I.R.C. § 7602(a) Authority To Summon, Etc. —
For the purpose of ascertaining the correctness of any return, making a return where
none has been made, determining the liability of any person for any internal revenue
tax or the liability at law or in equity of any transferee or fiduciary of any person
in respect of any internal revenue tax, or collecting any such liability, the Secretary
is authorized--
I.R.C. § 7602(a)(1) —
To examine any books, papers, records, or other data which may be relevant or material
to such inquiry;
I.R.C. § 7602(a)(2) —
To summon the person liable for tax or required to perform the act, or any officer
or employee of such person, or any person having possession, custody, or care of
books of account containing entries relating to the business of the person liable
for tax or required to perform the act, or any other person the Secretary may deem
proper, to appear before the Secretary at a time and place named in the summons and
to produce such books, papers, records, or other data, and to give such testimony,
under oath, as may be relevant or material to such inquiry; and
I.R.C. § 7602(a)(3) —
To take such testimony of the person concerned, under oath, as may be relevant or
material to such inquiry.
I.R.C. § 7602(b) Purpose May Include Inquiry Into Offense —
The purposes for which the Secretary may take any action described in paragraph
(1), (2), or (3) of subsection (a) include the purpose of
inquiring into any offense connected with the administration or
enforcement of the internal revenue laws.
I.R.C. § 7602(c) Notice Of Contact Of Third Parties
I.R.C. § 7602(c)(1) General Notice —
An officer or employee of the Internal Revenue Service may not contact any person
other than the taxpayer with respect to the determination or collection of the tax
liability of such taxpayer unless such contact occurs during a period (not greater
than 1 year) which is specified in a notice which
I.R.C. § 7602(c)(1)(A) —
informs the taxpayer that contacts with persons other than the taxpayer are intended
to be made during such period, and
I.R.C. § 7602(c)(1)(B) —
except as otherwise provided by the
Secretary, is provided to the taxpayer not later than 45 days before the beginning
of such period.
Nothing in the preceding sentence shall prevent the issuance of notices to the same
taxpayer with respect to the same tax liability with periods specified therein that,
in the aggregate, exceed 1 year. A notice shall not be issued under this paragraph
unless there is an intent at the time such notice is issued to contact persons other
than the taxpayer during the period specified in such notice. The preceding sentence
shall not prevent the issuance of a notice if the requirement of such sentence is
met on the basis of the assumption that the information sought to be obtained by such
contact will not be obtained by other means before such contact.
I.R.C. § 7602(c)(2) Notice Of Specific Contacts —
The Secretary shall periodically provide to a taxpayer a record of persons contacted
during such period by the Secretary with respect to the determination or collection
of the tax liability of such taxpayer. Such record shall also be provided upon request
of the taxpayer.
I.R.C. § 7602(c)(3) Exceptions —
This subsection shall not apply--
I.R.C. § 7602(c)(3)(A) —
to any contact which the taxpayer has authorized;
I.R.C. § 7602(c)(3)(B) —
if the Secretary determines for good cause shown that such notice would jeopardize
collection of any tax or such notice may involve reprisal against any person; or
I.R.C. § 7602(c)(3)(C) —
with respect to any pending criminal
investigation.
I.R.C. § 7602(d) No Administrative Summons When There Is Justice Department Referral
I.R.C. § 7602(d)(1) Limitation Of Authority —
No summons may be issued under this title, and the Secretary may not begin any action
under section 7604 to enforce any summons, with respect to any person if a Justice Department referral
is in effect with respect to such person.
I.R.C. § 7602(d)(2) Justice Department Referral In Effect —
For purposes of this subsection--
I.R.C. § 7602(d)(2)(A) In General —
A Justice Department referral is in effect with respect to any person if--
I.R.C. § 7602(d)(2)(A)(i) —
the Secretary has recommended to the Attorney General a grand jury investigation
of, or the criminal prosecution of, such person for any offense connected with the
administration or enforcement of the internal revenue laws, or
I.R.C. § 7602(d)(2)(A)(ii) —
any request is made under section 6103(h)(3)(B) for the disclosure of any return or return information (within the meaning of section
6103(b))
relating to such person.
I.R.C. § 7602(d)(2)(B) Termination —
A Justice Department referral shall cease to be in effect with respect to a person
when--
I.R.C. § 7602(d)(2)(B)(i) —
the Attorney General notifies the Secretary, in writing, that--
I.R.C. § 7602(d)(2)(B)(i)(I) —
he will not prosecute such person for any offense connected with the administration
or enforcement of the internal revenue laws,
I.R.C. § 7602(d)(2)(B)(i)(II) —
he will not authorize a grand jury investigation of such person with respect to
such an offense, or
I.R.C. § 7602(d)(2)(B)(i)(III) —
he will discontinue such a grand jury investigation,
I.R.C. § 7602(d)(2)(B)(ii) —
a final disposition has been made of any criminal proceeding pertaining to the enforcement
of the internal revenue laws which was instituted by the Attorney General against
such person, or
I.R.C. § 7602(d)(2)(B)(iii) —
the Attorney General notifies the Secretary, in writing, that he will not prosecute
such person for any offense connected with the administration or enforcement of the
internal revenue laws relating to the request described in subparagraph (A)(ii).
