Internal Revenue Code:Rule 104. Enforcement Action and Sanctions

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      TITLE 26 - APPENDIX
       TITLE X. - GENERAL PROVISIONS GOVERNING DISCOVERY, DEPOSITIONS, AND
             REQUESTS FOR ADMISSION
      

Statute

    Rule 104. Enforcement Action and Sanctions
 
      (a) Failure to Attend Deposition or to Answer Interrogatories or
    Respond to Request for Inspection or Production: If a party, or an
    officer, director, or managing agent of a party, or a person
    designated in accordance with Rule 74(b), 75(c), or 81(c) to
    testify on behalf of a party fails (1) to appear before the officer
    who is to take such person's deposition pursuant to Rule 74, 75,
    76, 81, 82, 83, or 84, or (2) to serve answers or objections to
    interrogatories submitted under Rule 71, after proper service
    thereof, or (3) to serve a written response to a request for
    production or inspection submitted under Rule 72 or 73 after proper
    service of the request, then the Court on motion may make such
    orders in regard to the failure as are just, and among others it
    may take any action authorized under paragraph (b) or (c) of this
    Rule. If any person, after being served with a subpoena or having
    waived such service, willfully fails to appear before the officer
    who is to take such person's deposition or refuses to be sworn, or
    if any person willfully fails to obey an order requiring such
    person to answer designated interrogatories or questions, then such
    failure may be considered a contempt of court.  The failure to act
    described in this paragraph (a) may not be excused on the ground
    that the deposition sought, or the interrogatory submitted, or the
    production or inspection sought, is objectionable, unless the party
    failing to act has theretofore raised the objection, or has applied
    for a protective order under Rule 103, with respect thereto at the
    proper time and in the proper manner, and the Court has either
    sustained or granted or not yet ruled on the objection or the
    application for the order.
      (b) Failure to Answer: If a person fails to answer a question or
    interrogatory propounded or submitted in accordance with Rule 71,
    74, 75, 76, 81, 82, 83, or 84, or fails to respond to a request to
    produce or inspect or fails to produce or permit the inspection in
    accordance with Rule 72 or 73, or fails to make a designation in
    accordance with Rule 74(b), 75(e), or 81(c), the aggrieved party
    may, within the time for completion of discovery under Rule
    70(a)(2), move the Court for an order compelling an answer,
    response, or compliance with the request, as the case may be.  When
    taking a deposition on oral examination, the examination may be
    completed on other matters or the examination adjourned, as the
    proponent of the question may prefer, before applying for such
    order.
      (c) Sanctions: If a party or an officer, director, or managing
    agent of a party or a person designated in accordance with Rule
    74(b), 75(c), or 81(c) fails to obey an order made by the Court
    with respect to the provisions of Rule 71, 72, 73, 74, 75, 76, 81,
    82, 83, 84, or 90, then the Court may make such orders as to the
    failure as are just, and among others the following:
        (1) An order that the matter regarding which the order was made
      or any other designated facts shall be taken to be established
      for the purposes of the case in accordance with the claim of the
      party obtaining the order.
        (2) An order refusing to allow the disobedient party to support
      or oppose designated claims or defenses, or prohibiting such
      party from introducing designated matters in evidence.
        (3) An order striking out pleadings or parts thereof, or
      staying further proceedings until the order is obeyed, or
      dismissing the case or any part thereof, or rendering a judgment
      by default against the disobedient party.
        (4) In lieu of the foregoing orders or in addition thereto, the
      Court may treat as a contempt of the Court the failure to obey
      any such order, and the Court may also require the party failing
      to obey the order or counsel advising such party, or both, to pay
      the reasonable expenses, including counsel's fees, caused by the
      failure, unless the Court finds that the failure was
      substantially justified or that other circumstances make an award
      of expenses unjust.
      (d) Evasive or Incomplete Answer or Response: For purposes of
    this Rule and Rules 71, 72, 73, 74, 75, 76, 81, 82, 83, 84, and 90,
    an evasive or incomplete answer or response is to be treated as a
    failure to answer or respond.