On Friday, Oct. 23, FEI and 11 other business groups sent a letter to the Internal Revenue Service (IRS) to provide comments on temporary and proposed regulations under section 7602 of the Internal Revenue Code. The proposed regulations would allow the IRS to hire personnel outside of the IRS, including outside counsel, to perform certain examination functions, such as receiving and examining books, papers, records, or other data produced in compliance with a summons, and participating fully in the interview of a witness summoned by the IRS to provide testimony under oath.
The letter argues that the proposed regulations are inconsistent with the plain language of section 7602 because they delegate the authority to perform certain examination functions outside of the IRS and place confidential taxpayer information unnecessarily at risk of unauthorized disclosure in violation of section 6103 of the Code. The letter also expresses concern that the temporary regulations were not issued in accordance with the Administrative Procedures Act. For the reasons discussed in the letter, FEI and the other signatories request that the IRS withdraw the proposed and temporary regulations.
To view the letter, click here.