Is the IRS Going to Increase its Use of Summons? – Los Angeles Income Tax Planning and Income Tax Litigation Attorney Bruce Givner

by Bruce Givner on November 19, 2013

Under the Internal Revenue Code (IRC), the Internal Revenue Service (IRS) can issue a summons “for the purpose of ascertaining the correctness of any return, making a return where none has been made, determining the liability of any person for, or with respect to, any internal revenue tax, or collecting any such liability.” IRC Section 7602. According to Drita Tonuzi, Associate Chief Counsel in procedure and administration at the IRS Office of Chief Counsel, a panelist at the American Bar Association’s annual meeting “The IRS is using its tools and encourages its agents to use its tools.”

“There has been an increase in the number of summons issued by the IRS,” said Bruce Givner, founding partner of the tax law firm Givner and Kaye. “The summons is part of the IRS’ arsenal of Information Document Requests (IDR). It is very useful for ferreting out information because taxpayers pay more attention to a summons than a letter from the IRS.”

In June 2013, the IRS announced new guidelines for how its personnel should handle IDRs. Two highlights included:

1. All IDRs must clearly identify and state the reason for the IDR; and

2. Before an IDR is issued:
a. the IRS examiner must have a discussion with the taxpayer,
b. the taxpayer must be given a reasonable time to respond, and
c. the taxpayer and examiner must agree on what is a reasonable time.

Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles, Orange, Ventura, San Bernardino, Riverside and Santa Barbara Counties. Call Los Angeles Estate Planning and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.

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