Second Circuit – Tax assessment enforcement: United States v. Schiller

Listen to this article

United States Court of Appeals for the Second Circuit

Tax assessment enforcement

Proposed installment agreement – Department of Justice referral

United States v. Schiller

22-1566-cv

Judges Livingston, Chin, and Kahn

Background: The defendants appealed from a judgment requiring them to pay a tax assessment claiming that the enforcement action was premature because the Internal Revenue Service referred the matter to the Department of Justice before formally rejecting the defendants proposed installment agreement.

Ruling: The Second Circuit affirmed. The court held that it was a technical, non-prejudicial error. In doing so, the court noted that the defendants’ construction of the pertinent statutory language conflates the Attorney General’s independent discretion to direct the commencement of in-court proceedings with the Treasury Secretary’s separate power to refer a tax assessment for a collection actions. The court also noted that the defendants failed to demonstrate prejudice for any violation of the applicable regulations.

Larry Kars for the defendants-appellants; Julie Ciamporcero Avetta, of the Department of Justice, for the plaintiff-appellee.

Oral argument audio