UNITED STATES V. LaSALLE NATIONAL BANK
437 U.S. 298 (1978)
NATURE OF THE CASE: The IRS (P) appealed a determination that is abused its subpoena
power to obtain evidence for a criminal proceeding.
FACTS: An agent for P was investigating Gattuso. Tax returns disclosed rental income from
real estate. That property was held in Illinois land trusts by LaSalle National Bank (D), as
trustee. The agent issued two summonses, under the authority of 7602 of the Code. Each
summons related to a separate trust and requested, among other things, that D as trustee.
appear before the IRS at a designated time and place and produce its 'files relating to the
specified trusts. Lang, a vice-president of D, appeared in response to the summonses but, on
advice of counsel, refused to produce any of the materials requested. P petitioned the
United States District Court for enforcement of the summonses. Criminal charges were not
pending but P alleged in the petition and in an incorporated exhibit that the requested
materials were necessary for the determination of the tax liability of Gattuso. D argued
that P's investigation was 'purely criminal' in nature. The court ruled for D. The court
said that it was an improper use of the summons 'to serve it solely for the purpose of
obtaining evidence for use in a criminal prosecution.' The court stated that P was
conducting an investigation solely for the purpose of unearthing evidence of criminal
conduct by Mr. Gattuso. The Seventh Circuit affirmed; The use of an administrative summons
solely for criminal purposes is a quintessential example of bad faith. The Supreme Court
granted certiorari.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
Get
free access to the entire content for Mac, PC or Online
for 2-3 days and free samples
of all kinds of products.
for 2-3 days and free samples of all kinds of products.
https://bsmsphd.com
© 2007-2016 Abn Study Partner
No comments:
Post a Comment