Facing an IRS Summons?
Here’s What You Need to Know.
Have you disagreed with an IRS auditor or an administrative appeal decision? Considering taking your case to the United States Tax Court?
You’re not alone. But before you do, it’s crucial to understand IRS summonses and how to respond.
What is an IRS Summons?
An IRS summons is a formal request for information or testimony related to your tax situation. It allows the IRS to gather evidence to verify the accuracy of your return, prepare a substitute return, locate assets for collection, or investigate potential tax violations.
Key Points:
- Issued by the IRS under specific authority.
- Can be used in civil or criminal investigations.
- Can request information from you or third parties.
- Must meet specific criteria to be enforceable.
- What Information Can Be Requested?
The IRS can summon a wide range of information, including:
- Bank records
- Financial statements
- Business documents
- Personal records
- Testimony from you or others
- Can You Challenge an IRS Summons?
Yes, you have the right to challenge an IRS summons in court. However, the burden is on you to prove that:
- The IRS doesn’t have a legitimate purpose for the investigation.
- The information sought isn’t relevant to the investigation.
- The IRS already has the information.
- The IRS didn’t follow proper procedures.
- What Happens if You Don’t Comply?
Ignoring an IRS summons can have serious consequences, including:
- Suspension of the statute of limitations for tax assessment and prosecution.
- Court-ordered enforcement through contempt proceedings.
- Financial penalties.
Seek professional legal advice immediately. Don’t try to navigate this alone.
Understand your rights and options. An attorney can explain your legal rights and help you decide the best course of action.
Respond promptly and truthfully. Cooperating with the IRS can help minimize penalties and potential legal trouble.
Remember: An IRS summons is a serious matter. By understanding your rights and seeking professional guidance, you can protect your interests and navigate this situation effectively.
We understand the complexities of IRS summonses and the stress they can cause. Our experienced tax attorneys can help you understand your rights, respond appropriately, and minimize the impact on your life. Contact us today for a consultation.
Additional Resources:
IRS website: https://www.irs.gov/
United States Tax Court: https://www.ustaxcourt.gov/