United States of Am. & Edward Ader, Special Agent, Internal Revenue Serv. v. Anthony Degrosa, as President of Degrosa Trucking, Inc., 405 F.2d 926 (3d Cir. 1969). · Go Syfert
United States of Am. & Edward Ader, Special Agent, Internal Revenue Serv. v. Anthony Degrosa, as President of Degrosa Trucking, Inc., 405 F.2d 926 (3d Cir. 1969). Cases Citing This Book View Copy Cite
66 citation events across 19 distinct courts.
Strongest positive: Dennis v. United States (ilcd, 1987-05-22)
Treatment trajectory · 1969 → 2026 · click a year to view as-of
1969 1997 2026
Top citers, strongest first. 22 distinct citers. How cited ↗
discussed Cited as authority (rule) Dennis v. United States
C.D. Ill. · 1987 · confidence medium
United States v. DeGrosa, 405 F.2d 926, 929 (3d Cir.), cert. denied sub nom Zudick v. United States, 394 U.S. 973 , 89 S.Ct. 1465 , 22 L.Ed.2d 753 (1969); Mauroni v. United States, 84-2 U.S.T.C., ¶ 9705 (N.D.Cal.1984) [Available on WESTLAW-DCT database], Dennis’ challenge to the summonses’ breadth is without merit. *875 Yet another argument is Dennis’ incredible (but not unique) theory that he is not a taxpayer; and therefore, the IRS has no “jurisdiction” to issue the summonses which he seeks to quash.
cited Cited as authority (rule) Rogers Transportation, Inc. v. Stern
3rd Cir. · 1985 · confidence medium
See United States v. Morton Salt Co., 338 U.S. 632, 651-54 , 70 S.Ct. 357, 368-69 , 94 L.Ed. 401 (1950); United States v. DeGrosa, 405 F.2d 926, 928-29 (3d Cir.), cert. denied sub nom.
cited Cited as authority (rule) Rogers Transportation, Inc., No. 84-3493 v. Honorable Herbert J. Stern, U.S.D.J. For the District of New Jersey, United States of America and Scott R. Hammond, Special Agent, Internal Revenue Service v. Rogers Transportation, Inc., No. 84-5556
3rd Cir. · 1985 · confidence medium
See United States v. Morton Salt Co., 338 U.S. 632, 651-54 , 70 S.Ct. 357, 368-69 , 94 L.Ed. 401 (1950); United States v. DeGrosa, 405 F.2d 926, 928-29 (3d Cir.), cert. denied sub nom.
discussed Cited as authority (rule) Fed. Sec. L. Rep. P 99,182 Jerry T. O'brien, Inc., Doing Business as Pennaluna & Co., Plaintiffs v. Securities and Exchange Commission, and Harry F. Magnuson and H.F. Magnuson & Company, Cross-Plaintiffs-Appellants v. Securities and Exchange Commission, Cross-Defendants-Appellees
9th Cir. · 1983 · confidence medium
See also id. at 206 n. 37, 66 S.Ct. at 504 n. 37; United States v. DeGrosa, 405 F.2d 926, 929 (3d Cir.1969) (Constitution requires opportunity for judicial review prior to penalties for non-compliance with administrative subpoenas) 5 Although Powell involved the Internal Revenue Service, the Powell standards have been extended to SEC investigations, as well as those of other administrative agencies.
discussed Cited as authority (rule) Jerry T. O'Brien, Inc. v. Securities & Exchange Commission
9th Cir. · 1983 · confidence medium
See also id at 206 n. 37, 66 S.Ct. at 504 n. 37; United States v. DeGrosa, 405 F.2d 926, 929 (3d Cir.1969) (Constitution requires opportunity for judicial review prior to penalties for non-compliance with administrative subpoenas). .
