ADMINISTRATIVE SUMMONS

1. The Internal Revenue Code of 1954 contains six sections concerning the use and enforcement of a summons:
   • 7602-Examination of Books and Witnesses
   • 7603-Service of Summons
   • 7604-Enforcement of Summons
   • 7605-Time and Place of Examination
   • 7609-Special Procedures for Third Party Summonses
   • 7610-Fees and Costs for Witnesses
2. Federal law prevails over state law, whether statutory or constitutional. The power granted by the statute is inquisitorial in character and is comparable to that vested in grand juries.

   ---

[10.3.1.1] 7.16.1  (10-01-1996)
Tax Equity and Fiscal Responsibility Act of 1982

1. The Tax Equity and Fiscal Responsibility Act of 1982 revised Sections 7602 and 7609 of the Internal Revenue Code (IRC). These sections relate to the authority to issue a summons and to special procedures for third-party recordkeepers, respectively. The revisions are as follows:
   • Instead of having the right to stay compliance of a summons by simply notifying the third-party recordkeeper not to comply, the noticee is required to file a petition to quash the summons in the appropriate U.S. District Court.
   • No summons may be issued and no action may be commenced to enforce a summons if a Department of Justice (DOJ) referral is in effect with respect to the person whose tax liability is at issue.
   • Whether or not a noticee files a petition to quash a summons, the third-party recordkeeper, on receipt of the summons, is required to assemble the summoned records and to be prepared to produce them on the date specified in the summons.
   • The authority to summons includes inquiring into any offense connected with the administration or enforcement of the Internal Revenue laws, including criminal violations.
   • A barter exchange is to be treated as a third-party recordkeeper
   • Any third-party recordkeeper (or its agent or employee) who makes a disclosure will not be liable if the disclosure is made pursuant to a court order or upon reliance on IRS certification that no proceeding to quash the summons has been commenced or that the noticee has consented to examination.
   • The third-party recordkeeper has the right to intervene in the proceedings to quash the summons and is bound by any decision in the proceeding, even if he/she does not intervene.

[10.3.1.1] 7.16.2  (10-01-1996)
Authority to Issue Summons

1. The authority to issue a summons, examine records, and take testimony, granted to the Secretary or his/her delegate by IRC 7602, is granted to the Commissioner of Internal Revenue by Treasury Order 150-10, and is granted to various Service employees by Delegation Order No. 4.
   • The authority to issue a summons, other than a "John Doe" summons, is delegated to Assistant Regional Inspectors (Internal Security), and the Director, Office of Investigations and Technology.
   • A "John Doe" summons is authorized by the Chief Inspector, Assistant Chief Inspector (Internal Security), or the Regional Inspector after obtaining preissuance legal review by Chief Counsel or Regional Counsel, and may be served only by court order.

[10.3.1.1] 7.16.3  (10-01-1996)
"John Doe" Summons

1. Serve a "John Doe" summons only after a proceeding is held in the US District Court for the district where the person to be summoned resides or is found. The Service must establish the following:
   • The summons relates to the investigation of a particular person or ascertainable group or class of persons
   • There is reasonable basis to believe that such person or group or class of persons may fail or may have failed to comply with any provision of the Internal Revenue law
   • The information sought from the examination of the records (and the identity of the person or persons with respect to whose liability the summons is issued) is not readily available from other sources

   NOTE:

   This procedure does not apply to summons issued solely to determine the identity of any person having a numbered account (or similar arrangement) with a bank or similar financial institution.

[10.3.1.1] 7.16.4  (10-01-1996)
Issuance of a Summons

1. Use an administrative summons to inquire into any offense connected with the administration or enforcement of the Internal Revenue laws. This authority includes civil tax matters as well as investigations to determine possible criminal violations of the Internal Revenue Code and related statutes.

[10.3.1.1] 7.16.4.1  (10-01-1996)
Considerations

1. Attempt to obtain information voluntarily from taxpayers and witnesses. Use great care in obtaining information considered to be personal and private such as records contained in banks, financial institutions, and telephone companies. In any situation where obtaining this type of data through voluntary channels could appear to be an invasion of privacy, use a summons. Do not use normal correspondence or other informal arrangements.
2. When a taxpayer or witness refuses to submit requested information, consider the following before issuing a summons:
   • The likely importance of the desired information against the time and expense of obtaining it
   • The probability of court action
   • The potential adverse effect on voluntary compliance by others if the enforcement efforts are not successful
3. No set of specific, all-inclusive guidelines can be prescribed in all instances. Analyze each situation in the light of its facts and circumstances. Consider the following with the Supervisor-in-Charge prior to a decision:
   • The legal problems of enforcement
   • The public relations problem of further cooperation of others
   • The practical problem of obtaining the desired information and using the person summoned as a witness in subsequent criminal or civil proceedings
   • Whether the person from whom information is sought will file a petition to quash the summons

   NOTE:

   Once issued, do not abandon a summons. Prepare to assist the U.S. Attorney or appropriate Department of Justice (DOJ) official in pursuing the matter further.

