We know this for sure: Americans can’t trust the motives of the IRS.
Does a citizen have the right to challenge the IRS’s demands for information? This seems to be the issue in a case before the Supreme Court. Michael Clarke, chief financial officer for Dynamo Holdings, says his company had no chance to question the motive behind an IRS summons for information.
When they can’t get information from taxpayers voluntarily (or fast enough for their liking), the IRS issues a summons to force disclosure with a court order. The summonses are routinely rubber-stamped with approval by district courts.
Clarke says they should have had a chance to argue the legitimacy of the summons before it was approved. He feels the summons was issued as retribution for resisting an audit. He just wants to ask why it was issued before his company was forced to provide information.
A year ago, the Eleventh Circuit Court of Appeals agreed with Clarke, so the IRS appealed. The Supreme Court heard oral arguments for the case on April 23.