7. IRC §7609 provides the IRS authority to summons third parties. Describe requirements and differences of a Third Party Summons and a John Doe Summons §7609(f).

The IRS authority extends to third parties such as a taxpayer’s employer, bank, customers and business associates requiring then to supply testimony or produce books and records. After the IRS issues a summons to a third party, the taxpayer must be notified within three days of the date on which the summons was served and no later than the twenty-third day before the date fixed in the summons as the day on which the records are to be examined. The IRS authority to issue a John Doe summons which consist of a summons that does not identify the taxpayer whose liability is in the issue. …show more content…
Also no state created privilege has held up in federal cases. A decade later, as part of the IRS reform, Congress enacted IRC §7525. The section provides that with respect to tax advice, the same common law protections of confidentiality which apply to a communication between a taxpayer and an attorney shall also apply to a communication between a taxpayer and any federally authorized tax practitioner to the extent the communication would be considered a privileged communication if it were between a taxpayer and an attorney. Section 7525 would not apply if the communication between a taxpayer and an attorney was criminal information discuss.

10. Explain the relationships between FOIA and IRC §6110. Does the section augment or limit …show more content…
FOIA Exemption 5, the IRS may refuse to discuss interagency or intra-agency memoranda. The privileges incorporated in Exemption #5 include the attorney-client privilege, the attorney work product privilege the deliberate process privilege. Explain the importance of the deliberate process privilege.

The deliberative process privilege covers all papers which reflect the agency’s group thinking in the process of working out its policy and determining what its law shall be. Base on predecisional and deliberative are the courts limits to materials. Documents that provide legal advice or policy analysis are protected from disclosure by Exemption 5. Factual information gathered by the IRS is generally considered to be outside the scope of Exemption 5 because it is non-deliberative.

12. Matt is planning a transaction that will lower his total tax liability for the year if his tax position is respected by the IRS. His primary concern is that, if he is audited and the IRS does not respect his characterization of the transaction, the IRS will add penalties to the tax deficiency. What type of sources may Matt consult to try to determine the IRS’ tax treatment of similar