David H. Tedder & Associates, Inc. v. United States

The United States appeals the district court’s order granting in part the law firm David H. Tedder & Associates’ motion to quash an Internal Revenue Service summons issued under I.R.C. §§ 7602 and 7609 upon Wells Fargo Bank. The Government’s summons sought production of specified transaction records relating to accounts held by the law firm with the bank. The records in question referenced the names of law firm clients. The district court quashed the summons with respect to the client-identifying information contained in the records. We have jurisdiction under 28 U.S.C. § 1291 and we affirm.

I. FACTS AND PRIOR PROCEEDINGS

In response to a confidential informant’s tip, the Internal Revenue Service (IRS) commenced an audit of appellee law firm David H. Tedder & Associates’ income tax liability for the calendar year of 1989. Pursuant to I.R.C. § 7602(a), the IRS issued a summons seeking appellee’s financial records for 1989, including records for transactions involving four accounts held by appel-lee with Wells Fargo Bank: the general client trust account, the operating account, the business account, and the Jenville trust account. Appellee produced the requested records, except…