§7602 — Examination of books and witnesses
103 cases·30 followed·4 distinguished·1 criticized·3 overruled·65 cited—29% support
Statute Text — 26 U.S.C. §7602
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.
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.
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.
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.
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 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.
For purposes of this subsection—
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.
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).
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.
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.
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.
Treasury Regulations
- Treas. Reg. §Treas. Reg. §301.7602-1 Examination of books and witnesses
- Treas. Reg. §Treas. Reg. §301.7602-1(a) In general.
- Treas. Reg. §Treas. Reg. §301.7602-1(b) Summons—(1) In general.
- Treas. Reg. §Treas. Reg. §301.7602-1(c) Proscription on issuing of administrative summons when a Justice Department referral is in effect—(1) In general.
- Treas. Reg. §Treas. Reg. §301.7602-1(d) Applicability date.
- Treas. Reg. §Treas. Reg. §301.7602-1(i) §301.7602-1(i)
- Treas. Reg. §Treas. Reg. §301.7602-2 Third party contacts
- Treas. Reg. §Treas. Reg. §301.7602-2(a) In general.
- Treas. Reg. §Treas. Reg. §301.7602-2(b) Third-party contact defined.
- Treas. Reg. §Treas. Reg. §301.7602-2(c) Elements of third-party contact explained—(1) Initiation by an IRS employee—(i) Explanation—(A) Initiation.
- Treas. Reg. §Treas. Reg. §301.7602-2(d) Pre-contact notice—(1) In general.
- Treas. Reg. §Treas. Reg. §301.7602-2(e) Post-contact reports—(1) Requested reports.
- Treas. Reg. §Treas. Reg. §301.7602-2(f) Exceptions—(1) Authorized by taxpayer—(i) Explanation.
- Treas. Reg. §Treas. Reg. §301.7602-2(g) Effective Date.
- Treas. Reg. §Treas. Reg. §301.7602-2(i) §301.7602-2(i)
103 Citing Cases
We are satisfied that section 7602 provides the IRS with sufficient authority to carry out the necessary investigative activities needed to enforce section 6038.
Nothing in section 7602 requires the Commissioner to issue a summons.
Section 7602 (captioned “Examination of Books and Witnesses”) appears in subchapter A (captioned “Examination and Inspection”) of chapter 78. Section 7602(a) contains a very broad grant of authority to the IRS to examine books and records, issue summonses, and take testimony under oath for the purpose, inter alia, of determining or collecting the F
Finally, section 7602 gives the Commissioner broad discretion to examine a range ofmaterials to "ascertain[] the correctness ofany return".
Section 7602 of the Internal Revenue Code authorizes the IRS to examine “any books, papers, records, or other data” which “may be relevant” to an inquiry into “the correctness of any [tax] return.” 26 U.S.C. §7602(a)(1). [Mattatall’s] assertion that an affidavit is sufficient is unfounded. - 6 - exemptions were correct as reported.8 Mr. Mattatall
Section 7602 of the Internal Revenue Code authorizes the IRS to examine "any books, papers, records, or other data" which "may be relevant" to an (continued...) - 4 - respondent's revenue agent to discuss the examination. At the meeting, petitioner produced an "Affidavit of Facts of Robert Kolbeck" summarily declaring, among other things, that his
With respect to interest accrued during the examination, Form 886-A points out that section 7602 authorizes the IRS to examine documents for purposes of ascertaining the correctness of any return or determining the liability of any person for any internal revenue tax.2 The delay caused by petitioners’ failure to provide such documents, RA O’Neil explains, “is not attributable to the [IRS].” As for the litigation phase of the case,
The IRS is authorized to examine those returns, § 7602, and to determine that additional tax may be owed, § 6212.
Section 7602 authorizes the Commissioner to examine books, papers, records, and other data potentially relevant or material to the determination ofa taxpayer's Federal income tax liability. Where an individual fails to maintain adequate books and records, the Commissioner may reconstruct the taxpayer's income using any method which, in his opinion,
Section 7602 authorizes the Commissionerto examine books, papers, records, and other data potentially relevant or material to the determination ofa taxpayer's Federal income tax liability. Where an individual fails to maintain adequate books and records, the Commissionermay reconstructthe taxpayer's income using any method which, in his opinion, cl
Respondent’s revenue agent obtained information regarding the construction business by issuing summonses under section 7602 for - 10 - SCC’s bank records and for settlement statements from title companies for the houses that had been sold by SCC.
