PUBLIC LAW 105-206—JULY 22, 1998 112 STAT. 755 SEC. 3414. THREAT OF AUDIT PROHIBITED TO COERCE TIP REPORTING 26 USC 6053 ALTERNATIVE COMMITMENT AGREEMENTS. no^. The Secretary of the Treasury or the Secretary's delegate shall instruct employees of the Internal Revenue Service that they may not threaten to audit any taxpayer in an attempt to coerce the taxpayer into entering into a Tip Reporting Alternative Commitment Agreement. 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.— I f 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; or
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