[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.7602-2]

[Page 574-580]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
             Discovery of Liability and Enforcement of Title
 
Sec. 301.7602-2  Third party contacts.

    (a) In general. Subject to the exceptions in paragraph (f) of this 
section, no officer or employee of the Internal Revenue Service (IRS) 
may contact any person other than the taxpayer with respect to the 
determination or collection of such taxpayer's tax liability without 
giving the taxpayer reasonable notice in advance that such contacts may 
be made. A record of persons so contacted must be made and given to the 
taxpayer upon the taxpayer's request.
    (b) Third-party contact defined. Contacts subject to section 7602(c) 
and this regulation shall be called ``third-party contacts.'' A third-
party contact is a communication which--
    (1) Is initiated by an IRS employee;
    (2) Is made to a person other than the taxpayer;
    (3) Is made with respect to the determination or collection of the 
tax liability of such taxpayer;
    (4) Discloses the identity of the taxpayer being investigated; and
    (5) Discloses the association of the IRS employee with the IRS.
    (c) Elements of third-party contact explained--(1) Initiation by an 
IRS employee--(i) Explanation--(A) Initiation. An IRS employee initiates 
a communication whenever it is the employee who first tries to 
communicate with a person other than the taxpayer. Returning unsolicited 
telephone calls or speaking with persons other than the taxpayer as part 
of an attempt to speak to the taxpayer are not initiations of third-
party contacts.
    (B) IRS employee. For purposes of this section, an IRS employee 
includes all officers and employees of the IRS, the Chief Counsel of the 
IRS and the National Taxpayer Advocate, as well as a person described in 
section 6103(n), an officer or employee of such person, or a person who 
is subject to disclosure restrictions pursuant to a written agreement in 
connection with the solicitation of an agreement described in section 
6103(n) and its implementing regulations. No inference about the 
employment or contractual relationship of such other persons with the 
IRS may be drawn from this regulation for any purpose other than the 
requirements of section 7602(c).
    (ii) Examples. The following examples illustrate this paragraph 
(c)(1):

    Example 1. An IRS employee receives a message to return an 
unsolicited call. The employee returns the call and speaks with a

[[Page 575]]

person who reports information about a taxpayer who is not meeting his 
tax responsibilities. Later, the employee makes a second call to the 
person and asks for more information. The first call is not a contact 
initiated by an IRS employee. Just because the employee must return the 
call does not change the fact that it is the other person, and not the 
employee, who initiated the contact. The second call, however, is 
initiated by the employee and so meets the first element.
    Example 2. An IRS employee wants to hire an appraiser to help 
determine the value of a taxpayer's oil and gas business. At the initial 
interview, the appraiser signs an agreement that prohibits him from 
disclosing return information of the taxpayer except as allowed by the 
agreement. Once hired, the appraiser initiates a contact by calling an 
industry expert in Houston and discusses the taxpayer's business. The 
IRS employee's contact with the appraiser does not meet the first 
element of a third-party contact because the appraiser is treated, for 
section 7602(c) purposes only, as an employee of the IRS. For the same 
reason, however, the appraiser's call to the industry expert does meet 
the first element of a third-party contact.
    Example 3. A revenue agent trying to contact the taxpayer to discuss 
the taxpayer's pending examination twice calls the taxpayer's place of 
business. The first call is answered by a receptionist who states that 
the taxpayer is not available. The IRS employee leaves a message with 
the receptionist stating only his name and telephone number, and asks 
that the taxpayer call him. The second call is answered by the office 
answering machine, on which the IRS employee leaves the same message. 
Neither of these phone calls meets the first element of a third-party 
contact because the IRS employee is trying to initiate a communication 
with the taxpayer and not a person other than the taxpayer. The fact 
that the IRS employee must either speak with a third party (the 
receptionist) or leave a message on the answering machine, which may be 
heard by a third party, does not mean that the employee is initiating a 
communication with a person other than the taxpayer. Both the 
receptionist and the answering machine are only intermediaries in the 
process of reaching the taxpayer.