4. A summons may be served upon a cooperative witness who requests it as evidence of his/her legal duty to furnish the requested information.

[10.3.1.1] 7.16.4.2  (10-01-1996)
Criteria

1. Do not request the issuance of a summons until the following criteria have been met:
   1. The investigation has a valid 26 USC 7602 or other purpose as stated in text 7.16.1 of this chapter.
   2. All other logical investigative steps have been exhausted.
   3. All of the investigative methods which could resolve the issue have been completed with negative or inconclusive results.
   4. There are reasonable grounds to believe that the information summoned will contribute materially to the investigation.

   NOTE:

   The issuance of a summons is an extremely sensitive matter because of the potential impact involved in enforcing a summons. There is no such thing as a "friendly summons" . Consider every summons issued as a potential court matter. The image and objectivity of the Service rests upon the propriety and legality of its issuance.

[10.3.1.1] 7.16.4.3  (10-01-1996)
Collateral Request to Issue Summons

1. When requesting a collateral investigation from another region requiring the issuance of a summons, specify that the summons has been approved by the Assistant Regional Inspector (Internal Security), or the Director, Office of Investigations and Technology, at the office of origin.
2. If a summons is required in a collateral investigation in which no request has been made, refer the matter to the office of origin for the approval of the Assistant Regional Inspector (Internal Security) or Director, Office of Investigations and Technology (applies to other than "John Doe" summonses only).

[10.3.1.1] 7.16.4.4  (10-01-1996)
When a Summons May Not be Issued

1. Do not issue a summons when a DOJ referral is in effect with respect to the subject of the investigation. A DOJ referral is in effect if either of the following apply:
   • The Service recommends to the Attorney General a grand jury investigation, or criminal prosecution of such person, for any offense connected with the Internal Revenue laws.
   • The Attorney General (or Deputy or Assistant Attorney General) makes a written request of the Service for returns or return information relating to a taxpayer which sets forth the need for disclosure for tax administration purposes.
2. A DOJ referral ceases to exist when the Attorney General notifies the Service, in writing, that one of the following conditions exists:
   • The subject will not be prosecuted for any offense connected with the administration or enforcement of the Internal Revenue laws.
   • No grand jury investigation of the subject will be authorized with respect to any such offense.
   • Any on-going grand jury investigation will be discontinued.
   • A final disposition has been made of any criminal proceedings pertaining to the enforcement of the Internal Revenue laws instituted by the Attorney General against such subject (this notification does not have to be in writing).
   • The Attorney General, the Deputy Attorney General, or the Assistant Attorney General notifies the Service, in writing, that the subject will not be prosecuted for any offense connected with the administration or enforcement of the Internal Revenue laws relating to any written request for returns or return information.
3. Since a DOJ referral remains in effect until notification is received, summonses may not be issued to obtain information in response to a DOJ request for additional information.
4. Each taxable period (or, in the case of excise taxes, each taxable event) must be treated separately. As a result, the Service may issue a summons for one taxable year even though a DOJ referral is in effect with respect to the subject for another taxable year.

