26-U.S.C.-7407
§7407 – Action to Enjoin Tax Return Preparers
Pathway
Title 26 > Subtitle F > Chapter 76 > Subchapter A > Section 7407
Details
- Reference: Section 7407
- Legend: §7407 – Action to Enjoin Tax Return Preparers
- USCode Year: 2013
Provision Content
(a) Authority to seek injunction
A civil action in the name of the United States to enjoin any person who is a tax return preparer from further engaging in any conduct described in subsection (b) or from further action as a tax return preparer may be commenced at the request of the Secretary. Any action under this section shall be brought in the District Court of the United States for the district in which the tax return preparer resides or has his principal place of business or in which the taxpayer with respect to whose tax return the action is brought resides. The court may exercise its jurisdiction over such action (as provided in section 7402(a)) separate and apart from any other action brought by the United States against such tax return preparer or any taxpayer.
(b) Adjudication and decrees
In any action under subsection (a), if the court finds—
(1) that a tax return preparer has—
(A) engaged in any conduct subject to penalty under section 6694 or 6695, or subject to any criminal penalty provided by this title,
(B) misrepresented his eligibility to practice before the Internal Revenue Service, or otherwise misrepresented his experience or education as a tax return preparer,
(C) guaranteed the payment of any tax refund or the allowance of any tax credit, or
(D) engaged in any other fraudulent or deceptive conduct which substantially interferes with the proper administration of the Internal Revenue laws, and
(2) that injunctive relief is appropriate to prevent the recurrence of such conduct,
the court may enjoin such person from further engaging in such conduct. If the court finds that a tax return preparer has continually or repeatedly engaged in any conduct described in subparagraphs (A) through (D) of this subsection and that an injunction prohibiting such conduct would not be sufficient to prevent such persons interference with the proper administration of this title, the court may enjoin such person from acting as a tax return preparer.
(Added Pub. L. 94–455, title XII, §1203(g), Oct. 4, 1976, 90 Stat. 1693; amended Pub. L. 101–239, title VII, §7738(a), (b), Dec. 19, 1989, 103 Stat. 2404; Pub. L. 110–28, title VIII, §8246(a)(2)(I)(i), May 25, 2007, 121 Stat. 202.)
Prior Provisions
A prior section 7407 was renumbered section 7410 of this title.
Amendments
2007—Pub. L. 110–28, §8246(a)(2)(I)(i)(I), substituted tax return preparers for income tax return preparers in section catchline.
Subsec. (a). Pub. L. 110–28, §8246(a)(2)(I)(i)(II)–(IV), substituted tax return for income tax return after with respect to whose, tax return preparer for income tax preparer after district in which the and after against such, and a tax return preparer for an income tax return preparer in two places.
Subsec. (b). Pub. L. 110–28, §8246(a)(2)(I)(i)(II), substituted a tax return preparer for an income tax return preparer in introductory provisions and subpar. (B) of par. (1) and in two places in concluding provisions.
1989—Subsec. (a). Pub. L. 101–239, §7738(b), substituted A civil for Except as provided in subsection (c), a civil.
Subsec. (c). Pub. L. 101–239, §7738(a), struck out subsec. (c) relating to bonds to stay injunctions.
Effective Date of 2007 Amendment
Amendment by Pub. L. 110–28 applicable to returns prepared after May 25, 2007, see section 8246(c) of Pub. L. 110–28, set out as a note under section 6060 of this title.
Effective Date of 1989 Amendment
Pub. L. 101–239, title VII, §7738(c), Dec. 19, 1989, 103 Stat. 2404, provided that: The amendments made by this section [amending this section] shall apply to actions commenced after December 31, 1989.
Effective Date
Section applicable to documents prepared after Dec. 31, 1976, see section 1203(j) of Pub. L. 94–455, set out as an Effective Date of 1976 Amendment note under section 7701 of this title.
U.S. Encyclopedia of Law Coverage
26-U.S.C.-7401 in the Legal Encyclopedia: Tax Administration
In this entry about 26-U.S.C.-7401, find legal reference material, bibliographies and premiere content related to tax administration in the American Encyclopedia of Law, presenting a comprehensive view of the United States tax administration-specific issues, written by authorities in the field.
Title 26 – Internal Revenue Code in the Legal Encyclopedia: Judicial Proceedings
In this entry about Title 26 – Internal Revenue Code, find legal reference material, bibliographies and premiere content related to judicial proceedings in the American Encyclopedia of Law, presenting a comprehensive view of the United States judicial proceedings-specific issues, written by authorities in the field.
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