discussed Cited as authority (rule) Matanuska Maid, Inc. v. State (2×)
Alaska · 1980 · confidence medium
See also Mid-West Growers Co-Op Corp. v. Kirkemo, 533 F.2d 455 , 461 (9th Cir.1977); United States v. Degrosa, 405 F.2d 926, 929 (3rd Cir.1969); Colegio Puertorriqueno v. Pesquera De Busquets, 464 F. Supp. 761, 766-67 (D.Puerto Rico 1979). [16] Matanuska maintains that See v. Seattle, 387 U.S. 541 , 87 S.Ct. 1737 , 18 L.Ed.2d 943 (1967), and Marshall v. Barlow's, Inc., 436 U.S. 307 , 98 S.Ct. 1816 , 56 L.Ed.2d 305 (1978), are contra.
discussed Cited as authority (rule) United States v. Tivian Laboratories, Inc.
1st Cir. · 1978 · confidence medium
A subpoena may be issued without first obtaining a court’s permission, 327 U.S. at .214, 66 S.Ct. 494 , and may be judicially enforced without a showing that probable, or even reasonable, cause exists to believe that a violation of law has occurred. 327 U.S. at 208-09 , 66 S.Ct. 494 ; Midwest Growers Cooperative Corp. v. Kirkemo, 533 F.2d 455, 461 (9th Cir. 1976) (dicta); SEC v. Howatt, 525 F.2d 226, 229 (1st Cir. 1975); EEOC v. University of New Mexico, 504 F.2d 1296, 1303 (10th Cir. 1974); United States v. DeGrosa, 405 F.2d 926, 928-29 (3d Cir.), cert, denied sub nom.
cited Cited as authority (rule) In re Alleged Prohibited Political Activity Philadelphia Redevelopment Authority
E.D. Pa. · 1977 · confidence medium
United States v. DeGrosa, 405 F.2d 926, 928 (3d Cir.), cert. denied 394 U.S. 973 , 89 S.Ct. 1465 , 22 L.Ed.2d 753 (1969).
cited Cited as authority (rule) Diamond v. Vickrey
Vt. · 1976 · confidence medium
United States v. DeGrosa, 405 F.2d 926, 928-29 (3rd Cir.), cert. denied, 394 U.S. 973 , 89 S.Ct. 1465 , 22 L.Ed.2d 753 (1969).
discussed Cited as authority (rule) In Re Grand Jury Proceedings. In Re Jacqueline Schofield, Witness (2×)
3rd Cir. · 1973 · confidence medium
See, e.g., Donaldson v. United States, 400 U.S. 517, 532-533 , 91 S.Ct. 534 , 27 L.Ed.2d 580 (1971); Reisman v. Caplin, 375 U.S. 440, 449 , 84 S.Ct. 508 , 11 L.Ed.2d 459 (1964); United States v. Salter, 432 F.2d 697, 700 (1st Cir. 1970); United States v. Roundtree, 420 F.2d 845, 847 (5th Cir. 1969); United States v. DeGrosa, 405 F.2d 926, 928 (3d Cir. 1969), cert. denied, 394 U.S. 973 , 89 S.Ct. 1465 , 22 L.Ed.2d 753 (1969); United States v. O'Connor, 118 F.Supp. 248, 250 (D.Mass.1953).
discussed Cited as authority (rule) Donaldson v. United States (2×)
SCOTUS · 1971 · confidence medium
In addition, third parties might intervene to protect their interests, or in the event the taxpayer is not a party to the summons before the hearing officer, he, too, may intervene." 375 U. S., at 449 . [13] Wild v. United States, 362 F. 2d 206, 209 (CA9 1966); McGarry v. Riley, 363 F. 2d 421, 424 (CA1), cert. denied, 385 U. S. 969 (1966); Venn v. United States, 400 F. 2d 207, 210 (CA5 1968); Sanford v. United States, 358 F. 2d 685, 686 (CA5 1966); United States v. Hayes, 408 F. 2d 932, 936 (CA7), cert. denied, 396 U. S. 835 (1969); United States v. Giordano, 419 F. 2d 564, 568 (CA8 1969), cer…
discussed Cited as authority (rule) United States of America and Joe M. Wilson, Special Agent, Internal Revenue Service v. William v. Held
