Ninth Circuit - Revenue agent’s review of taxpayer records did not bar subsequent IRS summons 

July 9:  The U.S. Court of Appeals for the Ninth Circuit today affirmed the federal district court’s denial of a taxpayer’s motion to quash third-party summonses, holding that the IRS revenue agent’s review of the taxpayer’s records did not automatically give the IRS permanent possession of all information in those records and that a later summons for the same records was permissible. Action Recycling Inc. v. United States, No. 12-35338 (9th Cir. July 9, 2013)

Read the Ninth Circuit’s decision: Action Recycling Inc. [PDF 75 KB]


An IRS revenue agent audited the taxpayer’s bank statements and notes, but did not make any copies.

Later, the IRS served the taxpayer with notice of third-party summonses to two banks for the statements that the IRS agent had reviewed and for other documents.

The taxpayer moved to quash the summonses, arguing that because the IRS had previously reviewed the bank records, the summonses for those records were issued in violation of the prohibition on summonses for information already in the possession of the IRS.

The Ninth Circuit concluded that the revenue agent’s review of the records did not automatically give the IRS permanent possession of all information in those records and that a later summons for the same records was permissible under United States v. Powell, 379 U.S. 48 (1964).

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