§ 7408. Actions to enjoin specified conduct related to tax shelters and reportable transactions

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. 1982

   Pub. L. 97–248 title III § 321(a) · 96 Stat. 324

   Enacted · 26 U.S.C. § 7408

   Added Pub. L. 97–248, title III, § 321(a), Sept. 3, 1982, 96 Stat. 612

   Source evidence

   Code source credit
   Added Pub. L. 97–248, title III, § 321(a), Sept. 3, 1982, 96 Stat. 612

   Enacted provision · exact public law section
   (a) General Rule.— Subchapter A of chapter 76 (relating to civil actions by the United States) is amended by redesignating section 7408 as section 7409 and by inserting after section 7407 the following 26 USC 7409. new section: “SEC. 7408. ACTION TO ENJOIN PROMOTERS OF ABUSIVE TAX SHELTERS. ETC. “(a) Authority to Seek Injunction.— A civil action in the name of the United States to enjoin any person from further engaging in conduct subject to penalty under section 6700 (relating to penalty for promoting abusive tax shelters, etc.) 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 such person resides, has his principal place of business, or has engaged in conduct subject to penalty under section 6700. 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 person. “(b) Adjudication and Decree.— In any action under subsection (a), if the court finds— “(1) that the person has engaged in any conduct subject to penalty under section 6700 (relating to penalty for promoting abusive tax shelters, etc.), and “(2) that injunctive relief is appropriate to prevent recurrence of such conduct, the court may enjoin such person from engaging in such conduct or in any other activity subject to penalty under section 6700. “(c) Citizens and Residents Outside The United States.— If any citizen or resident of the United States does not reside in, and does not have his principal place of business in, any United States judicial district, such citizen or resident shall be treated for purposes of this section as residing in the District of Columbia.”

2. 1984

   Tax Reform Act of 1984

   Pub. L. 98–369 § 143(b)(1) · 98 Stat. 494

   1. Inserted · 26 U.S.C. § 7408(a)

      Pub. L. 98–369, § 143(b)(1), (2), inserted “or section 6701 (relating to penalties for aiding and abetting understatement of tax liability)”

   2. Inserted · 26 U.S.C. § 7408(a)

      Pub. L. 98–369, § 143(b)(1), (2), inserted reference to section 6701 at end of second sentence

   Source evidence

   Code amendment note
   Subsec. (a). Pub. L. 98–369, § 143(b)(1), (2), inserted “or section 6701 (relating to penalties for aiding and abetting understatement of tax liability)” and inserted reference to section 6701 at end of second sentence.

   Enacted provision · exact public law section
   (1) Subsections (a) and (b) of section 7408 (relating to action to enjoin promoters of abusive tax shelters, etc.) are each amended by inserting “or section 6701 (relating to penalties for aiding and abetting understatement of tax liability)” after “etc.)”.

3. 1984

   Tax Reform Act of 1984

   Pub. L. 98–369 § 143(b)(1) · 98 Stat. 494

   1. Inserted · 26 U.S.C. § 7408(b)

      Pub. L. 98–369, § 143(b)(1), (3), inserted “or section 6701 (relating to penalties for aiding and abetting understatement of tax liability),” in par. (1)

   2. Inserted · 26 U.S.C. § 7408(b)

      Pub. L. 98–369, § 143(b)(1), (3), inserted reference to section 6701 at end

   Source evidence

   Code amendment note
   Subsec. (b). Pub. L. 98–369, § 143(b)(1), (3), inserted “or section 6701 (relating to penalties for aiding and abetting understatement of tax liability),” in par. (1) and inserted reference to section 6701 at end.

   Enacted provision · exact public law section
   (1) Subsections (a) and (b) of section 7408 (relating to action to enjoin promoters of abusive tax shelters, etc.) are each amended by inserting “or section 6701 (relating to penalties for aiding and abetting understatement of tax liability)” after “etc.)”.

