A federal judge recently gave the IRS permission to serve a John Doe summons on . The IRS wants names of Californians who gifted real property to their children or grandchildren between . The IRS believes many failed to file federal gift tax returns reporting family transfers. It’s not just Californians in the crosshairs. The IRS has already received information about intra-family property transfers from county and state officials in other states.
The IRS is using the John Does summons to force foreign banks doing business in the US to reveal information on their US depositors with accounts outside the US. Its use in the future may include other businesses doing business in the US which can provide the IRS with information about US taxpayers assets abroad.