U.S. District Court Dismisses Challenge to IRS Third-Party Summons for Collection Proceedings

The U.S. District Court for the Western District of Oklahoma held that the IRS was not required to provide notice before issuing a third-party summons to a bank because the summons was issued in aid of collection of an already assessed tax liability. The taxpayer sought to quash the summons, arguing the IRS breached an agreement to stay enforcement during a Collection Appeal Program (CAP) proceeding. However, the court determined it lacked subject-matter jurisdiction because IRC §7609(c)(2)(D)(i) exempts collection-related summonses from notice requirements. Where notice is not required, sovereign immunity is not waived, and courts lack jurisdiction to hear a ...