§ 7407. Action to enjoin tax return preparers

Legislative history

Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.

1. 1976

   Pub. L. 94–455 title XII § 1203(g) · 90 Stat. 1520

   Enacted · 26 U.S.C. § 7407

   Added Pub. L. 94–455, title XII, § 1203(g), Oct. 4, 1976, 90 Stat. 1693

   Source evidence

   Code source credit
   Added Pub. L. 94–455, title XII, § 1203(g), Oct. 4, 1976, 90 Stat. 1693

   Enacted provision · exact public law section
   (g) Authority To Seek Injunction Against Income Tax Return Preparers.— Subchapter A of chapter 76 (relating to civil actions by the United States) is amended by redesignating section 7407 as section 7408 and by inserting after section 7406 the following new section: “SEC. 7407. ACTION TO ENJOIN INCOME TAX RETURN PREPARERS. “(a) Authority To Seek Injunction.— Except as provided in subsection (c), a civil action in the name of the United States to enjoin any person who is an income tax return preparer from further engaging in any conduct described in subsection (b) or from further acting as an income 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 income tax preparer resides or has his principal place of business or in which the taxpayer with respect to whose income 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 income tax preparer or any taxpayer. “(b) Adjudication and Decrees.— In any action under subsection (a), if the court, finds— “(1) that an income tax return preparer has— “(A) engaged in any conduct subject to penalty under section 6694 or 6695, or subject to any criminal penalty provided by this title, “(B) misrepresented his eligibility to practice before the Internal Revenue Service, or otherwise misrepresented his experience or education as an income tax return preparer, “(C) guaranteed the payment of any tax refund or the allowance of any tax credit, or “(D) engaged in any other fraudulent or deceptive conduct which substantially interferes with the proper administration of the Internal Revenue laws, and “(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 an income 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 an income tax return preparer. “(c) Bond To Stat Injunction.— No action to enjoin under subsection (b)(1)(A) shall be commenced or pursued with respect to any income tax return preparer who files and maintains, with the Secretary in the internal revenue district in which is located such preparers legal residence or principal place of business, a bond in a sum of $50,000 as surety for the payment of penalties under section 6694 and 6695.”

2. 1989

   Improved Penalty Administration and Compliance Tax Act

   Pub. L. 101–239 § 7738(b) · 103 Stat. 2106

   Substituted · 26 U.S.C. § 7407(a)

   Pub. L. 101–239, § 7738(b), substituted “A civil” for “Except as provided in subsection (c), a civil”

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 101–239, § 7738(b), substituted “A civil” for “Except as provided in subsection (c), a civil”.

   Enacted provision · exact public law section
   (b) Conforming Amendment.— Subsection (a) of section 7407 is amended by striking “Except as provided in subsection (c), a civil” and inserting “A civil”.

3. 1989

   Improved Penalty Administration and Compliance Tax Act

   Pub. L. 101–239 § 7738(a) · 103 Stat. 2106

   Struck · 26 U.S.C. § 7407(c)

   Pub. L. 101–239, § 7738(a), struck out subsec. (c) relating to bonds to stay injunctions

   Source evidence

   Code amendment note
   Subsec. (c). Pub. L. 101–239, § 7738(a), struck out subsec. (c) relating to bonds to stay injunctions.

   Enacted provision · exact public law section
   (a) General Rule.— Subsection (c) of section 7407 (relating to bond to stay injunction) is hereby repealed.

4. 2007

   Small Business and Work Opportunity Tax Act of 2007

   Pub. L. 110–28 § 8246(a)(2)(I)(i)(I) · 121 Stat. 112

   Substituted · 26 U.S.C. § 7407

   Pub. L. 110–28, § 8246(a)(2)(I)(i)(I), substituted “tax return preparers” for “income tax return preparers” in section catchline

   Source evidence

   Code amendment note
   Pub. L. 110–28, § 8246(a)(2)(I)(i)(I), substituted “tax return preparers” for “income tax return preparers” in section catchline.

   Enacted provision · exact public law section
   (I) by striking “income tax return preparers” in the heading and inserting “tax return preparers”,

   Effective date note
   Amendment by Pub. L. 110–28 applicable to returns prepared after May 25, 2007, see section 8246(c) of Pub. L. 110–28, set out as a note under section 6060 of this title.

5. 2007

   Small Business and Work Opportunity Tax Act of 2007

   Pub. L. 110–28 § 8246(a)(2)(I)(i)(II) · 121 Stat. 112

   1. Substituted · 26 U.S.C. § 7407(a)

      Pub. L. 110–28, § 8246(a)(2)(I)(i)(II)–(IV), substituted “tax return” for “income tax return” in two places

   2. Substituted · 26 U.S.C. § 7407(a)

      Pub. L. 110–28, § 8246(a)(2)(I)(i)(II)–(IV), substituted “tax return preparer” for “income tax preparer” in two places

   3. Substituted · 26 U.S.C. § 7407(a)

      Pub. L. 110–28, § 8246(a)(2)(I)(i)(II)–(IV), substituted “a tax return preparer” for “an income tax return preparer” in two places

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 110–28, § 8246(a)(2)(I)(i)(II)–(IV), substituted “tax return” for “income tax return” after “with respect to whose”, “tax return preparer” for “income tax preparer” after “district in which the” and after “against such”, and “a tax return preparer” for “an income tax return preparer” in two places.

   Enacted provision · exact public law section
   (II) by striking “an income tax return preparer” each place it appears and inserting “a tax return preparer”,

   Effective date note
   Amendment by Pub. L. 110–28 applicable to returns prepared after May 25, 2007, see section 8246(c) of Pub. L. 110–28, set out as a note under section 6060 of this title.

6. 2007

   Small Business and Work Opportunity Tax Act of 2007

   Pub. L. 110–28 § 8246(a)(2)(I)(i)(II) · 121 Stat. 112

   Substituted · 26 U.S.C. § 7407(b)

   Pub. L. 110–28, § 8246(a)(2)(I)(i)(II), substituted “a tax return preparer” for “an income tax return preparer” in introductory provisions and subpar. (B) of par. (1) and in two places in concluding provisions

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 110–28, § 8246(a)(2)(I)(i)(II), substituted “a tax return preparer” for “an income tax return preparer” in introductory provisions and subpar. (B) of par. (1) and in two places in concluding provisions.

   Enacted provision · exact public law section
   (II) by striking “an income tax return preparer” each place it appears and inserting “a tax return preparer”,

   Effective date note
   Amendment by Pub. L. 110–28 applicable to returns prepared after May 25, 2007, see section 8246(c) of Pub. L. 110–28, set out as a note under section 6060 of this title.

8 of 8 references resolved to an enrolled provision