Polselli v IRS. What Will the Supreme Court’s Decision Be?
According to the IRS, Remo Polselli underpaid his federal taxes for over ten years. He currently owes $2 million in taxes. In the search for his assets, the IRS issued summonses demanding records from his wife’s bank and the law firm’s banking records where he is a client. In situations like this, where the IRS summons records, they must notify the parties involved in the summons. However, the IRS failed to notify Mrs. Polselli and the law firm. The validity of this nondisclosure will be taken up during court in the case of Polselli v IRS.
According to IRS agents, his wife’s bank records may indicate where Mr. Polselli’s money might be hiding. Furthermore, Mr. Polselli’s attorneys’ bank records were used to investigate how he paid the firm. While the IRS can demand Mr. Polselli’s individual bank records, this is not true for his family members’ or lawyers’ records. The IRS should have given notification before the summonses.
Mrs. Polselli and the law firm lost in the district court. It was concluded that the summonses fell within an exception deeming that entitlement to notice was unnecessary. However, there might be another outcome once the Supreme Court Justices hear the case. Undoubtedly, Mr. Polselli should be accountable for paying what he owes. However, his failure to pay taxes does not give the IRS the right to secretly obtain his wife’s bank records or his law firm’s records. In the case of his law firm, the attorney-client privilege is being violated, not just for Mr. Polselli but also for the firm’s other clients.
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Has a legal dispute ensued between you and the Internal Revenue Service or state tax agencies? We are Orange County’s Tax Litigation Attorneys. Our attorneys understand how stressful and complicated disputes with the IRS can be, whether the dispute involves personal or business taxes. We have the resources, knowledge, and skills to guide you in finding solutions in a timely and cost-effective manner.