Case: Exhaustion of Administrative Remedies Not Satisfied in Claim for Wrongful Levy (S.D. Miss.) (IRC §7433)

A taxpayer’s unsuccessful efforts to work with the IRS are not a substitute for and do not satisfy or excuse his admitted failure to comply with the administrative exhaustion requirements, a district court held. Taxpayer brought suit under I.R.C. §7433(a) seeking damages and injunctive relief based on allegations that the IRS, which claims he owes over $1.3 million in taxes, penalties and interest, has wrongfully levied various accounts and property in which he either owns no interest or which is exempt. The government filed a motion to dismiss for failure to exhaust administrative remedies. Taxpayer admitted that he did not ...