Id. at 90. Plaintiffs also outlined their efforts to exhaust administrative remedies regarding the release of IRS liens and to obtain a refund of, or credit for, their alleged overpayment. And they added a request for a release of the continuing levies on Ms. Hook’s social security benefits payments.
After plaintiffs filed their amended complaint, Chief Judge Krieger recused herself because she was part of the district court’s Committee on Conduct that was considering Mr. Smith’s application for readmission to the district court’s bar. Plaintiffs’ case was eventually reassigned to Judge Raymond P. Moore.
The United States filed another Rule 12(b) motion to dismiss for lack of jurisdiction and failure to state a claim. A magistrate judge recommended that the motion be granted and the amended complaint dismissed without prejudice. Plaintiffs objected to the recommendation, but the district court overruled the objections and granted the motion. Among other things, the court agreed with the government that plaintiffs’ accounting of their tax liabilities and payments was faulty because it omitted penalties and interest, as set out in declarations attached to the government’s first and second motions to dismiss. The court noted that although the government had conceded that plaintiffs had paid their tax liabilities for tax years 1992-1994, they had not overpaid for those years, and they still owed a considerable amount for tax years 1995-1996 and 2001-2005, as determined by the Tax Court, and for 2006. As to plaintiffs’ specific claims, the court ruled that
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