TAXPAYERS ALLOWED MOTION TO QUASH ALL THIRD-PARTY SUMMONSES.

SEC. 3415. TAXPAYERS ALLOWED MOTION TO QUASH ALL THIRD-PARTY SUMMONSES. (a) In General.— Paragraph (1) of section 7609(a) (relating to summonses to which section applies) is amended by striking so much of such paragraph as precedes “notice of the summons” and inserting the following: “(1) In general.— If any summons to which this section applies requires the giving of testimony on or relating to, the production of any portion of records made or kept on or relating to, or the production of any computer software source code (as defined in 7612(d)(2)) with respect to, any person (other than the person summoned) who is identified in the summons, then”. (b) Coordination With Other Authority.— Section 7609 (relating to special procedures for third-party summonses) is amended by adding at the end the following new subsection: “(j) Use of Summons Not Required.— Nothing in this section shall be construed to limit the Secretary’s ability to obtain information, other than by summons, through formal or informal procedures authorized by sections 7601 and 7602.”. (c) Conforming Amendments.— (1) Subsection (a) of section 7609 is amended by striking paragraphs (3) and (4), by redesignating paragraph (5) as paragraph (3), and by striking in paragraph (3) (as so redesignated) “subsection (c)(2)(B)” and inserting “subsection (c)(2)(D)”. (2) Subsection (c) of section 7609 is amended to read as follows: “(c) Summons to Which Section Applies.— “(1) In general.— Except as provided in paragraph (2), this section shall apply to any summons issued under paragraph (2) of section 7602(a) or under section 6420(e)(2), 6421(g)(2), 6427(j)(2), or 7612. “(2) Exceptions.— This section shall not apply to any summons— “(A) served on the person with respect to whose liability the summons is issued, or any officer or employee of such person; “(B) issued to determine whether or not records of the business transactions or affairs of an identified person have been made or kept; “(C) issued solely to determine the identity of any person having a numbered account (or similar arrangement) with a bank or other institution described in section 7603(b)(2)(A); “(D) issued in aid of the collection of— “(i) an assessment made or judgment rendered against the person with respect to whose liability the summons is issued; or112 STAT. 756 “(ii) the liability at law or in equity of any transferee or fiduciary of any person referred to in clause (i); “(E) (i) issued by a criminal investigator of the Internal Revenue Service in connection with the investigation of an offense connected with the administration or enforcement of the internal revenue laws; and “(ii) served on any person who is not a third-party recordkeeper (as defined in section 7603(b)); or “(F) described in subsection (f) or (g). “(3) Records.— For purposes of this section, the term ‘records’ includes books, papers, and other data.”. (3) Paragraph (2) of section 7609(e) is amended by striking “third-party recordkeeper’s” and all that follows through “subsection (f)” and inserting “summoned party’s response to the summons”. (4) Subsection (f) of section 7609 is amended— (A) by striking “described in subsection (c)” and inserting “described in subsection (c)(1)”; and (B) by inserting “or testimony” after “records” in paragraph (3). (5) Subsection (g) of section 7609 is amended by striking “In the case of any summons described in subsection (c), the provisions of subsections (a)(1) and (b) shall not apply if” and inserting “A summons is described in this subsection if”. (6) (A) Subsection (i) of section 7609 is amended by striking “Third-Party Recordkeeper and” in the subsection heading. (B) Paragraph (1) of section 7609(i) is amended by striking “described in subsection (c), the third-party recordkeeper” and inserting “to which this section applies for the production of records, the summoned party”. (C) Paragraph (2) of section 7609(i) is amended— (i) by striking “recordkeeper” in the heading and inserting “summoned party”; and (ii) by striking “the third-party recordkeeper” and inserting “the summoned party”. (D) Paragraph (3) of section 7609(i) is amended to read as follows: “(3) Protection for summoned party who discloses.— Any summoned party, or agent or employee thereof, making a disclosure of records or testimony pursuant to this section in good faith reliance on the certificate of the Secretary or an order of a court requiring production of records or the giving of such testimony shall not be liable to any customer or other person for such disclosure.”. (d) Effective Date.— The amendments made by this section shall apply to summonses served after the date of the enactment of this Act.