Title 26 — Internal Revenue Code
Chapter 78 — Discovery of Liability and Enforcement of Title
§ 7602. Examination of books and witnesses
Statutory text
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—
To examine any books, papers, records, or other data which may be relevant or material to such inquiry;
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
To take such testimony of the person concerned, under oath, as may be relevant or material to such inquiry.
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.
Notice of contact of third parties
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—
informs the taxpayer that contacts with persons other than the taxpayer are intended to be made during such period, and
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.
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.
Exceptions
This subsection shall not apply—
to any contact which the taxpayer has authorized;
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
with respect to any pending criminal investigation.
No administrative summons when there is Justice Department referral
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.
Justice Department referral in effect
For purposes of this subsection—
In general
A Justice Department referral is in effect with respect to any person if—
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
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.
Termination
A Justice Department referral shall cease to be in effect with respect to a person when—
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,
he will not authorize a grand jury investigation of such person with respect to such an offense, or
he will discontinue such a grand jury investigation,
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
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).
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.
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.
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.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Aug. 16, 1954, ch. 736, 68A Stat. 901 · 68A Stat. 901
Enacted · 26 U.S.C. § 7602
Aug. 16, 1954, ch. 736, 68A Stat. 901
Source evidence
Code source credit
Aug. 16, 1954, ch. 736, 68A Stat. 901Pub. L. 94–455 title XIX § 1906(b)(13)(A) · 90 Stat. 1520
Struck · 26 U.S.C. § 7602
Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing
Source evidence
Code amendment note
Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing.Enacted provision · exact public law section
(A) The Internal Revenue Code of 1954, as amended by this Act, is amended by striking out “Secretary or his delegate” each place it appears and inserting in lieu thereof “Secretary”.Pub. L. 97–248 title III § 333(a) · 96 Stat. 324
Redesignated · 26 U.S.C. § 7602
Pub. L. 97–248 redesignated existing provisions as subsec. (a)
Added · 26 U.S.C. § 7602
Pub. L. 97–248 added subsec. (a) heading
Added · 26 U.S.C. § 7602
Pub. L. 97–248 added subsecs. (b) and (c)
Source evidence
Code amendment note
Pub. L. 97–248 redesignated existing provisions as subsec. (a), added subsec. (a) heading, and added subsecs. (b) and (c).Enacted provision · exact public law section
(a) In general.— Section 7602 (relating to examination of books 26 USC 7602. and witnesses) is amended by striking out “For the purpose” and inserting in lieu thereof “(a) Authority To Summon, Etc.—For the purpose” and by adding at the end thereof the following new subsections: “(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. “(c) No Administrative Summons When There is Justice Department Referral.— “(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. “(2) Justice department referral in effect.— For purposes of this subsection— “(A) In general.— A Justice Department referral is in effect with respect to any person if— “(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 “(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. “(B) Termination.— A Justice Department referral shall cease to be in effect with respect to a person when— “(i) the Attorney General notifies the Secretary, in writing, that— “(I) he will not prosecute such person for any offense connected with the administration or enforcement of the internal revenue laws, “(II) he will not authorize a grand jury investigation of such person with respect to such an offense, or “(III) he will discontinue such a grand jury investigation, “(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 “(iii) the Attorney General notifies the Secretary, in writing, that he will not prosecute such person for any offense connected with the administration or enforce-ment of the internal revenue laws relating to the request described in subparagraph (A)(ii). “(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.”Taxpayer Bill of Rights 3
