Opinion ID: 427301
Heading Depth: 1
Heading Rank: 1

Heading: The Trial Court's Enforcement of the Internal Revenue

Text: Service Summons 5 McAnlis raises six arguments concerning enforcement of the summons: (1) the court abused its discretion by failing to determine that his letter to the IRS on July 9, 1981, challenging the validity of the summons was an appearance by him sufficient to shift the burden to the government to reject his challenge to the summons; (2) the IRS did not have a right to summon his records, as it had no basis on which to assume he is a person liable to pay taxes; (3) the IRS must prove the existence of tax liability prior to issuance of any summons; (4) the IRS did not comply with the disclosure provisions of the Privacy Act, 5 U.S.C.A. Sec. 552a(e)(3); (5) the IRS violated the fourth amendment; and (6) the IRS did not exhaust its administrative remedies. 6 McAnlis's first contention lacks merit. In a petition for enforcement of a summons, the IRS need only make a preliminary showing, that the investigation will be conducted pursuant to a legitimate purpose, that the inquiry may be relevant to the purpose, that the information sought is not already within the Commissioner's possession, and that the administrative steps required by the Code have been followed. United States v. Powell, 379 U.S. 48, 57-58, 85 S.Ct. 248, 254-55, 13 L.Ed.2d 112 (1964). See also United States v. LaSalle National Bank, 437 U.S. 298, 313, 98 S.Ct. 2357, 2366, 57 L.Ed.2d 221 (1978). Once the IRS fulfills this initial burden of showing a good-faith issuance of the summons, the burden then shifts to the taxpayer to prove the IRS failed to meet its burden or that the enforcement of the summons constitutes an abuse of the court's process. Powell at 58, 85 S.Ct. at 255; United States v. Southeast First National Bank of Miami Springs, 655 F.2d 661, 664 (5th Cir.1981). 7 In this case, the IRS has fulfilled its initial burden. McAnlis, however, has not met his burden. His letter of July 9, 1981, fails to establish bad faith on the part of IRS, or that enforcement of the summons constitutes an abuse of the court's process. The letter contains various assertions detailing the procedural deficiencies of the summons, but does not exhibit any evidence rebutting the IRS's claims. 8 McAnlis's second and third contentions also are frivolous. The IRS had a basis upon which to assume McAnlis was liable to pay taxes. McAnlis's failure to file income tax returns for three years provided the basis. The IRS was complying with its statutory duty in issuing the summons after McAnlis's failure to file his returns. 26 U.S.C.A. Sec. 7602(a)(1), (2). 1 The IRS, moreover, is not required to establish tax liability prior to issuance of a summons. The agency has a statutory duty to inquire after persons who may be liable for the payment of taxes. 26 U.S.C.A. Sec. 7601(a). 2 Since McAnlis failed to file any tax returns for three years, the Internal Revenue Service legitimately believed he might be liable for payment of taxes. Issuance of the summons prior to the establishment of tax liability, therefore, was proper. The agency was fulfilling its statutory duty. Donaldson v. United States, 400 U.S. 517, 523-24, 91 S.Ct. 534, 538-39, 27 L.Ed.2d 580 (1971); United States v. Harris, 628 F.2d 875, 878 (5th Cir.1980). 9 McAnlis's remaining contentions lack substance. Compliance with 5 U.S.C.A. Sec. 552a(e)(3), the Privacy Act, is not a prerequisite to enforcement of an IRS summons. United States v. Wills, 475 F.Supp. 492, 494 (M.D.Fla.1979). McAnlis, moreover, has suffered no prejudice in failing to receive a Privacy Act notice. Enforcement of the summons does not violate McAnlis's fourth amendment rights. As long as the IRS complies with the Powell requirements, it will not violate the summoned party's fourth amendment rights. United States v. Roundtree, 420 F.2d 845, 847-50 (5th Cir.1969). In this case, the IRS fulfilled the Powell requirements. The IRS exhausted all administrative remedies. Enforcement of the summons, therefore, does not violate the exhaustion of remedies doctrine. 10