4. 2004

   Pub. L. 108–357 § 820(b)(1) · 118 Stat. 1418

   1. Amended · 26 U.S.C. § 7408

      Pub. L. 108–357, § 820(b)(1), amended section catchline generally

   2. Substituted · 26 U.S.C. § 7408

      Pub. L. 108–357, § 820(b)(1), substituting “Actions to enjoin specified conduct related to tax shelters and reportable transactions” for “Action to enjoin promoters of abusive tax shelters, etc.”

   Source evidence

   Code amendment note
   Pub. L. 108–357, § 820(b)(1), amended section catchline generally, substituting “Actions to enjoin specified conduct related to tax shelters and reportable transactions” for “Action to enjoin promoters of abusive tax shelters, etc.”

   Enacted provision · exact public law section
   (1) The heading for section 7408 is amended to read as follows: “SEC. 7408. ACTIONS TO ENJOIN SPECIFIED CONDUCT RELATED TO TAX SHELTERS AND REPORTABLE TRANSACTIONS.” .

   Effective date note
   Pub. L. 108–357, title VIII, § 820(c), Oct. 22, 2004, 118 Stat. 1585, provided that: “The amendment made by this section [amending this section] shall take effect on the day after the date of the enactment of this Act [Oct. 22, 2004].”

5. 2004

   Pub. L. 108–357 § 820(a) · 118 Stat. 1418

   1. Added · 26 U.S.C. § 7408(a)(d)

      Pub. L. 108–357, § 820(a), added subsecs. (a) to (c)

   2. Redesignated · 26 U.S.C. § 7408(a)(d)

      Pub. L. 108–357, § 820(a), redesignated former subsec. (c) as (d)

   3. Struck · 26 U.S.C. § 7408(a)(d)

      Pub. L. 108–357, § 820(a), struck out former subsecs. (a) and (b), which authorized a civil action to enjoin any person from further engaging in conduct subject to penalty under section 6700 or 6701 of this title and authorized the court, if it found that the person had engaged in such conduct and that injunctive relief was appropriate, to enjoin such person from engaging in such conduct or in any other activity subject to penalty under section 6700 or 6701

   Source evidence

   Code amendment note
   Subsecs. (a) to (d). Pub. L. 108–357, § 820(a), added subsecs. (a) to (c), redesignated former subsec. (c) as (d), and struck out former subsecs. (a) and (b), which authorized a civil action to enjoin any person from further engaging in conduct subject to penalty under section 6700 or 6701 of this title and authorized the court, if it found that the person had engaged in such conduct and that injunctive relief was appropriate, to enjoin such person from engaging in such conduct or in any other activity subject to penalty under section 6700 or 6701.

   Enacted provision · exact public law section
   (a) In General.— Section 7408 (relating to action to enjoin promoters of abusive tax shelters, etc.) is amended by redesignating subsection (c) as subsection (d) and by striking subsections (a) and (b) and inserting the following new subsections: “(a) Authority To Seek Injunction.— A civil action in the name of the United States to enjoin any person from further engaging in specified conduct 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 such person resides, has his principal place of business, or has engaged in specified conduct. 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 person. “(b) Adjudication and Decree.— In any action under subsection (a), if the court finds— “(1) that the person has engaged in any specified conduct, and “(2) that injunctive relief is appropriate to prevent recurrence of such conduct, the court may enjoin such person from engaging in such conduct or in any other activity subject to penalty under this title. “(c) Specified Conduct.— For purposes of this section, the term ‘specified conduct’ means any action, or failure to take action, which is— “(1) subject to penalty under section 6700, 6701, 6707, or 6708, or “(2) in violation of any requirement under regulations issued under section 330 of title 31, United States Code.” .

   Effective date note
   Pub. L. 108–357, title VIII, § 820(c), Oct. 22, 2004, 118 Stat. 1585, provided that: “The amendment made by this section [amending this section] shall take effect on the day after the date of the enactment of this Act [Oct. 22, 2004].”

10 of 10 references resolved to an enrolled provision