In a 5-4 decision, the Supreme Court ruled on May 18, 2023 that the IRS can access bank records without notifying the owner of the bank accounts. The case, Polselli v. IRS, involved a taxpayer who owed the IRS $100,000 in back taxes. The IRS issued a summons to the taxpayer’s bank, seeking access to his account records. The taxpayer argued that the IRS was required to notify him of the summons before it could be served on the bank.
The Supreme Court disagreed, ruling that the IRS is not required to notify taxpayers of summonses issued for tax collection purposes. The Court held that the IRS’s ability to access bank records without notice is necessary to effectively collect taxes. The Court also noted that taxpayers have other avenues for challenging the IRS’s access to their bank records, such as filing a lawsuit.
This decision is a significant victory for the IRS and could have a major impact on taxpayers. The IRS can now access bank records without notifying taxpayers, which could make it more difficult for taxpayers to challenge the IRS’s access to their financial information. Taxpayers should be aware of this decision and take steps to protect their privacy.
Here are some tips for taxpayers to protect their privacy in light of this decision:
- Be careful about what information you share with the IRS.
- Keep good records of your financial transactions.
- Be aware of the IRS’s ability to access your bank records without notice.
- If you believe that the IRS has improperly accessed your bank records, you should consult with an attorney.
This decision is a reminder that the IRS has broad powers to collect taxes. Taxpayers should be aware of their rights and take steps to protect their privacy.