The U.S. Court of Appeals for the District of Columbia today issued a decision that vacates and remands for further proceedings, actions filed by entities that had filed applications for recognition of tax-exempt status as charitable or educational organizations but were subject to enhanced review by the IRS.
The cases are: True the Vote, Inc. v. IRS, No. 14-5316 (D.C. Cir. August 5, 2016) and Linchpins of Liberty v. United States, No. 15-5013 (D.C. Cir. August 5, 2016). Read the D.C. Circuit’s decision [PDF 54 KB]
The appellants were applicants whose applications for tax-exempt status were selected by the IRS “for more rigorous review on the basis of their names.” The appellants brought the present actions against the IRS and several of its individual employees, seeking: (1) money damages by way of relief under a Bivens action; (2) statutory claims for unauthorized inspection or disclosure of tax return information; and (3) equitable relief by way of injunction and declaratory judgment. The federal district court held the Bivens action would not lie against the individual defendants or the IRS. The district court also dismissed the statutory claims and dismissed the equitable claims as moot.
The D.C. Circuit today affirmed the district court’s decision as to the Bivens actions and statutory claims, but held that the equitable actions were not moot. The appeals court thus vacated and remanded the equitable claims for further action.
© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.