TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Friday, January 17, 2014

Supreme Court Grants Cert. to Decide Taxpayer's Right to Evidentiary Hearing on IRS Summons

Supreme CourtThe U.S. Supreme Court granted certiorari last Friday in United States v. Clarke, No. 13-301:

Whether an unsupported allegation that the IRS issued a summons for an improper purpose entitles an opponent of the summons to an evidentiary hearing to question IRS officials about their reasons for issuing the summons.

Opinion BelowUnited States v. Clarke, No. 12-13190 (11th Cir. Apr. 18, 2013):

This case involves the IRS issuance of five administrative summonses, pursuant to 26 U.S.C. § 7602, during an investigation into the tax liabilities of Dynamo Holdings Limited Partnership (Dynamo). Specifically, (1) Michael Clarke, in his capacity as the chief financial officer of Beekman Vista, Inc., and Dynamo GP, Inc.; (2) Robert Julien; and (3) Dynamo (collectively Appellants) appeal the district court's orders granting the' IRS's petitions to enforce the summonses. After careful review of the record, and having had the benefit of oral argument, we vacate the district court's order enforcing the summonses and remand for the district court to hold a hearing.

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