United States v. Askins & Miller Orthopaedics, P.A., No. 18-11434 (11th Cir. 2019)Annotate this Case
The Eleventh Circuit vacated the district court's order denying the IRS injunctive relief and remanded for further proceedings. The IRS sought a preliminary injunction against a serial employment-tax delinquent to ensure that it gets its due as taxes continue to pile up. Determining that the case was not moot, the court held that neither the adequate-remedy-at-law requirement nor Rule 65(d) should have precluded injunctive relief on the facts here.
The court reasoned that the IRS's ability to sit on its hands until defendants fail to pay their taxes again and only then bring an action for money damages did not qualify as an adequate legal remedy. Therefore, the district court erred in applying a categorical rule that because tax liability may be calculated and sought in an action for damages, it necessarily precludes injunctive relief under section 7402(a) of the Internal Revenue Code. Furthermore, this case did not raise the sort of fair notice concerns that Rule 65(d) was designed to address.