    (2) Person other than the taxpayer--(i) Explanation. The phrases 
``person other than the taxpayer'' and ``third party'' are used 
interchangeably in this section, and do not include--
    (A) An officer or employee of the IRS, as defined in paragraph 
(c)(1)(i)(B) of this section, acting within the scope of his or her 
employment;
    (B) Any computer database or website regardless of where located and 
by whom maintained, including databases or web sites maintained on the 
Internet or in county courthouses, libraries, or any other real or 
virtual site; or
    (C) A current employee, officer, or fiduciary of a taxpayer when 
acting within the scope of his or her employment or relationship with 
the taxpayer. Such employee, officer, or fiduciary shall be conclusively 
presumed to be acting within the scope of his or her employment or 
relationship during business hours on business premises.
    (ii) Examples: The following examples illustrate this paragraph 
(c)(2):

    Example 1. A revenue agent examining a taxpayer's return speaks with 
another revenue agent who has previously examined the same taxpayer 
about a recurring issue. The revenue agent has not contacted a ``person 
other than the taxpayer'' within the meaning of section 7602(c).
    Example 2. A revenue agent examining a taxpayer's return speaks with 
one of the taxpayer's employees on business premises during business 
hours. The employee is conclusively presumed to be acting within the 
scope of his employment and is therefore not a ``person other than the 
taxpayer'' for section 7602(c) purposes.
    Example 3. A revenue agent examining a corporate taxpayer's return 
uses a commercial online research service to research the corporate 
structure of the taxpayer. The revenue agent uses an IRS account, logs 
on with her IRS user name and password, and uses the name of the 
corporate taxpayer in her search terms. The revenue agent later explores 
several Internet web sites that may have information relevant to the 
examination. The searches on the commercial online research service and 
Internet websites are not contacts with ``persons other than the 
taxpayer.''

    (3) With respect to the determination or collection of the tax 
liability of such taxpayer--(i) Explanation--(A) With respect to. A 
contact is ``with respect to'' the determination or collection of the 
tax liability of such taxpayer when made for the purpose of either 
determining or collecting a particular tax liability and when directly 
connected to that purpose. While a contact made for the purpose of 
determining a particular taxpayer's tax liability may also affect the 
tax liability of one or more other taxpayers, such contact is not for 
that

[[Page 576]]

reason alone a contact ``with respect to'' the determination or 
collection of those other taxpayers' tax liabilities. Contacts to 
determine the tax status of a pension plan under chapter 1, subchapter D 
(Deferred Compensation) of the Internal Revenue Code, are not ``with 
respect to'' the determination of plan participants'' tax liabilities. 
Contacts to determine the tax status of a bond issue under chapter 1, 
subchapter B, Part IV (Tax Exemption Requirements for State and Local 
Bonds) of the Internal Revenue Code, are not ``with respect to'' the 
determination of the bondholders' tax liabilities. Contacts to determine 
the tax status of an organization under chapter 1, subchapter F (Exempt 
Organizations) of the Internal Revenue Code, are not ``with respect to'' 
the determination of the contributors' liabilities, nor are any similar 
determinations ``with respect to'' any persons with similar 
relationships to the taxpayer whose tax liability is being determined or 
collected.
    (B) Determination or collection. A contact is with respect to the 
``determination or collection'' of the tax liability of such taxpayer 
when made during the administrative determination or collection process. 
For purposes of this paragraph (c) only, the administrative 
determination or collection process may include any administrative 
action to ascertain the correctness of a return, make a return when none 
has been filed, or determine or collect the tax liability of any person 
as a transferee or fiduciary under chapter 71 of Title 26.
    (C) Tax liability. A tax liability means the liability for any tax 
imposed by Title 26 of the United States Code (including any interest, 
additional amount, addition to the tax, or penalty) and does not include 
the liability for any tax imposed by any other jurisdiction nor any 
liability imposed by other Federal statutes.
    (D) Such taxpayer. A contact is with respect to the determination or 
collection of the tax liability of ``such taxpayer'' when made while 
determining or collecting the tax liability of a particular, identified 
taxpayer. Contacts made during an investigation of a particular, 
identified taxpayer are third-party contacts only as to the particular, 
identified taxpayer under investigation and not as to any other taxpayer 
whose tax liabilities might be affected by such contacts.
    (ii) Examples. The following examples illustrate the operation of 
this paragraph (c)(3):

