
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC7407]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                    CHAPTER 76--JUDICIAL PROCEEDINGS
 
            Subchapter A--Civil Actions by the United States
 
Sec. 7407. Action to enjoin income tax return preparers


(a) Authority to seek injunction

    A civil action in the name of the United States to enjoin any person 
who is an income tax return preparer from further engaging in any 
conduct described in subsection (b) or from further action as an income 
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 income tax preparer 
resides or has his principal place of business or in which the taxpayer 
with respect to whose income 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 income tax preparer or any taxpayer.

(b) Adjudication and decrees

    In any action under subsection (a), if the court finds--
        (1) that an income 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 an income 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 an income 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 an income tax return preparer.

(Added Pub. L. 94-455, title XII, Sec. 1203(g), Oct. 4, 1976, 90 Stat. 
1693; amended Pub. L. 101-239, title VII, Sec. 7738(a), (b), Dec. 19, 
1989, 103 Stat. 2404.)


                            Prior Provisions

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


                               Amendments

    1989--Subsec. (a). Pub. L. 101-239, Sec. 7738(b), substituted ``A 
civil'' for ``Except as provided in subsection (c), a civil''.
    Subsec. (c). Pub. L. 101-239, Sec. 7738(a), struck out subsec. (c) 
relating to bonds to stay injunctions.


                    Effective Date of 1989 Amendment

    Section 7738(c) of Pub. L. 101-239 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.
