US Supreme Court Docket

Supreme Court Docket

Oct | Nov | Dec | Jan | Feb | Mar | Apr | Unscheduled | Previous Terms
[Download February 8, 2007 Argument Calendar PDF]
[Click here for 2005 Docket]
Many documents listed on this page are PDF files that may be viewed using AdobeReader.

EC Term of Years Trust v. United States
No. 05-1541 Title:

EC Term of Years Trust v. United States

Subject:

Wrongful Levies, IRS, Income Taxes, Subject Matter Jurisdiction, Statutes of Limitations

Question:

In September 1999, the Internal Revenue Service levied on a bank account owned by Petitioner containing $3,389,426.37. The purpose of the levy was to pay federal income taxes, penalties and interest assessed against Elmer W. Cullers, Jr. and Dorothy Cullers. On September 7, 2000, Petitioner filed a complaint against Respondent under 26 U.S.C. section 7426 for a wrongful levy. On December 28, 2000, the district court dismissed the complaint for wrongful levy for lack of subject matter jurisdiction because it had been filed more than nine months after the levy and was time barred under 26 U.S.C. section 7426. Petitioner then filed a claim under 28 U.S.C. section 1346 to recover the funds seized through the levy. When the claim proved unsuccessful, Petitioner filed suit against Respondent to recover the sum of $3,389,426.37 under 28 U.S.C. section 1346. On November 22, 2004, the district court dismissed Petitioner's Complaint on the ground that a claim under 26 U.S.C. section7426 is the sole and exclusive remedy for a wrongful levy. Since Petitioner's complaint for a wrongful levy under 26 U.S.C. section7426 had been dismissed earlier due to being time barred, its complaint for a refund under 28 U.S.C. section1346(a) was also dismissed. The Fifth Circuit affirmed the dismissal of Petitioner's complaint under 28 U.S.C. section 1346 and held that 26 U.S.C. section7426 is the sole and exclusive remedy for a wrongful levy.

The following question is presented:


• May a person who is not the assessed taxpayer utilize 28 U.S.C. section 1346 to seek a refund when its funds were seized through a wrongful levy and it had an opportunity to utilize the wrongful levy procedure under 26 U.S.C. section 7426?

Decisions:

• U.S. Court of Appeals - 5th Circuit Opinion Filed: January 3, 2006
• United States Supreme Court, Cert. Granted: October 27, 2006

Resources:

• Docket Sheet From the U.S. Supreme Court.
• Northwestern University - Medill School of Journalism: On the Docket

Briefs:

    Parties

Coming Soon

Counsel of Record

For Petitioner EC Term of Years Trust:

Francis S. Ainsa Jr
El Paso, TX

For Respondent United States:

Paul D. Clement
U.S. Solicitor General
Washington, DC

 

Oct | Nov | Dec | Jan | Feb | Mar | Apr | Unscheduled | Previous Terms

 

To view PDF files listed on this page you will need Adobe Acrobat Reader