
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC7408]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                Subtitle F--Procedure and Administration
 
                    CHAPTER 76--JUDICIAL PROCEEDINGS
 
            Subchapter A--Civil Actions by the United States
 
Sec. 7408. Action to enjoin promoters of abusive tax shelters, 
        etc.
        

(a) Authority to seek injunction

    A civil action in the name of the United States to enjoin any person 
from further engaging in conduct subject to penalty under section 6700 
(relating to penalty for promoting abusive tax shelters, etc.) or 
section 6701 (relating to penalties for aiding and abetting 
understatement of tax liability) 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 such 
person resides, has his principal place of business, or has engaged in 
conduct subject to penalty under section 6700 or section 6701. 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 person.

(b) Adjudication and decree

    In any action under subsection (a), if the court finds--
        (1) that the person has engaged in any conduct subject to 
    penalty under section 6700 (relating to penalty for promoting 
    abusive tax shelters, etc.) or section 6701 (relating to penalties 
    for aiding and abetting understatement of tax liability), and
        (2) that injunctive relief is appropriate to prevent recurrence 
    of such conduct,

the court may enjoin such person from engaging in such conduct or in any 
other activity subject to penalty under section 6700 or section 6701.

(c) Citizens and residents outside the United States

    If any citizen or resident of the United States does not reside in, 
and does not have his principal place of business in, any United States 
judicial district, such citizen or resident shall be treated for 
purposes of this section as residing in the District of Columbia.

(Added Pub. L. 97-248, title III, Sec. 321(a), Sept. 3, 1982, 96 Stat. 
612; amended Pub. L. 98-369, div. A, title I, Sec. 143(b), July 18, 
1984, 98 Stat. 682.)


                            Prior Provisions

    A prior section 7408 was renumbered section 7410 of this title.


                               Amendments

    1984--Subsec. (a). Pub. L. 98-369, Sec. 143(b)(1), (2), inserted 
``or section 6701 (relating to penalties for aiding and abetting 
understatement of tax liability)'' and inserted reference to section 
6701 at end of second sentence.
    Subsec. (b). Pub. L. 98-369, Sec. 143(b)(1), (3), inserted ``or 
section 6701 (relating to penalties for aiding and abetting 
understatement of tax liability),'' in par. (1) and inserted reference 
to section 6701 at end.


                    Effective Date of 1984 Amendment

    Amendment by Pub. L. 98-369 effective on day after July 18, 1984, 
see section 143(c) of Pub. L. 98-369, set out as a note under section 
6700 of this title.


                             Effective Date

    Section 321(c) of Pub. L. 97-248 provided that: ``The amendments 
made by this section [enacting this section] shall take effect on the 
day after the date of the enactment of this Act [Sept. 3, 1982].''
