Congress should grant certain taxpayers the right to file suit in a federal District Court subsequent to levy by adopting the following provision:

A taxpayer may file suit in a U.S. District Court, prior to
    levy, to enjoin the Secretary from making a levy, or subsequent
    to levy to enjoin the Secretary from selling such property
    levied upon, and to obtain a release of levied property by
    reasons that: the deficiency assessment was made without
    knowledge of the taxpayer and without benefit of the appeal
    procedure; or there has been an improper or illegal assessment;
    or there has been an action in violation either of the statutory
    procedures of the Tax Code, the policies or regulations of the
    Internal Revenue Service, or the procedural requirements of the
    Internal Revenue Manual providing taxpayer safeguards; or the
    Secretary has made an unlawful determination that collection of
    the tax was in jeopardy pursuant to Section 6331(a); or the
    value of seized property is out of proportion to the amount of
    the liability, and other collection remedies are available; or
    the value of the U.S. interest in the seized property is
    insufficient to meet the expenses of seizure and sale; or the
    Secretary will not release the seized property upon an offer of
    payment of the U.S. interest in the property; or the Secretary
    has arbitrarily established a minimum bid price on the seized
    property in such a way as not to preserve or protect the
    taxpayer's equity in the seized property.

Reasons for Change:

Under IRC 7421 no suit can be brought by any person in any court for the purpose of restraining the assessment or collection of any tax, except as provided in sections: 6212(a), relating to notice of deficiency; 6213(a), relating to the 90-day letter; 6672(b), relating to suits for determining liability of the 100% penalty; 6694(c), relating to liability of preparer penalty; 7426(a), relating to wrongful levies; 7426(b)(1), relating to irreparable injuries to superior rights of the U. S.; and 7429(b), relating to appeal of jeopardy assessment procedures.

The case law pertaining to Section 7421 indicates a myriad of problems in obtaining injunctions to restrain the collection of the tax. It is clear that injunctions will be granted where the failure to grant relief would result in irreparable damage to the taxpayer. But an injunction will only be allowed where it is clear that under no circumstances would the government prevail. Otherwise, only two remedies are available to the taxpayer: (1) pay the tax, file a claim for refund, and sue for recovery if the claim is rejected; (2) file a Petition in Tax Court before assessment and within the short period of time allowed for filing such petition.

Taxpayers' rights should be protected in other ways, and Section 7421(a) should be amended to provide for such protection. The issues enumerated in the proposal pertain mostly to the application of the levy statutes in a way that may have as much of a detrimental or deleterious impact upon taxpayers as the illegality or irreparable injury issues.