Tax Procedure: IRS Methods of Obtaining Information From and About Taxpayers

The IRS has various methods of obtaining information from and about taxpayers. Taxpayers and attorneys are often surprised to learn how much power the IRS has to obtain information. This power, however, is not unlimited. In this program, attorney Megan L. Brackney will discuss the IRS’s methods of obtaining information, the scope of the IRS’s authority to obtain information, taxpayer rights, defending against unreasonable demands, and the tax practitioner’s ethical obligations when responding to IRS requests for information. 

Specifically, the course will cover the Information Document Request and summons procedures for documents and interviews directed to taxpayers and third parties, including John Doe summonses. It will also discuss the IRS’s ability to obtain information from outside the United States through Formal Information Document Requests to the taxpayer and requests to other countries under treaty provisions.  

Lastly, the program will explore taxpayer rights and defenses and will discuss how these defenses are raised and when and how the IRS can compel compliance with its requests for information. The Circular 230 provisions relating to a tax practitioner’s conduct when responding to IRS requests for information will also be discussed.

Learning Objectives:

1. Identify the tools that the IRS uses to gather information from and about taxpayers
2. Examine the potential defenses and privileges that may limit the IRS’s ability to obtain information
3. Discuss the methods of enforcement of IRS summons and defenses to enforcement, such as asserting applicable privileges
4. Explore the practitioner’s ethical obligations when responding to IRS’s request for information