[Federal Register Volume 70, Number 62 (Friday, April 1, 2005)]
[Rules and Regulations]
[Pages 16711-16712]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-6407]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 9195]
RIN 1545-BA89


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

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations and removal of temporary regulations.

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SUMMARY: This document contains final regulations relating to 
administrative summonses under section 7602(a) of the Internal Revenue 
Code. The regulations adopt the rules of the temporary regulations, 
which 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.

DATES: Effective Dates: These regulations are effective April 1, 2005.

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

SUPPLEMENTARY INFORMATION:

Background

    This document contains final regulations amending 26 CFR part 301 
under section 7602 of the Internal Revenue Code of 1986. The final 
regulations define officers or employees of the Office of Chief Counsel 
as persons who may be designated to receive summoned books, papers, 
records, or other data or to take testimony under oath. The final 
regulations also provide that more than one person may be designated to 
receive summoned information and testimony. Additionally, the final 
regulations clarify that a summons need not show the designation of the 
specific officer or employee who is authorized to take testimony and 
receive summoned materials.
    On September 10, 2002, temporary regulations (TD 9015; 67 FR 57330) 
and a notice of proposed rulemaking (REG-134026-02; 67 FR 57354) 
containing these regulatory provisions were published in the Federal 
Register. No written comments were received on the temporary and 
proposed regulations; no public hearing was requested, and none was 
scheduled or held. Accordingly, the final regulations adopt the rules 
of the temporary regulations without change.

Explanation of Provisions

    This document contains final regulations amending the Procedure and 
Administration Regulations (26 CFR part 301) under section 7602 of the 
Internal Revenue Code of 1986. The final regulations make permanent 
three changes established in the temporary regulations regarding the 
persons who may be designated to receive summoned books, papers, 
records, or other data or to take testimony under oath. Although IRS 
examiners will continue to be responsible for developing and conducting 
examinations, these changes will allow, among other things, officers 
and employees of the Office of Chief Counsel to participate fully along 
with an IRS employee or officer in a summoned interview.
    For purposes of identifying persons who may receive summoned 
information or take testimony under oath, the final regulations define 
an officer or employee of the IRS 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 clarifies 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 final 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 final 
regulations clarify the existing regulations by providing that a 
summons document need not 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.

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) of the Administrative Procedure Act (5 
U.S.C. chapter 5) does not apply to these regulations, and because 
these regulations do not impose a collection of information on small 
entities, the provisions of the Regulatory Flexibility Act (5 U.S.C. 
chapter 6) do not apply. Pursuant to section 7805(f), the preceding 
temporary regulations were submitted to the Chief Counsel for Advocacy 
of the Small Business Administration for comment on its impact on small 
business, and no comments were received.

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

0
Accordingly, 26 CFR part 301 is amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

0
Paragraph 1. The authority citation for part 301 continues to read in 
part as follows:

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


0
Par. 2. In Sec.  301.7602-1, paragraphs (b) and (d) are revised to read 
as follows:


Sec.  301.7602-1  Examination of books and witnesses.

* * * * *

[[Page 16712]]

    (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 IRS 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 IRS. For purposes of this paragraph 
(b), officer or employee of the IRS 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 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. An officer or employee of the IRS, for 
purposes of this paragraph (b), shall include an officer or employee of 
the Office of Chief Counsel.
* * * * *
    (d) Effective dates. This section is applicable after September 3, 
1982, except for paragraph (b), which is applicable on and after April 
1, 2005. For rules under paragraph (b) that are applicable to summonses 
issued on or after September 10, 2002, see 26 CFR 301.7602-1T. For 
rules applicable on or before September 3, 1982, see 26 CFR 301.7602-1 
(revised as of April 1, 1984).


Sec.  301.7602-1T  [Removed]

0
Par. 3. Section 301.7602-1T is removed.

Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
    Approved: February 15, 2005.
Eric Solomon,
Acting Deputy Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 05-6407 Filed 3-31-05; 8:45 am]
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