[Federal Register Volume 67, Number 175 (Tuesday, September 10, 2002)]
[Rules and Regulations]
[Pages 57330-57331]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-22925]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 9015]
RIN 1545-BA98


Designated IRS Officer or Employee Under Section 7602(a)(2) of 
the Internal Revenue Code

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final and temporary regulations.

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SUMMARY: This document contains temporary regulations that modify the 
existing regulations promulgated under section 7602(a) of the Internal 
Revenue Code relating to administrative summonses. Specifically, these 
temporary regulations confirm that officers and employees of the Office 
of Chief Counsel may be included as persons designated to receive 
summoned books, papers, records, or other data and to take summoned 
testimony under oath. The text of these temporary regulations serves as 
the text of the proposed regulations set forth in the notice of 
proposed rulemaking on this subject in the Proposed Rules section in 
this issue of the Federal Register.

DATES: Effective Dates: These regulations are effective on September 
10, 2002.
    Applicability Dates: For the date of applicability, see Sec.  
301.7602-1T(d).

FOR FURTHER INFORMATION CONTACT: Elizabeth Rawlins at (202) 622-3630 
(not a toll-free number).

SUPPLEMENTARY INFORMATION: 

Explanation of Provisions

    This document contains temporary regulations amending the Procedure 
and Administration Regulations (26 CFR part 301) under section 7602 of 
the Internal Revenue Code of 1986 (Code). The governing provision, 
section 7602(a)(2) of the Code, has not changed. The temporary 
regulations reflect three changes regarding the persons who may be 
designated to receive summoned books, papers, records, or other data or 
to take testimony under oath. While IRS examiners will continue to be 
responsible for developing and conducting examinations, these changes

[[Page 57331]]

will allow, among other things, officers and employees of the Chief 
Counsel to participate fully along with an IRS employee or officer in a 
summoned interview.
    The temporary regulations define an officer or employee of the IRS, 
for purposes of identifying those persons who may receive summoned 
information or take testimony under oath, to include all persons who 
administer and enforce the internal revenue laws or any other laws 
administered by the IRS, and who are appointed or employed by, or 
subject to the directions, instructions, or orders of the Secretary of 
the Treasury or the Secretary's delegate. This amendment confirms that 
officers and employees of the Office of Chief Counsel may be designated 
as persons authorized to take testimony under oath and to receive 
summoned books, papers, records, or other data.
    The temporary regulations also expressly provide that more than one 
person may be designated to receive summoned information or to take 
testimony under oath during a summoned interview. Finally, the 
temporary regulations eliminate the language in the existing 
regulations suggesting that a summons document needs to designate the 
specific officer or employee who is authorized to take testimony under 
oath and to receive and examine books, papers, records, or other data. 
The statute does not require that such a designation appear in the 
summons. Moreover, at times it is necessary for a summoned interview to 
be conducted by an officer or employee other than the one who may be 
identified in the summons document.

Special Analyses

    It has been determined that this Treasury decision is not a 
significant regulatory action as defined in Executive Order 12866. 
Therefore, a regulatory assessment is not required. It also has been 
determined that section 553(b) and (d) of the Administrative Procedure 
Act (5 U.S.C. chapter 5) does not apply to these regulations. In 
addition, because no prior notice of proposed rulemaking is required, 
the provisions of the Regulatory Flexibility Act (5 U.S.C. chapter 6) 
do not apply. Pursuant to section 7805(f) of the Code, this temporary 
regulation will be submitted to the Chief Counsel for Advocacy of the 
Small Business Administration for comment on its impact on small 
business.

Drafting Information

    The principal author of this regulation is Elizabeth Rawlins of the 
Office of the Associate Chief Counsel (Procedure and Administration), 
Collection, Bankruptcy and Summonses Division.

List of Subjects in 26 CFR Part 301

    Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income 
taxes, Penalties, Reporting and recordkeeping requirements.

Adoption of Amendments to the Regulations

    Accordingly, 26 CFR part 301 is amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

    1. The authority citation for part 301 continues to read in part as 
follows:

    Authority: 26 U.S.C. 7805 * * *

    2. In Sec.  301.7602-1, paragraph (b) is revised to read as 
follows:


Sec.  301.7602-1  Examination of books and witnesses.

* * * * *
    (b) Summons. [Reserved]. For further guidance, see Sec.  301.7602-
1T(b).
* * * * *

    3. Section 301.7602-1T is added to read as follows:


Sec.  301.7602-1T  Examination of books and witnesses.

    (a) For further guidance, see Sec.  301.7602-1(a).
    (b) Summons--(1) In general. For the purposes described in Sec.  
301.7602-1(a), the Commissioner is authorized 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 accounts containing entries relating to the business 
of the person liable for tax or required to perform the act, or any 
other person deemed proper, to appear before one or more officers or 
employees of the Internal Revenue Service 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 take such testimony of the person concerned, under 
oath, as may be relevant or material to such inquiry. This summons 
power may be used in an investigation of either civil or criminal tax-
related liability. The Commissioner may designate one or more officers 
or employees of the Internal Revenue Service as the individuals before 
whom a person summoned pursuant to section 6420(e)(2), 6421(g)(2), 
6427(j)(2), or 7602 shall appear. Any such officer or employee is 
authorized to take testimony under oath of the person summoned and to 
receive and examine books, papers, records, or other data produced in 
compliance with the summons.
    (2) Officer or employee of the Internal Revenue Service. For 
purposes of this paragraph (b), officer or employee of the Internal 
Revenue Service means all officers and employees of the United States, 
who are engaged in the administration and enforcement of the internal 
revenue laws or any other laws administered by the Internal Revenue 
Service, and who are appointed or employed by, or subject to the 
directions, instructions, or orders of the Secretary of the Treasury or 
the Secretary's delegate. An officer or employee of the Internal 
Revenue Service, for purposes of this paragraph (b), shall include an 
officer or employee of the Office of Chief Counsel.
    (c) For further guidance, see Sec.  301.7602-1(c).
    (d) Effective date. This section is applicable to summonses issued 
on or after September 10, 2002. This section expires on September 9, 
2005.

David A. Mader,
Acting Deputy Commissioner of Internal Revenue.

    Approved: August 27, 2002.
Pamela F. Olson,
Acting Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 02-22925 Filed 9-9-02; 8:45 am]
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