26 USC 7602(c)(3)(B): Third party identity information

          
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].''