IRS Criminal Investigation Division Summonses: A Key Tool in Tax Crime Investigations

The IRS Criminal Investigation Division (CID) frequently uses summonses to gather evidence in tax crime investigations. These summonses, authorized by law, grant special agents broad authority to examine tax returns, assess liabilities, and investigate any offenses related to tax administration or enforcement.

Serving Summonses in Criminal Investigations

To serve a summons, the IRS special agent must personally deliver it to the recipient’s usual residence, even if that residence is abroad. The summons will specify a reasonable date and time for the recipient to appear and provide the requested documents, typically allowing at least ten days’ notice. Given the potential legal consequences of a criminal tax investigation, it’s crucial for recipients of a summons to consult with legal counsel promptly. An attorney can help understand the summons, protect legal rights, and determine the best course of action.

Types of Summonses

Various types of summonses exist. A common one is the third-party recordkeeper summons, used to obtain information from accountants, attorneys, banks, and other entities holding relevant records. These summonses have specific rules, including notification to the taxpayer, a response period, and an explanation of the objection procedure.

Requirements for Summoned Individuals

Individuals served with a summons must preserve all relevant records and documents. Failure to comply can lead to penalties. If producing records, the summoned party must provide everything in their possession, and producing false documents can result in criminal charges. Seeking legal advice is strongly recommended to ensure compliance and understand the potential risks involved.

Limits on Third-Party Summonses

The IRS cannot use summonses to harass taxpayers or witnesses. The law prohibits “unnecessary” examinations and limits inspections unless prior notice is given. However, these restrictions have exceptions, such as when the investigation is legitimate, or the taxpayer has waived the right to object.

Compliance Procedures

During a summons examination, the IRS can take possession of original records and make copies. The summoned individual has the right to have an attorney or representative present. Having experienced legal representation during the examination is advisable to protect the individual’s interests and ensure proper procedures are followed.

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