IRS Contractors and Summons Material

The IRS has clarified its rules regarding when an IRS contractor may receive material on behalf of the IRS that was produced in response to an IRS summons.

The IRS has amended its regulations so that persons with whom the IRS or Chief Counsel contracts for services may receive books, papers, records, or other data summoned by the IRS.  Those contractors may also take testimony of a person who the IRS has summoned as a witness to provide testimony under oath.

The IRS officers and employees still remain responsible for issuing summonses and conducting the examination process.  But, contractors hired by the IRS may participate in a summons interview.  Participation allowed by the IRS for these hired contractors includes, but is not limited to, receipt, review, and use of summoned books, papers, records, or other data, being present during summons interviews, questioning the person providing testimony under oath, and asking a summoned person’s representative to clarify an objection or an assertion of privilege.

Use of non-IRS employees is common when dealing with complex issues such as transfer pricing.  It helps them more efficiently process a case by allowing them to use the expertise it would not otherwise have access to if it had to exclusively use IRS employees. But the IRS clarifies that these hired contractors will be prohibited from performing essentially “governmental” type functions such as deciding whether to issue a summons, deciding whom to summon, what information must be produced or who will be required to testify, and issuing the summons.

Receiving a summons by the IRS is a serious matter.  Making sure the IRS follows the rules with regard to summons is equally important and one that can be facilitated by an attorney familiar with handling IRS summonses for taxpayers.

If you have received a summons from the IRS and need to assess your options and rights, schedule your free consultation by calling (480) 888-7111 [or submit a web request here].