Powell v. United States Department of Treasury

CourtDistrict Court, District of Columbia
DecidedFebruary 19, 2026
DocketCivil Action No. 2024-1893
StatusPublished

This text of Powell v. United States Department of Treasury (Powell v. United States Department of Treasury) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Powell v. United States Department of Treasury, (D.D.C. 2026).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

WILLIAM E. POWELL,

Plaintiff,

v. Case No. 24-cv-1893 (CRC)

UNITED STATES DEPARTMENT OF TREASURY, et al.,

Defendants.

MEMORANDUM OPINION

This case is the latest installment of Plaintiff William E. Powell’s years-long saga to

obtain tax records from the Internal Revenue Service (“IRS”). In this episode, Powell filed four

Freedom of Information Act (“FOIA”) requests and four Form 4506-T requests for tax

transcripts and other records related to his family’s printing company. Dissatisfied with the

IRS’s responses, Powell brought this lawsuit, alleging that the agency violated FOIA, the

Administrative Procedure Act (“APA”), and 26 U.S.C. § 6103(e), which provides for the

disclosure of tax returns to certain persons who have a “material interest” in the return. Before

the Court are the IRS’s partial motion to dismiss and partial motion for summary judgment,

which assert that Powell’s non-FOIA claims should be dismissed and his FOIA claims were not

properly exhausted. The Court agrees, so it will grant the IRS’s motions.

I. Background

As other courts in this district have meticulously documented, Powell “has been on a long

quest to obtain tax information related to his late father and grandfather, their trusts and estates,

and two family printing businesses.” Powell v. IRS, 317 F. Supp. 3d 266, 270 (D.D.C. 2018)

(subsequent history omitted). Throughout his crusade, Powell has filed dozens of FOIA requests, apparently in an effort to “investigate possible breaches of fiduciary duty by the

trustees who distributed his father’s assets after his father’s death.” Powell v. Yellen, No. 22-

5200, 2023 WL 8947132, at *1 (D.C. Cir. Dec. 28, 2023) (per curiam); see also Pl.’s Opp’n to

Defs.’ Mot. to Dismiss and Partial Summ. J. (“Opp’n”) at 1–2 (“Plaintiff has been on a long

journey for approximately a decade requesting tax transcripts, and tax documents . . .

surround[ing] Plaintiff, Plaintiff’s deceased forebears, and business entities[.]”). Some of his

FOIA requests have yielded documents, some have not, and many have ended up in court. See

Powell, 2023 WL 8947132, at *1.

At issue in this case are eight record requests that Powell submitted to the IRS. First Am.

Compl. (“FAC”) at 2–3. Specifically, Powell filed four FOIA requests between February 2024

and April 2024, seeking examination files, index cards for corporate income tax returns, and

other tax documents related to his family’s businesses. Id. at 2. He also submitted four Form

4506-T requests to the IRS’s Return and Income Verification Services (“RAIVS”) unit, seeking

various tax transcripts.1 Id. at 3. As described in more detail below, the IRS responded to the

four FOIA requests by asking Powell to provide proof of his right to access the requested

records; when Powell failed to respond, the agency closed his requests. See Def.’s Statement of

Undisputed Material Facts (ECF No. 21–2) (“SUMF”) ¶¶ 4–6, 9–11, 14–16, 19–21. According

to Powell, the IRS never responded to his four Form 4506-T requests. Opp’n at 4.

When Powell’s document requests left him emptyhanded, he filed this lawsuit against the

IRS, the IRS Commissioner, the Department of the Treasury, and the Secretary of the Treasury.

See FAC at 1. His complaint alleges that IRS’s withholding of documents responsive to his

1 According to the IRS, Form 4506-T is “used to request routine tax transcripts for tax returns, tax accounts, wages[] and income, records of account and verification of non-filing.” Defs.’ Partial Mot. to Dismiss at 6 (citation omitted).

2 requests violated FOIA, the APA, and 26 U.S.C. § 6103(e). Id. at 4–7. After filing an answer,

the IRS filed both a partial motion to dismiss and a partial motion for summary judgment. In its

motion to dismiss, the IRS contends that (1) the APA and § 6103 do not provide a cause of

action independent of FOIA, and (2) Powell’s claims related to his RAIVS requests fail because

he did not submit FOIA requests for those records. See Def.’s Partial Mot. to Dismiss (“Mot. to

Dismiss”) at 1. In its motion for summary judgment, the agency submits that Powell did not

exhaust his administrative remedies before bringing his FOIA claims. See Mem. in Supp. of

Def.’s Partial Mot. for Summ. J. (“Mot. for Summ. J.”) at 1–2. Powell filed a combined

opposition to both motions, the IRS filed a combined reply, and Powell filed a sur-reply.2 Both

motions are now fully briefed.

