Tenth Circuit Creates Split by Ruling IRS Summonses Violated Tax Code

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A U.S. Court of Appeals for the Tenth Circuit decision could put the enforcement of Internal Revenue Service summonses before the U.S. Supreme Court again next term after it found that the IRS's disregard for a notice requirement violated the administrative compliance prong of Powell, contrary to the precedent in five other circuits (Jewell v. United States, 10th Cir., No. 13-06069, 2014 BL 118276, 4/28/14).
Judge Robert E. Bacharach said in the published opinion that Section 7609(a)(1) requires the IRS to give taxpayers at least 23 days' notice of a third-party summons, and this notice is an administrative step with which the IRS must comply under the fourth prong of United States v. Powell, 379 U.S. 48 (1964).
Taxpayer Sam Jewell filed petitions to quash summonses issued to banks in the Eastern and Western Districts of Oklahoma for records related to nursing homes owned by him, claiming the IRS provided inadequate notice. The IRS waited too long to mail the notices, and Jewell received them less than 23 days before the scheduled examinations.