Waltner v. United States
2012 U.S. App. LEXIS 7956
| Fed. Cir. | 2012Background
- Taxpayers Waltner filed joint original returns for 2003–2006 and amended returns seeking refunds for those years.
- They also filed original returns for 2007–2008, including amended forms, claiming refunds for those years.
- The Court of Federal Claims dismissed 2004–2008 refunds for lack of jurisdiction because the returns contained zeros and did not constitute valid refund claims.
- The Court also dismissed the 2003 refund claim as time-barred and refused damages for an Arizona tax lien.
- Regulatory requirements 26 C.F.R. § 301.6402-3(a)(5) and § 301.6402-2(b)(1) require a properly executed return with sufficient information and specificity to constitute a refund claim.
- The Federal Circuit agreet that zeros-filled returns are not valid refunds and affirmed dismissal for lack of jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether zeros on returns can be valid refund claims | Waltner contends amended returns amount to refunds | United States argues zeros fail to constitute proper returns under §301.6402-3(a)(5) and §301.6402-2(b)(1) | No; zeros do not constitute valid refunds and lack jurisdiction |
| Whether the Court of Federal Claims had jurisdiction over 2004–2008 refunds | Waltner argues claims fall within refund jurisdiction | United States argues no jurisdiction due to improper returns | No; amended/original returns with zeros do not meet jurisdictional requirements |
| Whether the 2003 refund claim was time-barred | Waltner asserted timely filing within statute | United States contends 2003 claim barred | Yes; 2003 claim dismissed for statute of limitations |
Key Cases Cited
- United States v. Goetz, 746 F.2d 705 (11th Cir. 1984) (returns with no income information not a return)
- United States v. Mosel, 738 F.2d 157 (6th Cir. 1984) (form showing zero income fails to provide tax data)
- United States v. Grabinski, 727 F.2d 681 (8th Cir. 1984) (zeros in income data render return noncompliant)
- United States v. Rickman, 638 F.2d 182 (10th Cir. 1980) (returns with only zeros do not reveal taxable information)
- United States v. Moore, 627 F.2d 830 (7th Cir. 1980) (returns containing nothing but zeros not a return)
- United States v. Smith, 618 F.2d 280 (5th Cir. 1980) (zeros and objections do not satisfy return requirements)
- Zellerbach Paper Co. v. Helvering, 293 U.S. 172 (1934) (requires an honest and reasonable endeavor to supply required information)
- Clintwood Elkhorn Mining Co., 553 U.S. 1 (2008) (limits on sovereign immunity and refund jurisdiction)
- United States v. Dalm, 494 U.S. 596 (1990) (sovereign immunity and waiver for refunds)