October Term 2020 · Docket 19-930
Can taxpayers sue the IRS before paying disputed penalties?
CIC Services seeks to challenge IRS reporting rules without paying first. The government argues the Anti-Injunction Act bars such suits.
Verified source milestones
- — An official oral-argument transcript was verified.
- — An official oral-argument transcript was verified.
- — An official Court opinion was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
CIC Services argues the IRS notice is a rule. It claims the agency failed to follow notice-and-comment procedures.
The government argues the notice imposes tax penalties. It claims the Anti-Injunction Act bars the lawsuit.
CIC Services argues the government asks citizens to violate the tax code. It rejects the pay-now-litigate-later approach.
The government argues the complaint seeks to restrain tax collection. It claims this triggers the Anti-Injunction Act.
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 25-39 — Transcript, file page 10, lines 25-39
- Official Supreme Court Transcript — file page 10, lines 9-11 — Transcript, file page 10, lines 9-11
- Official Supreme Court Transcript — file page 11, lines 27-53 — Transcript, file page 11, lines 27-53
- Official Supreme Court Transcript — file page 12, lines 27-27 — Transcript, file page 12, lines 27-27
- Official Supreme Court Transcript — file page 12, lines 49-55 — Transcript, file page 12, lines 49-55
- Official Supreme Court Transcript — file page 13, lines 53-55 — Transcript, file page 13, lines 53-55
- Official Supreme Court Transcript — file page 14, lines 17-31 — Transcript, file page 14, lines 17-31
- Official Supreme Court Transcript — file page 14, lines 55-9 — Transcript, file page 14, lines 55-9
- Official Supreme Court Transcript — file page 32, lines 37-43 — Transcript, file page 32, lines 37-43
- Official Supreme Court Transcript — file page 4, lines 11-21 — Transcript, file page 4, lines 11-21
- Official Supreme Court Transcript — file page 4, lines 23-17 — Transcript, file page 4, lines 23-17
- Official Supreme Court Transcript — file page 6, lines 19-31 — Transcript, file page 6, lines 19-31
- Official Supreme Court Transcript — file page 65, lines 31-55 — Transcript, file page 65, lines 31-55
- Official Supreme Court Transcript — file page 68, lines 21-29 — Transcript, file page 68, lines 21-29
- Official Supreme Court Transcript — file page 68, lines 31-27 — Transcript, file page 68, lines 31-27
- Official Supreme Court Transcript — file page 7, lines 27-37 — Transcript, file page 7, lines 27-37
- Official Supreme Court Transcript — file page 71, lines 29-31 — Transcript, file page 71, lines 29-31
- Official Supreme Court Transcript — file page 8, lines 11-27 — Transcript, file page 8, lines 11-27
- Official Supreme Court Transcript — file page 8, lines 53-9 — Transcript, file page 8, lines 53-9
A citizen's guide to the whole case
What this case is about
CIC Services wants to invalidate IRS guidance. The IRS wants to enforce the rules. The dispute centers on the Anti-Injunction Act.
Official sources for this section
- Official Supreme Court Transcript — file page 32, lines 37-43 — Transcript, file page 32, lines 37-43
- Official Supreme Court Transcript — file page 4, lines 23-17 — Transcript, file page 4, lines 23-17
- Official Supreme Court Transcript — file page 65, lines 31-55 — Transcript, file page 65, lines 31-55
- Official Supreme Court Transcript — file page 68, lines 31-27 — Transcript, file page 68, lines 31-27
How the case got here
The Supreme Court heard oral argument in this case on December 1, 2020.
Official sources for this section
- Official Supreme Court Transcript — file page 4, lines 11-21 — Transcript, file page 4, lines 11-21
- Official Supreme Court Transcript — file page 71, lines 29-31 — Transcript, file page 71, lines 29-31
What each side wants
CIC Services wants to invalidate the IRS notice. It seeks an injunction against enforcement.
The IRS wants to enforce the reporting rules. It seeks dismissal of the lawsuit.
Official sources for this section
- Official Supreme Court Transcript — file page 32, lines 37-43 — Transcript, file page 32, lines 37-43
- Official Supreme Court Transcript — file page 4, lines 23-17 — Transcript, file page 4, lines 23-17
- Official Supreme Court Transcript — file page 65, lines 31-55 — Transcript, file page 65, lines 31-55
- Official Supreme Court Transcript — file page 68, lines 31-27 — Transcript, file page 68, lines 31-27
What each side says
CIC Services argues the IRS violated the APA. It claims the agency skipped required rulemaking.
The IRS argues the Anti-Injunction Act applies. It claims the suit restrains tax collection.
Official sources for this section
- Official Supreme Court Transcript — file page 32, lines 37-43 — Transcript, file page 32, lines 37-43
- Official Supreme Court Transcript — file page 4, lines 23-17 — Transcript, file page 4, lines 23-17
- Official Supreme Court Transcript — file page 65, lines 31-55 — Transcript, file page 65, lines 31-55
- Official Supreme Court Transcript — file page 68, lines 31-27 — Transcript, file page 68, lines 31-27
What the justices asked
Justice Breyer asked why the taxpayer cannot request a rulemaking. He questioned the specific problem with the current route.