II. Legal Standards

To survive a motion to dismiss under Rule 12(b)(6), a complaint must “state a claim upon

which relief can be granted.” While a complaint does not need “detailed factual allegations,” it

must “contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is

plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v.

Twombly, 550 U.S. 544, 555, 570 (2007)). That is, the alleged facts “must be enough to raise a

right to relief above the speculative level.” Twombly, 550 U.S. at 555. The Court need not

2 Powell labeled his combined brief in response to the IRS’s motions as an “opposition” on both the docket entry and the first page of the document. See Opp’n at 1. But on the last page of the brief, Powell asks the Court to grant his “Cross-Motion for Summary Judgment.” Id. at 9. Because the brief is labeled as an opposition, Powell makes only a passing reference to a “cross-motion,” and he otherwise fails to comply with Local Civil Rule 7.1(h)(1), the Court construes the filing as an opposition to the IRS’s motions, not a cross-motion for summary judgment. The Court also notes that Powell did not move for leave to file his sur-reply brief, notwithstanding prior admonitions by other courts. See, e.g., Min. Order, Powell v. IRS, No. 17- cv-278 (JEB) (D.D.C. May 30, 2018).

3 accept “a legal conclusion couched as a factual allegation.” Powell, 317 F. Supp. 3d at 272

(quoting Trudeau v. FTC, 456 F.3d 178, 193 (D.C. Cir. 2006)).

When an agency argues that the plaintiff failed to exhaust his administrative remedies,

courts often “analyze the matter under Rule 12(b)(6) for failure to state a claim.” Jean-Pierre v.

Fed. Bureau of Prisons, 880 F. Supp. 2d 95, 100 n.4 (D.D.C. 2012). But when “both parties rely

on materials outside of the Complaint to support their positions,” the Court may analyze the

exhaustion question as a matter of summary judgment. Kalu v. IRS, No. 14-cv-998 (JEB), 2015

WL 4077756, at *4 (D.D.C. July 1, 2015) (citations omitted); cf. Assassination Archives &

Rsch. Ctr. v. CIA, 657 F. Supp. 3d 95, 99 (D.D.C. 2023) (Cooper, J.) (“Summary judgment is the

typical mechanism to determine whether an agency has met its FOIA obligations.”). “The Court

may grant a motion for summary judgment if . . . there is no genuine issue of material fact and []

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Martinez, Robert v. Bureau of Prisons
444 F.3d 620 (D.C. Circuit, 2006)
Trudeau v. Federal Trade Commission
456 F.3d 178 (D.C. Circuit, 2006)
Merlin C. Long v. State of Iowa
920 F.2d 4 (Eighth Circuit, 1990)
Vest v. Department of the Air Force
793 F. Supp. 2d 103 (District of Columbia, 2011)
West v. Jackson
448 F. Supp. 2d 207 (District of Columbia, 2006)
Calhoun v. Department of Justice
693 F. Supp. 2d 89 (District of Columbia, 2010)
Dale v. Internal Revenue Service
238 F. Supp. 2d 99 (District of Columbia, 2002)
Flowers v. Internal Revenue Service
307 F. Supp. 2d 60 (District of Columbia, 2004)
Prison Legal News v. Lappin
436 F. Supp. 2d 17 (District of Columbia, 2006)
National Security Counselors v. Central Intelligence Agency
898 F. Supp. 2d 233 (District of Columbia, 2012)
Jean-Pierre v. Federal Bureau of Prisons
880 F. Supp. 2d 95 (District of Columbia, 2012)
Keith Thomas v. Eric Holder, Jr.
750 F.3d 899 (D.C. Circuit, 2014)
Rios v. United States
275 F. Supp. 3d 88 (District of Columbia, 2017)
Powell v. Internal Revenue Serv.
317 F. Supp. 3d 266 (D.C. Circuit, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
Powell v. United States Department of Treasury, Counsel Stack Legal Research, https://law.counselstack.com/opinion/powell-v-united-states-department-of-treasury-dcd-2026.