Document: 47 L.Ed.2d 278 96 S.Ct. 1062 424 U.S. 614 COMMISSIONER OF INTERNAL REVENUE, Petitioner,v.Samuel SHAPIRO et ux. No. 74-744. Argued Nov. 5, 1975. Decided March 8, 1976. Syllabus Finding that the imminent departure of respondent taxpayer Samuel Shapiro (hereinafter respondent) for Israel under an extradition order to stand trial there on criminal charges jeopardized collection income taxes claimed owed by 1970 and 1971, petitioner Commissioner Internal Revenue made a jeopardy assessment, filed liens against respondent, served notices levy various banks in which had accounts or safe-deposit boxes. Respondent then brought suit, claiming he no taxes, could not litigate issue while jailed Israel, would be jail unless use levied bank as bail money, seeking enjoining his until whether directing Service lift notices. After Commissioner, response interrogatories, furnished deficiency disclosing bases assessments were unexplained cash deposits 1971 derived from alleged narcotics sales, District Court dismissed complaint ground, inter alia, Anti-Injunction Act (Act), § 7421(a) Code, prohibits suits purpose restraining assessment withdrew its jurisdiction levies lifted. The Appeals disagreed remanded further proceedings, holding unresolved fact existed case fell within exception formulated Enochs v. Williams Packing Co., 370 1, 7, 82 1125, 1129, 8 292, 296, whereby injunction may obtained any tax if (1) it is "clear circumstances Government ultimately prevail" (2) "equity jurisdiction" otherwise exists shows suffer irreparable injury. court found satisfied second test because incarcerated used first should have without inquiry into upon viewing law facts most favorably was "factual foundation" claim tax-delinquent dealer during thus basis assessment. Held: did require dismissal respondent's complaint. Pp. 624-633. (a) Whether has chance prevailing purposes question resolved information available at time suit. Hence, err declining specify precise manner relevant revealed remand, since discloses such technical burden proof them discovery motion are those Commissioner's possession must somehow him. 624-628. (b) Act's primary interfered with requiring plead specific which, true, establish cannot prevail, will restrained persuaded evidence eventually adduced prevail. Moreover, "collateral objective" protect collector litigation outside statutory scheme undercut, himself still prove establishing remedy Tax refund suit inadequate repair injury caused erroneous collection, required simply fact. 628-629. (c) While permit seize hold property mere good-faith allegation unpaid raise serious due process problems cases like this one, where asserted seizure assets pursuant causing injury, resolved, exception, solely reference Act, whose standard affording opportunity hearing necessary show least favorable Constitution. 629-633. 162 U.S.App.D.C. 391, 499 F.2d 527, affirmed. MyroC. Baum, Washington, D. C., petitioner. Nathan Lewin, respondents. Mr. Justice WHITE delivered opinion Court. 1 This presents questions relating scope Code's 26 U.S.C. 7421(a),1 context summary taxpayer's §§ 6861, 6331, 6213. 2 * Normally, "assess" collect it, levying seizing assets, exhaust administrative remedies, include liability fully Court, 6212, 6213;2 does attempt otherwise, before exhaustion remedies violation 6213, protected United States district instance taxpayer. 6213(a), 7421(a). rule when proceeds 6861 finds owing "jeopardized delay" collection. In case, immediately assess and, "notice demand . payment thereof" followed "failure refusal pay tax," assets. 6331.3 When follows procedure, applies full force "no shall maintained person." 3 found, December 6, 1973, probable him New York boxes years 1971. Accordingly, assessed amount $92,726.41 On same day, State These effectively froze money totaling about $35,000 contents 4 At Shaprio final fraud charges, issued Southern York, scheduled leave 9, 1973 three days later. That date been set result agreement between withdrawn petition writ certiorari review affirmance Second Circuit, Ferrandina, 478 894 (1973), agreed grant speedy arrived release $60,000 pending trial. 5 Upon learning levy, consent postpone 16, 1973; 13, initiated instant lawsuit. Claiming taxes; Israel; frozen money; deliberately bad faith waited filing precisely place predicament, requested or, alternative, levy. 6 Over Government's lacked over reason timing matter exclusive Executive Branch, granted temporary argument preliminary 19, later postponed 21, 1973. Interrogatories inquiring, Inter assessments. partial, expedited, stated yet entitled know Then counsel supplements responses interrogatories appended deficiency, see 6212. disclosed based $18,000 $137,280 activities narcotics.4 date, dissolved dismiss concluded lifted, extradition, validly ordered treaty Department. 