Pub. L. 105–206 § 3417(a) · 112 Stat. 685
Redesignated · 26 U.S.C. § 7602(c)
Pub. L. 105–206, § 3417(a), added subsec. (c). Former subsec. (c) redesignated (d)
Source evidence
Code amendment note
Subsec. (c). Pub. L. 105–206, § 3417(a), added subsec. (c). Former subsec. (c) redesignated (d).Enacted provision · exact public law section
(a) In General.— Section 7602 (relating to examination of books and witnesses), as amended by section 3412, is amended by redesignating subsections (c) and (d) as subsections (d) and (e), respectively, and by inserting after subsection (b) the following new subsection: “(c) Notice of Contact of Third Parties.— “(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. “(2) Notice of specific contacts.— The Secretary shall Records. 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. “(3) Exceptions.— This subsection shall not apply— “(A) to any contact which the taxpayer has authorized; “(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 “(C) with respect to any pending criminal investigation.”.Taxpayer Bill of Rights 3
Pub. L. 105–206 § 3417(a) · 112 Stat. 685
Redesignated · 26 U.S.C. § 7602(d)
Pub. L. 105–206, § 3417(a), redesignated subsec. (c) as (d). Former subsec. (d) redesignated (e)
Source evidence
Code amendment note
Subsec. (d). Pub. L. 105–206, § 3417(a), redesignated subsec. (c) as (d). Former subsec. (d) redesignated (e).Enacted provision · exact public law section
(a) In General.— Section 7602 (relating to examination of books and witnesses), as amended by section 3412, is amended by redesignating subsections (c) and (d) as subsections (d) and (e), respectively, and by inserting after subsection (b) the following new subsection: “(c) Notice of Contact of Third Parties.— “(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. “(2) Notice of specific contacts.— The Secretary shall Records. 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. “(3) Exceptions.— This subsection shall not apply— “(A) to any contact which the taxpayer has authorized; “(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 “(C) with respect to any pending criminal investigation.”.Taxpayer Bill of Rights 3
Pub. L. 105–206 § 3412 · 112 Stat. 685
Added · 26 U.S.C. § 7602(d)
Pub. L. 105–206, § 3412, added subsec. (d)
Target inherited from the preceding amendment note.
Source evidence
Code amendment note
Pub. L. 105–206, § 3412, added subsec. (d).Enacted provision · exact public law section
SEC. 3412. LIMITATION ON FINANCIAL STATUS AUDIT TECHNIQUES. Section 7602 (relating to examination of books and witnesses) is amended by adding at the end the following new subsection: “(d) 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.”.Taxpayer Bill of Rights 3
Pub. L. 105–206 § 3417(a) · 112 Stat. 685
Redesignated · 26 U.S.C. § 7602(e)
Pub. L. 105–206, § 3417(a), redesignated subsec. (d) as (e)
Source evidence
Code amendment note
Subsec. (e). Pub. L. 105–206, § 3417(a), redesignated subsec. (d) as (e).Enacted provision · exact public law section
(a) In General.— Section 7602 (relating to examination of books and witnesses), as amended by section 3412, is amended by redesignating subsections (c) and (d) as subsections (d) and (e), respectively, and by inserting after subsection (b) the following new subsection: “(c) Notice of Contact of Third Parties.— “(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. “(2) Notice of specific contacts.— The Secretary shall Records. 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. “(3) Exceptions.— This subsection shall not apply— “(A) to any contact which the taxpayer has authorized; “(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 “(C) with respect to any pending criminal investigation.”.Taxpayer First Act
Pub. L. 116–25 § 1206(a) · 133 Stat. 981
Amended · 26 U.S.C. § 7602(c)(1)
Pub. L. 116–25, § 1206(a), amended par. (1) generally. Prior to amendment, text read as follows: “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.”
