New Supreme Court Ruling Allows IRS to Request Bank Account Info Without Notice

M.C. Millman

In a case that took two decades to resolve, the US Supreme Court rejected a proposed limit on the IRS’s ability to obtain a bank account holder’s records without giving notice as part of an effort to collect on someone else’s delinquent taxes.

The unanimous ruling that was released Thursday endorsed a broad reading of Internal Revenue Service power under tax code Section 7609(c)(2)(D) exempting the IRS from giving notice when collecting a tax assessment “against the person with respect to whose liability the summons is issued.”

In 2021, a Treasury official claimed that the government loses $600 billion annually in uncollected taxes.

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