In the case of a summons under authority of paragraph (2) of section 7602, or under the corresponding authority of section 6420(e)(2), 6421(g)(2), or 6427(j)(2), the date fixed for appearance before the Secretary shall not be less than 10 days from the date of the summons.
In the case of a summons under authority of paragraph (2) of section 7602, or under the corresponding authority of section 6420(e)(2), 6421(g)(2), or 6427(j)(2), the date fixed for appearance before the Secretary shall not be less than 10 days from the date of the summons.
s of the section 7491(a)(1) requirement that they introduce relevant credible evidence as a precondition of our placing the burden of proof on respondent. 9 Respondent obtained critical evidence against petitioners pursuant to a summons issued under sec. 7602, which was enforced in a Federal District Court under sec. 7604. Petitioners do not question, in this proceeding, whether the District Court properly ordered them to produce records in the prior summons enforcement proceeding, and they do n
At the meeting, respondent's examiner displayed her badge to establish her authority to conduct the examination and cited section 7602 to establish the statutory authority for the examination.
only applies to EVERY PERSON LIABLE FOR ANY TAX * * * * * * * * * * As to the authority to examine us, our research has shown that the only IR Code section that comes close to authorizing “some type of agent” to examine books and records is, IR Code section 7602. Yet this IR Code section has NEVER been published in the Federal Register under Title 26, only under Title 27. This tells us that unless you are a Title 27 Agent (BATF), you do not have investigative authority. * * * * * * * As to you t
Title 26 Section 7602 is the I.R.S.'s authority to examine books and records regarding "internal reve- nue tax"--not income tax.
Title 26 Section 7602 is the I.R.S.'s authority to examine books and records regarding "internal reve- nue tax"--not income tax.
Title 26 Section 7602 is the I.R.S.'s authority to examine books and records regarding "internal reve- nue tax"--not income tax.
Title 26 Section 7602 is the I.R.S.’s authority to examine books and records regarding “internal reve- nue tax”--not income tax.
Title 26 Section 7602 is the I.R.S.'s authority to examine books and records regarding "internal reve- nue tax"--not income tax.
Title 26 Section 7602 is the I.R.S.’s authority to examine books and records regarding “internal reve- nue tax”--not income tax.
Title 26 Section 7602 is the I.R.S.'s authority to examine books and records regarding "internal reve- nue tax"--not income tax.
Title 26 Section 7602 is the I.R.S.'s authority to examine books and records regarding "internal reve- nue tax"--not income tax.
At the meeting, respondent’s examiner displayed her badge to establish her authority to conduct the examination and cited section 7602 to establish the statutory authority for the examination.
Title 26 Section 7602 is the I.R.S.’s authority to examine books and records regarding “internal reve- nue tax”--not income tax.
The Court of Appeals for the Second Circuit held that even if Canada failed to satisfy its reciprocal obligation under the convention, the United States was permitted to use the summons authority of section 7602 to obtain the information requested by Canadian tax officials.
Petitioners incurred the expenses to comply with 7 section 7602, which allows the IRS to examine taxpayers’ books and records to ascertain whether a return is correct.
Petitioners incurred the expenses to comply with 7 section 7602, which allows the IRS to examine taxpayers’ books and records to ascertain whether a return is correct.
Petitioners incurred the expenses to comply with 7 section 7602, which allows the IRS to examine taxpayers’ books and records to ascertain whether a return is correct.
Petitioners incurred the expenses to comply with 7 section 7602, which allows the IRS to examine taxpayers’ books and records to ascertain whether a return is correct.
Petitioners incurred the expenses to comply with 7 section 7602, which allows the IRS to examine taxpayers’ books and records to ascertain whether a return is correct.
Petitioners incurred the expenses to comply with section 7602, which allows the IRS to examine taxpayers’ books and records to ascertain whether a return is correct.
The Court of Appeals for the Second Circuit held that even if Canada failed to satisfy its reciprocal obligation under the convention, the United States was permitted to use the summons authority of section 7602 to obtain the information requested by Canadian tax officials.
At that time, Fried and Dubow did not use the administrative summons procedure under section 7602 because they believed it took too long to enforce.