(b) Adjudication and decrees
In any action under subsection (a), if the court finds—
(1)
that a 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 a 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 a 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 a tax return preparer.
Prior Provisions
A prior section 7407 was renumbered section 7410 of this title.
Amendments
2007—Pub. L. 110–28, § 8246(a)(2)(I)(i)(I), substituted “tax return preparers” for “income tax return preparers” in section catchline.
Subsec. (a). Pub. L. 110–28, § 8246(a)(2)(I)(i)(II)–(IV), substituted “tax return” for “income tax return” after “with respect to whose”, “tax return preparer” for “income tax preparer” after “district in which the” and after “against such”, and “a tax return preparer” for “an income tax return preparer” in two places.
Subsec. (b). Pub. L. 110–28, § 8246(a)(2)(I)(i)(II), substituted “a tax return preparer” for “an income tax return preparer” in introductory provisions and subpar. (B) of par. (1) and in two places in concluding provisions.
1989—Subsec. (a). Pub. L. 101–239, § 7738(b), substituted “A civil” for “Except as provided in subsection (c), a civil”.
Subsec. (c). Pub. L. 101–239, § 7738(a), struck out subsec. (c) relating to bonds to stay injunctions.
Effective Date of 2007 Amendment
Amendment by Pub. L. 110–28 applicable to returns prepared after May 25, 2007, see section 8246(c) of Pub. L. 110–28, set out as a note under section 6060 of this title.
Effective Date of 1989 Amendment
Pub. L. 101–239, title VII, § 7738(c), Dec. 19, 1989, 103 Stat. 2404, 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.