Opinion ID: 564917
Heading Depth: 2
Heading Rank: 1

Heading: Jurisdiction Over Claims for Declaratory Judgment

Text: 14 The government contends the district court should not have exercised jurisdiction over appellants' claims for declaratory judgment. Declaratory judgment actions relating to federal taxes are not permitted. 28 U.S.C. Sec. 2201; see also 26 U.S.C. Sec. 7421(a). The purpose of this prohibition is protection of the government's need to assess and collect taxes expeditiously without pre-enforcement judicial interference. See South Carolina v. Regan, 465 U.S. 367, 374-75, 104 S.Ct. 1107, 1112-13, 79 L.Ed.2d 372 (1984); Bob Jones Univ. v. Simon, 416 U.S. 725, 736-37, 94 S.Ct. 2038, 2045-46, 40 L.Ed.2d 496 (1974). An individual seeking to challenge the imposition of a tax must pursue his claim in a suit for refund. See Lowrie v. United States, 824 F.2d 827, 830 (10th Cir.1987). 15 Appellants pursued the proper procedure for challenging the imposition of the tax on UDC distributions. They paid the tax and then sought a refund. The district court, however, did not have jurisdiction to consider appellants' accompanying claims for declaratory judgment. 16 Additionally, the government argues the appellants have failed to join the appropriate state taxing authority as an indispensable party to their request for declaratory judgment. The government did not raise this issue below. We need not address this question because we dismiss appellants' claims for declaratory judgment. These claims are dismissed.