Opinion ID: 482058
Heading Depth: 2
Heading Rank: 4

Heading: Limited Evidentiary Hearing

Text: 24 We review for abuse of discretion. See United States v. Stuckey, 646 F.2d 1369, 1373 (9th Cir.1981). See generally Rae v. Union Bank, 725 F.2d 478, 481 (9th Cir.1984) (a district court's decisions relating to discovery matters are reviewed for abuse of discretion). 25 The purpose of the limited evidentiary hearing was to determine whether the summons enforcement proceeding was legitimate and in good faith, rather than merely camouflage for an ulterior non-tax motive. The good faith standard seeks to prevent the IRS from becoming an information-gathering agency for other governmental agencies. See United States v. LaSalle National Bank, 437 U.S. 298, 317, 98 S.Ct. 2357, 2367, 57 L.Ed.2d 221 (1978); Stuckey, 646 F.2d at 1373. The task is to identify  'those rare cases where bald allegations of harassment or improper purpose can be substantiated.'  Author Services, 804 F.2d at 1523 (quoting United States v. Church of Scientology of California, 520 F.2d 818, 824 (9th Cir.1975)). The focal issue is whether an IRS investigation is motivated by legitimate tax purposes. See United States v. Powell, 379 U.S. 48, 57-58, 85 S.Ct. 248, 254-55, 13 L.Ed.2d 112 (1964). The district court may properly limit evidentiary hearings on the good faith issue to prevent a frustration of legitimate Government objectives. Church of Scientology, 520 F.2d at 823-25. 26 The Intervenors argue that the district court improperly limited its inquiry to the issue of whether the summons itself was issued in good faith, and ignored the larger issue of whether the overall investigation was in good faith. We reject that argument. At the hearing, C. Phillip Xanthos, the Branch Chief of the IRS Criminal Investigation Division (Los Angeles District), specifically testified to the legitimate tax-determination objectives of the investigation. This and other testimony was sufficient to support the district court's finding that the summons was issued in good faith. See LaSalle National Bank, 437 U.S. at 317, 98 S.Ct. at 2368. See also Stuckey, 646 F.2d at 1376; United States v. Zack, 521 F.2d 1366, 1368-69 (9th Cir.1975). 27