This post focuses on the recent case of Polselli, et al. v. IRS, Case No. 21-1010 (6th Cir., January 7, 2022).
The recent Sixth Circuit’s recent opinion in Polselli, et al. v. IRS, Case No. 21-1010 (6th Cir., January 7, 2022) addresses notice requirements with respect to the issuance by the Internal Revenue Service (“IRS”) of administrative summonses. In pursuit of over $2 million in unpaid liabilities, the IRS issued administrative summonses to the banks of the wife of the taxpayer – Remo Polselli (“Taxpayer”) – and his lawyers. The IRS did not notify the Taxpayer of the summonses, relying on applicable provisions of the Internal Revenue Code (“IRC”) excluding summonses issued “in aid of the collection” of tax assessments from its notice provisions. These recipients filed suit seeking to quash the summonses. Ultimately, the 6th Circuit affirmed the District Court’s opinion, concluding that the summonses were issued in aid of the IRS’s collection efforts and that the Taxpayer was not entitled to notice.