26 U.S.C. § 7608 — Authority of internal revenue enforce-

Page 3980 TITLE 26—INTERNAL REVENUE CODE § 7606 to implement subsection (a) of section 7605 of the 1986 Code (relating to time and place of examination) within 1 year after the date of the enactment of this Act [Nov. 10, 1988].’’ § 7606. Entry of premises for examination of tax- able objects (a) Entry during day The Secretary may enter, in the daytime, any building or place where any articles or objects subject to tax are made, produced, or kept, so far as it may be necessary for the purpose of ex- amining said articles or objects. (b) Entry at night When such premises are open at night, the Secretary may enter them while so open, in the performance of his official duties. (c) Penalties For penalty for refusal to permit entry or exam- ination, see section 7342. (Aug. 16, 1954, ch. 736, 68A Stat. 903; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834.) Editorial Notes AMENDMENTS 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appearing. [§ 7607. Repealed. Pub. L. 98–473, title II, § 320(b), Oct. 12, 1984, 98 Stat. 2056, and Pub. L. 98–573, title II, § 213(b)(1), Oct. 30, 1984, 98 Stat. 2988] Section, added July 18, 1956, ch. 629, title I, § 104(a), 70 Stat. 570; amended Oct. 27, 1970, Pub. L. 91–513, title III, § 1102(g)(1), 84 Stat. 1292, set forth additional authority for Bureau of Customs with respect to firearms, war- rants, etc. Another section 7607 was renumbered section 7613 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective Oct. 15, 1984, see section 214(e) of Pub. L. 98–573, set out as an Effective Date of 1984 Amendment note under section 1304 of Title 19, Cus- toms Duties. § 7608. Authority of internal revenue enforce- ment officers (a) Enforcement of subtitle E and other laws per- taining to liquor, tobacco, and firearms Any investigator, agent, or other internal rev- enue officer by whatever term designated, whom the Secretary charges with the duty of enforcing any of the criminal, seizure, or forfeiture provi- sions of subtitle E or of any other law of the United States pertaining to the commodities subject to tax under such subtitle for the en- forcement of which the Secretary is responsible, may— (1) carry firearms; (2) execute and serve search warrants and ar- rest warrants, and serve subpoenas and sum- monses issued under authority of the United States; (3) in respect to the performance of such duty, make arrests without warrant for any offense against the United States committed in his presence, or for any felony cognizable under the laws of the United States if he has reasonable grounds to believe that the person to be arrested has committed, or is commit- ting, such felony; and (4) in respect to the performance of such duty, make seizures of property subject to for- feiture to the United States. (b) Enforcement of laws relating to internal rev- enue other than subtitle E (1) Any criminal investigator of the Intel- ligence Division of the Internal Revenue Service whom the Secretary charges with the duty of enforcing any of the criminal provisions of the internal revenue laws, any other criminal provi- sions of law relating to internal revenue for the enforcement of which the Secretary is respon- sible, or any other law for which the Secretary has delegated investigatory authority to the In- ternal Revenue Service, is, in the performance of his duties, authorized to perform the func- tions described in paragraph (2). (2) The functions authorized under this sub- section to be performed by an officer referred to in paragraph (1) are— (A) to execute and serve search warrants and arrest warrants, and serve subpoenas and sum- monses issued under authority of the United States; (B) to make arrests without warrant for any offense against the United States relating to the internal revenue laws committed in his presence, or for any felony cognizable under such laws if he has reasonable grounds to be- lieve that the person to be arrested has com- mitted or is committing any such felony; and (C) to make seizures of property subject to forfeiture under the internal revenue laws. (c) Rules relating to undercover operations (1) Certification required for exemption of un- dercover operations from certain laws With respect to any undercover investiga- tive operation