SERVICE ANNOUNCES GUIDELINES FOR TAXPAYER RECORDINGS OF INTERVIEWS WITH IRS.

Notice 89-51

This notice provides guidance with respect to the definition of a "taxpayer interview" and procedures for audio recording by taxpayers of taxpayer interviews, as authorized by section 7520 of the Internal Revenue Code. Section 7520 was enacted by the Technical and Miscellaneous Revenue Act of 1988 (TAMRA), Public Law 100-647, as part of the Omnibus Taxpayer Bill of Rights, and is effective for taxpayer interviews conducted after February 9, 1989. Pursuant to section 7520, regulations are to be issued in 1989 to provide guidance with respect to "time and place of examination" as provided in section 7605(a).

Section 520(a) of the Code provides that any officer or employee of the Internal Revenue Service, in connection with any in-person interview with any taxpayer relating to the determination or collection of any tax, shall, upon the advance request of such taxpayer, allow the taxpayer to make an audio recording of such interview at the taxpayer's own expense and with the taxpayer's own equipment. This section also provides for recording by Service personnel if the taxpayer is notified prior to the interview. The Service must provide the taxpayer with a transcript or copy of such recording upon request, but only if the taxpayer provides reimbursement for the cost of the transcript and reproduction of such transcript or copy.

In the case of an in-person interview relating to the determination or collection of any tax, section 7520(b)(1) of the Code provides that an employee of the Service must provide the taxpayer with an explanation of the audit process or the collection process, and the taxpayer's rights thereunder, prior to or at the initial interview.

Section 7520(b)(2) of the Code provides that if the taxpayer clearly states to an officer or employee of the Service at any time during any interview (other than an interview initiated by an administrative summons) that he or she wishes to consult with an attorney, certified public accountant, enrolled agent, enrolled actuary, or any other person permitted to represent the taxpayer before the Service, then such officer or employee must suspend the interview regardless of whether the taxpayer has answered one or more questions up to that point.

For purposes of section 7520 of the Code, the term "taxpayer interview" means a meeting between an officer or employee of the Examination function, the Employee Plans and Exempt Organization function, or the Collection function of the Service, and a taxpayer or authorized representative, as defined in section 7520(b)(2), when the determination or the collection of any tax is at issue.

PROCEDURES FOR AUDIO RECORDINGS OF TAXPAYER INTERVIEWS DURING EXAMINATION AND COLLECTION PROCEEDINGS:

(1) Requests by taxpayers or their authorized representatives to make audio recordings of examination or collection proceedings, will be approved by the Service official or employee conducting the interview under the following conditions:

(a) the taxpayer or authorized representative supplies the recording equipment;

(b) the Service may produce its own recording of the proceedings;

(c) the recording takes place in a suitable location, ordinarily in an Internal Revenue Service office where equipment is available to produce the Service's recording; and

(d) All participants in the proceeding other than Service personnel must consent to the making of the audio recording and all participants must identify themselves and their roles in the proceeding.

(2) Requests by taxpayers or authorized representatives to make audio recordings of examination proceedings or collection proceedings must be addressed to the officer or employee of the Service who is conducting the interview and must be received by the Service no later than 10 calendar days prior to the interview that is to be recorded. If 10 calendar days' advance notice of intent to record is not given, the Service may, in its discretion, conduct the interview as scheduled or set a new date.

(3) When the Service intends to record a taxpayer interview that is part of an examination or collection proceeding, it will so inform the taxpayer or authorized representative no later than 10 calendar days prior to the interview that is to be recorded. This requirement does not apply where the taxpayer has already submitted a request to make a recording and the Service is merely seeking to make its own recording.

(4) Requests by taxpayers or their authorized representatives for a copy or transcript of an audio recording produced by the Service must be addressed to the official or representative conducting the interview and must be received by the Service no later than 30 calendar days after the date of the recording. However, the Service will attempt to accommodate requests received at a later date. All requests must be accompanied by payment of the costs of duplication or transcription.

(5) At the outset of the recording, the official or employee conducting an examination or meeting that is to be recorded will identify himself or herself, the date, the time, the place, and the purpose of the proceeding.

(6) When written records are presented or discussed during the proceeding, they must be described in sufficient detail to make the audio recording a meaningful record when matched with the other documentation contained in the case file.

(7) At the conclusion of the proceeding, the Service official or employee will state that the proceeding has been completed and that the recording is ended.

LEGAL EFFECT: This document serves as an "administrative pronouncement" as that term is described in section 1.6661-3(b)(2) of the Income Tax Regulations and may be relied upon to the same extent as a revenue ruling or revenue procedure.

DRAFTING INFORMATION:

The principal author of this notice is Marcia F. Rachy of the Office of Assistant Chief Counsel (Income Tax and Accounting). For further information regarding this notice, contact Marcia F. Rachy on (202) 566-3886 (not a toll-free call).