U.S. Code » Title 26 » Subtitle Subtitle F— Procedure and Administration › Chapter CHAPTER 76— JUDICIAL PROCEEDINGS › Subchapter Subchapter A— Civil Actions by the United States

26 U.S.C. § 7407

Action to enjoin tax return preparers

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(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 acting 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 decreesIn 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,(C) guaranteed the payment of any tax refund or the allowance of any tax credit, or(D) engaged in any other fraudulent or deceptive conduct which substantially interferes with the proper administration of the Internal Revenue laws, and(2) that injunctive relief is appropriate to prevent the recurrence of such conduct,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.(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.)Editorial NotesPrior Provisions

A prior section 7407 was renumbered section 7410 of this title.

Amendments

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.

Statutory Notes and Related SubsidiariesEffective Date of 2007 Amendment

Amendment by Pub. L. 110–28 applicable to returns prepared after May 25, 2007, see section 8246(c) of Pub. 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.”

Effective Date

Section applicable to documents prepared after Dec. 31, 1976, see section 1203(j) of Pub. L. 94–455, set out as an Effective Date of 1976 Amendment note under section 7701 of this title.

Notes of Decisions
Cited in 60 cases (19 in the last 5 years), 1982–2026 · leading case: United States v. Franchi, 756 F. Supp. 889 (W.D. Pa. 1991).
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United States v. Franchi, 756 F. Supp. 889 (W.D. Pa. 1991). · cites it 22× “§ 7402 (a), and 26 U.S.C. § 7407 . District courts are statutorily authorized to issue injunctions at the request of the United States for the enforcement of the internal revenue laws.”
United States v. Elsass, 978 F. Supp. 2d 901 (S.D. Ohio 2013). · cites it 7× “26 U.S.C. § 7407 (b). Here, the Government argues that the Defendants are tax return preparers as that term is defined by statute and that they have repeatedly engaged in a myriad of conduct made enjoinable pursuant to § 7407.”
United States v. Stinson, 239 F. Supp. 3d 1299 (M.D. Fla. 2017). · cites it 3× “48 The Government brought three *1317 claims against Stinson, under three separate provisions of the Internal Revenue Code: 26 U.S.C. § 7407 , 26 U.S.C. § 7408 , and 26 U.”
United States v. Daniel J. Gleason, 432 F.3d 678 (6th Cir. 2005). · cites it 3× “On February 23, 2004, pursuant to 26 U.S.C. § 7407 , the District Court permanently enjoined him from misrepresenting his eligibility to practice before the IRS and his experience or education as an income tax preparer, and from guaranteeing the payment of any tax refund or the…”
Loving v. Internal Revenue Serv., 917 F. Supp. 2d 67 (D.D.C. 2013). · cites it 4× “Second, if the IRS could “disbar” misbehaving tax-return preparers under § 330(b), a federal statute meant to address precisely those malefactors—26 U.S.C. § 7407—would lose all relevance.”
United States v. Ernst & Whinney, 735 F.2d 1296 (11th Cir. 1984). · cites it 3× “§ 7402 (West 1967) or 26 U.S.C.A. § 7407 (Supp. 1983), the statutory provisions pled by the *1298 United States.”
United States v. Venie, 691 F. Supp. 834 (M.D. Pa. 1988). · cites it 7× “26 U.S.C. § 7407 . Our first step is to determine whether Venie is an income tax return preparer under 26 U.”
United States v. Tobias Elsass, 769 F.3d 390 (6th Cir. 2014). · cites it 3× “Practice 6 Under 26 U.S.C. § 7407 (b)(1)(B), a tax-return preparer may be subject to an injunction if he “misrepresented his eligibili *395 ty to practice before the Internal Revenue Service, or otherwise misrepresented his experience or education as a tax return preparer.”
United States v. Cruz, 611 F.3d 880 (11th Cir. 2010). · cites it 4× “26 U.S.C. § 7407 . The district court may specifically enjoin a tax preparer from engaging in a variety of deceptive practices, including misrepresenting his eligibility to practice before the Internal Revenue Service (“IRS”).”
United States v. Neil T. Nordbrock, 38 F.3d 440 (9th Cir. 1994). · cites it 2× “The District Court Did Not Err in Ruling that the Government Had Proved the Essential Prerequisites for a Lifetime Injunction Nordbrock argues that the Government failed to prove the essential elements for a lifetime injunction prohibiting him from preparing tax returns for…”
United States v. Reddy, 500 F. Supp. 2d 877 (N.D. Ill. 2007). · cites it 8× “*882 In this case, the United States seeks an injunction pursuant to 26 U.S.C. § 7407 . 3 To obtain an injunction under Section 7407, the United States must demonstrate that: (1) the defendant is an “income tax return preparer” within the meaning of 26 U.”
United States v. ITS Fin., LLC, 592 F. App'x 387 (6th Cir. 2014). · cites it 2× “According to Appellants, a “business death penalty” injunction is authorized only by 26 U.S.C. § 7407 , but that statute “is not applicable to ITS, and was appropriately not raised or discussed in this case.”
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26 U.S.C. § 7407(b): 1 case
United States v. Venie, 691 F. Supp. 834 (M.D. Pa. 1988). “26 U.S.C. § 7407 . Our first step is to determine whether Venie is an income tax return preparer under 26 U.”
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