Contents

• [109.1] 2.1 Overview

• [109.1] 2.2 Preparation and Use
  • [109.1] 2.2.1 Collection
    • [109.1] 2.2.1.1 Identification of the Taxpayer

• [109.1] 2.3 Description of Summoned Party

• [109.1] 2.4 Description of Information Requested
  • [109.1] 2.4.1 Directed Toward Individual or Officer of Corporation
    • [109.1] 2.4.1.1 Employment Tax Records
    • [109.1] 2.4.1.2 Corporate Records
    • [109.1] 2.4.1.3 Individual Records
    • [109.1] 2.4.1.4 Third Party Records
    • [109.1] 2.4.1.5 Other Records

[109.1] 2.1  (04-30-1999)
Overview

1. This chapter contains the following sections:
   • Preparation and Use
   • Description of Summoned Party
   • Description of Information Requested

[109.1] 2.2  (04-30-1999)
Preparation and Use

1. Prepare the face of the summons, Form 2039, by providing all information required on the form. The Service employee who will serve the summons must complete the copy to be given to the summoned party, Form 2039A, by signing and dating the face of Form 2039A in the space provided below the attestation clause.
2. Prepare all summons to be enforceable. To be enforceable it must be prepared in sufficient detail to meet legal requirements.

Do not use abbreviations on the summons for the entry under - "Periods" . State the specific calendar years, fiscal years, quarterly or monthly periods involved.

NOTE:

Use "quarterly period ended June 30, 1996" . Do not use"9606" or "6/30/96" .

If the summons is used to secure the names, addresses, and social security numbers of customers and clients from return preparer's records, the statement should read: In the matter of the tax liability of "the clients and customers for whom you prepared federal income tax returns for the taxable periods indicated below." This is a John Doe summons subject to the requirements and restrictions of IRC 7609(f). See Chapter 7 of this Handbook entitled Special Procedures for John Doe Summonses. (However, the Service is entitled upon request to this information under IRC 6107(b)(2). The Service is not required to serve a John Doe summons to obtain it).

[109.1] 2.2.1  (04-30-1999)
Collection

1. Collection personnel should use the following Collection summonses if summoning the taxpayer.
   1. Form 6637, Collection Information Statement
   2. Form 6638, Income Tax Return
   3. Form 6639, Financial Records
2. Use Form 2039 if summoning a third party and the summons is subject to the notice requirements of IRC 7609.

   NOTE:

   Until Forms 6637, 6638, and 6639 are revised to include changes made necessary by the RRA of 1998, use Form 2039 for all third party summonses subject to the notice requirements of IRC 7609.

3. Insert the following statement in the body of Form 2039 if the summons is exempt from the notice requirements of IRC 7609. "Note-under IRC 7609, this summons is exempt from the notice requirements pertaining to third party summonses."

[109.1] 2.2.1.1  (04-30-1999)
Identification of the Taxpayer

1. State the full name and address of the taxpayer in the statement of liability. This information should be the same as shown on the Taxpayer Delinquent Account (TDA) or Taxpayer Delinquent Investigation (TDI).

[109.1] 2.3  (04-30-1999)
Description of Summoned Party

1. State in full the name and address of the summoned party. Include this information even if it duplicates the name and address in the statement of liability.
2. Add the title or official status (trustee, custodian, corporate, or public official) to the name of a summoned party required to give testimony or produce records in that capacity.

   NOTE:

   Example:

   John Smith, the president of the X Corporation, should be summoned as "John Smith, as President of X Corporation." Do not use "John Smith, President," or "John Smith." If the name of the custodian of records is not known and the Service does not need the testimony of that person, direct the summons to the corporation by listing the complete business name of the corporation as the summoned party,e.g., The XYZ Corporation or SYZ Industries, Inc. However, if the Service needs the testimony of the custodian of records and the name of that person is unknown, identify the summoned party as: Custodian of Records, XYZ Corporation.

3. Use the home or business address of the summoned party.

[109.1] 2.4  (04-30-1999)
Description of Information Requested

1. The wording used on Form 2039 should describe the desired documents with attention to detail as to the nature, ownership, and years involved.
2. The description of the information requested must meet legal requirements. Refer questions about the wording of a summons to District Counsel and in the instance of Collection, to SPf.
3. If only testimony is sought, remove the instructions in Form 2039 about the production of books, records, papers, and other data.
4. Attach a blank copy of the form to be completed when a summons is issued to secure information to complete another document. For example, for the completion of a Collection Information Statement, attach a blank Form 433.

[109.1] 2.4.1  (04-30-1999)
Directed Toward Individual or Officer of Corporation

1. The following subsections are examples of description statements for summonses directed to an individual taxpayer or to an officer of a corporate taxpayer for corporate information.

[109.1] 2.4.1.1  (04-30-1999)
Employment Tax Records

1. All payroll records of salaries or wages, advances, or drawings of the employees of the (individual, company, or corporation) which may now be in the control or possession of (witness name) for the years ending (date), or for the quarters ending (list each quarter). Also, any and all payroll records of wages, advances or drawings paid to the officers, partners, or employees of the (business entity) for the years ending (date(s)).

[109.1] 2.4.1.2  (04-30-1999)
Corporate Records

1. The following described books, records, papers, and other data of the (business entity) which may now be in the possession or control of (witness name) for the years ending (date(s)). To include:
   1. Any and all payroll records of salaries or wages paid to officers or employees, including cancelled checks and bank statements for the above-described periods.
   2. Any and all records, including, but not limited to, cancelled checks and bank statements relative to travel, entertainment, and advertising expenses for the above-described periods.

