Real Estate Firm Sues IRS, Alleges Retaliatory Audit Campaign

Feingold Morgan Sanchez LLC says the IRS retaliated against it after the firm complained of misconduct during a 2021 tax audit.

Published on Feb. 5, 2026

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A Florida real estate development firm, Feingold Morgan Sanchez LLC, has filed a lawsuit against the IRS in the U.S. District Court for the District of South Carolina. The firm alleges that the IRS has undertaken a retaliatory campaign against it after the firm complained of agency misconduct during a 2021 tax audit. The complaint states that the IRS responded with a series of punitive actions, including issuing unconstitutional notices of deficiency, improperly disclosing confidential information, and attempting to reassert taxes on previously settled matters.

Why it matters

This case highlights the ongoing tensions between taxpayers and the IRS, with the real estate firm alleging that the agency is abusing its power and retaliating against those who dare to challenge its actions. The outcome of this lawsuit could have broader implications for how the IRS conducts audits and interacts with taxpayers, particularly those who assert their rights.

The details

According to the complaint, after Feingold Morgan Sanchez LLC sent a letter to then-IRS Commissioner Charles Rettig complaining about misconduct during a 2021 tax audit, the agency responded with a series of punitive actions. These actions allegedly included issuing unconstitutional notices of deficiency, improperly disclosing confidential information, and attempting to reassert taxes on previously settled matters.

  • The alleged retaliatory actions by the IRS occurred after Feingold Morgan Sanchez LLC sent a letter to then-IRS Commissioner Charles Rettig in 2021 complaining about misconduct during a tax audit.
  • The lawsuit was filed on February 5, 2026 in the U.S. District Court for the District of South Carolina.

The players

Feingold Morgan Sanchez LLC

A Florida real estate development firm that primarily conducts its business in Greenville, South Carolina.

Charles Rettig

The former IRS Commissioner who was in office at the time of the alleged retaliatory actions.

U.S. District Court for the District of South Carolina

The federal court where the lawsuit was filed.

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What’s next

The court will need to determine whether the IRS's actions were indeed retaliatory and unconstitutional, as alleged by Feingold Morgan Sanchez LLC. The outcome of this case could set important precedents for how the IRS interacts with taxpayers who challenge its actions.

The takeaway

This lawsuit highlights the ongoing tensions between taxpayers and the IRS, with the real estate firm alleging that the agency is abusing its power and retaliating against those who dare to challenge its actions. The case could have broader implications for how the IRS conducts audits and interacts with taxpayers, particularly those who assert their rights.