IRS Policy on Responding to Grand Jury Subpoenas for Records
IRS Policy on Responding to Grand Jury Subpoenas for Records
The IRS generally must comply with valid grand jury subpoenas for records as part of criminal investigations. However, there are some limitations and protections:
- Taxpayer privacy – The IRS cannot disclose confidential taxpayer information without following proper procedures and safeguards under laws like Section 6103 of the Internal Revenue Code. There are some exceptions, like disclosures to federal grand juries per Section 6103(i).
- Privileges – The IRS may be limited in disclosing certain privileged communications like those between an attorney and client. There are exceptions for criminal investigations.
- Undue burden – The IRS can resist overbroad subpoenas that would create undue burden in compliance. There is a balancing test courts may apply.
- Taxpayer notice – Taxpayers are sometimes entitled to notice that a grand jury subpoena has been served for their records.
Key sources and articles:
- IRS Manual Section 25.5.6 – Grand Jury Subpoenas: https://www.irs.gov/irm/part25/irm_25-005-006
- “Responding to Grand Jury Subpoenas for Records” from Justice Manual: https://www.justice.gov/jm/jm-9-13000-obtaining-evidence#9-13.420
- Law journal article overviewing IRS responses to grand jury subpoenas: https://scholarship.law.wm.edu/cgi/viewcontent.cgi?article=3390&context=wmlr