Source evidence
Code amendment note
Subsec. (c)(1). Pub. L. 116–25, § 1206(a), amended par. (1) generally. Prior to amendment, text read as follows: “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.”Enacted provision · exact public law section
(a) In General.— Section 7602(c)(1) is amended to 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 unless such contact occurs during a period (not greater than 1 year) which is specified in a notice which— “(A) informs the taxpayer that contacts with persons other than the taxpayer are intended to be made during such period, and “(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.” .Effective date note
Pub. L. 116–25, title I, § 1206(b), July 1, 2019, 133 Stat. 990, provided that: “The amendment made by this section [amending this section] shall apply to notices provided, and contacts of persons made, after the date which is 45 days after the date of the enactment of this Act [July 1, 2019].” Pub. L. 116–25, title I, § 1208(b), July 1, 2019, 133 Stat. 991, provided that: “The amendment made by this section [amending this section]—Taxpayer First Act
Pub. L. 116–25 § 1208(a) · 133 Stat. 981
Added · 26 U.S.C. § 7602(f)
Pub. L. 116–25, § 1208(a), added subsec. (f)
Source evidence
Code amendment note
Subsec. (f). Pub. L. 116–25, § 1208(a), added subsec. (f).Enacted provision · exact public law section
(a) In General.— Section 7602 is amended by adding at the end the following new subsection: “(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.” .Effective date note
Pub. L. 116–25, title I, § 1206(b), July 1, 2019, 133 Stat. 990, provided that: “The amendment made by this section [amending this section] shall apply to notices provided, and contacts of persons made, after the date which is 45 days after the date of the enactment of this Act [July 1, 2019].” Pub. L. 116–25, title I, § 1208(b), July 1, 2019, 133 Stat. 991, provided that: “The amendment made by this section [amending this section]—
10 of 11 references resolved to an enrolled provision · 1 partial
Editorial Notes
Amendments1976–2019 · 4 rounds
2019
Subsec. (c)(1). Pub. L. 116–25, § 1206(a), amended par. (1) generally. Prior to amendment, text read as follows: “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, § 1208(a), added subsec. (f).
1998
Subsec. (c). Pub. L. 105–206, § 3417(a), added subsec. (c). Former subsec. (c) redesignated (d).
Subsec. (d). Pub. L. 105–206, § 3417(a), redesignated subsec. (c) as (d). Former subsec. (d) redesignated (e).
Pub. L. 105–206, § 3412, added subsec. (d).
Subsec. (e). Pub. L. 105–206, § 3417(a), redesignated subsec. (d) as (e).
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.
Statutory Notes and Related Subsidiaries
Effective Date of 2019 Amendment
Pub. L. 116–25, title I, § 1206(b), , 133 Stat. 990, provided that: “The amendment made by this section [amending this section] shall apply to notices provided, and contacts of persons made, after the date which is 45 days after the date of the enactment of this Act [].”
Pub. L. 116–25, title I, § 1208(b), , 133 Stat. 991, provided that:
“The amendment made by this section [amending this section]—
“(1) shall take effect on the date of the enactment of this Act []; and
“(2) 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.”
Effective Date of 1998 Amendment
Pub. L. 105–206, title III, § 3417(b), , 112 Stat. 758, provided that: “The amendments made by subsection (a) [amending this section] shall apply to contacts made after the 180th day after the date of the enactment of this Act [].”
Effective Date of 1982 Amendment
Pub. L. 97–248, title III, § 333(b), , 96 Stat. 623, 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 [].”
Credits
1954–2019 · 5 acts
- 1954Aug. 16, 1954, ch. 736, 68A Stat. 901
- 1976Pub. L. 94–455, title XIX, § 1906(b)(13)(A), , 90 Stat. 1834
- 1982Pub. L. 97–248, title III, § 333(a), , 96 Stat. 622
- 1998Pub. L. 105–206, title III, §§ 3412, 3417(a), , 112 Stat. 751, 757
- 2019Pub. L. 116–25, title I, §§ 1206(a), 1208(a), , 133 Stat. 990, 991.
Show as published
(Aug. 16, 1954, ch. 736, 68A Stat. 901; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), , 90 Stat. 1834; Pub. L. 97–248, title III, § 333(a), , 96 Stat. 622; Pub. L. 105–206, title III, §§ 3412, 3417(a), , 112 Stat. 751, 757; Pub. L. 116–25, title I, §§ 1206(a), 1208(a), , 133 Stat. 990, 991.)