Ending Up In Court
What if you end up in court with the Internal Revenue Service? I’m going to cover a few cases that are illuminating. You can find the entire case information at the links provided.
For the foregoing reasons, we reverse the order of the district court compelling the appellant, at peril of a contempt sanction, to answer questions propounded by the IRS.
Note that the defendant was not compelled to answer questions from the IRS.
Because compliance with the IRS summons could violate Argomaniz's fifth amendment privilege against self-incrimination and because the district court failed to make a particularized inquiry necessary to determine whether Argomaniz properly refused to comply with the summons, we REVERSE the district court's order compelling Argomaniz to comply with the summons.
Notice again that the IRS attempted to compel the defendant to comply with the summons, but the court ruled that the defendant could refuse based on fifth amendment privilege.
What is even more interesting is the interview transcript (included in the court notes):
Q: Do you have your W-2 forms for the years 1984, '85, '86 and '87?
A: This box together with the boxes which I have brought but cannot carry upstairs at one time contain such as [sic] the requested documents which were under my custody or control at the time of service of the summons or at this time.
However, I respectfully decline to produce, identify or authenticate such documents based upon my Constitutional privilege [sic] against self incrimination.
In making this claim I rely upon the advice of counsel . . . .
Q: Do you have your deposit information or bank records and other financial information with you for the periods '84, '85, '86 and '87?
A: Based upon my Constitutional rights, I refuse to answer that question.
Q: . . . Can you name the employees that you have had, can you give me the names of the employees you have had over the last four years, '84, '85, '86 an[d] '87?
A: Based upon my Constitutional rights, I refuse to answer.
Q: Have you received any interest income?
A: Based upon my Constitutional rights, I refuse to answer the question.
Q: Do you have any other income sources other than salaries, wages?
A: Based upon my Constitutional rights, I refuse to answer the question.
Q: Have you made any payments to these taxes for '84, '85, '86 or '87?
A: Based upon my Constitutional rights, I refuse to answer the question.
Q: You have the records and they apparently are sealed. Now I am going to ask you to turn them over to me — I will give you a document receipt — turn the sealed boxes over to me.
A: This box together with the boxes that I brought, cannot carry upstairs at one time, contain such as [sic] the requested documents that were under my custody or control at the time of service of the summons or at this time.
However, I respectfully decline to produce, identify or authenticate such documents based upon my Constitutional privilege against self incrimination. In making this claim I rely upon the advice of counsel. . . .
Q: All right. Well, I see no other recourse than to adjourn the meeting and proceed with the enforcement under the summons and the court order.
Q: This concludes the interview.
So the IRS was not able to get the information they wanted in the interview, they proceeded to issue a summons and that was not allowed.
United States v. Doe, 465 U.S. 605 (1984)
The contents of the subpoenaed records in question are not privileged under the Fifth Amendment. That Amendment protects the person asserting the privilege only from compelled self-incrimination.
It is important to note that your records themselves are not protected by the Fifth Amendment; only your testimony is protected. Thus, if you disclose the existence of books and records, you waive your Fifth Amendment protections.
