Court Opinion

ID: 9473340
Source: CourtListenerOpinion
Date Created: 2023-08-05 04:26:59.962321+00
Date Added: 2024-06-11T17:43:28.092765
License: Public Domain

PELL, Senior Circuit Judge,
dissenting.
As I understand the position of the corporation, it is that there was a proper designation that the amount paid by the assignee be applied to the trust fund taxes, that the IRS by not honoring this designation had, in the wording of 28 .U.S.C. § 1346(a)(1), “illegally collected” this amount and therefore the corporation was entitled to a refund of the amount paid, even though the refund would take the form of a setoff of its liability for the trust fund taxes. The refusal of the IRS, if there had been a timely designation, to credit the amount paid appears to me to be a collection of taxes and one which was on an illegal basis because a timely designation by an assignee is a voluntary payment contrary to the position taken by the IRS at the time the payment was received. Muntwyler v. United States, 703 F.2d 1030 (7th Cir.1983).
While it appears to me therefore that there was properly jurisdiction in the district court, I agree with that court’s decision that there was no proper designation. Accordingly, I respectfully dissent from the analysis of the majority but I would affirm the judgment of the district court on the merits.