An IRS Summons is a legally enforceable directive by the IRS to produce specific documents, records, or testimony related to a tax audit, eggshell audit, reverse eggshell audit or criminal tax investigation. Whether you are the primary subject of scrutiny or a third party holding relevant information, a summons must be taken seriously. Refusing to comply—or responding without a clear strategy—can lead to severe legal consequences, such as court-ordered enforcement and contempt findings at best to converting a civil tax audit into a potential criminal tax investigation at worst.
Note: A tax advisor that advises a client to ignore an audit and its associated summonses can be found guilty of obstruction of justice.
The IRS possesses a broad and potent summons tool that can compel you and others to produce documents and information related to your tax returns. While you may attempt to contest this by filing a motion to quash the summons, the government’s burden of proof is minimal, and you would need an exceptionally strong case to prevail. Given these challenges, it would be wise to engage an experienced tax attorney who can protect your constitutional rights. At the Tax Law Offices of David W. Klasing, our dual-licensed tax attorneys and CPAs not only represent you in such matters but also explore alternative strategies, such as negotiating directly with the auditor to narrow the scope of the request. Moreover, we can review all the evidence to determine if any privileges apply that might limit the IRS’s access. Schedule a reduced-rate initial consultation online here or call us today at (888) 640-3408.
What Is an IRS Summons?
Under IRC §7602(a), the IRS holds broad authority to:
- Examine books, papers, and other records;
- Summon any person in possession of such records or information;
- Take testimony under oath to verify the accuracy of tax returns or determine a taxpayer’s liability.
Typically, a summons is issued after initial attempts—such as an Information Document Request (IDR)—fail to produce adequate information. If you keep good records and adequately respond to IRS document requests an auditor will not ordinarily resort to a summons. However, you might receive a summons if you are suspected of significant tax underreporting, if you have delayed responding to IRS inquiries, or if you refuse to provide access for business tours or in-person interviews. Third parties, including financial institutions and business associates, can also be summoned to furnish records relevant to a taxpayer’s liability.
Note: Refusing to submit to an IRS tour or an in-person interview can trigger use of the summons power. The IRS can petition the federal courts to enforce its demands, and you or third parties may face indefinite fines or jail time for noncompliance until cooperation is secured.
Note: Ordinarily when an audit is civil in nature you will receive a copy of all summonses issued to third parties. If you learn though the grape vine that third parties are being summoned, and you are not given notice of it there is a good chance you are under a clandestine criminal tax investigation where the government is not required to provide you with notice. Contact our office immediately if that is your fact pattern. The earlier we get involved the better job we can do at achieving damage control.
Why Does the IRS Issue Summonses?
An IRS summons may be used for various legitimate civil and criminal tax administration purposes, such as:
- Verifying a Filed Return: To confirm whether an existing return accurately reports all income, deductions, and credits.
- Preparing a Return When None Exists: To gather information necessary to create a substitute for return (SFR) if the taxpayer has failed to file in order to begin tax collection action.
- Determining Liability: To ascertain whether a taxpayer owes taxes, interest, and penalties or has committed civil or criminal tax violations.
- Collecting Internal Revenue Tax: To obtain records critical for enforcing unpaid tax liabilities.
- Investigating Offenses: To explore potential tax fraud, evasion, or other criminal acts in conjunction with other federal agencies (FBI, SEC, FDA ect).
The IRS often ordinarily sends less formal notices (like an IDR) before resorting to a summons. Ignoring or providing insufficient data in response to an IDR usually leads to a more formal and enforceable summons procedure.
How the IRS Summons Power Works: Standing Akimbo, LLC v. United States
A recent case—Standing Akimbo, LLC v. United States, illustrates just how minimal the government’s burden is to get a court to enforce an IRS summons. In Standing Akimbo, the IRS was auditing a Colorado medical marijuana dispensary suspected of taking prohibited business deductions because marijuana remains illegal under federal law, even though it is allowed under Colorado state law.
After sending multiple Information Document Requests (IDRs) and receiving incomplete data, the IRS escalated to a summons. The taxpayer attempted to quash the summons in court. Under United States v. Powell, the government must only show four factors to legally enforce a summons through a federal court’s ample contempt power:
- The investigation is for a legitimate purpose;
- The inquiry is relevant to that purpose;
- The information sought is not already in the IRS’s possession, and
- The administrative steps required to issue a summons by the Internal Revenue Code (IRC) have been followed.
The court ruled that all four factors were met. It concluded that the IRS was seeking details related to a legitimate audit issue, the requested business licenses and METRC reports were not already in its possession, and the auditor had followed proper IRS procedures. The taxpayer failed to prove that the IRS was acting in bad faith or that the summons was overly broad or irrelevant. The Standing Akimbo case underscores that once the IRS meets its minimal burden under Powell, the taxpayer must refute it with substantive evidence—a challenge that is often difficult to overcome.
Different Types of IRS Summonses
The IRS may issue various forms of summonses:
- Designated Summons: Typically aimed at a corporation or its record custodians, requiring Chief Counsel approval and issued at least 60 days before the statute of limitations on assessment expires.
- Related Summons: Issued within 30 days of a designated summons concerning the same corporate tax return.