7 26, after notice appeal, Columbia Circuit stayed resolution appeal.5 stay lifted February 12, 1974. May 15, 1974, affirmed Court's extradited several thereafter.6 Appeals, however, consider relief proceedings. Secretary State, 527 (1974). held falls narrow decision 292 (1962).7 As understood decision, deprive restrain tax, "extraordinary harm" "adequate law," apparent that, liberal view facts, " 'cannot claim.' U.S.App.D.C., 396, F.2d, 532. test: incarcerated. I. e., ability contest validity inadequate. test, factual foundation proceedings finally determining "allow develop record" determine light "so arbitrary excessive"8 exaction guise tax.9 Id., 399, 535. II 9 argues placed instead "under prevail." 296. wholly failed even can initial contrary reversed. 10 other hand some obligation disclose assessments, either request direct court, provided supra, meaningless. never know, tells him, what certainly unable We agree Shapiro. 11 government exists, i. also said "the determined suit," Ibid. justifying thereby erroneously applied wrong. persuading prevail accomplished disclosure Government. It says Since absolutely impossible appropriate procedures, obvious intended Although casts terms "burden proof," producing appear little responding rested Thus erred remand. event, they obtainable Government.10 12 argues, eviscerated. Any allege conclusory fashion owes therefore, Appeals' effect justify interfering U.S., 7-8, S.Ct., 1129-1130, L.Ed.2d, 296-297, Congress. itself implicitly concedes, with, do understand departed enunciated Packing, removed ultimate burden, appears met. undercut more than contemplated Packing. might liability. Even then, liability, 13 Our conclusion correctly reversed judgment fortified construing constitutional cases, recently repeatedly deprivation adjudication rights parties, Due Process Clause requires party taken given kind predeprivation prompt post-deprivation showing made.11 Here seized contends how severe eventual Court.12 14 true Phillips sustained challenge created Congress disputes so doing referred both provisions 283 596 n. 51 611, 75 L.Ed. 1296. However, Case involve had, waived right to, (then Board Appeals). collected prior Judicial determination way unconstitutional.13 Thus, insofar constitutionality consequent only dicta. dicta carefully expressed. said: 15 "Where, here, adequate afforded judicial legal rights, secure performance pecuniary obligations consistently sustained. 16 "Where involved, postponement enquiry denial process, adequate. ." 595, 596-597, 611. (Emphasis supplied.) 17 neither nor support proposition constitutionally adequately remedied favor. Instead entirely consistent our recent holdings. 18 event we described alone. complaint, done assert greater value deposit fashion, received selling hashish.14 Before inquire allegation, possible tell prevailing. properly 19 Constitution; therefore affected issue. defeat render applicable resort oral testimony cross-examination. Affidavits sufficient long basic Constitution invariably more, Gerstein Pugh, 420 103, 95 854, 43 54 (1975); Mathews Eldridge, 319, 893, (1976), revenues involved. 20 Finally, seems "probable cause," North Georgia Finishing Inc. Di-Chem, Inc., 419 601, 607, 719, 722, 42 751, 757 standard. 21 point out Irreparable was, course, quite Appeals. court's appeared deprived needed post avoid incarceration. finding disappeared. task remand so, sort flowing levies.15 22 Affirmed. 23 STEVENS took part consideration case. 24 BLACKMUN, whom REHNQUIST joins, dissenting. 25 I thought Revenue, time, before, surely met all bring 7421(a), principle (1962), effective application. follow proper Given, very reached Laing States, 423 161, 473, 46 416 today, shored up seem me inapposite cited ante, 629-630, 11, unexpected. am far certain Cot correct, confused failure cite Bob Jones University Simon, 725, 94 2038, 40 496 (1974), "Americans United," 752, 2053, 518 two heavily relied here think, significance. observe And present now traveled down road emasculation companion pathway leads blunting strict requirements now, Brandeis' unanimous 589, 608, 1289 (1931). Laing-Shapiro tack, suspect, deems excesses respect suspected operatives who are, be, taxpayers. stultifying embarrassing temperate untroubled know. Perhaps, point, come rescue. 27 Ante, 624-626, demonstrates, unsatisfactory posture here. unfortunate posed occasions pronouncement new efforts concerned, regressive law. 28 reverse Title provides full: "(a) Tax. "Except sections 6212(a) (c), 7426(a) (1), person, person assessed." 6212 part: general. "If delegate determines imposed subtitles A B chapter 42, authorized send certified mail registered mail." 6213 Time restriction "Within 90 days, 150 addressed Union Columbia, section mailed (not counting Saturday, Sunday, holiday last day), file redetermination deficiency. Except subtitle proceeding made, begun, prosecuted taxpayer, expiration 90-day 150-day period, nor, become final. Notwithstanding making beginning prohibition enjoined court." 