Tony Mark v. Paul Groff

Mark appeals from dismissal of his complaint against three Internal Revenue Service (I.R.S.) agents for alleged violation of his constitutional rights. We reverse.

Facts

Mark (appellant), a tax accountant, claimed that the I.R.S. agents (appellees) maliciously, intentionally and wantonly took certain actions to ruin his tax return preparation business and to cause him extreme anguish and emotional distress. According to the complaint’s allegations, which we must accept as true for purposes of this appeal, the agents beginning in 1970 made false and derogatory statements to Mark’s clients, unlawfully arrested appellant, and made false representations to a United States magistrate causing a high bond to be set; further, after Mark was acquitted of criminal charges for violation of tax laws, appellees arranged to audit substantially all the returns prepared by Mark for his clients, told clients not to use Mark’s services and warned the clients that if they continued to patronize Mark their returns would be audited. As a result of the agents’ actions, appellant suffered an $80,000.00 loss in income in 1973, and his tax return business was effectively destroyed.

Mark’s…