Case Explained: MIRCH, ET AL. V. USA

Court: United States Court of Appeals for the Ninth Circuit

Filed: 2026-07-13

Docket: 3:24-cv-00721-TWR-DDL

The Ninth Circuit affirmed the district court’s dismissal of Plaintiffs-Appellants’ First Amended Complaint with prejudice. The court held that the district court correctly dismissed the action under 26 U.S.C. § 7433 for failure to exhaust administrative remedies and because the suit was time-barred. Regarding exhaustion, the court applied de novo review and found that Plaintiffs-Appellants conceded they failed to file the written claim required by 26 C.F.R. § 301.7433-1(e) prior to filing their lawsuit. Because sovereign immunity is waived under § 7433 only upon strict compliance with these administrative requirements, the district court lacked jurisdiction over the unexhausted claims. Regarding the statute of limitations, the court applied de novo review and determined that the two-year limitation period in 26 U.S.C. § 7433(d)(3) is jurisdictional and not subject to equitable tolling. The court found the action untimely because the last alleged collection activity occurred on October 27, 2021, while the complaint was filed on April 22, 2024. As the defect was jurisdictional and could not be cured by amendment, the dismissal with prejudice was proper. The practical consequence is that the Plaintiffs’ claims for damages regarding unauthorized tax collection activities are permanently barred due to their failure to exhaust administrative remedies and the expiration of the statutory filing period.

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