6th Cir. · 1970 · confidence medium
Co., supra, 415 F.2d 1284, 1286 (6th Cir.); DiPiazza v. United States, 415 F.2d 99, 103 (6th Cir.); United States v. DeGrosa, 405 F.2d 926, 928 (3rd Cir.); Lash v. Nighosian, 273 F.2d 185, 188 (1st Cir.), cert. denied, 362 U.S. 904 , 80 S.Ct. 610 , 4 L.Ed.2d 554 .
discussed Cited as authority (rule) United States v. White
W.D. Pa. · 1970 · confidence medium
If every investigation has both civil and criminal aspects and objectives, how can any meaning be given to the dichotomy of civil and criminal objectives recognized by the Court of Appeals decision in United States v. DeGrosa, 405 F.2d 926, 928 (C.A.3, 1969)?
discussed Cited as authority (rule) United States of America and Richard Daguanno, Special Agent, Internal Revenue Service v. Michigan Bell Telephone Company (2×)
6th Cir. · 1969 · confidence medium
United States v. DeGrosa, 405 F.2d 926, 928 (3rd Cir.).
cited Cited "see" Greenblatt v. New Jersey Bd. of Pharmacy
N.J. Super. Ct. App. Div. · 1986 · signal: accord · confidence high
Accord United States v. DeGrosa, 405 F. 2d 926, 929 (3d Cir.), cert. den. 394 U.S. 973 , 89 S.Ct. 1465 , 22 L.Ed. 2d 753 (1969).
cited Cited "see" United States v. Slater
D. Del. · 1982 · signal: see · confidence high
See United States v. De Grosa, 405 F.2d 926, 928-29 (3d Cir.), cert, denied 394 U.S. 973 , 89 S.Ct. 1465 , 22 L.Ed.2d 753 (1969) .
cited Cited "see" United States v. Buck
S.D. Tex. · 1973 · signal: see · confidence high
See United States v. DeGrosa, 405 F.2d 926 (3rd Cir.), cert. den., 394 U.S. 973 , 89 S.Ct. 1465 , 22 L.Ed.2d 753 (1969).
cited Cited "see" United States v. Artman
6th Cir. · 1970 · signal: accord · confidence high
Accord, United States v. DeGrosa, 405 F.2d 926 (3rd Cir.).
discussed Cited "see" United States v. Roundtree
5th Cir. · 1969 · signal: see · confidence high
See United States v. DeGrosa, 3 Cir. 1969, 405 F.2d 926, 928 ; Justice v. United States, 1968, 390 U.S. 199 , 88 S.Ct. 901 , 19 L.Ed.2d 1038 (mem.), aff’g United States v. First National Bank, 274 F. Supp. 283 (E.D.Ky.1967). .
cited Cited "see, e.g." United States v. Bank of Commerce
3rd Cir. · 1969 · signal: see, e.g. · confidence low
See e.g., United States v. DeGrosa, supra; Justice v. United States, 365 F.2d 312 (6th Cir., 1966).
cited Cited "see, e.g." United States v. Bank Of Commerce
3rd Cir. · 1969 · signal: see, e.g. · confidence low
See e.g., United States v. DeGrosa, supra; Justice v. United States, 365 F.2d 312 (6th Cir., 1966).
Retrieving the full opinion text from the archive…
UNITED STATES of America and Edward Ader, Special Agent, Internal Revenue Service
v.
Anthony DeGROSA, as President of DeGrosa Trucking, Inc., Appellant
17308.
Court of Appeals for the Third Circuit.
Apr 21, 1969.
405 F.2d 926
Herbert L. Zuckerman, Newark, N. J., for appellant., Joseph M. Howard, Dept, of Justice, Tax Division, Appellate Section, Washington, D. C. (Mitchell Rogovin, Asst. Atty. Gen., Lee A. Jackson, John P. Burke, Attys., Dept, of Justice, Washington, D. C., David M. Satz, U. S. Atty., Carolyn E. Arch, Asst. U. S. Atty., on the brief), for appellee.
Hastie, Seitz, Aldisert.
Cited by 55 opinions  |  Published