    Example 1. As part of a compliance check on a return preparer, an 
IRS employee visits the preparer's office and reviews the preparer's 
client files to ensure that the proper forms and records have been 
created and maintained. This contact is not a third-party contact ``with 
respect to'' the preparer's clients because it is not for the purpose of 
determining the tax liability of the preparer's clients, even though the 
agent might discover information that would lead the agent to recommend 
an examination of one or more of the preparer's clients.
    Example 2. A revenue agent is assigned to examine a taxpayer's 
return, which was prepared by a return preparer. As in all such 
examinations, the revenue agent asks the taxpayer routine questions 
about what information the taxpayer gave the preparer and what advice 
the preparer gave the taxpayer. As a result of the examination, the 
revenue agent recommends that the preparer be investigated for penalties 
under section 6694 or 6695. Neither the examination of the taxpayer's 
return nor the questions asked of the taxpayer are ``with respect to'' 
the determination of the preparer's tax liabilities within the meaning 
of section 7602(c) because the purpose of the contacts was to determine 
the taxpayer's tax liability, even though the agent discovered 
information that may result in a later investigation of the preparer.
    Example 3. To help identify taxpayers in the florist industry who 
may not have filed proper returns, an IRS employee contacts a company 
that supplies equipment to florists and asks for a list of its customers 
in the past year in order to cross-check the list against filed returns. 
The employee later contacts the supplier for more information about one 
particular florist who the employee believes did not file a proper 
return. The first contact is not a contact with respect to the 
determination of the tax liability of ``such taxpayer'' because no 
particular taxpayer has been identified for investigation at the time 
the contact is made. The later contact, however, is with respect to the 
determination of the tax liability of ``such taxpayer'' because a 
particular taxpayer has been identified. The later contact is also 
``with respect to'' the determination of that taxpayer's liability 
because, even though no examination has been opened on the taxpayer, the 
information sought could lead to an examination.

[[Page 577]]

    Example 4. A revenue officer, trying to collect the trust fund 
portion of unpaid employment taxes of a corporation, begins to 
investigate the liability of two corporate officers for the section 6672 
Trust Fund Recovery Penalty (TFRP). The revenue officer obtains the 
signature cards for the corporation's bank accounts from the 
corporation's bank. The contact with the bank to obtain the signature 
cards is a contact with respect to the determination of the two 
identified corporate officers' tax liabilities because it is directly 
connected to the purpose of determining a tax liability of two 
identified taxpayers. It is not, however, a contact with respect to any 
other person not already under investigation for TFRP liability, even 
though the signature cards might identify other potentially liable 
persons.
    Example 5. The IRS is asked to rule on whether a certain pension 
plan qualifies under section 401 so that contributions to the pension 
plan are excludable from the employees' incomes under section 402 and 
are also deductible from the employer's income under section 404. 
Contacts made with the plan sponsor (and with persons other than the 
plan sponsor) are not contacts ``with respect to'' the determination of 
the tax liabilities of the pension plan participants because the purpose 
of the contacts is to determine the status of the plan, even though that 
determination may affect the participants' tax liabilities.
    Example 6(a). The IRS audits a TEFRA partnership at the partnership 
(entity) level pursuant to sections 6221 through 6233. The tax treatment 
of partnership items is at issue, but the respective tax liabilities of 
the partners may be affected by the results of the TEFRA partnership 
audit. With respect to the TEFRA partnership, contacts made with 
employees of the partnership acting within the scope of their duties or 
any partner are not section 7602(c) contacts because they are considered 
the equivalent of contacting the partnership. Contacts relating to the 
tax treatment of partnership items made with persons other than the 
employees of the partnership who are acting within the scope of their 
duties or the partners are section 7602(c) contacts with respect to the 
TEFRA partnership, and reasonable advance notice should be provided by 
sending the appropriate Letter 3164 to the partnership's tax matters 
partner (TMP). Individual partners who are merely affected by the 
partnership audit but who are not identified as subject to examination 
with respect to their individual tax liabilities need not be sent 
Letters 3164.
    Example 6(b). In the course of an audit of a TEFRA partnership at 
the partnership (entity) level, the IRS intends to contact third parties 
regarding transactions between the TEFRA partnership and specific, 
identified partners. In addition to the partnership's TMP, the specific, 
identified partners should also be provided advance notice of any third-
party contacts relating to such transactions.

