Professional Documents
Culture Documents
Harper V Rettig: 21-1316
Harper V Rettig: 21-1316
No. 21-1316
JAMES HARPER,
Plaintiff, Appellant,
v.
Defendants, Appellees.
Before
Believing that the IRS had acquired his personal financial records
U.S.C. §§ 7602 and 7609, appellant sued the IRS and its agents for
I.
A. Factual Background
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facilitates transactions in virtual currencies," including
income from his Coinbase transactions on his 2013, 2014, 2015, and
wife sold bitcoin through the digital exchanges Abra and Uphold.
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Coinbase, Inc., No. 17-cv-1431-JSC, 2017 WL 5890052, at *1 (N.D.
Cal. Nov. 28, 2017). Under § 7609 of the Internal Revenue Code,
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during the period stated above limited to
name, address, tax identification number, date
of birth, account opening records, copies of
passport or driver's license, all wallet
addresses, and all public keys for all
[accounts].
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hearing argument, the district court permitted the government to
*7.6
notifying him that the agency "ha[d] information that you have or
had one or more accounts containing virtual currency but may not
B. Procedural History
amended complaint alleges that the IRS and its agents violated the
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appellant contends that he had an ownership interest, as well as
violated any laws and the IRS did not obtain a judicial warrant or
alleges that this "unlawful seizure" violated his rights under the
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a new context and that special factors counseled against such an
II.
A. Standard of Review
jurisdiction. Lyman v. Baker, 954 F.3d 351, 359 (1st Cir. 2020).
Leadership Comm., 669 F.3d 50, 55 (1st Cir. 2012)). We may also
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consider information attached to or incorporated into the
B. Discussion
States from being sued without its consent. United States v. Dalm,
494 U.S. 596, 608 (1990); Muirhead v. Mecham, 427 F.3d 14, 17 (1st
the suit." Dalm, 494 U.S. at 608 (quoting United States v. Testan,
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5 U.S.C. § 702 (emphases added). Appellant's suit, which seeks
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The IRS argues -- and the district court agreed -- that
person, whether or not such person is the person against whom such
v. United States, 575 F.2d 994, 996 (1st Cir. 1978), the IRS
Injunction Act "is 'not keyed to all activities that may improve
CIC Servs., LLC v. IRS, 141 S. Ct. 1582, 1589 (2021) (quoting
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that "'[i]nformation gathering' . . . is 'a phase of tax
is so even if the reporting rule will help the IRS bring in future
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transferee . . ., or collecting any such liability." 26 U.S.C. §
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authority"), and id. at 10 (suggesting that "collection" begins
702. See CIC Servs., 141 S. Ct. at 1588-89; Direct Mktg., 575
those activities.").
Act. Invoking language from CIC Services, the IRS contends that
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1589 ("In considering a 'suit['s] purpose,' [courts] inquire not
The IRS also cites out-of-circuit case law that predates both
Act because the injunction it requests does not run against a tax
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relief from, a separate legal" wrong -- the allegedly unlawful
the cusp of tax liability," id. at 1591, and "the dispute is [not]
about a tax rule," where "the sole recourse" in light of the Anti-
Injunction Act "is to pay the tax and seek a refund," id. at 1593.
III.
12(b)(6) for failure to state a claim. Although the IRS made this
argument below and both sides fully briefed the issue, the district
So ordered.
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