A federal Court dismissed Peter Schiff’s lawsuit against the IRS and its investigators because the complaint relied on speculation and failed to allege specific facts showing unlawful government conduct.
Holding
The U.S. District Court for the District of Puerto Rico dismissed all claims brought by Peter Schiff against the United States and individual IRS officials.
Claims against the United States were barred by sovereign immunity and failure to exhaust administrative remedies under the Federal Tort Claims Act.
Remaining constitutional claims against individual IRS agents were dismissed because the complaint failed to allege unlawful conduct plausibly.
Why It Matters
Conspiracy allegations require facts. Courts will dismiss claims against the IRS when complaints rely on speculation rather than specific factual allegations.
Sovereign immunity remains a major barrier. Lawsuits against the IRS or federal officials acting in their official capacity are treated as suits against the United States…
