Opinion
Civil Case No. 01-0092-E-BLW
August 14, 2002
MEMORANDUM DECISION AND ORDER
The Court has before it a motion for stay and temporary restraining order filed by defendants Clyde and Rea Stock. The Government brought this action against the Stocks to reduce to judgment various tax assessments and penalties levied against the Stocks and to foreclose its federal tax lien against two parcels of property. The Stocks seek to stay this suit and restrain the Government from proceeding to collect the taxes until the Ninth Circuit issues a decision in a related case filed by the Stocks against the Government, Stock v. Commissioner, Civ. No. 00-467-E-BLW. In that ease, the Stocks claimed that the tax assessments were invalid because the Internal Revenue Service (IRS) only has authority to collect taxes in Puerto Rico, the Philippines, and the Virgin Islands. The Court dismissed that case, and the Stocks appealed to the Ninth Circuit.
The Stocks now assert that since the assessments they challenged in that case are the same assessments at issue here, they should he entitled to a stay of this case until the Ninth Circuit has ruled. The Court disagrees. The Stocks' suit challenging the assessments was frivolous, and this collection action cannot be stayed to await a ruling in a frivolous suit. Furthermore, the Anti-Injunction Act, 26 U.S.C. § 7421(a) prohibits this Court from enjoining the IRS from. assessing or collecting taxes unless certain exceptions apply. See Enochs v. Williams Packing Navigation Co., 370 U.S. 1 (1962). No exception applies here, and thus the Court will refuse to enjoin or stay this action.
ORDER
In accordance with the Memorandum Decision above,
NOW THEREFORE IT IS HEREBY ORDERED, that the motion for stay and for temporary restraining order (docket no. 14) is hereby DENIED.