Case: District Court Had Subject Matter Jurisdiction Over Refund Claims, Administrative Procedures Act Challenge to Reportable Transaction Requirement Time-Barred (D.N.J.) (IRC §7422)

Plaintiffs, who sought a refund of penalties assessed for failing to report certain life insurance arrangements considered reportable transactions under Notice 2007-83, and whose previous complaint had been dismissed, exhausted their administrative remedies and satisfied requirements under I.R.C. §7422 to establish the court’s subject matter jurisdiction over their refund claims, a district court held, denying in part the government’s motion to dismiss plaintiffs’ second amended complaint. Following precedent established by the U.S. Court of Appeals for the Third Circuit, the district court concluded the plaintiffs’ amended complaint related back to, and corrected filing defects in, their original complaint. Plaintiffs challenged ...