appeal | Wankel filed notice before the order but after hearing. | Government asserts lack of appellate jurisdiction due to timing. | Appeal timely; notice filed after hearing but before final order is treated as timely. |
| Enforceability of the IRS summons | Wankel challenges IRS authority and seeks dismissal of summons. | IRS complied with Powell requirements; summons enforceable. | District court’s enforcement of the summons affirmed. |
| Counterclaim jurisdiction | Counterclaim raises due process issues to tax collection. | Sovereign immunity bars suit; no federal question. | District court properly dismissed counterclaim for lack of jurisdiction. |
Key Cases Cited
- United States v. Powell, 379 U.S. 48 (U.S. 1964) (establishes the prima facie showing for enforcement of an IRS summons)
- Anaya v. United States, 815 F.2d 1373 (10th Cir. 1987) (burden shifts to taxpayer once prima facie case shown)
- Lonsdale v. United States, 919 F.2d 1440 (10th Cir. 1990) (frivolous tax-protester arguments rejected; outlines scope of IRS authority defenses)
- Lewis v. B.F. Goodrich Co., 850 F.2d 641 (10th Cir. 1988) (appeal timing rules when judgment is entered after notice of appeal)
- United States v. Coopers & Lybrand, 550 F.2d 615 (10th Cir. 1977) (standard of review for enforcement of IRS summons is clear error)
- Dahn v. United States, 127 F.3d 1249 (10th Cir. 1997) (individual IRS officers not subject to Bivens actions; sovereign immunity context)
- Tsosie v. United States, 452 F.3d 1161 (10th Cir. 2006) (de novo review of district court dismissals for lack of jurisdiction)