[10.3.1.1] 7.16.5  (10-01-1996)
Preparation of Summons

1. Prepare a summons by using Form 2039, Summons, which is a five-part snapset assembly.

[10.3.1.1] 7.16.5.1  (10-01-1996)
Completion of Form 2039

1. Insert the following information on Form 2039:
   • Name and address, including street number, city and state of the taxpayer whose tax liability is being investigated or collected. If returns are under investigation and bear different addresses, or if the taxpayer resided at different addresses, show all addresses known.
   • The Internal Revenue district in which the returns were filed, or should have been filed; for example, "Internal Revenue District of Los Angeles" . If the returns under investigation were filed in various districts, list each district.
   • In the space provided for "Period(s)" , insert the calendar years, fiscal years, quarterly or monthly periods involved in the examination or investigation.
   • Following the word "To" , insert the correct name of the person summoned or the name by which he/she is customarily known. It is immaterial whether that is his/her true and legal name. To obtain testimony or records from a person in the capacity of trustee, receiver, custodian, corporate or public official, add the person's official title to the name.
   • Following the word "At" , insert the correct address of the person summoned; this may be a place of business, place of residence, or location of the place where the person is found
   • Following "to appear before" , insert the name of the Inspection employee who is to take the testimony and/or examine the books or records.
   • When the summons requires the production of books and records, papers, or other data, describe or specify with sufficient precision for their identification. If the witness is not required to produce books and records, papers, or other data, strike the phrase, "and to bring with you and produce for examination the following books, records and papers" .
   • Include the Inspection employee's business address and telephone on the line provided for this information.
   • Under "Place and time for appearance" , insert the complete address including the room number of the building where the person is required to appear.
   • Following the place of appearance, insert the date and time the witness is to appear. Section 7605, Internal Revenue Code of 1954, provides that the date and time of the appearance shall be reasonable under the circumstances and not less than 10 calendar days from the date of the summons. This refers to a summons other than a third-party recordkeeper summons. In computing the 10 day period, exclude the date of service. ( "Date of summons" is the date on which it is legally served.) The date of appearance should not be prior to the day after the tenth day following service of the summons. Strictly comply with this provision in order to enforce its requirements when the person refuses to comply. The date set for appearance of the person summoned shall be a work day, not a Sunday or legal holiday.
   • A witness, other than a third-party recordkeeper, may indicate a willingness to comply with the requirements of the summons by the delivery of books or records for immediate examination or on a date earlier than that required by statute. Nevertheless, insert the time for appearance in compliance with the statute. This will not preclude the officer, if agreeable to the person summoned, from making an earlier or immediate examination of the records or taking of testimony.
   • After preparing Form 2039, forward it to the Inspection official with issuance authority. (See text 7.16.2 of this Chapter.) Prepare a transmittal memorandum citing the case title and case number, type of investigation, and reason(s) for the proposed use of the summons. Place a copy of the memorandum in a regional "summons file" for association with the "served" original of the summons. Also, forward a copy of the memorandum and the summons to the National Office.
   • Insert in the space provided the date the summons is signed by the issuing officer. This date is not to be considered as the "date of the summons" in setting the date for appearance.
   • The issuing officer manually signs the summons on the line labeled "Signature of Issuing Officer" and inserts his/her official title on the line labeled "Title" .
   • Prior to service, attest the appropriate copies of the summons, 2039-A and -C. Type, write or stamp the following statement on each copy:

   "I hereby certify that I have examined and compared this copy of the summons with the original and that it is a true and correct copy of the original."

2. Follow this statement by a space for the signature and the title of the IRS official serving the summons. The IRS official serving the summons must sign the attested copy.

[10.3.1.1] 7.16.5.2  (10-01-1996)
Time and Place of Examination

1. The time and place of examination must be reasonable under the circumstances. The date fixed for appearance must not be less than 10 days from the date of a summons issued under the provisions of paragraph (2) of IRC 7602, but the witness may voluntarily comply at an earlier time.
   • If the prospective witness is cooperative and an affidavit rather than a question and answer statement is desired, make the summons returnable, if feasible, at the place that will best suit his/her convenience.
   • Follow the same practice in the examination of his/her records. If a question and answer statement is needed and reference to his/her records is essential, it may be preferable for the Service stenographer to appear at the office of the witness when interrogated.
   • If the witness is uncooperative or attempts to hamper the investigation, it may be advisable to have the witness produce his/her records at the Inspector's office. However, this should not be done to penalize the witness

