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Internal Revenue Code, § 7407. Action To Enjoin Tax Return Preparers

I.R.C. § 7407(a) Authority To Seek Injunction
A civil action in the name of the United States to enjoin any person who is a tax return preparer from further engaging in any conduct described in subsection (b) or from further acting as a tax return preparer may be commenced at the request of the Secretary. Any action under this section shall be brought in the District Court of the United States for the district in which the tax return preparer resides or has his principal place of business or in which the taxpayer with respect to whose tax return the action is brought resides. The court may exercise its jurisdiction over such action (as provided in section 7402(a)) separate and apart from any other action brought by the United States against such tax return preparer or any taxpayer.
I.R.C. § 7407(b) Adjudication And Decrees
In any action under subsection (a), if the court finds--
I.R.C. § 7407(b)(1)
that a tax return preparer has--
I.R.C. § 7407(b)(1)(A)
engaged in any conduct subject to penalty under section 6694 or 6695, or subject to any criminal penalty provided by this title,
I.R.C. § 7407(b)(1)(B)
misrepresented his eligibility to practice before the Internal Revenue Service, or otherwise misrepresented his experience or education as a tax return preparer,
I.R.C. § 7407(b)(1)(C)
guaranteed the payment of any tax refund or the allowance of any tax credit, or
I.R.C. § 7407(b)(1)(D)
engaged in any other fraudulent or deceptive conduct which substantially interferes with the proper administration of the Internal Revenue laws, and
I.R.C. § 7407(b)(2)
that injunctive relief is appropriate to prevent the recurrence of such conduct, the court may enjoin such person from further engaging in such conduct. If the court finds that a tax return preparer has continually or repeatedly engaged in any conduct described in subparagraphs (A) through (D) of this subsection and that an injunction prohibiting such conduct would not be sufficient to prevent such person's interference with the proper administration of this title, the court may enjoin such person from acting as a tax return preparer.
I.R.C. § 7407(c) Bond To Stay Injunction
[Repealed for actions commenced after December 31, 1989.]
(Added Pub. L. 94-455, title XII, Sec. 1203(g), Oct. 4, 1976, 90 Stat. 1693, and amended Pub. L. 101-239, title VII, Sec. 7738(a), (b), Dec. 19, 1989, 103 Stat. 2404; Pub. L. 110-28, title VIII, Sec. 8246(a)(2)(I), May 25, 2007, 121 Stat. 112.)
Background Notes
REFERENCES IN TEXT
The Internal Revenue laws, referred to in subsec. (b)(1)(D), are classified generally to this title.
PRIOR PROVISIONS
A prior section 7407 was renumbered section 7410.
AMENDMENTS
2007 Sec. 7407. Pub. L. 110-28, Sec. 8246(a)(2)(I)(i)(I), amended the heading for Sec. 7407 by substituting “Tax Return Preparers” for “Income Tax Return Preparers”.
Sec. 7407. Pub. L. 110-28, Sec. 8246(a)(2)(I)(i)(II), amended Sec. 7407 by substituting “a tax return preparer” for “an income tax return preparer” each place it appeared.
Subsec. (a). Pub. L. 110-28, Sec. 8246(a)(2)(I)(i), amended subsec. (a) by substituting “tax return preparer” for “income tax return preparer” both places it appeared and by substituting “tax return” for “income tax return”.
1989 - Subsec. (a). Pub. L. 101-239, Sec. 7738(b), substituted “A civil” for “Except as provided in subsection (c), a civil”.
Subsec. (c). Pub. L. 101-239, Sec. 7738(a), struck out subsec. (c) relating to bonds to stay injunctions.
EFFECTIVE DATE OF 2007 AMENDMENTS
Amendments by Section 8246(a)(2)(I) of Pub. L. 110-28 effective for returns prepared after the date of the enactment of this Act [Enacted: May 25, 2007].
EFFECTIVE DATE OF 1989 AMENDMENTS
Amendments by Section 7738(c) of Pub. L. 101-239 effective for actions commenced after December 31, 1989.
EFFECTIVE DATE
Section applicable to documents prepared after Dec. 31, 1976, see section 1203(j) of Pub. L. 94-455, set out as an Effective Date of 1976 Amendment note under section 7701 of this title.