Justice Manual § 6-5.420

Taxpayers sometimes bring suit to quash or enjoin an IRS examination or investigation. The tax Anti-Injunction Act, 26 U.S.C. § 7421(a), provides that, except as permitted by the Internal Revenue Code, no person shall maintain a suit for the purpose of restraining the assessment or collection of any tax in any court, whether or not the IRS assessed a tax against that person. Under the Anti-Injunction Act, a person may obtain injunctive relief only when: (1) the person was certain to succeed on the merits, and could demonstrate that the action would cause irreparable harm; or (2) in the extremely rare situation where Congress has provided no judicial review of the IRS's assessment or collection actions, as set forth in South Carolina v. Regan, 465 U.S. 367 (1984). A person who brings suit to attempt to restrain the assessment or collection of taxes must serve the Attorney General. On receiving such a suit, the United States Attorney’s Office should immediately notify the Chief of the appropriate Civil Trial Section and the appropriate IRS counsel.

If a court sets a hearing on a motion for a temporary restraining order or a preliminary injunction, the United States Attorney’s Office should immediately notify the Chief of the appropriate Civil Trial Section. The courts often set hearings on injunction cases on very short notice. When necessary, the Tax Division may consent to an arrangement in which the IRS agrees to take no collection activity for a specified period of time, or alternatively, the Tax Division may consent to a temporary restraining order (TRO). See Fed. R. Civ. P. 65(b). Before committing the United States to temporarily cease collection action or to consent to entry of a TRO, however, the United States Attorney’s Office must obtain authorization from the Chief of the appropriate Civil Trial Section.