[10.3.1.1] 7.16.6  (10-01-1996)
Service of Summons

1. Complete these steps in serving a summons:
   1. Serve the summons in accordance with the provisions of IRC 7603; hand it to the person to whom it is directed, or leave it at the last and usual place of abode in a place where the person summoned will be most likely to find it. Avoid casual "on the spot" preparation and service of the summons.
      If the person to whom the summons is issued cannot be located, serve the summons upon some responsible person over 16 years of age who resides at the address, with instructions that it be given to the person summoned. This procedure is preferable to merely leaving a copy at the last place of residence
   2. Fill out the back of the original of the summons to indicate that the summons was served and the manner and time of service. In addition, when a summons is served on a third-party recordkeeper, complete the certificate of giving notice. If no notice is required, check the appropriate square.
   3. Give the first attested copy, Form 2039-A, to the person summoned. If the person summoned is a third party entitled to payment or search, reproduction and transportation costs, also give him/her the notice, Form 2039-B, explaining the payment procedures. If this information does not apply, discard this page. Under the law, all persons summoned, including the taxpayer and his/her representatives, may be entitled to witness fees and mileage.
   4. If the summons is served on a third-party recordkeeper and the noticee is entitled to notice of its issuance, provide the second attested copy, Form 2039-C, to the noticee along with the notice, Form 2039-D, which explains the right to file a petition to quash the summons. Complete the certificate of notices which appears on the original Form 2039. If more than one person is entitled to notice of the issuance of summons, reproduce Form 2039-C and notice, Form 2039-D. (This could occur in a situation where a bank account is listed in two names with two different addresses). If the summons is not served on a third-party recordkeeper or notice is not required, discard the second attested copy, Form 2039-C, and the notice, Form 2039-D
   5. After completing the certificate of service, place the original Form 2039 in the regional summons file. Send a copy to the regional pending file.
   6. If a third-party recordkeeper requests it, furnish a photocopy of the back of the original summons. This certifies that the period for beginning a proceeding to quash a summons has expired and that no such proceeding began within such period, or that the noticee consented to the examination.

[10.3.1.1] 7.16.7  (10-01-1996)
Definition of Summons

1. Summons: An administrative summons which is both:
   • Issued under paragraph (2) of IRC 7602 or under IRC 6420(e)(2), 6424(d)(2), or 6427(e)(2)
   • Served on a third-party recordkeeper requiring the production of any portion of records made or kept of the business transactions or affairs of any person (other than the person summoned) who is identified in the description of the records contained in the summons. (This does not apply to certain summonses known as "John Doe" summonses.)

[10.3.1.1] 7.16.7.1  (10-01-1996)
Definition of Third-Party Recordkeeper

1. A third-party recordkeeper is:
   • Any bank, savings and loan institution or credit union
   • Any consumer reporting agency covered by the Fair Credit Reporting Act
   • Anyone extending credit through the issuance of credit cards or similar devices
   • Any broker included in the Securities Exchange Act of 1934
   • Any attorney
   • Any accountant
2. Also, a barter exchange is to be treated as a third-party recordkeeper.
3. The procedures in IRC 7609 apply generally to situations in which the recordkeeper makes or keeps records of the business transactions or affairs of a person identified in the description of the records contained in the summons.
4. All persons who extend "credit through the use of credit cards or similar devices" fall within the scope of these procedures, notwithstanding the fact that the principal business of that person may be something other than issuing credit cards:
   • For example, telephone companies, retail stores, and oil companies who extend credit through their own credit cards are third-party recordkeepers.
   • Retail establishments who honor credit cards issued by other parties are not considered third-party recordkeepers.
   • If an agent issues a summons to a retail establishment or similar business which has its own credit card, but also honors credit cards issued by other parties, notice will be given under IRC 7609.

[10.3.1.1] 7.16.7.2  (10-01-1996)
Definitions of Other Terms Used in Third-Party Summonses

1. Records: Includes books, papers, or other data; a summons requiring the giving of testimony relative to the contents of records is to be treated as a summons requiring the production of records.
2. "John Doe" summons: This is any summons which does not identify the person with respect to whose liability the summons is issued. Text 723 of this Handbook provides procedures required in the use of "John Doe" summonses.
3. Numbered bank account: An account with a bank or similar financial institution through which a person may authorize transactions solely through the use of a number, symbol, code name or similar arrangement not involving disclosure of the account owner's identity.
4. Intervention: The act of a person, who is not originally a party to a summons enforcement or a petition-to-quash proceedings, becoming a party in order to protect his/her interests.
5. Noticee: A person who has the right to notice, and to petition U.S. District Court to quash a summons when the summons is served on a third-party recordkeeper to produce records or give testimony relative to the contents of records which pertain to that person. If more than one person is named on the account, give notice to all persons named. In a case where records of a partnership are requested, notice to one general partner is sufficient.
6. Date of service of notice: The date on which the notice is placed in the mail or delivered personally.

