Application of House

This is a proceeding under 26 U.S.C. § 7604 to enforce a subpoena requiring the production of certain documents for examination by the Bureau of Internal Revenue pursuant to 26 U.S.C. § 7602 .

Irving S. Levy, Harry C. Levy, Barney B. Levy, and Helen Levy are the taxpayers in question. Taxpayers are partners in a clothing business. In 1953, the government began an investigation to determine whether there was a basis for an indictment of taxpayers on the criminal charge of tax evasion. Having learned of the investigation, taxpayers retained counsel, including Winters. Taxpayers have since 1945 employed, and continue to employ, an accountant named Wood in a variety of accounting capacities relating to the business and personal accounts of the partnership and the partners. In the course of such employment, Wood had received from the taxpayers a large quantity of files, records and other documents, which he retained in his offices. In the course of such employment, Wood has also prepared a number of “working papers”, consisting of abstracts, analyses, and other extracts or compilations relating to the documents given him from time to time by the taxpayers.

Upon advice of counsel,…