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Title 26 — Internal Revenue CodeRelease 119-73

§7408 Actions to enjoin specified conduct related to tax shelters and reportable transactions

Title 26 › Subtitle Subtitle F— - Procedure and Administration › Chapter CHAPTER 76— - JUDICIAL PROCEEDINGS › Subchapter Subchapter A— - Civil Actions by the United States › § 7408

Last updated Apr 6, 2026|Official source

Summary

The Secretary can ask the United States to sue someone to make them stop certain tax-related conduct. The suit must be filed in the federal district where the person lives, has their main business, or where they did the conduct. The court can hear this case even if the government has other lawsuits against the same person. If the court finds the person did the conduct and that a court order is needed to stop it, the court may issue that order. "Specified conduct" means either actions punishable under sections 6700, 6701, 6707, or 6708, or violations of rules made under section 330 of title 31. U.S. citizens or residents with no U.S. judicial district are treated as living in the District of Columbia for these cases.

Full Legal Text

Title 26, §7408

Internal Revenue Code — Source: USLM XML via OLRC

(a)A civil action in the name of the United States to enjoin any person from further engaging in specified conduct 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 specified conduct. 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)In any action under subsection (a), if the court finds—
(1)that the person has engaged in any specified conduct, and
(2)that injunctive relief is appropriate to prevent recurrence of such conduct,
(c)For purposes of this section, the term “specified conduct” means any action, or failure to take action, which is—
(1)subject to penalty under section 6700, 6701, 6707, or 6708, or
(2)in violation of any requirement under regulations issued under section 330 of title 31, United States Code.
(d)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.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

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

Amendments

2004—Pub. L. 108–357, § 820(b)(1), amended section catchline generally, substituting “Actions to enjoin specified conduct related to tax shelters and reportable transactions” for “Action to enjoin promoters of abusive tax shelters, etc.” Subsecs. (a) to (d). Pub. L. 108–357, § 820(a), added subsecs. (a) to (c), redesignated former subsec. (c) as (d), and struck out former subsecs. (a) and (b), which authorized a civil action to enjoin any person from further engaging in conduct subject to penalty under section 6700 or 6701 of this title and authorized the court, if it found that the person had engaged in such conduct and that injunctive relief was appropriate, to enjoin such person from engaging in such conduct or in any other activity subject to penalty under section 6700 or 6701. 1984—Subsec. (a). Pub. L. 98–369, § 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, § 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.

Statutory Notes and Related Subsidiaries

Effective Date

of 2004 Amendment Pub. L. 108–357, title VIII, § 820(c), Oct. 22, 2004, 118 Stat. 1585, provided that: “The amendment made by this section [amending this section] shall take effect on the day after the date of the enactment of this Act [Oct. 22, 2004].”

Effective Date

of 1984 AmendmentAmendment 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

Pub. L. 97–248, title III, § 321(c), Sept. 3, 1982, 96 Stat. 612, 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].”

Reference

Citations & Metadata

Citation

26 U.S.C. § 7408

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73