6331 Authority delegate. liable neglects refuses demand, lawful (and sum cover expenses levy) (except exempt 6334) belonging lien tax. Levy accrued salary wages officer, employee, elected official, agency instrumentality serving employer (as defined 3401(d)) official. If makes jeopardy, immediate thereof regard 10-day period section. "(b) Seizure sale property. "The term 'levy' title includes power distraint means. extend possessed existing thereof. property, sell (whether real personal, tangible intangible)." Making. believes 6211, delay, shall, notwithstanding (together interest, additional amounts, additions law), Deficiency Letters. relates 6212(a), subsection 60 assessment." year provided: "It you realized unreported taxable 1st National City Bank $18,000.00." App. 135. provided, 136: $137,280.00 ended 31, your narcotics, computed follows: "Gross hashish sales....... $381,680.00 "Less: costs......... 244,400.00 "Net income......... $137,280.00" January 3, armed notice, 6213(a). longer rejected record authority (1931), absent violated Clause. noted, prevent litigating one predicates Decision lacking. but resolve, dispute conformity statute. alleged, served. Such compliance apply. clear Shapiro's attorney Service, conceding sure original served, October moots IRS preceded levies. There these respects 6861. standard, considered con- sistent decided Courts primarily Pizzarello 408 579 (C.A.2 1969), Lucia 474 565 (C.A.5 1973) (en banc). Subsequent things concededly occurred arguable relevance First, extradited, reduced able meet it. assumed put beyond reach. Second, interpreted forward negative "entirely excessive, arbitrary, capricious, foundation." effort order, consisting affidavit revenue agent investigated liabilities. states "a. return 1970. "b. reporting $1,600 adjusted gross income, $2,600 miscellaneous private tutoring net short-term losses commodity transactions $1,450 (limited $1,000 computing income). "c. credited name First Bank, Nos.: 04993564 05008773, amounts $36,735 "d. paid excess $3,000 currency purchase automobile. "e. indicated early $40,000 home purchased $60,000. "f. supplied smuggling substantial illegal substance, hashish, every six presumably resale supported dealing "g. included subparagraph above, transfers individual convicted "April 1971....... $2,000 23, 1971........ 2,300 "May 1971........... 2,000 1971.......... 1,500 "June "August 18, 5,600 "h. known practice trafficking deal kilos (kilograms), equal 2.2 pounds; retail price $1,360 $1,980 per pound, $2,992 $4,356 kilo; wholesale cost approximate $2,350 common receive parts profit. "i. forth subparagraphs g. h. above (the agent) week, profit therefrom $137,280, "Selling price......... $7,340 "Cost................... 4,700 "Weekly profit.......... 2,640 (52 weeks). "j. deemed income." November submitted affidavits (which Court) denying ever narcotics. Respondent's correct. Rachel Laub, resident Switzerland, 1970, she safekeeping $50,000 approximately gold bars. request, transmitted bars ($32,000 $35,000) 1972, respectively. Finally Judge tentatively ruled must, deny injunctive relief, submit informant camera Examination court. Following granting certiorari, 923, 1116, 392 (1975), below. events just us time. review. parties described, mention conducted following believe require, insists, sole through discovery. nothing say voluntarily sufficient, terminate Goldberg Kelly, 397 254, 264, 1011, 1018, 287, 296 (1970) (temporary welfare payments recipient means live waits"); Sniadach Family Finance Corp., 395 337, 341-342, 89 1820, 1823, 349, 354 (1969) "drive wage-earning family wall"); Finishing, 751 (1975) ("probability injury" warrant preseizure probable-validity hearing); (incarceration probable-cause promptly cf. Regional Rail Reorganization Cases, 102, 156, 335, 365, 320, 360 (1974) (no complainant "made whole" inadequacy compensation confiscated property). often noted resolving procedural careful weighing respective interests required, Goss Lopez, 565, 579, 729, 738, 737 interest collecting important Fuentes Shevin, 407 67, 92, 92 1983, 2000, 32 556, 557 (1972). clearly Pre hearing, remove need subject allegations 595-597, 1289, 1296-1297 doubtful post-seizure claim. start seizure: statute wait issues gives "ticket Court." indicate quickly merits there. Preliminary available. Nothing providing forum Art. III system whatever challenged unsuccessfully provision appeals give deference Board's decision. decide insufficient levies, being greatly sufficient. note informed, despite best obtain vigorously sought determination, chosen devote energies federal courts. If, concludes absence pursue remedy, equity intervene dismissed. own choice

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