US SUPREME COURT DECISIONS

The Internal Revenue Service (IRS) held to have authority under §§ 7601 and 7602 of the Internal Revenue Code of 1954 to issue a "John Doe" summons to a bank or other depository to discover the identity of a person who has had bank transactions suggesting the possibility of liability for unpaid taxes, in this instance, a summons to respondent bank officer during an investigation to identify the person or persons who deposited 400 deteriorated $100 bills with the bank within the space of a few weeks. Pp. 420 U. S. 148-151.

(a) That the summons was styled in a fictitious name is not a sufficient ground for denying enforcement. Pp. 420 U. S. 148-149.

(b) The language of § 7601 permitting the IRS to investigate and inquire after "all persons . . . who may be liable to pay any internal revenue tax . . ." and of § 7602 authorizing the summoning of "any person" for the taking of testimony and examination of books and witnesses that may be relevant for "ascertaining the correctness of any return, . . . determining the liability of any person . . . or collecting any such liability . . . " is inconsistent with an interpretation that would limit the issuance of summonses to investigations which have already focused upon a particular return, a particular named person, or a particular potential tax liability, and, moreover, such a reading of the summons power of the IRS ignores the agency's legitimate interest in large or unusual financial transactions, especially those involving cash. Pp. 420 U. S. 149-150.

486 F.2d 706, reversed and remanded.

BURGER, C.J.,delivered the opinion of the Court, in which BRENNAN, WHITE, MARSHALL, BLACKMUN, POWELL, and REHNQUIST, JJ., joined. BLACKMUN, J., filed a concurring opinion, in which POWELL, J., joined, post, p. 420 U. S. 151. STEWART, J., filed a dissenting opinion, in which DOUGLAS, J., joined, post, p. 420 U. S. 152. chanrobles.com-red

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