What to Do When the IRS Summons Records From You

If the IRS wants information from you, they will simply request it, but if you don’t comply, they may issue a formal summons. The IRS has the legal right to issue summons to taxpayers and to third parties that have info about taxpayers. 

For example, if you are going through a tax audit and refuse to provide information that the auditor wants to see, they may resort to a summons. Similarly, if you have unpaid taxes and a revenue officer is trying to figure out how to collect them, they may issue a summons to request info about your assets and income if you don’t comply with their initial requests for information. 

A summons is a very serious step in the IRS collection process, and if you receive one or a notice that the IRS is planning to summon a third party in relation to your tax issue, you should contact a tax attorney immediately. At the Timothy S. Hart Law Group, we have extensive experience helping individual and business taxpayers deal with IRS summons and other IRS tax problems. To get help, contact us today.

IRS Authority to Summons

The IRS has the right to summon any information or records for the following purposes:

• To ensure that a tax return has been filed correctly. 
• To create a tax return if one has not been filed.
• To determine the tax liability of any internal revenue tax. 
• To determine the equity of property in relation to collecting an unpaid tax.

The IRS can summon the taxpayer who is liable for the tax, but they can also summon anyone who may have information related to the elements listed above. This may include employers, accountants, corporate officers, etc.

What to Expect

The IRS usually only sends a summons after other requests for information have been ignored. Typically, the agency sends Form 4564 (Information Document Request) when it wants documents from a taxpayer. If the taxpayer doesn’t respond, the agency will send a delinquency letter reminding the taxpayer about the request. If the taxpayer still doesn’t reply, the IRS will send a pre-summons letter, and then, the summons. 

The IRS always tries to get information directly from taxpayers, but if that’s not possible, the agency may summon info from third parties. Generally, if the agency is doing a third-party summons, they will just start with the summons and not send an IDR. 

The IRS may issue a summons in one of the following ways. 

• They will serve you the summons directly. 
• They will leave a copy of the summons at the last and usual place where you live. They will also note if they left a copy of the summons with any person.
• If they are issuing a summons to a third-party recordkeeper, they may send a copy of the summons by certified or registered mail to the last known address of the person being served. 

The person who serves, delivers, or mails the summons must certify that they did so in one of the above ways. 

Will the IRS Notify You About Third-Party Summons?

The IRS must notify you before summoning information about you from a third party. The notice should explain which people will be contacted and the tax period related to the inquiry. The only exception to this rule is in cases where you have previously authorized the IRS to contact the person or if the IRS believes the tax collection is in jeopardy. 

What Does the Summons Notice Say?

The top of the summons usually contains general info such as the taxpayer related to the summons, the tax period, the division of the IRS handling the case, and the area/industry involved. Then, the form lists who the summons is directed to and their address–again, this may be the taxpayer or a third party with info about the taxpayer. 

After that, the form will have the summons statement. Typically, that reads something to the effect of “You are hereby summoned and required to appear before an IRS officer, to give testimony and to bring with you and to produce for examination the following books, records, papers, and other data relating to the tax liability or the collection of the tax liability or for the purpose of inquiring into any offense connected with the administration or enforcement of the internal revenue laws concerning the person identified above for the periods shown.” 

The form also lists the IRS officer that you are summoned to appear before and the forms, records, or documents that are being requested. If you are unsure which information you need to provide, reach out to the IRS officer directly or contact a tax attorney. 

Should I Produce the Items Listed in the Summons?

The IRS expects you to produce the information requested in the summons, but if you don’t think that you should be compelled to share that information, you should consult with a tax attorney. If you are being summoned for third-party information, you should also consult with an attorney if you want guidance about the implications of providing certain information. 

Can I Challenge the Summons?

If you receive notice of a third-party summons, it should have instructions for you to appeal. Make sure you respond by the deadline or the IRS will not consider your request. Generally, you cannot appeal a summons directed to you asking for information related to your tax liability. However, if you ignore the summons and the IRS enforces the petition, you can appeal at that point.

What If I Ignore the Summons?

Failure to obey the summons can lead to up to a $1,000 fine and up to one year in prison. If you ignore the summons, the IRS can reach out to the District Court in your area and request that they issue an attachment for your arrest. When you are arrested, you will be brought in front of the court, and they will tell you to comply with the summons. If you do not, you can be held in contempt of court, which is a serious offense. 

When Do You Need to Appear If You Receive an IRS Summons?

The exact timeline may vary, but typically, the IRS must give you at least 10 days before you need to appear with the information that has been summoned.

What Form Does the IRS Use to Summon Information?

The IRS uses a few different forms when issuing summons, but a few of the most popular include Forms 6637, 6638, 6639, and 2039. 

What Is a John Doe Summons?

A John Doe Summons is a summons used to request information about multiple taxpayers. For example, if you look at this sample summons, you will see that the IRS has issued a John Doe summons to a bank. The summons requests information for all people who had accounts at that bank during a certain period of time. 

Get Help With an IRS Summons

There are a lot of tax problems you can handle on your own, but if you receive a summons from the IRS or the New York Department of Taxation and Finance, you should reach out for professional help. A tax attorney can help you deal with the summons and assess the validity of the IRS’s request. If applicable, they can also help you apply for IRS voluntary disclosure or NY State voluntary disclosure programs or explore other relief options that work with your situation. To set up a free consultation, contact us at the Timothy S. Hart Law Group today.