Chief Justice Roberts asked if Congress can label penalties as taxes. He questioned the authority to define the term.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 25-39 — Transcript, file page 10, lines 25-39
- Official Supreme Court Transcript — file page 10, lines 9-11 — Transcript, file page 10, lines 9-11
- Official Supreme Court Transcript — file page 11, lines 27-53 — Transcript, file page 11, lines 27-53
- Official Supreme Court Transcript — file page 12, lines 27-27 — Transcript, file page 12, lines 27-27
- Official Supreme Court Transcript — file page 12, lines 49-55 — Transcript, file page 12, lines 49-55
- Official Supreme Court Transcript — file page 13, lines 53-55 — Transcript, file page 13, lines 53-55
- Official Supreme Court Transcript — file page 14, lines 17-31 — Transcript, file page 14, lines 17-31
- Official Supreme Court Transcript — file page 14, lines 55-9 — Transcript, file page 14, lines 55-9
- Official Supreme Court Transcript — file page 6, lines 19-31 — Transcript, file page 6, lines 19-31
- Official Supreme Court Transcript — file page 68, lines 21-29 — Transcript, file page 68, lines 21-29
- Official Supreme Court Transcript — file page 7, lines 27-37 — Transcript, file page 7, lines 27-37
- Official Supreme Court Transcript — file page 71, lines 29-31 — Transcript, file page 71, lines 29-31
- Official Supreme Court Transcript — file page 8, lines 11-27 — Transcript, file page 8, lines 11-27
- Official Supreme Court Transcript — file page 8, lines 53-9 — Transcript, file page 8, lines 53-9
Why it matters
This case defines when taxpayers can challenge IRS rules. It determines if the Anti-Injunction Act blocks all such suits. It affects the balance between agency power and judicial review.
Official sources for this section
- Official Supreme Court Transcript — file page 32, lines 37-43 — Transcript, file page 32, lines 37-43
- Official Supreme Court Transcript — file page 4, lines 23-17 — Transcript, file page 4, lines 23-17
- Official Supreme Court Transcript — file page 65, lines 31-55 — Transcript, file page 65, lines 31-55
- Official Supreme Court Transcript — file page 68, lines 31-27 — Transcript, file page 68, lines 31-27
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 25-39 — Transcript, file page 10, lines 25-39
- Official Supreme Court Transcript — file page 10, lines 9-11 — Transcript, file page 10, lines 9-11
- Official Supreme Court Transcript — file page 11, lines 27-53 — Transcript, file page 11, lines 27-53
- Official Supreme Court Transcript — file page 12, lines 27-27 — Transcript, file page 12, lines 27-27
- Official Supreme Court Transcript — file page 12, lines 49-55 — Transcript, file page 12, lines 49-55
- Official Supreme Court Transcript — file page 13, lines 53-55 — Transcript, file page 13, lines 53-55
- Official Supreme Court Transcript — file page 14, lines 17-31 — Transcript, file page 14, lines 17-31
- Official Supreme Court Transcript — file page 14, lines 55-9 — Transcript, file page 14, lines 55-9
- Official Supreme Court Transcript — file page 4, lines 11-21 — Transcript, file page 4, lines 11-21
- Official Supreme Court Transcript — file page 6, lines 19-31 — Transcript, file page 6, lines 19-31
- Official Supreme Court Transcript — file page 68, lines 21-29 — Transcript, file page 68, lines 21-29
- Official Supreme Court Transcript — file page 7, lines 27-37 — Transcript, file page 7, lines 27-37
- Official Supreme Court Transcript — file page 71, lines 29-31 — Transcript, file page 71, lines 29-31
- Official Supreme Court Transcript — file page 8, lines 11-27 — Transcript, file page 8, lines 11-27
- Official Supreme Court Transcript — file page 8, lines 53-9 — Transcript, file page 8, lines 53-9
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Verified official opinions and orders
Title and summary sources
- Official Supreme Court Transcript — file page 32, lines 37-43 — Transcript, file page 32, lines 37-43
- Official Supreme Court Transcript — file page 4, lines 23-17 — Transcript, file page 4, lines 23-17
- Official Supreme Court Transcript — file page 65, lines 31-55 — Transcript, file page 65, lines 31-55
- Official Supreme Court Transcript — file page 68, lines 31-27 — Transcript, file page 68, lines 31-27
- Official Supreme Court Transcript — file page 32, lines 37-43 — Transcript, file page 32, lines 37-43
- Official Supreme Court Transcript — file page 4, lines 23-17 — Transcript, file page 4, lines 23-17
- Official Supreme Court Transcript — file page 65, lines 31-55 — Transcript, file page 65, lines 31-55
- Official Supreme Court Transcript — file page 68, lines 31-27 — Transcript, file page 68, lines 31-27
Revision history
- Revision 1 · Post Opinion ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Post Opinion ·
Correction: Migrated to the dated official Court activity contract without model use.