We use cookies to improve security, personalize the user experience,
enhance our marketing activities (including cooperating with our marketing partners) and for other
business use.
Click "here" to read our Cookie Policy.
By clicking "Accept" you agree to the use of cookies. Read less
What You Need to Know About IRS (Internal Revenue Service) Summons
Definition & Meaning
An IRS summons is a legal tool used by the Internal Revenue Service to compel taxpayers or third parties to provide information relevant to tax investigations and collections. This mechanism is necessary because the U.S. tax system relies on self-assessment, where taxpayers are expected to report their income and pay taxes voluntarily. However, when individuals do not comply voluntarily, the IRS can issue a summons to obtain the required information.
Table of content
Legal Use & context
IRS summonses are primarily used in the context of tax law. They are relevant in situations where the IRS needs to verify tax returns, determine tax liabilities, or investigate potential tax offenses. Taxpayers, their representatives, and third parties who hold relevant information can be summoned. Users can often manage summons-related issues with the help of legal forms and templates available through services like US Legal Forms.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A taxpayer receives an IRS summons requesting documentation of income sources and deductions after failing to report certain income on their tax return.
Example 2: A bank receives a summons from the IRS to provide account records related to a customer suspected of underreporting income. (hypothetical example)
Relevant laws & statutes
The authority for IRS summonses is primarily found in the Internal Revenue Code, particularly under 26 U.S.C. § 7602, which outlines the IRS's power to summon individuals for information relevant to tax assessments and collections.
Comparison with related terms
Term
Definition
Key Differences
IRS Summons
A legal request for information from the IRS.
Specifically related to tax investigations.
Subpoena
A legal document ordering someone to attend a court proceeding or produce evidence.
Typically issued in legal proceedings, not just tax matters.
Audit Notice
A notification that the IRS will examine a taxpayer's financial records.
Does not compel information; rather, it requests documentation.
Common misunderstandings
What to do if this term applies to you
If you receive an IRS summons, take it seriously. You should:
Review the summons carefully to understand what information is requested.
Gather the necessary documents and prepare to comply by the deadline specified.
Consider consulting with a tax attorney for guidance, especially if you have concerns about compliance or potential legal implications.
Explore legal templates available through US Legal Forms to help manage your response.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.