Krieg

ORDER GRANTING MOTION TO DISMISS

BACKGROUND

On September 30, 1998, plaintiffs Linda Krieg and Keith Krieg filed suit against defendants Ava Mills (now Ava Pointer) and Frank McNulty, both Internal Revenue Service (IRS) agents, for declaratory relief, injunctive relief, and damages. The complaint alleges that the defendants violated plaintiffs’ constitutional rights and the Internal Revenue Code when defen dants, in their capacity as IRS agents, caused Notices of Federal Tax Lien Under Internal Revenue Laws to be filed in San Mateo County, California.

The liens in question were attached to plaintiffs’ property due to plaintiffs’ alleged tax deficiencies for their fiscal years 1990, 1991, and 1992. Plaintiff Linda Krieg is alleged to owe more than $130,000 in back taxes and penalties, and plaintiff Keith Krieg more than $100,000 in back taxes and penalties, for fiscal years 1990, 1991 and 1992. In 1997, defendant McNulty obtained approval from IRS District Counsel to file a nominee lien against Keith and Linda Krieg, and then caused seven nominee liens to be prepared and filed with the San Mateo County Record-. er. McNulty Deck, ¶¶ 3-6. After these liens were prepared, they were…