Melvin Morris, Jr., and Ramona Morris v. United States of America

Morris and his wife appeal from dismissal of their action for damages brought under 28 U.S.C. §§ 1346 (b) and 2674 against the United States and various public officials and employees. We affirm.

Facts

For purposes of this appeal, we assume that the following allegations contained in appellants’ complaint are true. During the 1960’s Morris was engaged in a plumbing and contracting business in Los Angeles. From 1960 to 1965 he acquired 18 substandard buildings in San Francisco to rehabilitate and resell. To finance improvements to the buildings, Morris relied extensively on credit extended by lenders, subcontractors and suppliers. Because Morris did not use Union labor in his business, a Union representative said Morris could expect a visit from the Internal Revenue Service (IRS). Not long thereafter the IRS called on Morris for an audit of his books, and later audited appellants’ income tax returns for the years 1960-65. The IRS subsequently determined that appellants owed back taxes for excess depreciation taken on the buildings. During the course of its investigation and collection activities, the IRS told Morris’s creditors of the tax liability and said that he would…