LIMITATION ON FINANCIAL STATUS AUDIT TECHNIQUES.

SEC. 3412. LIMITATION ON FINANCIAL STATUS AUDIT TECHNIQUES. Section 7602 (relating to examination of books and witnesses) is amended by adding at the end the following new subsection: “(d) Limitation on Examination on Unreported Income.— The Secretary shall not use financial status or economic reality examination techniques to determine the existence of unreported income of any taxpayer unless the Secretary has a reasonable indication that there is a likelihood of such unreported income.”.