[10.3.1.1] 7.16.8  (10-01-1996)
Summons to Third Party Recordkeeper

1. If a summons is served on a third-party recordkeeper which requires the production of records of the business transactions or affairs of a person other than the person summoned, then give the notice to the person whose records have been summoned. This must be accomplished within 3 days of the day on which the summons was served but not less than 23 days before the day fixed in the summons as the day upon which such records are to be examined.
   • No examination of the summoned records is allowed before the close of the 23rd day after notice is given, or, if a proceeding to quash is begun, until the court so orders or the noticee consents. Document the noticee's consent.
   • The law provides that the third-party recordkeeper will, upon receipt of the summons, proceed to assemble the summoned records and be prepared to produce the records on the day on which the records are to be examined, whether or not a noticee files a petition to quash a summons.
2. Upon satisfactory compliance, the third-party recordkeeper may request reimbursement for certain costs necessary to comply with the summons.
   • Use Form 6863, Invoice and Authorization for Payment of Administrative Expenses, for reimbursement.
   • If a petition to quash is filed, satisfactory compliance by the third-party recordkeeper may include only his/her certification of compliance with the summons (including a detailed statement of costs incidental to compliance with the summons) without actual production of books and records.
3. The third-party recordkeeper has the right to intervene in the proceeding to quash the summons and is bound by any decision, even if he/she does not intervene.

[10.3.1.1] 7.16.9  (10-01-1996)
Right to File a Petition to Quash Summons

1. A noticee whose records are summoned and who wishes to prevent compliance with the summons by the recordkeeper must begin a civil action in U.S. District Court to quash the summons not later than the 20th day after the day notice of the summons is given.
   • The noticee is required to send a copy of the petition to quash, by registered or certified mail, to the recordkeeper and to the Inspector who issued the summons.
   • This must be done within the 20-day period.
2. Notify the Supervisor-in-Charge upon receiving a petition to quash. The Supervisor-in-Charge must notify Regional Counsel on the same day, and forward a memorandum to Regional Counsel within 6 working days which includes the following:
   • The name, full address, and taxpayer identification number of the taxpayer under investigation
   • A summary of the facts in the case
   • An explanation of the relevancy of the records sought, including records pertaining to third parties
   • An explanation of why the summoned information is necessary to the success or completion of the investigation
   • All information which would support the validity or nonvalidity of each assertion in the petition to quash
   • A recommendation for or against defense of the petition to quash the summons
   • The original of the summons and a copy of the petition to quash

   NOTE:

   Timely observance of this procedure is extremely important since the case must be reviewed by IRS Counsel, the DOJ, and the U.S. Attorney.

[10.3.1.1] 7.16.9.1  (10-01-1996)
Suspension of Statute of Limitations

1. The running of the statute of limitations for civil and criminal purposes is suspended with respect to the taxpayer if the taxpayer or an agent, nominee, or other person acting under the direction or control of the taxpayer, petitions to quash a summons for the period during which a petition-to-quash or summons enforcement proceeding, and any related appeals, is pending.
   • The period tolled begins when the proceeding is commenced in court and relates to the years under examination which are identified in the summons.
   • Petitions to quash a summons filed by persons other than the taxpayer or his/her agent will not suspend the running of the statute of limitation.

[10.3.1.1] 7.16.9.2  (10-01-1996)
Notice and Instructions to Noticee

1. Form 2039-D is a notice which contains instructions concerning the noticee's right to file a petition in U.S. District Court to quash a summons. It is served on noticee together with a copy of the summons (Form 2039-C).
2. Give notice by :
   • Sending notice by certified or registered mail to the last known address of the noticee. (Use only registered mail for noticees in foreign countries.)
   • Delivering both documents in hand to the noticee
   • Leaving them at the noticee's residence or, in the absence of a last known address, leaving them with the person summoned
3. If the Service has been advised under IRC 6903 of the existence of a fiduciary relationship, it is sufficient if the notice of the service of the summons is mailed to the last known address of the fiduciary of the person entitled to notice, even if such a person or fiduciary is now deceased, under a legal disability, or no longer in existence. The filing of a power of attorney or tax information authorization does not qualify as the creation of a fiduciary relationship under this provision and notice would be given to the taxpayer or other person to whom the records pertain.
4. Complete the certification of serving the summons as well as the certification of giving notice on the reverse side of the original copy of the summons.
5. If summons enforcement is instituted, the third-party recordkeeper, as well as the noticee, is entitled to notice of the enforcement action. Generally, the third-party recordkeeper will be served with process. The DOJ is responsible for informing the noticee by certified or registered mail.