    (4) Discloses the identity of the taxpayer being investigated--(i) 
Explanation. An IRS employee discloses the taxpayer's identity whenever 
the employee knows or should know that the person being contacted can 
readily ascertain the taxpayer's identity from the information given by 
the employee.
    (ii) Examples. The following examples illustrate this paragraph 
(c)(4):

    Example 1. A revenue agent seeking to value the taxpayer's 
condominium calls a real estate agent and asks for a market analysis of 
the taxpayer's condominium, giving the unit number of the taxpayer's 
condominium. The revenue agent has revealed the identity of the 
taxpayer, regardless of whether the revenue agent discloses the name of 
the taxpayer, because the real estate agent can readily ascertain the 
taxpayer's identity from the address given.
    Example 2. A revenue officer seeking to value the taxpayer's 
condominium calls a real estate agent and, without identifying the 
taxpayer's unit, asks for the sales prices of similar units recently 
sold and listing prices of similar units currently on the market. The 
revenue officer has not revealed the identity of the taxpayer because 
the revenue officer has not given any information from which the real 
estate agent can readily ascertain the taxpayer's identity.

    (5) Discloses the association of the IRS employee with the IRS. An 
IRS employee discloses his association with the IRS whenever the 
employee knows or should know that the person being contacted can 
readily ascertain the association from the information given by the 
employee.
    (d) Pre-contact notice--(1) In general. An officer or employee of 
the IRS may not make third-party contacts without providing reasonable 
notice in advance to the taxpayer that contacts may be made. The pre-
contact notice may be given either orally or in writing. If written 
notice is given, it may be given in any manner that the IRS employee 
responsible for giving the notice reasonably believes will be received 
by the taxpayer in advance of the third-party contact. Written notice is 
deemed reasonable if it is--
    (i) Mailed to the taxpayer's last known address;
    (ii) Given in person;

[[Page 578]]

    (iii) Left at the taxpayer's dwelling or usual place of business; or
    (iv) Actually received by the taxpayer.
    (2) Pre-contact notice not required. Pre-contact notice under this 
section need not be provided to a taxpayer for third-party contacts of 
which advance notice has otherwise been provided to the taxpayer 
pursuant to another statute, regulation or administrative procedure. For 
example, Collection Due Process notices sent to taxpayers pursuant to 
section 6330 and its regulations constitute reasonable advance notice 
that contacts with third parties may be made in order to effectuate a 
levy.
    (e) Post-contact reports--(1) Requested reports. A taxpayer may 
request a record of persons contacted in any manner that the 
Commissioner reasonably permits. The Commissioner may set reasonable 
limits on how frequently taxpayer requests need be honored. The 
requested report may be mailed either to the taxpayer's last known 
address or such other address as the taxpayer specifies in the request.
    (2) Contents of record--(i) In general. The record of persons 
contacted should contain information, if known to the IRS employee 
making the contact, which reasonably identifies the person contacted. 
Providing the name of the person contacted fully satisfies the 
requirements of this section, but this section does not require IRS 
employees to solicit identifying information from a person solely for 
the purpose of the post-contact report. The record need not contain any 
other information, such as the nature of the inquiry or the content of 
the third party's response. The record need not report multiple contacts 
made with the same person during a reporting period.
    (ii) Special rule for employees. For contacts with the employees, 
officers, or fiduciaries of any entity who are acting within the scope 
of their employment or relationship, it is sufficient to record the 
entity as the person contacted. A fiduciary, officer or employee shall 
be conclusively presumed to be acting within the scope of his employment 
or relationship during business hours on business premises. For purposes 
of this paragraph (e)(2)(ii), the term entity means any business 
(whether operated as a sole proprietorship, disregarded entity under 
Sec. 301.7701-2 of the regulations, or otherwise), trust, estate, 
partnership, association, company, corporation, or similar organization.
    (3) Post-contact record not required. A post-contact record under 
this section need not be made, or provided to a taxpayer, for third-
party contacts of which the taxpayer has already been given a similar 
record pursuant to another statute, regulation, or administrative 
procedure.
    (4) Examples. The following examples illustrate this paragraph (e):

