United States District Court, S.D. Mississippi, Northern Division
DANIEL P. JORDAN, III, District Judge.
This taxpayer action is before the Court on motion of the United States to dismiss  Plaintiff Barry Neil Pinnix's claims for failure to exhaust his administrative remedies, or alternatively, for failure to plead a plausible claim. Pinnix has responded in opposition. The Court, having considered the parties' submissions along with the pertinent authorities, finds the motion should be granted. Pinnix's claims are dismissed without prejudice for failure to properly exhaust his administrative remedies.
I. Factual Background
Pinnix filed this action on January 30, 2014, seeking damages for unauthorized collection actions pursuant to 26 U.S.C. § 7433 and a refund of balances wrongfully seized by the IRS pursuant to § 7405. Compl.  at 1. In his Complaint, Pinnix contends that he has complied with the exhaustion requirements of § 7433(d)(1) by filing a complaint with the Treasury Inspector General for Tax Administration (TIGTA) on January 22, . Id. In very general terms, Pinnix disagrees with the Internal Revenue Service's unwillingness to reach a compromise to resolve his tax liability following an audit.
II. Exhaustion of Administrative Remedies
The United States contends that Pinnix's January 22, 2014 letter to TIGTA does not comply with the applicable regulations and, therefore, he has not administratively exhausted his claim. Treasury Regulation § 301.7433-1(e) provides as follows:
(e) Procedures for an administrative claim-
(1) Manner. An administrative claim for the lesser of $1, 000, 000 ($100, 000 in the case of negligence) or actual, direct economic damages as defined in paragraph (b) of this section shall be sent in writing to the Area Director, Attn: Compliance Technical Support Manager of the area in which the taxpayer currently resides .
(2) Form. The administrative claim shall include:
(i) The name, current address, current home and work telephone numbers and any convenient times to be contacted, and taxpayer identification number of the taxpayer making the claim;
(ii) The grounds, in reasonable detail, for the claim (include copies of any available substantiating documentation or correspondence with the Internal Revenue Service);
(iii) A description of the injuries incurred by the taxpayer filing the claim (include copies of any available substantiating documentation or evidence);
(iv) The dollar amount of the claim, including any damages that have not yet been incurred but which are reasonably foreseeable (include copies of any available substantiating documentation or evidence); and
(v) The signature of the taxpayer or duly authorized representative. For purposes of this paragraph, a duly authorized representative is any attorney, certified public accountant, enrolled actuary, or any other person permitted to represent the taxpayer before the Internal Revenue Service who is not disbarred or suspended from practice before the ...