26 USC 7602(c)(3)(B): Third party identity information
About This Project
This project uses data compiled by the Sunshine in Government initiative, a coalition of journalism and transparency groups. SGI compiled data from federal agency annual FOIA reports to track how often b(3) exemptions were used. SGI also standardized the exemptions since some agencies used slightly different citations of the same laws. In some cases, agencies listed general laws without specifying a section under which information was withheld. This project does not include information from agencies that use no b(3) exemptions in 2008 or 2009. ProPublica compiled information about FOIA denials.
TITLE 26--INTERNAL REVENUE CODE Subtitle F--Procedure and Administration CHAPTER 78--DISCOVERY OF LIABILITY AND ENFORCEMENT OF TITLE Subchapter A--Examination and Inspection
Sec. 7602. Examination of books and witnesses (a) Authority to summon, etc. 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 fidu ciary of any person in respect of any internal revenue tax, or collecting any such liability, the Secretary is authorized-- (1) To examine any books, papers, records, or other data which may be relevant or material to such inquiry; (2) 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 (3) To take such testimony of the person concerned, under oath, as may be relevant or material to such inquiry. (b) Purpose may include inquiry into offense 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. (c) Notice of contact of third parties (1) General notice 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 without providing reasonable notice in advance to the taxpayer that contacts with persons other than the taxpayer may be made. (2) Notice of specific contacts 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. (3) Exceptions This subsection shall not apply-- (A) to any contact which the taxpayer has authorized; (B) 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 (C) with respect to any pending criminal investigation. (d) No administrative summons when there is Justice Department referral (1) Limitation of authority 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. (2) Justice Department referral in effect For purposes of this subsection-- (A) In general A Justice Department referral is in effect with respect to any person if-- (i) 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 (ii) 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.
(B) Termination A Justice Department referral shall cease to be in effect with respect to a person when-- (i) the Attorney General notifies the Secretary, in writing, that-- (I) he will not prosecute such person for any offense connected with the administration or enforcement of the internal revenue laws, (II) he will not authorize a grand jury investigation of such person with respect to such an offense, or (III) he will discontinue such a grand jury investigation, (ii) 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 (iii) 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). (3) Taxable years, etc., treated separately 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. (e) Limitation on examination on unreported income 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. (Aug. 16, 1954, ch. 736, 68A Stat. 901; Pub. L. 94-455, title XIX, Sec. 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97-248, title III, Sec. 333(a), Sept. 3, 1982, 96 Stat. 622; Pub. L. 105-206, title III, Secs. 3412, 3417(a), July 22, 1998, 112 Stat. 751, 757.) Amendments 1998--Subsec. (c). Pub. L. 105-206, Sec. 3417(a), added subsec. (c). Former subsec. (c) redesignated (d). Subsec. (d). Pub. L. 105-206, Sec. 3417(a), redesignated subsec. (c) as (d). Former subsec. (d) redesignated (e). Pub. L. 105-206, Sec. 3412, added subsec. (d). Subsec. (e). Pub. L. 105-206, Sec. 3417(a), redesignated subsec. (d) as (e). 1982--Pub. L. 97-248 redesignated existing provisions as subsec. (a), added subsec. (a) heading, and added subsecs. (b) and (c). 1976--Pub. L. 94-455 struck out ``or his delegate'' after ``Secretary'' wherever appearing. Effective Date of 1998 Amendment Pub. L. 105-206, title III, Sec. 3417(b), July 22, 1998, 112 Stat. 758, provided that: ``The amendments made by subsection (a) [amending this section] shall apply to contacts made after the 180th day after the date of the enactment of this Act [July 22, 1998].'' Effective Date of 1982 Amendment Section 333(b) of Pub. L. 97-248 provided that: ``The amendments made by subsection (a) [amending this section] shall take effect on the day after the date of the enactment of this Act [Sept. 3, 1982].''