26 USC 7609 - Special procedures for third-party summonses

U.S Code last checked for updates: May 02, 2024

§ 7609.

Special procedures for third-party summonses

(a)

Notice

(1)

In general

(2)

Sufficiency of notice

(3)

Nature of summons

(b)

Right to intervene; right to proceeding to quash

(1)

Intervention

(2)

Proceeding to quash

(A)

In general

(B)

Requirement of notice to person summoned and to Secretary

(C)

Intervention; etc.

(c)

Summons to which section applies

(1)

In general

(2)

Exceptions

This section shall not apply to any summons—

(A)

served on the person with respect to whose liability the summons is issued, or any officer or employee of such person;

(B)

issued to determine whether or not records of the business transactions or affairs of an identified person have been made or kept;

(C)

issued solely to determine the identity of any person having a numbered account (or similar arrangement) with a bank or other institution described in section 7603(b)(2)(A);

(D)

issued in aid of the collection of—

(i)

an assessment made or judgment rendered against the person with respect to whose liability the summons is issued; or

(ii)

the liability at law or in equity of any transferee or fiduciary of any person referred to in clause (i); or

(E)

(i)

issued by a criminal investigator of the Internal Revenue Service in connection with the investigation of an offense connected with the administration or enforcement of the internal revenue laws; and

(ii)

served on any person who is not a third-party recordkeeper (as defined in section 7603(b)).

(3)

John Doe and certain other summonses

(4)

Records

(d)

Restriction on examination of records

No examination of any records required to be produced under a summons as to which notice is required under subsection (a) may be made—

(1)

before the close of the 23rd day after the day notice with respect to the summons is given in the manner provided in subsection (a)(2), or

(2)

where a proceeding under subsection (b)(2)(A) was begun within the 20-day period referred to in such subsection and the requirements of subsection (b)(2)(B) have been met, except in accordance with an order of the court having jurisdiction of such proceeding or with the consent of the person beginning the proceeding to quash.

(e)

Suspension of statute of limitations

(1)

Subsection (b) action

(2)

Suspension after 6 months of service of summons

In the absence of the resolution of the summoned party’s response to the summons, the running of any period of limitations under section 6501 or under section 6531 with respect to any person with respect to whose liability the summons is issued (other than a person taking action as provided in subsection (b)) shall be suspended for the period—

(A)

beginning on the date which is 6 months after the service of such summons, and

(B)

ending with the final resolution of such response.

(f)

Additional requirement in the case of a John Doe summons

Any summons described in subsection (c)(1) which does not identify the person with respect to whose liability the summons is issued may be served only after a court proceeding in which the Secretary establishes that—

(1)

the summons relates to the investigation of a particular person or ascertainable group or class of persons,

(2)

there is a reasonable basis for believing that such person or group or class of persons may fail or may have failed to comply with any provision of any internal revenue law, and

(3)

the information sought to be obtained from the examination of the records or testimony (and the identity of the person or persons with respect to whose liability the summons is issued) is not readily available from other sources.

The Secretary shall not issue any summons described in the preceding sentence unless the information sought to be obtained is narrowly tailored to information that pertains to the failure (or potential failure) of the person or group or class of persons referred to in paragraph (2) to comply with one or more provisions of the internal revenue law which have been identified for purposes of such paragraph.

(g)

Special exception for certain summonses

(h)

Jurisdiction of district court; etc.

(1)

Jurisdiction

(2)

Special rule for proceedings under subsections (f) and (g)

(i)

Duty of summoned party

(1)

Recordkeeper must assemble records and be prepared to produce records

(2)

Secretary may give summoned party certificate

(3)

Protection for summoned party who discloses

(4)

Notice of suspension of statute of limitations in the case of a John Doe summons

(j)

Use of summons not required

(Added Pub. L. 94–455, title XII, § 1205(a), Oct. 4, 1976, 90 Stat. 1699; amended Pub. L. 95–599, title V, § 505(c)(6), Nov. 6, 1978, 92 Stat. 2760; Pub. L. 95–600, title VII, § 703(l)(4), Nov. 6, 1978, 92 Stat. 2943; Pub. L. 96–223, title II, § 232(d)(4)(E), Apr. 2, 1980, 94 Stat. 278; Pub. L. 97–248, title III, §§ 311(b), 331(a)–(d), 332(a), Sept. 3, 1982, 96 Stat. 601, 620, 621; Pub. L. 97–424, title V, § 515(b)(12), Jan. 6, 1983, 96 Stat. 2182; Pub. L. 98–369, div. A, title VII, § 714(i), title IX, § 911(d)(2)(G), July 18, 1984, 98 Stat. 962, 1007; Pub. L. 98–620, title IV, § 402(28)(D), Nov. 8, 1984, 98 Stat. 3359; Pub. L. 99–514, title VI, § 656(a), title XV, § 1561(a), (b), title XVII, § 1703(e)(2)(G), Oct. 22, 1986, 100 Stat. 2299, 2761, 2778; Pub. L. 100–647, title I, §§ 1015(l)(1), (2), 1017(c)(9), (12), Nov. 10, 1988, 102 Stat. 3571, 3572, 3576, 3577; Pub. L. 104–168, title X, § 1001(a), July 30, 1996, 110 Stat. 1467; Pub. L. 105–206, title III, § 3415(a)–(c), July 22, 1998, 112 Stat. 755; Pub. L. 109–135, title IV, § 408(a), Dec. 21, 2005, 119 Stat. 2635; Pub. L. 116–25, title I, § 1204(a), July 1, 2019, 133 Stat. 988.)

cite as: 26 USC 7609