OPINION OF THE COURT

SEITZ, Circuit Judge.

This is an appeal from an order made pursuant to 26 U.S.C.A. § 7604, enforcing an internal revenue summons issued by Internal Revenue Service Special Agent Edward Ader on August 8, 1967, pursuant to 26 U.S.C.A. § 7602. The summons directed Anthony DeGrosa, as President of DeGrosa Trucking, Inc., to produce certain specified records of DeGrosa Trucking, Inc., whose tax liability was under investigation. Appellant, DeGrosa, appeared before Special Agent Ader with the materials demanded in the summons; however, the appellant refused to surrender the materials claiming that the summons was being used for an unauthorized purpose. An action for enforcement was brought in the district court against DeGrosa only, at which time appellant urged that enforcement of the summons would violate his constitutional rights and those of the corporation and that enforcement would permit an unauthorized use of the summons. After argument the court granted the petition for enforcement without filing a written opinion. DeGrosa (“appellant”) now appeals.

Appellant contends (1) that the use of the § 7602 summons to obtain evidence for possible use in a criminal proceeding is an improper, or ultra vires, use of the summons, (2) that compelling production of the records sought would violate his Fourth Amendment rights and those of the corporation, [1] and (3) that permitting Agent Ader to conduct a criminal investigation using the § 7602 summons deprives the appellant of his Fifth Amendment right to have the Grand Jury conduct the investigation.

In support of his first contention appellant, citing Reisman v. Caplin, 375 U.S. 440, 449, 84 S.Ct. 508, 11 L.Ed.2d 459 (1964), argues that the investigation by Special Agent Ader is “principally” a criminal investigation and that it is improper to employ the § 7602 summons for the purpose of obtaining evidence for use in a criminal prosecution. Appellant does not contend—as, indeed, he could not on the record here [2] —that the investigation lacked a civil purpose.

[*928] Appellant’s reliance on Reisman, supra, is misplaced. This is made clear when the language of the Supreme Court, upon which appellant relies, [3] is considered in connection with the court’s citation to Boren v. Tucker, 289 F.2d 767 (9th Cir., 1956), which follows immediately after the critical language. In Boren, supra, the Ninth Circuit held that a § 7602 summons may properly be issued in aid of internal revenue investigations which have a civil purpose, notwithstanding the fact that the information might also be used in a criminal prosecution. [4] See also Wild v. United States, 362 F.2d 206 (9th Cir., 1966); In Re Magnus et al., 311 F.2d 12 (2nd Cir., 1962), cert. den. 373 U.S. 902, 83 S.Ct. 1289, 10 L.Ed.2d 198 (1963). Assuming, as the appellant urges, that the investigation by Agent Ader is “principally” criminal, the authority cited by the appellant does not support the conclusion that this summons is being used for an improper purpose, inasmuch as his contention does not negative the existence of a proper civil purpose. [5]

We turn next to appellant’s Fourth Amendment contention. Although the materials sought are corporate records we assume that the appellant has standing to assert the claim on his own behalf [6] and on behalf of the corporation. [7] Appellant’s contention that the use of a § 7602 summons constitutes an unreasonable search and seizure where, as here, the investigation has both civil and criminal aspects, has often been advanced as a ground for requesting that enforcement of the summons be denied. In fact, within the past year, the Supreme Court had occasion to consider such an attack on § 7602 and § 7604. Justice v. United States, 390 U.S. 199, 88 S.Ct. 901, 19 L.Ed.2d 1038 (1968), aff’g, United States v. First National Bank of Pikeville, et al., 274 F.Supp. 283 (E.D.Ky., 1967). The court, in a per curiam opinion, affirmed a three judge district court which, inter alia, upheld the constitutionality of the § 7602 summons procedure against a Fourth Amendment challenge by the intervening taxpayers.

