[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: 26CFR301.7609-2]

[Page 585-586]
 
                       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. 301.7609-2  Third-party recordkeepers.

    (a) Definitions--(1) Accountant. A person is an ``accountant'' under 
section 7609(a)(3)(F) for purposes of determining whether that person is 
a third-party recordkeeper if the person is registered, licensed, or 
certified under State law as an accountant.
    (2) Attorney. A person is an ``attorney'' under section 
7609(a)(3)(E) for purposes of determining whether that person is a 
third-party recordkeeper if the person is admitted to the bar of a 
State.
    (3) Credit cards--(i) Person extending credit through credit cards. 
The term ``person extending credit through the use of credit cards or 
similar devices'' under section 7609(a)(3)(C) generally includes any 
person who issues a credit card. It does not include a seller of goods 
or services that honors credit cards issued by other parties but does 
not extend credit on the basis of credit cards or similar devices issued 
by itself.
    (ii) Similar devices to credit cards. An object is a ``similar 
device'' to a credit card under section 7609(a)(3)(C) only if it is 
physical in nature, such as a coupon book, a charge plate, or a letter 
of credit. Thus, a person who extends credit by requiring credit 
customers to sign sales slips without requiring use of physical objects 
issued by that person is not a third-party recordkeeping under section 
7609(a)(3)(C).
    (b) When third-party recordkeeper status arises--(1) In general. A 
person is a

[[Page 586]]

``third-party recordkeeper'' with respect to a given set of records only 
if the person made or kept the records in the person's capacity as a 
third-party recordkeeper. Thus, for instance, an accountant is not a 
third-party recordkeeper (by reason of being an accountant) with respect 
to the accountant's records of a sale of property by the accountant to 
another person. Similarly, a credit card issuer is not a third-party 
recordkeeper (by reason of being a person extending credit through the 
use of credit cards or similar devices) with respect to--
    (i) Records relating to noncredit card transactions, such as a cash 
sale by the issuer to a holder of the issuer's credit card; or
    (ii) Records relating to transactions involving the use of another 
issuer's credit card.
    (2) Examples. The rules of paragraph (b)(1) of this section may be 
illustrated by the following examples:

    Example 1. V issues a credit card (the V card) that is honored by R, 
a retailer. When using the V card, C signs a sales slip in triplicate. 
C, R, and V each retain one copy. Only the copy held by V is held by a 
third-party recordkeeper under section 7609 (a)(3), even though R may 
issue its own credit card.
    Example 2. Assume the same facts as in example 1, except R does 
issue its own credit card to C (the R card). When C makes a credit 
purchase from R using the R card, C signs a sales slip in duplicate. C 
and R each retain one copy. Because R keeps the copy in its capacity as 
credit card issuer, as well as in its capacity as seller, it is a third-
party recordkeeper under section 7609 (a)(3) with respect to that copy.

    (c) Duty of third-party recordkeeper--(1) In general. Upon receipt 
of a summons, the third-party recordkeeper (``recordkeeper'') must begin 
to assemble the summoned records. The recordkeeper must be prepared to 
produce the summoned records on the date which the summons states the 
records are to be examined regardless of the institution of anticipated 
institution of a proceeding to quash or the recordkeeper's intervention 
(as allowed under section 7609(b)(2)(C)) into a proceeding to quash.
    (2) Disclosing recordkeepers not liable--(i) In general. A 
recordkeeper, or an agent or employee thereof, who makes a disclosure of 
records as required by this section, in good faith reliance on the 
certificate of the Secretary (as defined in paragraph (c)(2)(ii) of this 
section) or an order of a court requiring production of records, will 
not be liable for such disclosure to any customer, or to any party with 
respect to whose tax liability the summons was issued, or to any other 
person.
    (ii) Certificate of the Secretary. The Secretary may issue to the 
recordkeeper a certificate stating both:
    (A) That the 20-day period, within which a notified person may 
institute a proceeding to quash the summons, has expired; and
    (B) That no proceeding has been properly instituted within that 
period.

The Secretary may also issue a certificate to the recordkeeper if the 
taxpayer, with respect to whose tax liability the summons was issued, 
expressly consents to the examination of the records summoned.
    (3) Reimbursement of costs. Recordkeepers may be entitled to 
reimbursement of their costs of assembling and preparing to produce 
summoned records, to the extent allowed by section 7610, even if the 
summons ultimately is not enforced.
    (d) Effective dates. This section, with the exception of paragraph 
(c), applies generally to all summonses issued on or after March 1, 
1977. Paragraph (c) applies only to summonses served after December 31, 
1982.

(Secs. 7610(a) and 7805 of the Internal Revenue Code of 1954 (26 U.S.C. 
7610(a) and 7805))

[T.D. 7899, 48 FR 32772, July 19, 1983, as amended by T.D. 8091, 51 FR 
23054, June 25, 1986]