26 U.S.C. § 7405 — Action for recovery of erroneous refunds

Page 3874 TITLE 26—INTERNAL REVENUE CODE § 7405 (Aug. 16, 1954, ch. 736, 68A Stat. 874; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) Editorial Notes AMENDMENTS 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’. § 7405. Action for recovery of erroneous refunds (a) Refunds after limitation period Any portion of a tax imposed by this title, re- fund of which is erroneously made, within the meaning of section 6514, may be recovered by civil action brought in the name of the United States. (b) Refunds otherwise erroneous Any portion of a tax imposed by this title which has been erroneously refunded (if such re- fund would not be considered as erroneous under section 6514) may be recovered by civil action brought in the name of the United States. (c) Interest For provision relating to interest on erroneous re- funds, see section 6602. (d) Periods of limitation For periods of limitations on actions under this section, see section 6532(b). (Aug. 16, 1954, ch. 736, 68A Stat. 874.) § 7406. Disposition of judgments and moneys re- covered All judgments and moneys recovered or re- ceived for taxes, costs, forfeitures, and penalties shall be paid to the Secretary as collections of internal revenue taxes. (Aug. 16, 1954, ch. 736, 68A Stat. 875; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) Editorial Notes AMENDMENTS 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’. § 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 act- ing as a tax return preparer may be commenced at the request of the Secretary. Any action under this section shall be brought in the Dis- trict 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 exer- cise its jurisdiction over such action (as pro- vided in section 7402(a)) separate and apart from any other action brought by the United States against such tax return preparer or any tax- payer. (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 pen- alty under section 6694 or 6695, or subject to any criminal penalty provided by this title, (B) misrepresented his eligibility to prac- tice before the Internal Revenue Service, or otherwise misrepresented his experience or education as a tax return preparer, (C) guaranteed the payment of any tax re- fund or the allowance of any tax credit, or (D) engaged in any other fraudulent or de- ceptive conduct which substantially inter- feres 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 repeat- edly engaged in any conduct described in sub- paragraphs (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 Notes PRIOR 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 pre- parers’’ 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 ‘‘in- come 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), sub- stituted ‘‘a tax return preparer’’ for ‘‘an income tax re- turn preparer’’ in introductory provisions and subpar. (B) of par. (1) and in two places in concluding provi- sions. 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 sub- sec. (c) relating to bonds to stay injunctions. Statutory Notes and Related Subsidiaries EFFECTIVE 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 ac- tions 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