    Example 1. An IRS employee trying to find a specific taxpayer's 
assets in order to collect unpaid taxes talks to the owner of a marina. 
The employee asks whether the taxpayer has a boat at the marina. The 
owner gives his name as John Doe. The employee may record the contact as 
being with John Doe and is not required by this regulation to collect or 
record any other identifying information.
    Example 2. An IRS employee trying to find a specific taxpayer and 
his assets in order to collect unpaid taxes talks to a person at 502 
Fernwood. The employee asks whether the taxpayer lives next door at 500 
Fernwood, as well as where the taxpayer works, what kind of car the 
taxpayer drives and whether the camper parked in front of 500 Fernwood 
belongs to the taxpayer. The person does not disclose his name. The 
employee may record the contact as being with a person at 502 Fernwood. 
If the employee then makes the same inquiries of another person on the 
street in front of 500 Fernwood, and does not learn that person's name, 
the latter contact may be reported as being with a person on the street 
in front of 500 Fernwood.
    Example 3. An IRS employee examining a return obtains loan documents 
from a bank where the taxpayer applied for a loan. After reviewing the 
documents, the employee talks with the loan officer at the bank who 
handled the application. The employee has contacted only one ``person 
other than the taxpayer.'' The bank and not the loan officer is the 
``person other than the taxpayer'' for section 7602(c) purposes. The 
contact with the loan officer is treated as a contact with the bank 
because the loan officer was an employee of the bank and was acting 
within the scope of her employment with the bank.
    Example 4. An IRS employee issues a summons to a third party with 
respect to the determination of a taxpayer's liability and properly 
follows the procedures for such summonses under section 7609, which 
requires that a copy of the summons be given to the taxpayer. This 
third-party contact

[[Page 579]]

need not be maintained in a record of contacts available to the taxpayer 
because providing a copy of the third-party summons to the taxpayer 
pursuant to section 7609 satisfies the post-contact recording and 
reporting requirement of this section.
    Example 5. An IRS employee serves a levy on a third party with 
respect to the collection of a taxpayer's liability. The employee 
provides the taxpayer with a copy of the notice of levy form that shows 
the identity of the third party. This third-party contact need not be 
maintained in a record of contacts available to the taxpayer because 
providing a copy of the notice of levy to the taxpayer satisfies the 
post-contact recording and reporting requirement of this section.

    (f) Exceptions. (1) Authorized by taxpayer--(i) Explanation. Section 
7602(c) does not apply to contacts authorized by the taxpayer. A contact 
is ``authorized'' within the meaning of this section if--
    (A) The contact is with the taxpayer's authorized representative, 
that is, a person who is authorized to speak or act on behalf of the 
taxpayer, such as a person holding a power of attorney, a corporate 
officer, a personal representative, an executor or executrix, or an 
attorney representing the taxpayer; or
    (B) The taxpayer or the taxpayer's authorized representative 
requests or approves the contact.
    (ii) No prevention or delay of contact. This section does not 
entitle any person to prevent or delay an IRS employee from contacting 
any individual or entity.
    (2) Jeopardy--(i) Explanation. Section 7602(c) does not apply when 
the IRS employee making a contact has good cause to believe that 
providing the taxpayer with either a general pre-contact notice or a 
record of the specific person contacted may jeopardize the collection of 
any tax. For purposes of this section only, good cause includes a 
reasonable belief that providing the notice or record will lead to--
    (A) Attempts by any person to conceal, remove, destroy, or alter 
records or assets that may be relevant to any tax examination or 
collection activity;
    (B) Attempts by any person to prevent other persons, through 
intimidation, bribery, or collusion, from communicating any information 
that may be relevant to any tax examination or collection activity; or
    (C) Attempts by any person to flee, or otherwise avoid testifying or 
producing records that may be relevant to any tax examination or 
collection activity.
    (ii) Record of contact. If the circumstances described in this 
paragraph (f)(2) exist, the IRS employee must still make a record of the 
person contacted, but the taxpayer need not be provided the record until 
it is no longer reasonable to believe that providing the record would 
cause the jeopardy described.
    (3) Reprisal--(i) In general. Section 7602(c) does not apply when 
the IRS employee making a contact has good cause to believe that 
providing the taxpayer with either a general pre-contact notice or a 
specific record of the person being contacted may cause any person to 
harm any other person in any way, whether the harm is physical, 
economic, emotional or otherwise. A statement by the person contacted 
that harm may occur against any person is sufficient to constitute good 
cause for the IRS employee to believe that reprisal may occur. The IRS 
employee is not required to further question the contacted person about 
reprisal or otherwise make further inquiries regarding the statement.
    (ii) Examples. The following examples illustrate this paragraph 
(f)(3):

