United States of America and Lawnie Mayhew v. Jack Horton and Schonert Construction, Inc.

Schonert Construction, Inc. (Schonert) and Horton appeal from a district court order enforcing a summons of the Internal Revenue Service (IRS). United States v. Horton, 452 P.Supp. 472 (C.D.Cal.1978). They contend that the summons fails to meet the requirements set forth in United States v. Powell, 379 U.S. 48 , 85 S.Ct. 248 , 13 L.Ed.2d 112 (1964), that it violates various constitutional provisions, and that some of the requested materials should have been suppressed because of allegedly illegal actions by the IRS. We affirm.

Schonert is in the framing construction business in Orange County, California, and Horton was president of Schonert at all times relevant to our inquiry. In 1977 the IRS conducted an investigation of Schonert’s tax liability for 1974-1977. Revenue agent Smith conducted the initial examination of Schonert’s records and determined that adjustments were required because of allegedly unsubstantiated deductions. In addition, the matter was referred to special agent Mayhew for investigation of suspected fraud.

Agent Mayhew issued the challenged summons in August 1977 and petitioned for enforcement in March 1978. In a declaration attached to the enforcement…