26 U.S. Code § 7407 - Action to enjoin tax return preparers
(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 action 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.
(b) Adjudication and decrees
In any action under subsection (a), if the court finds—
(1) that a 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 a tax return preparer,
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.
Source(Added Pub. L. 94–455, title XII, § 1203(g),Oct. 4, 1976, 90 Stat. 1693; amended Pub. L. 101–239, title VII, § 7738(a), (b),Dec. 19, 1989, 103 Stat. 2404; Pub. L. 110–28, title VIII, § 8246(a)(2)(I)(i),May 25, 2007, 121 Stat. 202.)
2007—Pub. L. 110–28, § 8246(a)(2)(I)(i)(I), substituted “tax return preparers” for “income tax return preparers” in section catchline.
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.
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.
1989—Subsec. (a). Pub. L. 101–239, § 7738(b), substituted “A civil” for “Except as provided in subsection (c), a civil”.
Subsec. (c). Pub. L. 101–239, § 7738(a), struck out subsec. (c) relating to bonds to stay injunctions.
Effective Date of 2007 Amendment
Amendment by Pub. L. 110–28applicable to returns prepared after May 25, 2007, see section 8246(c) ofPub. L. 110–28, set out as a note under section 6060 of this title.
Effective Date of 1989 Amendment
Pub. L. 101–239, title VII, § 7738(c),Dec. 19, 1989, 103 Stat. 2404, provided that: “The amendments made by this section [amending this section] shall apply to actions commenced after December 31, 1989.”
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