It has long been established that an administrative summons authorized by Congress in aid of an agency’s investigative function need not be sup-[*929] ported by ad hoc showings of probable cause. Oklahoma Press Publishing Co. v. Walling, 327 U.S. 186, 216-217, 66 S.Ct. 494, 90 L.Ed. 614 (1946). The Constitution only requires that the summons not be employed in excess of the statutory purpose, that it be specific in directive so that compliance will not be unreasonably burdensome and that an ample opportunity be afforded to obtain judicial review of the demand prior to suffering penalties for a refusal to comply. Oklahoma Press Publishing Co. v. Walling, supra; See v. City of Seattle, 387 U.S. 541, 544-545, 87 S.Ct. 1737, 18 L.Ed.2d 943 (1967). [8]

In the instant case, there is no question but that the summons will not unreasonably burden the appellant. In point of fact, the appellant was able to gather the materials requested and bring them before Agent Ader at the time and place directed in the summons. Further, enforcement of the summons is not left to the discretion of the agent issuing it, but is delegated to the district court where the reasonableness of the demand may be reviewed. Finally, as decided above, the summons here is not being used for a purpose in excess of that authorized by Congress.

Accordingly, appellant’s second contention that the summons issued by Agent Ader suffers a fatal constitutional infirmity is without merit.

Lastly, appellant contends that Agent Ader’s use of the § 7602 summons is an impermissible intrusion on his Fifth Amendment right to have the Grand Jury conduct the investigation. A reading of the Fifth Amendment in itself disposes of this contention. The right conferred in the Fifth Amendment is that no person can be held to answer for an “infamous crime” except upon an indictment returned by the Grand Jury. Clearly the procedure contemplated in 26 U.S.C.A. §§ 7602, 7604 does not at all impinge on this right of the appellant.

The order of the District Court enforcing the summons is affirmed.

1

. Appellant does not make it entirely clear that he is asserting an infringement of the corporation’s Fourth Amendment rights as well as of his own. However, to avoid fragmentation of this litigation, we construe appellant’s argument as directed to the protection of both his and the corporation’s rights.

2

. A reading of the transcript of the oral argument before the district court, the petition for enforcement, the affidavit of[*928] Agent Ader, and the language of the summons discloses that Agent Ader’s investigation had the dual purpose of determining the civil liability of DeGrosa Trucking, Inc., if any, as well as any criminal responsibility.

3

. “Furthermore, we hold that in any of these proceedings before either the district judge or the United States Commissioner, the witness may challenge the summons on any appropriate ground. This would include, as the circuits have held, the defenses that the material is sought for the improper purpose of obtaining evidence for use in a criminal prosecution, Boren v. Tucker, 239 F.2d 767, 772-773 * * *."

4

. At oral argument, counsel stipulated into the record a letter from the Regional Counsel, Internal Revenue Service, to appellant’s counsel, which letter recites that criminal proceedings have been recommended against the appellant. By letter submitted after oral argument, the Department of Justice called the court’s attention to the fact that the recommendation for prosecution had not been passed on by the Regional Counsel and that the case had not yet been forwarded to the Department for actual prosecution. The fact that a criminal prosecution is on the horizon does not transform the investigation into one “solely criminal.” Therefore, whether tested at the time issued or at this date, which would encompass the recommendation for prosecution, the use of the summons here is not improper. Compare In Re Magnus et al., 311 F.2d 12, 16 (2nd Cir., 1962).

5

. If Wright v. Detwiler, 241 F.Supp. 753 (W.D.Pa., 1964), aff’d per curiam, 345 F.2d 1012 (3rd Cir., 1965) is read as permitting the use of a § 7602 summons in aid of an investigation solely criminal, its continuing vitality is in question. However, the present facts do not require us to reach that issue.

6

. Compare Mancusi v. De Forte, 392 U.S. 364, 88 S.Ct. 2120, 20 L.Ed.2d 1154 (1968).

7

. Cf. Silverthorne Lumber Co. v. United States, 251 U.S. 385, 40 S.Ct. 182, 64 L.Ed. 319 (1920).

8

. The court concluded its discussion of the limitations on administrative summons in See, supra, by noting:

“The agency’s particular demand for access will of course be measured, in terms of probable cause to issue a warrant, against a flexible standard of reasonableness that takes into account the public need for effective enforcement of the particular regulation.”
We do not read this language as imposing a probable cause requirement on the issuance of a § 7602 summons; but instead, as a statement of the considerations which govern a determination of the reasonableness of the statutory scheme in the context of the Fourth Amendment. The constitutionality of the statutory scheme here was most recently reviewed, and approved, in Justice v. United States, supra.