Opinion ID: 411336
Heading Depth: 2
Heading Rank: 2

Heading: Required Administrative Steps

Text: 36 Taxpayer alternatively contends under United States v. Powell that the IRS did not follow all the administrative steps required by the Internal Revenue Code (here the steps contained in section 7609(f)). Based on our reading of section 7609(f) and of congressional intent leading to its passage, we find no merit to this contention. 37 We hold that the John Doe summons procedures of 26 U.S.C. Sec. 7609(f) (1976) do not apply to the issuance of a summons which has the purpose of determining a known taxpayer's liabilities and produces the fallout or further effect of discovering information that would aid in identifying unnamed taxpayers and investigating their tax liabilities. In so holding, we emphasize that BSI is a taxpayer whose tax liabilities are under investigation and that its records may contain information pertaining to unnamed taxpayers which is relevant and necessary to that investigation. In the absence of an ongoing, particularized investigation of its tax liabilities, BSI would be entitled to challenge the summons as an attempted circumvention of section 7609(f). BSI would not, however, be able to make such a contention in this case. 38 We reverse the order of the district court and remand with instructions to enforce the summons in question.