Joshua Stonecipher v. William E. Bray

Stonecipher filed an action against his employer, Bechtel Corporation, and the Internal Revenue Service (IRS), seeking: (1) an injunction prohibiting Bechtel from denying him exemption from federal income tax withholding; (2) a writ of mandamus directing the IRS to order payment of withheld taxes; (3) a writ of mandamus directing the IRS to hold a hearing before denying his claim for exempt status; and (4) punitive damages. The district court dismissed the action against both defendants for lack of subject matter jurisdiction and failure to state a claim. We affirm.

In January 1979, Stonecipher submitted to Bechtel a Form W-4 withholding certificate claiming exemption from federal income tax. Bechtel, unable to verify the correctness of the certificate, forwarded it to the IRS pursuant to Treasury Regulation § 31.3402(n)-l (1979).

On February 27, 1979, the IRS requested Stonecipher to contact them so that they could determine whether he was entitled to claim exemption from withholding. Enclosed with the letter was a worksheet to enable Stonecipher to calculate his withholding allowances. The letter informed Stonecipher that if he did not respond within two weeks, the IRS would…