The general rule is that no action may be brought to quash an IRS
summons, or to enjoin the IRS from seeking to enforce such a summons by
appropriate court action. SeeReisman v. Caplin, 375 U.S. 440
(1964).
Section 7609, 26 U.S.C., contains a legislative exception to the
holding of Reisman v. Caplin for summonses issued to specifically
enumerated third-party recordkeepers. The person to whom the records relate is
given notice that a summons has been issued to a "third-party recordkeeper," a
term defined as including financial institutions, attorneys, and accountants.
The noticee can stay compliance with a third-party recordkeeper summons by
commencing a proceeding to quash in the appropriate District Court within 20 days
of the date on which notice is given, mailing a copy of the petition to the
recordkeeper and to the office of the IRS designated in the notice. The
procedural rules pertaining to a petition to quash are jurisdictional and a
motion to dismiss should be filed upon failure to follow these provisions
meticulously.
Proceedings to quash may also be instituted with respect to IRS a
formal document request under 26 U.S.C. § 982 for foreign-based documents.
These proceedings are similar to 26 U.S.C. § 7609 proceedings, except that
the taxpayer is allowed 90 days from the date of the request to initiate the
proceeding.
A proceeding to quash is a civil action subject to the normal filing
fee and to the provisions of Rule 4 of the Fed.R. of Civ.P. concerning service
of the summons and complaint. The filing of a petition to quash under 26 U.S.C.
§ 7609 or § 982 stays compliance with the summons or document request.
Accordingly, it is generally in the best interest of the Government not to
insist that the service of process rules be followed in all technical respects,
absent compelling reasons to the contrary