United States of America, and Dwight W. Affleck v. Jack Alderson

This is an appeal from an order to comply with an Internal Revenue Service (IRS) summons issued in a civil investigation. Alderson contends that: (1) as a member of a small family partnership he may assert a privilege against self-incrimination to avoid production of partnership records; (2) he is entitled to compensation for expenses incurred in complying with the summons; and (3) the summons was not issued in good faith. We affirm.

I

The basic facts are not is dispute. Aider-son and his brother are farmers and run a potato-packing warehouse in the business name of Perfection Produce-Alderson Brothers. The brothers have a separate bank account for their business and have filed partnership tax returns.

In January 1979, the IRS issued a summons to Alderson ordering production of some partnership records. It was issued pursuant to a civil investigation of the brother’s tax liability for the year 1976. Alderson appeared as directed but refused to produce the partnership records or answer questions, invoking his privilege against self-incrimination.

The IRS filed a petition for judicial enforcement of the summons. After an evidentiary hearing a magistrate concluded that Perfection…