[109.1] 2.4.1.3  (04-30-1999)
Individual Records

1. All books and records, invoices, statements, and other documents pertaining to the operation of XYZ business for the period beginning (date(s)) and ending (date(s)), including but not limited to: (list).
2. All books and records and other documents pertaining to the travel expense incurred and claimed on Schedule C of your tax return for XYZ business for the years (date(s)), including but not limited to (list).

[109.1] 2.4.1.4  (04-30-1999)
Third Party Records

1. Bank Statements-All bank statements (and cancelled checks, if applicable) of the above-named taxpayer in your possession, custody, or control which reflect transaction in the (checking, savings, loan, etc.) account with the (name of bank) Bank, located at (address, branch) for the calendar years. (list year).
2. Insurance Policies-All (life, health, etc.) insurance policies currently in force in your possession, custody, or control, which are owned by the above-named taxpayer, or in regard to which the taxpayer pays the premium, or otherwise possesses an interest.

   NOTE:

   List a complete description of any known insurance policy, including name of insurance company and policy number.

3. Vehicle Registration-All current registration certificates for motor vehicles owned by or registered in the name of the above taxpayer, or in which the taxpayer has a security, lien, or other interest.
4. Deeds-Deeds to all real property in which the above-named taxpayer has, or may have, a beneficial interest or which the taxpayer may own either individually or jointly, or in which this taxpayer is named as a grantor or grantee.
5. Investment Data-All stock broker's statements and other records of the above-named taxpayer in your possession, custody, or control indicating purchase and sale of securities, dividends earned, and charges during the year(s) (list year(s)).
6. Accountant's Workpapers-Workpapers prepared in connection with the preparation of financial statements and tax returns of the above-named taxpayer for the year(s) (list year(s)) in your possession, custody, or control.
7. Collection Information Statement-All documents or records in your possession and control reflecting the assets and liabilities of the above-named taxpayer(s) including, but not limited to, the following: all bank statements, checkbooks, canceled checks, savings account passbooks and records of certificates of deposit, for (specify current year and the preceding year) regarding accounts or assets held in the name of the taxpayer(s) or held for the benefit of the taxpayer(s); all records regarding stocks and bonds; deeds or contracts regarding real property, current registration certificates for motor vehicles, and life or health insurance policies currently in force, any of which items are owned, wholly or partially, by the taxpayer(s), or in which the taxpayer(s) have a security interest, or held for the benefit of (either or both of) the taxpayer(s), so that a current Collection Information Statement may be prepared. A blank copy of such Collection Information Statement is attached hereto to guide you in the production of the necessary documents and records.

[109.1] 2.4.1.5  (04-30-1999)
Other Records

1. Individual Income Tax Returns-All books, papers, records, and other data in your possession or control reflecting the receipt of taxable income by you for the years (list year) through (list year), including but not limited to: Wage Tax statements (Forms W-2); Forms 1099 regarding interest and/or dividend income; employee earnings statements; records of deposits to bank accounts, canceled checks, and check registers for the year(s) (list year) through (list year); and any and all other books, records documents, and receipts regarding wages, salaries, tips, fees, commissions, and any other compensation for services (including the receipt of property other than money), income derived from business, gains from dealings in property, interest, rental, royalty, and dividend income, alimony, annuities, income from insurance policies and endowment contracts, pensions, income from the discharge of indebtedness, distributive shares of partnership gross income, and income from an estate of trust.

   NOTE:

   If the taxpayer has filed a return for the year(s) under investigation, do not summons documents that should be in the Service's possession,e.g. Forms W-2 and Forms 1099, unless the Service can establish that the documents are lost or cannot otherwise be retrieved.

2. Employment Tax Returns-All payroll records, cancelled checks, and check registers, records of wages paid in cash, employees' social security account numbers, employees' withholding exemption certificates for all employees, and all other books, records and papers containing information relative to wages paid during the above calendar periods by the above-named taxpayer.
3. Financial Statement-All books, papers, records and other data in your possession or control reflecting the assets and liabilities of the above-named taxpayer(s), including, but not limited to, the following: all bank statements, checkbooks, cancelled checks, savings account passbooks, and records of certificates of deposit, for the periods listed regarding accounts or assets held in the name of the taxpayer(s) or held for the benefit of that taxpayer(s); all records or documents regarding stocks and bonds, deeds or contracts regarding real property, current registration certificates for motor vehicle, and life and health insurance policies currently in force, any of which items are owned, wholly or partially, by the taxpayer(s), or in which the taxpayer(s) has a security interest, or held for the benefit of the taxpayer(s), so that a current financial statement may be prepared. A blank copy of such financial statement is attached hereto to guide you in the production of the necessary documents and records.
4. Corporate Income Tax Returns-All books, records, papers, and other data in the possession or control of the XYZ Corporation for its (calendar or fiscal) year ended (list year) and reflecting the receipt or accrual of all income and expenses of the operation of XYZ Corporation, including but not limited to: all corporate bank account records, including deposit tickets, canceled checks, debit and credit memos, statements of account, check registers, saving account passbooks, and records of certificates of deposit; all financial statements including balance sheets and income statements; all stock books and records, minutes of board of directors and shareholders meetings, and articles of incorporation and amendments thereto; all records of loans made and dividends paid to shareholders and shareholders loans to the XYZ Corporation; any and all books, records, documents, receipts, invoices, bills, canceled checks, ledgers, and journals regarding expenses or expenditures of the XYZ Corporation; and, any and all other books, records, documents, and receipts regarding income from the operation of the XYZ Corporation; compensation for goods and services, including fees and commissions, gains derived from dealing in property, interest, rentals, royalty, and dividend income, and income from the discharge of indebtedness.