of the Internal Revenue Service (hereinafter in this subsection referred to as the ‘‘Service’’) which is necessary for the de- tection and prosecution of offenses under the internal revenue laws, any other criminal pro- visions of law relating to internal revenue, or any other law for which the Secretary has del- egated investigatory authority to the Internal Revenue Service— (A) sums authorized to be appropriated for the Service may be used— (i) to purchase property, buildings, and other facilities, and to lease space, within the United States, the District of Colum- bia, and the territories and possessions of the United States without regard to— (I) sections 1341 and 3324 of title 31, United States Code, (II) sections 6301(a) and (b)(1)–(3) and 6306 of title 41, United States Code, (III) chapter 45 of title 41, United States Code, (IV) section 8141 of title 40, United States Code, and (V) section 3901 of title 41, United States Code, and Page 3981 TITLE 26—INTERNAL REVENUE CODE § 7608 (ii) to establish or to acquire proprietary corporations or business entities as part of the undercover operation, and to operate such corporations or business entities on a commercial basis, without regard to sec- tions 9102 and 9103 of title 31, United States Code; (B) sums authorized to be appropriated for the Service and the proceeds from the under- cover operations may be deposited in banks or other financial institutions without re- gard to the provisions of section 648 of title 18, United States Code, and section 3302 of title 31, United States Code, and (C) the proceeds from the undercover oper- ation may be used to offset necessary and reasonable expenses incurred in such oper- ation without regard to the provisions of section 3302 of title 31, United States Code. This paragraph shall apply only upon the writ- ten certification of the Commissioner of Inter- nal Revenue (or, if designated by the Commis- sioner, the Deputy Commissioner or an Assist- ant Commissioner of Internal Revenue) that any action authorized by subparagraph (A), (B), or (C) is necessary for the conduct of such undercover operation. (2) Liquidation of corporations and business entities If a corporation or business entity estab- lished or acquired as part of an undercover op- eration under subparagraph (B) of paragraph (1) with a net value over $50,000 is to be liq- uidated, sold, or otherwise disposed of, the Service, as much in advance as the Commis- sioner or his delegate determines is prac- ticable, shall report the circumstances to the Secretary. The proceeds of the liquidation, sale, or other disposition, after obligations are met, shall be deposited in the Treasury of the United States as miscellaneous receipts. (3) Deposit of proceeds As soon as the proceeds from an undercover investigative operation with respect to which an action is authorized and carried out under subparagraphs (B) and (C) of paragraph (1) are no longer necessary for the conduct of such op- eration, such proceeds or the balance of such proceeds remaining at the time shall be depos- ited into the Treasury of the United States as miscellaneous receipts. (4) Audits (A) The Service shall conduct a detailed fi- nancial audit of each undercover investigative operation which is closed in each fiscal year; and (i) submit the results of the audit in writ- ing to the Secretary; and (ii) not later than 180 days after such un- dercover operation is closed, submit a report to the Congress concerning such audit. (B) The Service shall also submit a report annually to the Congress specifying as to its undercover investigative operations— (i) the number, by programs, of undercover investigative operations pending as of the end of the 1-year period for which such re- port is submitted; (ii) the number, by programs, of under- cover investigative operations commenced in the 1-year period for which such report is submitted; (iii) the number, by programs, of under- cover investigative operations closed in the 1-year period for which such report is sub- mitted, and (iv) the following information with respect to each undercover investigative operation pending as of the end of the 1-year period for which such report is submitted or closed during such 1-year period— (I) the date the operation began and the date of the certification