§ 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—
(1)
To examine any books, papers, records, or other data which may be relevant or material to such inquiry;
(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
(3)
To take such testimony of the person concerned, under oath, as may be relevant or material to such inquiry.
(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 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.
(2)
Notice of specific contacts
(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.
(d)
No administrative summons when there is Justice Department referral
(1)
Limitation of authority
(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 enforcement of the internal revenue laws relating to the request described in subparagraph (A)(ii).
(3)
Taxable years, etc., treated separately
([Aug. 16, 1954, ch. 736], [68A Stat. 901]; [Pub. L. 94–455, title XIX, § 1906(b)(13)(A)], Oct. 4, 1976, [90 Stat. 1834]; [Pub. L. 97–248, title III, § 333(a)], Sept. 3, 1982, [96 Stat. 622]; [Pub. L. 105–206, title III], §§ 3412, 3417(a), July 22, 1998, [112 Stat. 751], 757; [Pub. L. 116–25, title I], §§ 1206(a), 1208(a), July 1, 2019, [133 Stat. 990], 991.)