- Third-Party Recordkeeper Summons: Directed to banks, accountants, attorneys, or other regulated entities holding taxpayer records; the IRS must provide notice to the taxpayer at least 45 days before contacting such third parties.
- John Doe Summons: Sent to a third party without identifying the specific taxpayer under scrutiny; permissible only if the IRS shows a group or class of individuals may have violated tax laws and the requested information is not otherwise available.
Under IRC §7603, the IRS generally must deliver a summons in person or leave it at the taxpayer’s residence with someone 18 years or older. For corporations, personal service remains the norm. A third-party recordkeeper may receive the summons by certified mail. Taxpayers can also waive personal service in writing, allowing the IRS to serve the summons via email or fax.
Responding to an IRS Summons
When you receive a summons, review it carefully for deadlines, scope of requested data, and whether you must appear for testimony. Next, consult an experienced dual-licensed Tax Attorney & CPA—especially if the requested materials might be privileged or if compliance could expose you to criminal tax charges. At the Tax Law Offices of David W. Klasing, we will:
- Explain the Summon’s Scope: Clarify exactly what is being sought and why.
- Evaluate Legal Defenses: Identify potential overbreadth, irrelevance, or good-faith challenges to the summons.
- Assess Self-Incrimination Risk: Determine whether complying could lead to criminal tax exposure.
- Formulate a Strategy: Decide if you should comply fully, partially, or seek to quash the summons in court.
Note: As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed returns coupled with affirmative evasion of payment) self-reports the tax fraud (including a pattern of non-filed returns) through a domestic or offshore voluntary disclosure before the IRS has started an audit or criminal tax investigation/prosecution, the taxpayer can ordinarily be successfully brought back into tax compliance and receive a nearly guaranteed pass on criminal tax prosecution and simultaneously often receive a break on the civil penalties that would otherwise apply.
It is imperative that you hire an experienced and reputable criminal tax defense attorney to take you through the voluntary disclosure process. Only an Attorney has the Attorney-Client Privilege and Work Product Privileges that will prevent the very professional that you hire from potentially being forced to become a witness against you, especially where they prepared the returns that need to be amended in a subsequent criminal tax audit, investigation or prosecution.
Moreover, only an Attorney can enter you into a voluntary disclosure without engaging in the unauthorized practice of law (a crime in itself). Only an Attorney trained in Criminal Tax Defense fully understands the risks and rewards involved in voluntary disclosures and how to protect you if you do not qualify for voluntary disclosure.
As uniquely qualified and extensively experienced criminal tax defense tax attorneys, Kovel CPAs, and EAs, our firm provides a one-stop-shop for efficiently achieving optimal and predictable results that simultaneously protect your liberty and your net worth. See our Testimonials to see what our clients have to say about us!
Can I Quash an IRS Summons?
Yes—mainly if it is a formal third-party recordkeeper summons. Taxpayers or recordkeepers typically have 20 days from receipt to file a motion to quash. Success generally requires showing that the IRS already has the requested information, that you have cooperated in good faith, or that the summons is overbroad, irrelevant, or violates your legal rights. Courts are inclined to enforce an IRS summons unless you produce substantial proof of wrongdoing or procedural missteps.
Consequences of Noncompliance
Refusing to comply with a valid IRS summons can lead to:
- Court-Enforced Compliance: A federal judge may compel you or third parties to provide the information under threat of daily fines or indefinite imprisonment for contempt until you or they comply.
- Suspension of Statutes: The clock on both civil and criminal statutes of limitation pauses while a summons and any enforcement proceedings are pending.
- Increased Criminal Tax Risk: Deliberate obstruction or concealment may elevate a routine civil audit into an exponentially worse IRS-CID criminal tax investigation.
- Penalties and Interest: Willful underreporting or refusing to cooperate can result in hefty fines, back taxes, and additional interest.
Contact the Tax Law Offices of David W. Klasing Today if You Have Received an IRS Summons
At the Tax Law Offices of David W. Klasing, we specialize in high-risk civil and criminal federal tax controversies—including those involving IRS summonses—and our expertise is unmatched. Headed Attorney-CPA David W. Klasing, who holds both professional licenses and has earned a Master’s in Taxation, our firm is uniquely positioned to safeguard your financial interests and personal liberty. When you receive an IRS summons, our team promptly assesses the summons’ validity to ensure that all required procedures were followed and that the request is not overly broad or improperly motivated. We protect privileged material by invoking attorney-client and work-product privileges where applicable, and we develop a tailored response strategy that may involve full or partial compliance, negotiating modifications, or filing a motion to quash if justified. Our approach is designed to minimize any risk of self-incrimination and criminal tax exposure while ensuring that your rights are fully protected throughout the investigation.
An IRS summons is not a mere request—it carries the full weight of federal law and will be zealously enforced by the courts, potentially leading to contempt findings and serious criminal tax repercussions if mishandled. Early legal guidance is essential to limit your liability and protect your privileges. Secure a reduced-rate initial consultation with the Tax Law Offices of David W. Klasing by calling (800) 681-1295 or visiting our online contact form. With flexible meeting options, experienced help is always within reach. Choose the Tax Law Offices of David W. Klasing—where unmatched tax expertise meets aggressive, strategic advocacy—and let us guide you through the complexities of responding to an IRS summons.
