[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: 26CFR301.7610-1]

[Page 589-591]
 
                       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. 301.7610-1  Fees and costs for witnesses.

    (a) Introduction. Section 7610 provides that the Internal Revenue 
Service may make payments to certain persons who are asked to give 
information to the Service. Under section 7610 witnesses generally will 
not be reimbursed for actual expenses incurred but instead will be paid 
in accordance with the payment rates established by regulations. 
Paragraph (b) of this section contains elaborations of certain terms 
found in section 7610 and definitions of other terms used in the 
regulations under section 7610(a)(b); and paragraphs (c) and (d) contain 
rules and rates applicable to payments under section 7610. Section 7610 
and its regulations are effective for summonses issued after February 
28, 1977, except as otherwise provided.
    (b) Definitions--(1) Directly incurred costs. Directly incurred 
costs are costs incurred solely, immediately, and necessarily as a 
consequence of searching for, reproducing, or transporting records in 
order to comply with a summons. They do not include a proportionate 
allocation of fixed costs, such as overhead, equipment depreciation, 
etc. However, where a third party's records are stored at an independent 
storage facility that charges the third party a search fee to search 
for, reproduce, or transport particular records requested, these fees 
are considered to be directly incurred by the summoned third party.
    (2) Reproduction cost. Reproduction costs are costs incurred in 
making copies or duplicates of summoned documents, transcripts, and 
other similar material.
    (3) Search costs. Search costs include only the total-cost of 
personnel time directly incurred in searching for records or information 
and the cost of retrieving information stored by computer. Salaries of 
persons locating and retrieving summoned material are not includible in 
search costs. Also, search costs do not include salaries, fees, or 
similar expenditures for analysis of material or for managerial or legal 
advice, expertise, or research, or time spent for these activities.
    (4) Third party. A third party is any person served with a summons, 
other than a person with respect to whose liability a summons is issued, 
or an officer, employee, agent, accountant, or attorney of that person.
    (5) Third party records. Third party records are books, papers, 
records, or other data in which the person with respect to whose 
liability a summons is issued does not have a proprietary interest at 
the time the summons is served.
    (6) Transportation costs. Transportation costs include only costs 
incurred to transport personnel to search for records or information 
requested and costs incurred solely by the need to transport the 
summoned material to the place of examination. These costs do not 
include the cost of transporting the summoned witness for appearance at 
the place of examination. See paragraph (c)(2) of this section for 
payment of travel expenses.
    (c) Conditions and rates of payments--(1) Basis for payment. Payment 
for search, reproduction, and transportation costs will be made only to 
third parties served with a summons to produce third party records or 
information and only for material requested by the summons. Payment will 
be made only for these costs that are both directly incurred and 
reasonably necessary. Search, reproduction, and transportation costs 
must be considered separately in determining whether costs are 
reasonably necessary. No payment will be made until the third party has 
satisfactorily complied with the summons and has submitted an

[[Page 590]]

itemized bill or invoice showing specific details concerning the costs 
to the Internal Revenue Service employee before whom the third party was 
summoned. If a third party charges any other person for any cost for 
which the third party is seeking payment from the Service, the amount 
charged to the other person must be subtracted from the amount the 
Internal Revenue Service must pay.
    (2) Payment rates. The following rates are established.
    (i) Search costs. (A) For the total amount of personnel time 
required to locate records or information, $8.50 per person hour for 
summonses issued after July 19, 1983. For summonses issued on or before 
such date, $5.00 per person hour.
    (B) For retrieval of information stored by computer in the format in 
which it is normally produced, actual costs, based on computer time and 
necessary supplies, except that personnel time for computer search is 
payable only under subparagraph (2)(i)(A) of this paragraph.
    (ii) Reproductions costs. (A) For copies of documents $.20 per page 
for summonses issued after July 19, 1983. For copies of documents issued 
on or before such date, $.10 per page.
    (B) For photographers, films and other materials, actual cost, 
except that personnel time is payable only under subparagraph (2)(i)(A) 
of this paragraph.
    (iii) Transportation costs. For transportation costs, actual cost, 
except that personnel time is payable only under subparagraph (2)(i)(A) 
of this paragraph.
    (d) Appearance fees and allowances--(1) In general. Under section 
7610(a)(1) and this paragraph, the Service shall pay a summoned person 
certain fees and allowances. No payments will be made until after the 
party summoned appears and has submitted any necessary receipts or other 
evidence of costs to the Service employee before whom the person was 
summoned. This paragraph is effective with respect to appearances made 
after October 26, 1978.
    (2) Attendance fees. A summoned person shall be paid an attendance 
fee for each day's attendance. A summoned person shall also be paid the 
attendance fee for the time necessarily occupied in going to and 
returning from the place of attendance at the beginning and end of the 
attendance or at any time during the attendance. The attendance fee is 
the higher of $30 per day or the amount paid under 28 U.S.C. 1821(b) to 
witnesses in attendance at courts of the United States at the time of 
the summoned person's appearance.
    (3) Travel allowances. A summoned person who travels by common 
carrier shall be paid for the actual expenses of travel on the basis of 
the means of transportation reasonably utilized and the distance 
necessarily traveled to and from the summoned person's residence by the 
shortest pratical route in going to and returning from the place of 
attendance. Such a summoned person shall utilize a common carrier at the 
most economical rate reasonably available. A receipt or other evidence 
of actual cost shall be furnished. A travel allowance equal to the 
mileage allowance which the Administrator of General Services has 
prescribed, under 5 U.S.C. 5704, for offical travel of employees of the 
Federal Government shall be paid to each summoned person who travels by 
privately owned vehicle. That rate is $.20 per mile as of April 20, 
1980. Computation of mileage under this paragraph shall be made on the 
basis of a uniform table of distances adopted by the Administrator of 
General Services. Toll charges for toll roads, bridges, tunnels, and 
ferries, taxicab fares between places of lodging and carrier terminals, 
and parking fees (upon presentation of a valid parking receipt) shall be 
paid in full to a summoned person incurring those expenses.
    (4) Subsistence allowances. A subsistence allowance shall be paid to 
a summoned person (other than a summoned person who is incarcerated) 
when an overnight stay is required at the place of attendance because 
the place is so far removed from the residence of the summoned person as 
to prohibit return thereto from day to day. A subsistence allowance for 
a summoned person shall be paid in an amount not to exceed the maximum 
per diem allowance prescribed by the Administrator of General Services, 
under 5 U.S.C. 5702(a), for official travel in the area of attendance

[[Page 591]]

by employees of the Federal Government. As of April 30, 1979, that 
maximum per diem allowance is $35 per day. A subsistence allowance for a 
summoned person attending in an area designated by the Administrator of 
General Services as a high-cost area shall be paid in an amount not to 
exceed the maximum actual subsistence allowance prescribed by the 
Administrator, under 5, U.S.C. 5702(c)(B), for official travel in that 
area by employees of the Federal Goverment. As of April 30, 1979, 
maximum rates of up to $50 per day have been prescribed by the 
Administrator for certain areas. An alien who has been paroled into the 
United States for prosecution, under section 212 (d)(5) of the 
Immigration and Nationality Act (8 U.S.C. 1182(d)(5)), or an alien who 
either has admitted belonging to a class of aliens who are deportable or 
has been determined under section 242(b) of that Act (8 U.S.C. 1252(b)) 
to be deportable, shall be ineligible to receive the fees or allowances 
provided for under section 7610(a)(1).

(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; 48 FR 36449, Aug. 11, 1983]