I.R.C. § 7602(d)(3) Taxable Years, Etc., Treated Separately —
For purposes of this subsection, each taxable period
(or, if there is no taxable period, each taxable event) and each tax imposed by a
separate chapter of this title shall be treated
separately.
I.R.C. § 7602(e) Limitation On Examination On Unreported Income —
The Secretary shall not use financial status or economic reality examination techniques
to determine the existence of unreported income of any taxpayer unless the Secretary
has a reasonable indication that there is a likelihood of such unreported income.
I.R.C. § 7602(f) Limitation On Access Of Persons Other Than Internal Revenue Service Officers And Employees —
The Secretary shall not, under the authority of section 6103(n), provide any books,
papers, records, or other data obtained pursuant to this section to any person authorized
under section 6103(n), except when such person requires such information for the sole
purpose of providing expert evaluation and assistance to the Internal Revenue Service.
No person other than an officer or employee of the Internal Revenue Service or the
Office of Chief Counsel may, on behalf of the Secretary, question a witness under
oath whose testimony was obtained pursuant to this section.
(Aug. 16, 1954, ch. 736, 68A Stat. 901; Oct. 4, 1976, Pub. L. 94-455, title XIX, 1906(b)(13)(A), 90 Stat. 1834; Sept. 3, 1982, Pub. L. 97-248, title III, 333(a), 96 Stat. 622; Pub. L. 105-206, title III, Sec. 3412, 3417, July 22, 1998, 112 Stat 685; Pub. L. 116-25, title I, Sec. 1206(a), 1208(a), July 1, 2019, 133 Stat. 981.)
Background Notes
Amendments
2019 — Subsec. (c)(1). Pub. L. 116-25, Sec. 1206(a), amended par. (1) of subsec. (c). Before being amended it read as follows:
“(1) General Notice. — An officer or employee of the Internal Revenue Service may
not contact any person other than the taxpayer with respect to the determination
or collection of the tax liability of such taxpayer without providing reasonable
notice in advance to the taxpayer that contacts with persons other than the taxpayer
may be made.”
Subsec. (f). Pub. L. 116-25, Sec. 1208(a), amended by adding new subsec. (f).
1998 —Subsec. (c),
(d), (e). Pub. L. 105-206, Sec. 3417(a) redesignated subsec. (c) and (d) [subsec. (d) added by Sec. 3412 of Pub. L. 105-206]
as subsec. (d) and (e) respectively and added new subsec. (c).
Subsec. (d). Pub. L. 105-206, Sec. 3412 added new subsec. (d).
1982 —Pub. L. 97-248 redesignated existing provisions as subsec. (a), added subsec. (a) heading, and added
subsecs. (b)
and (c).
1976 —Pub. L. 94-455 struck out “or his delegate” after “Secretary” wherever appearing.
EFFECTIVE DATE OF 2019 AMENDMENT
Amendment by Pub. L. 116-25, Sec. 1206(a), effective for notices provided, and contacts of persons made, after the date which
is 45 days after the date of the enactment of this Act. [Enacted:
July 1, 2019].
Amendment by Pub. L. 116-25, Sec. 1208(a), effective on the date of the enactment of this Act and shall not fail to apply to
a contract in effect under section 6103(n) of the Internal Revenue Code of 1986 merely because such contract was in effect before the date of the enactment
of this Act. [Enacted: July 1, 2019].
EFFECTIVE DATE OF 1998 AMENDMENTS
Amendments by Section 3417 of Pub. L. 105-206 applicable to contacts made after the 180th day after the date of enactment [enacted:
July 22, 1998].
Effective Date of 1982 Amendment
Section 333(b) of Pub. L. 97-248 provided that: “The amendments made by subsection
(a) [amending this section] shall take effect on the day after the date of the enactment
of this Act [Sept. 3, 1982].”
Cross References
Authority of officers or employees to administer oaths, see section 7622 of this title.
Books of person liable for occupational tax, see section 4423 of this title.
Distilleries, authority of revenue officers, see section 5203 of this title.
Returns, public records, see section 6103 of this title.
Time and place for examination pursuant to this section, see section 7605 of this
title.
Section Referred to in Other Sections
This section is referred to in sections 4424, 6230, 6420, 6421, 6427, 7210, 7603,
7604, 7605, 7609, 7610 of this title.
