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Tax Anti-Injunction Act: Key Insights into Its Legal Framework
Definition & Meaning
The Tax Anti-Injunction Act is a federal law in the United States, established in 1867. This law prevents individuals from suing the government to stop the assessment or collection of taxes. Under this Act, a person must first pay the full amount of taxes owed before they can challenge the tax in court. The primary goals of the Act are to ensure the efficient collection of taxes and to protect tax collectors from lawsuits while tax disputes are being resolved.
Table of content
Legal Use & context
The Tax Anti-Injunction Act is primarily used in tax law. It is relevant when individuals or businesses wish to dispute a tax assessment by the Internal Revenue Service (IRS). This law ensures that tax collection proceeds without interruption, thus allowing the IRS to efficiently gather revenue. Users may find it helpful to utilize legal templates provided by US Legal Forms to navigate tax disputes effectively.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A taxpayer receives a notice of tax assessment from the IRS. They believe the assessment is incorrect but must first pay the amount owed before they can file a lawsuit to contest the assessment.
Example 2: After paying their taxes, a taxpayer files a claim for a refund due to an overpayment. If the IRS denies the claim, they can then sue for a refund in court (hypothetical example).
Relevant laws & statutes
The Tax Anti-Injunction Act is codified at 26 USCS § 7421. The Flora v. United States case (357 U.S. 63, 1958) is a significant ruling that established the full payment rule, which is foundational to the Act.
Common misunderstandings
What to do if this term applies to you
If you find yourself needing to dispute a tax assessment, first ensure you pay the full amount owed. After payment, you can file a claim for a refund with the IRS. If your claim is denied, or if six months pass without a response, you may then consider legal action. For assistance, explore the ready-to-use legal forms available through US Legal Forms, or consult a legal professional for complex situations.
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