The Internal Revenue Service use its summons
authority to intimidate taxpayers. There is always the threat that
"if you do not give me what I want I will force it out of you
and embarrass you by issuing third-party summons." It is critical to
have your tax attorney representing you and being your first line of
defense to prevent government abuse.
The IRS summons power is very broad. Congress's Internal Revenue Code
section §7602 standard is designed to greatly favor the
government. The rule is whether the information requested
“may be relevant or material.”
The case law and IRS interpretation says that a summons will
be enforced
if the IRS can show:
1. That it was issued pursuant to a legitimate
purpose;-note, almost anything is a "legitimate purpose if the auditor or collector claims it is to enforce the tax laws.
2. that the
inquiry is relevant (or may be relevant) to that purpose;- this "may be relevant" is a non-standard allowing the IRS to demand almost anything.
3. that the material is not already
in the hands of the IRS; -
this provides some protection for the taxpayer because it prevents the
IRS from repeatedly seeking the same information it already has; and
4. that the proper administrative
procedures have been followed. - if the IRS has not followed the procedures, the Taxpayer may appeal.
Call me
at (856)
665-2121 today!
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