Scope of IRS powers tops Supreme Court's busy docket of arguments and opinions

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The Washington Examiner

Kaelan Deese, Supreme Court Reporter
March 26, 2023

The Supreme Court will issue at least one opinion this week while it weighs a packed docket of cases, including a request by the IRS to allow its agents to secretly obtain financial records without the need to notify account holders.

Wednesday will mark the day when the nine justices consider Polselli v. IRS, which is expected to have sweeping implications for Fourth Amendment right protections against unreasonable searches and seizures as it pertains to the federal tax collecting agency. This case comes just months after the Inflation Reduction Act passed by Congress last year injected $45 billion to ramp up the agency's tax enforcement efforts.

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Polselli seeks to settle a disagreement among lower courts over an exception in a section of law governing IRS authority. The case surrounds whether the agency's investigation of an individual allows it to peer into the accounts of third-party recordkeepers without informing those parties and without providing a chance to challenge their investigation in court.

Several outside parties, including the U.S. Chamber of Commerce, argue the agency cannot exercise enforcement to this extent, according to a brief, which states, "Many businesses have a far greater need for these protections because their records contain the privileged or confidential information of their customers or clients.”

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