[10.3.1.1] 7.16.9.3  (10-01-1996)
Waiver of Right to Notice and Petition to Quash

1. A person who is entitled to notice, to petition U.S. District Court to quash a summons, and/or to intervene when a summons is issued may waive such rights by executing a general waiver form. Give all third-party recordkeepers involved in the waiver a copy of the letter for their records. (See Exhibit 7-18 for a sample waiver letter.)

[10.3.1.1] 7.16.10  (10-01-1996)
Coordination of Summons Issuance and Enforcement Actions

1. To the extent practical, serve and submit summonses pertaining to the same person for enforcement action at or near the same time. Likewise, the service shall make court requests for exemption from the requirement of notice relative to the same person at the same time, if possible.

[10.3.1.1] 7.16.11  (10-01-1996)
Exceptions to Notice Requirement

1. There is no notice requirement in cases where:
   • A "John Doe" summons is issued
   • The summoned witness is the taxpayer, or an officer or employee of the taxpayer
   • A third-party witness is summoned to give testimony that is unrelated to records
   • The summoned witness is not considered to be a third-party recordkeeper, as defined in text 7.16.7
2. Do not serve notice where the stated purpose of the summons is to:
   • Determine whether records of the business transactions or affairs of an identified person have been made or kept
   • Determine solely the identity of any person having a numbered account (or similar arrangement) with a bank, savings and loan institution or credit union
3. Regarding summonses issued pursuant to a court order:
   • Notice is not required if, upon petition by the Service prior to the issuance of the summons, the U.S. District Court for the district in which the person summoned resides or is found, determines that there is reasonable basis to believe the giving of the notice may lead to attempts to conceal, destroy or alter records relevant to the examination, to prevent the communication of information from other persons through intimidation, bribery, or collusion, or to flee to avoid prosecution, testifying or production of records.
   • In the required hearings for this kind of summons and for "John Doe" summons, the determination is made ex parte and is made solely upon the petition and supporting affidavits.
   • Forward requests for court orders to Regional Counsel for processing. Include in the memorandum a request that the court order the person(s) to be summoned to refrain from notifying the taxpayer, or other person to whom the records or testimony pertain, of the service of the summons.
   • Advise the third-party recordkeeper that, pursuant to a court order, no notification will be given of the summons request and, if appropriate, that notification could subject the person summoned to a contempt citation

[10.3.1.1] 7.16.12  (10-01-1996)
Administrative Summons Expenses

1. Instructions for obligating funds and making payments to third parties who request reimbursement for complying with an IRS administrative summons, including witness fees and mileage, is in Chapter 5 of this Handbook.

[10.3.1.1] 7.16.13  (10-01-1996)
Examination of Books and Witnesses

1. A summons may be issued to:
   • The person liable for tax or required to perform the act
   • Any officer or employee of such person
   • Any person having possession, custody or care of books of account containing entries relating to the business of such person
   • Any other person the issuing officer deems proper

[10.3.1.1] 7.16.13.1  (10-01-1996)
Statutory Restriction

1. IRC 7605(b) is the principal statutory restriction placed on the power to summon and to examine a taxpayer's books of account. IRC 7605(b) specifies:
   • No taxpayer shall be subjected to unnecessary examination or investigations
   • Only one inspection shall be made of his/her books for each taxable year, except upon notice from the Commissioner or upon the taxpayer's request

   NOTE:

   See Delegation Order No. 57 for officials authorized to sign the notice to the taxpayer that an additional inspection of books of account is necessary.

2. The limitations imposed by IRC 7605(b) apply only to the taxpayer under investigation and not to a third party.
   • The taxpayer may refuse access to his/her record until given the notice of demand in writing
   • After the records have been examined regarding his/her own liability, the taxpayer cannot refuse, on the grounds of an unnecessary examination, to give information from them concerning another taxpayer
3. Whether enforcement of a summons will be prohibited as unnecessary is a question to be determined from the facts in each case. A court may refuse enforcement if an Inspector attempts to examine unrelated transactions or engage in an "irrelevant fishing expedition."

[10.3.1.1] 7.16.13.2  (10-01-1996)
Privileged Communications

1. In some situations, witnesses (particularly attorneys) may decline to submit information on the grounds that it is a privileged communication.

Restrictions on Government Access

1. The Act prohibits a financial institution from releasing to a federal department or agency records or information concerning a customer's transactions, unless the records are reasonably described and are disclosed pursuant to one of the following methods of access:
   • Voluntary customer authorization
   • Administrative subpoena or summons
   • Search warrant
   • Judicial subpoena
   • Formal written request

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