    Example 1. An IRS employee seeking to collect unpaid taxes is told 
by the taxpayer that all the money in his and his brother's joint bank 
account belongs to the brother. The IRS employee contacts the brother to 
verify this information. The brother refuses to confirm or deny the 
taxpayer's statement. He states that he does not believe that reporting 
the contact to the taxpayer would result in harm to anyone but further 
states that he does not want his name reported to the taxpayer because 
it would appear that he gave information. This contact is not excepted 
from the statute merely because the brother asks that his name be left 
off the list of contacts.
    Example 2. Assume the same facts as in Example 1, except that the 
brother states that he fears harm from the taxpayer should the taxpayer 
learn of the contact, even though the brother gave no information. This 
contact is excepted from the statute because the third party has 
expressed a fear of reprisal. The IRS employee is not required to make 
further inquiry into the nature of the brothers' relationship or 
otherwise question the brother's fear of reprisal.

[[Page 580]]

    Example 3. An IRS employee is examining a joint return of a husband 
and wife, who recently divorced. From reading the court divorce file, 
the IRS employee learns that the divorce was acrimonious and that the 
ex-husband once violated a restraining order issued to protect the ex-
wife. This information provides good cause for the IRS employee to 
believe that reporting contacts which might disclose the ex-wife's 
location may cause reprisal against any person. Therefore, when the IRS 
employee contacts the ex-wife's new employer to verify salary 
information provided by the ex-wife, the IRS employee has good cause not 
to report that contact to the ex-husband, regardless of whether the new 
employer expresses concern about reprisal against it or its employees.

    (4) Pending criminal investigations--(i) IRS criminal 
investigations. Section 7602(c) does not apply to contacts made during 
an investigation, or inquiry to determine whether to open an 
investigation, when the investigation or inquiry is--
    (A) Made against a particular, identified taxpayer for the primary 
purpose of evaluating the potential for criminal prosecution of that 
taxpayer; and
    (B) Made by an IRS employee whose primary duties include either 
identifying or investigating criminal violations of the law.
    (ii) Other criminal investigations. Section 7602(c) does not apply 
to contacts which, if reported to the taxpayer, could interfere with a 
known pending criminal investigation being conducted by law enforcement 
personnel of any local, state, Federal, foreign or other governmental 
entity.
    (5) Governmental entities. Section 7602(c) does not apply to any 
contact with any office of any local, state, Federal or foreign 
governmental entity except for contacts concerning the taxpayer's 
business with the government office contacted, such as the taxpayer's 
contracts with or employment by the office. The term office includes any 
agent or contractor of the office acting in such capacity.
    (6) Confidential informants. Section 7602(c) does not apply when the 
employee making the contact has good cause to believe that providing 
either the pre-contact notice or the record of the person contacted 
would identify a confidential informant whose identity would be 
protected under section 6103(h)(4).
    (7) Nonadministrative contacts--(i) Explanation. Section 7602(c) 
does not apply to contacts made in the course of a pending court 
proceeding.
    (ii) Examples. The following examples illustrate this paragraph 
(f)(7):
    Example 1. An attorney for the Office of Chief Counsel needs to 
contact a potential witness for an upcoming Tax Court proceeding 
involving the 1997 and 1998 taxable years of the taxpayer. Section 
7602(c) does not apply because the contact is being made in the course 
of a pending court proceeding.
    Example 2. While a Tax Court case is pending with respect to a 
taxpayer's 1997 and 1998 income tax liabilities, a revenue agent is 
conducting an examination of the taxpayer's excise tax liabilities for 
the fiscal year ending 1999. Any third-party contacts made by the 
revenue agent with respect to the excise tax liabilities would be 
subject to the requirements of section 7602(c) because the Tax Court 
proceeding does not involve the excise tax liabilities.
    Example 3. A taxpayer files a Chapter 7 bankruptcy petition and 
receives a discharge. A revenue officer contacts a third party in order 
to determine whether the taxpayer has any exempt assets against which 
the IRS may take collection action to enforce its federal tax lien. At 
the time of the contact, the bankruptcy case has not been closed. 
Although the bankruptcy proceeding remains pending, the purpose of this 
contact relates to potential collection action by the IRS, a matter not 
before or related to the bankruptcy court proceeding.
    (g) Effective Date. This section is applicable on December 18, 2002.

[T.D. 9028, 67 FR 77421, Dec. 18, 2002]