The IRS collects federal taxes in the US, and taxpayers must file a return. The IRS can issue subpoenas to obtain documents to determine tax liability, and failure to comply can result in legal consequences. The IRS has broad powers to summon persons and records, but there are exceptions such as privilege or the right against self-incrimination.
The Internal Revenue Service, or IRS, is the United States agency responsible for collecting all federal taxes. US taxpayers are required to file a return determining the person’s or company’s tax liability. Compliance with US federal tax laws is required; however, the way the taxpayer reports income and determines liability is largely voluntary. As a result, there are abuses of the system by taxpayers who require the IRS to issue an IRS subpoena in an attempt to obtain documents that will help determine the taxpayer’s correct tax liability. The recipient of an IRS subpoena is legally obligated to comply with the subpoena or face potential legal consequences.
The summons is a legal act usually issued by a judge. In some cases, US law authorizes an administrative agency, such as the IRS, to issue a subpoena without prior approval from a judge. A summons directs the recipient to appear at a specified date and time and/or to produce the papers or documents listed in the summons.
When the IRS has reason to believe that a taxpayer is less forthcoming regarding income, expenses, or deductions, it can issue an IRS summons. Persons or entities that may be the recipients of an IRS subpoena include the taxpayer, an employee or officer of the taxpayer, or other custodian of records for the taxpayer. Also, the IRS “catch-all” essentially allows anyone with pertinent information to be summoned.
The IRS has the authority to issue an IRS subpoena requesting any pertinent information that would help the agency determine or collect a taxpayer’s tax liability or to assist the agency in making a return when a person or company entity has not filed a statement. The IRS may also summon documents that may show a violation of any law or IRS regulation. Essentially, the IRS has broad powers to summon both persons and records or documents.
If the addressee of a summons does not believe that he has a legal obligation to appear or to produce the requested documents, the opinion of a lawyer is suggested. Ignoring an IRS subpoena can result in the recipient issuing a warrant for arrest or contempt of court charges. There are, however, reasons why the information in a subpoena may not need to be produced, such as privilege or the right against self-incrimination.
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