Sequoia Property & Equipment, Ltd. Partnership v. United States

MEMORANDUM **

Mark and Rhonda Crisp (“the Crisps”), Sequoia Property and Equipment Limited Partnership (“Sequoia”), and Hyper-Jean Property and Limited Partnership (“Hyper-Jean”) appeal the judgment of the district court in consolidated cases pertaining to federal income tax assessments and related matters. We affirm. Because the parties are familiar with the factual and procedural history of this case, we will not recount it here.

I

Sequoia, and Hyper-Jean on behalf of Wanda Crisp contend that the district court lacked jurisdiction over the claims against them because the government failed to demonstrate it was authorized to file a collection action pursuant to 26 U.S.C. § 7401 . Federal district courts “have such jurisdiction to make and issue in civil actions, writs and orders of injunction ... and to render such judgments and *640 decrees as may be necessary or appropriate for the enforcement of the internal revenue laws.” 26 U.S.C. § 7402 (a). This power is subject to the condition that no civil tax collection action can be brought “unless the Secretary authorizes or sanctions the proceedings and the Attorney General or his delegate directs that the action be commenced.”…