Court Opinion

ID: 9446653
Source: CourtListenerOpinion
Date Created: 2023-08-03 22:00:35.874587+00
Date Added: 2024-06-11T17:30:43.388291
License: Public Domain

DUFFY, Chief Judge
(concurring).
I am fully convinced that the levying of the jeopardy assessment herein totaling more than §3,000,000 was arbitrary and capricious. After extended investigation and lengthy audits, agents representing the Treasury Department testified in the criminal case that Homan1 owed less than §300,000 for income taxes, interest and penalties. When a number of taxpayer’s deposits were found in various savings and loan associations, the amount claimed to be owing was quickly raised to §3,000,000. I think taxpayer’s counsel draws a reasonable inference when he says the assessment was deliberately put at this fantastic and insupportable figure simply so that Homan couldn’t pay it, thus creating the appearance of jeopardy.
Taxpayer claims the arbitrary and capricious assessment in itself makes the tax illegal. We held to the contrary when this case was here before. Homan Mfg. Co., Inc. v. Long, 7 Cir., 242 F.2d 645. We quoted from Miller v. Standard Nut Margarine Co., 284 U.S. 498, 52 S.Ct. 260, 76 L.Ed. 422 to the effect that there must in addition exist special and extraordinary facts and circumstances to bring the case within some acknowledged head of equity jurisprudence. Later decisions of this Court are in accord. Mensik v. Long, 7 Cir., 261 F.2d 45; Melvin Building Corp. v. Long, 7 Cir., 262 F.2d 920. In deference to those decisions which have established the view of this Court, I concur in the result reached by the majority opinion herein.
It is said in the majority opinion that when this case was here before, we did not decide the question of jurisdiction. The point was squarely raised on that appeal. This Court said, 242 F.2d at page 648: “Normally jurisdictional questions demand primary attention. But under the circumstances of this case we think it advisable to first examine the jeopardy assesment phase” (Emphasis supplied). Again, on page 651 we said: “While a jurisdictional challenge meets us at the outset it can be resolved only by determining whether plaintiff’s case qualifies for relief under some head of equity jurisdiction.”
I agree that there is no express statement in our previous opinion that we were deciding the question of jurisdiction. But surely the members of that panel expected there would be a trial on the merits which should only have been held if the District Court had jurisdiction. We specifically held that summary judgment was improvidently granted. We also advised the District Court, at page 650: “We also think the district court should consider the question of parties in light of § 6861(g) since a government official has power to abate the assessment even after the levy has been made.” Surely the District Court was fully justified in proceeding with the trial on the merits, thinking that it was carrying out the mandate of this Court.

. Formerly The Shotwell Manufacturing Company.