referred to in the last sentence of paragraph (1), (II) the total expenditures under the op- eration and the amount and use of the pro- ceeds from the operation, (III) a detailed description of the oper- ation including the potential violation being investigated and whether the oper- ation is being conducted under grand jury auspices, and (IV) the results of the operation includ- ing the results of criminal proceedings. (5) Definitions For purposes of paragraph (4)— (A) Closed The term ‘‘closed’’ means the date on which the later of the following occurs; (i) all criminal proceedings (other than appeals) are concluded, or (ii) covert activities are concluded, whichever occurs later. (B) Employees The term ‘‘employees’’ has the meaning given such term by section 2105 of title 5, United States Code. (C) Undercover investigative operation The term ‘‘undercover investigative oper- ation’’ means any undercover investigative operation of the Service; except that, for purposes of subparagraphs (A) and (C) of paragraph (4), such term only includes an op- eration which is exempt from section 3302 or 9102 of title 31, United States Code. (Added Pub. L. 85–859, title II, § 204(14), Sept. 2, 1958, 72 Stat. 1429; amended Pub. L. 87–863, § 6(a), Oct. 23, 1962, 76 Stat. 1143; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 100–690, title VII, § 7601(c)(1), (2), Nov. 18, 1988, 102 Stat. 4504; Pub. L. 101–508, title XI, § 11704(a)(32), (33), Nov. 5, 1990, 104 Stat. 1388–519; Pub. L. 104–168, title XII, § 1205(b)–(c)(2), July 30, 1996, 110 Stat. 1471, 1472; Pub. L. 104–316, title I, § 113, Oct. 19, 1996, 110 Stat. 3833; Pub. L. 105–206, title I, § 1103(e)(4), July 22, 1998, 112 Stat. 710; Pub. L. 106–554, § 1(a)(7) [title III, § 303], Dec. 21, 2000, 114 Stat. 2763, 2763A–632; Pub. L. 107–217, § 3(f), Aug. 21, 2002, 116 Stat. 1299; Pub. L. 108–178, § 4(e), Dec. 15, 2003, 117 Stat. 2641; Pub. L. 109–135, title III, § 304, Dec. 21, 2005, 119 Stat. 2609; Pub. L. 109–432, div. A, title I, § 121, Dec. 20, 2006, 120 Stat. 2944; Pub. L. 110–343, div. C, title IV, § 401(a), Oct. 3, 2008, 122 Stat. 3875; Pub. L. 111–350, § 5(f), Jan. 4, 2011, 124 Stat. 3848.) Page 3982 TITLE 26—INTERNAL REVENUE CODE § 7609 Editorial Notes PRIOR PROVISIONS A prior section 7608 was renumbered section 7613 of this title. AMENDMENTS 2011—Subsec. (c)(1)(A)(i)(II). Pub. L. 111–350, § 5(f)(1), substituted ‘‘sections 6301(a) and (b)(1)–(3) and 6306’’ for ‘‘sections 11(a) and 22’’. Subsec. (c)(1)(A)(i)(III). Pub. L. 111–350, § 5(f)(2), sub- stituted ‘‘chapter 45’’ for ‘‘section 255’’. Subsec. (c)(1)(A)(i)(V). Pub. L. 111–350, § 5(f)(3), sub- stituted ‘‘section 3901’’ for ‘‘section 254(a) and (c)’’. 2008—Subsec. (c)(6). Pub. L. 110–343 struck out par. (6). Text read as follows: ‘‘The provisions of this sub- section— ‘‘(A) shall apply after November 17, 1988, and before January 1, 1990, and ‘‘(B) shall apply after the date of the enactment of this paragraph and before January 1, 2008. All amounts expended pursuant to this subsection dur- ing the period described in subparagraph (B) shall be re- covered to the extent possible, and deposited in the Treasury of the United States as miscellaneous re- ceipts, before January 1, 2008.’’ 2006—Subsec. (c)(6). Pub. L. 109–432 substituted ‘‘2008’’ for ‘‘2007’’ in subpar. (B) and concluding provisions. 2005—Subsec. (c)(6). Pub. L. 109–135 substituted ‘‘Jan- uary 1, 2007’’ for ‘‘January 1, 2006’’ in subpar. (B) and concluding provisions. 2003—Subsec. (c)(1)(A)(i)(IV). Pub. L. 108–178 sub- stituted ‘‘title 40, United States Code’’ for ‘‘title 40’’. 2002—Subsec. (c)(1)(A)(i)(IV). Pub. L. 107–217 sub- stituted ‘‘section 8141 of title 40’’ for ‘‘section 34 of title 40, United States Code’’. 2000—Subsec. (c)(6). Pub. L. 106–554 substituted ‘‘Jan- uary 1, 2006’’ for ‘‘January 1, 2001’’ in subpar. (B) and concluding provisions. 1998—Subsec. (b)(1). Pub. L. 105–206 struck out ‘‘or of the Internal Security Division’’ after ‘‘Intelligence Di- vision’’. 