[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: 26CFR301.7609-5]

[Page 588-589]
 
                       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. 301.7609-5  Suspension of statutes of limitations.

    (a) Agent, nominee, etc. Under section 7609(e), statutes of 
limitations are suspended if a notified person with respect to whose 
liability a summons is issued, or the notified person's agent, nominee, 
or other person acting under the direction or control of the notified 
person, takes any action as provided in section 7609(b). A person is a 
notified person's agent, nominee, or other person acting under the 
direction or control of a notified person for purposes of section 
7609(e) if the person with respect to whose liability the summons is 
issued has the ability in fact or at law to cause the agent, etc., to 
take the actions permitted under section 7609(b). Thus, in the case of a 
corporation, direction or control by the notified person may exist even 
though less than 50 percent of the voting power of the corporation is 
held by the notified person.
    (b) Period during which a proceeding, etc., is pending. Under 
section 7609(e), the statute of limitations may be suspended for the 
period during which a proceeding, and appeals therein, with respect to 
the enforcement of such summons is pending. This period begins on the 
date the petition to quash the summons is filed in district court. The 
period continues until all appeals are disposed of, or until the 
expiration of the period in which an appeal may be taken or a request 
for a rehearing may be made. Full compliance, partial compliance, and 
noncompliance have no effect on the suspension provisions. Of course, if 
the notified person takes no action provided in subsection (b) of 
section 7609, no suspension of the statutes of limitations takes place. 
The periods of limitations which are suspended under section 7609(e) are 
those which apply to the taxable periods to which the summons relates.
    (c) Taking of action as provided in section 7609(b). Section 7609(b) 
allows intervention by a notified person as a matter of right upon 
compliance with the Federal Rules of Civil Procedure. The phrase ``takes 
any action as provided in subsection (b)'', found in section 7609(e), 
includes any intervention, whether or not section 7609(b) is 
specifically mentioned in the order of the court allowing intervention. 
The phrase also includes the fulfilling of only part of the requirements 
of section 7609(b)(2), relating to the right of a person to institute a 
proceeding to quash. Thus, for instance, if a notified person notifies a 
person who has been summoned by sending a copy of the petition by 
registered or certified mail

[[Page 589]]

but does not mail a copy of that notice to the appropriate person and 
office under section 7609(b)(2)(B), the notified person has taken an 
action under section 7609(e).
    (d) Effective dates. This section applies to summonses served after 
December 31, 1982. For the rules applicable to summonses issued on or 
after March 1, 1977, and before January 1, 1983, see 26 CFR 301.7609-5 
(revised as of April 1, 1984).

(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 32773, July 19, 1983, as amended by T.D. 8091, 51 FR 
23055, June 25, 1986]