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United States v. Powell, 379 U.S. 48 (1964)
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General SummaryThis case is from a collection containing the full text of over 16,000 Supreme Court cases from 1793 to the present. The body of Supreme Court decisions are, effectively, the final interpretation of the Constitution. Only an amendment to the Constitution can permanently overturn an interpretation and this has happened only four times in American history.
United States v. Powell, 379 U.S. 48 (1964)
United States v. Powell No. 54 Argued October 14-15, 1964 Decided November 23, 1964 379 U.S. 48
CERTIORARI TO THE UNITED STATES COURT OF APPEALS
FOR THE THIRD CIRCUIT
Syllabus
On the ground that the respondent corporate taxpayer’s returns had been examined for certain years and that, absent fraud, the statute of limitations barred assessment of additional deficiencies, respondent the taxpayer’s president refused to produce records summoned by the Internal Revenue Service (IRS) unless it disclosed its basis for believing that fraud had been committed. The Government brought an enforcement proceeding under § 7604(b) of the Internal Revenue Code in the District Court, which held that the agent be allowed to reexamine the records. The Court of Appeals reversed, holding that § 7605 (b) barred "unnecessary examination" unless the IRS could show reasonable grounds or probable cause to suspect fraud, a condition not satisfied by the agent’s affidavit filed with the enforcement petition that he suspected that the taxpayer had fraudulently overstated expenses.
Held:
1. Section 7604(b) does not apply to a non-contumacious refusal like the individual respondent’s to comply with a summons; but recommencement of the proceeding will not be required, since the Government sought no prehearing sanctions of arrest and attachment under that statute, which is otherwise similar to §§ 7402(b) and 7604(a). The proceeding is therefore considered under those almost identical sections, which give general power to enforce summonses "by appropriate process." Pp. 51-52.
2. In order to enforce a summons for records, the Commissioner, either before or after the limitations period has expired, need not show probable cause to suspect fraud. Unless the taxpayer raises a substantial question that judicial enforcement of the summons would abuse the court’s process, the Commissioner must only show that the investigation is pursuant and relevant to a legitimate purpose; that the information is not already in the Commissioner’s possession; that the Secretary or his delegate has determined that the further examination is necessary, and that the other administrative steps required by the Code have been followed. Pp. 52-58.
325 F. 2d 914, reversed and remanded.
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Chicago: U.S. Supreme Court, "Syllabus," United States v. Powell, 379 U.S. 48 (1964) in 379 U.S. 48 379 U.S. 49. Original Sources, accessed November 24, 2024, http://originalsources.com/Document.aspx?DocID=74RGWUDBAIKRT5S.
MLA: U.S. Supreme Court. "Syllabus." United States v. Powell, 379 U.S. 48 (1964), in 379 U.S. 48, page 379 U.S. 49. Original Sources. 24 Nov. 2024. http://originalsources.com/Document.aspx?DocID=74RGWUDBAIKRT5S.
Harvard: U.S. Supreme Court, 'Syllabus' in United States v. Powell, 379 U.S. 48 (1964). cited in 1964, 379 U.S. 48, pp.379 U.S. 49. Original Sources, retrieved 24 November 2024, from http://originalsources.com/Document.aspx?DocID=74RGWUDBAIKRT5S.
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