1996—Subsec. (c)(2). Pub. L. 104–316 struck out ‘‘and the Comptroller General of the United States’’ after ‘‘Secretary’’. Subsec. (c)(4)(B)(ii). Pub. L. 104–168, § 1205(c)(1)(A), (B), struck out ‘‘preceding the period’’ after ‘‘in the 1-year period’’ and ‘‘and’’ at end. Subsec. (c)(4)(B)(iii), (iv). Pub. L. 104–168, § 1205(c)(1)(C), added cls. (iii) and (iv) and struck out former cl. (iii) which read as follows: ‘‘the number, by programs, of undercover investigative operations closed in the 1-year period preceding the period for which such report is submitted and, with respect to each such closed undercover operation, the results ob- tained and any civil claims made with respect there- to.’’ Subsec. (c)(5)(C). Pub. L. 104–168, § 1205(c)(2), reenacted heading without change and amended text generally. Prior to amendment, text read as follows: ‘‘The terms ‘undercover investigative operation’ and ‘undercover operation’ mean any undercover investigative oper- ation of the Service— ‘‘(i) in which— ‘‘(I) the gross receipts (excluding interest earned) exceed $50,000; or ‘‘(II) expenditures, both recoverable and non- recoverable (other than expenditures for salaries of employees), exceed $150,000; and ‘‘(ii) which is exempt from section 3302 or 9102 of title 31, United States Code. Clauses (i) and (ii) shall not apply with respect to the report required under subparagraph (B) of paragraph (4).’’ Subsec. (c)(6). Pub. L. 104–168, § 1205(b), added par. (6). 1990—Subsec. (c)(1)(B). Pub. L. 101–508, § 11704(a)(32), struck out comma after ‘‘operations’’. Subsec. (c)(5)(C). Pub. L. 101–508, § 11704(a)(33), sub- stituted ‘‘interest’’ for ‘‘interested’’ in cl. (i)(I) and ‘‘title 31’’ for ‘‘title 3’’ in cl. (ii). 1988—Subsec. (b)(1). Pub. L. 100–690, § 7601(c)(1), sub- stituted comma for ‘‘or’’ before ‘‘any other’’ and in- serted ‘‘, or any other law for which the Secretary has delegated investigatory authority to the Internal Rev- enue Service,’’ after ‘‘responsible’’. Subsec. (c). Pub. L. 100–690, § 7601(c)(2), added subsec. (c). 1976—Pub. L. 94–455 struck out ‘‘or his delegate’’ after ‘‘Secretary’’ wherever appearing. 1962—Pub. L. 87–863 redesignated existing provisions as subsec. (a), added subsec. (a) heading, and added sub- sec. (b). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2008 AMENDMENT Pub. L. 110–343, div. C, title IV, § 401(b), Oct. 3, 2008, 122 Stat. 3875, provided that: ‘‘The amendment made by this section [amending this section] shall apply to op- erations conducted after the date of the enactment of this Act [Oct. 3, 2008].’’ EFFECTIVE DATE OF 2003 AMENDMENT Amendment by Pub. L. 108–178 effective Aug. 21, 2002, see section 5 of Pub. L. 108–178, set out as a note under section 5334 of Title 5, Government Organization and Employees. EFFECTIVE DATE OF 1996 AMENDMENT Pub. L. 104–168, title XII, § 1205(c)(3), July 30, 1996, 110 Stat. 1472, provided that: ‘‘The amendments made by this subsection [amending this section] shall take ef- fect on the date of the enactment of this Act [July 30, 1996].’’ EFFECTIVE DATE OF 1988 AMENDMENT Pub. L. 100–690, title VII, § 7601(c)(3), Nov. 18, 1988, 102 Stat. 4507, as amended by Pub. L. 101–647, title XXXIII, § 3301(a), Nov. 29, 1990, 104 Stat. 4917; Pub. L. 104–168, title XII, § 1205(a), July 30, 1996, 110 Stat. 1471, provided that: ‘‘The amendments made by this subsection [amending this section] shall take effect on the date of the enactment of this Act [Nov. 18, 1988].’’ EFFECTIVE DATE OF 1962 AMENDMENT Pub. L. 87–863, § 6(b), Oct. 23, 1962, 76 Stat. 1143, pro- vided that: ‘‘The amendments made by subsection (a) [amending this section] shall take effect on the day after the date of enactment of this Act [Oct. 23, 1962].’’ EFFECTIVE DATE Section effective Sept. 3, 1958, see section 210(a)(1) of Pub. L. 85–859, set out as a note under section 5001 of this title. § 7609. Special procedures for third-party sum- monses (a) Notice (1) In general If any summons to which this section applies requires the giving of testimony on or relating to, the production of any portion of records made or kept on or relating to, or the produc- tion of any computer software source code (as defined in 7612(d)(2)) with respect to, any per- son (other than the person summoned) who is identified in the summons, then notice of the summons shall be given to any person so iden- tified within 3 days of the day on which such service is made, but no later than the 23rd day before the day fixed in the summons as the day upon which such records are to be exam- ined. Such notice shall be accompanied by a copy of the summons which has been served