Restriction on Second Inspection of Books

IRC §7605(b)

The IRS is generally restricted to only one inspection of a taxpayer's books of account for each taxable year. Taxpayers can use this to prevent repetitive or harassing audits unless the IRS provides formal written notice that an additional inspection is necessary.

Eligibility

Applies to any taxpayer currently under examination or who has already completed an inspection of books for a specific tax year.

Frequently Asked Questions

Who is eligible for the Restriction on Second Inspection of Books?

Applies to any taxpayer currently under examination or who has already completed an inspection of books for a specific tax year.

How does the Restriction on Second Inspection of Books work?

The IRS is generally restricted to only one inspection of a taxpayer's books of account for each taxable year. Taxpayers can use this to prevent repetitive or harassing audits unless the IRS provides formal written notice that an additional inspection is necessary.

What law authorizes the Restriction on Second Inspection of Books?

The Restriction on Second Inspection of Books is authorized under IRC §7605(b) of the Internal Revenue Code (Title 26, United States Code).

Statutory Text — IRC §7605

Source: Internal Revenue Code, Title 26, United States Code

§ 7605. Time and place of examination(a) Time and placeThe time and place of examination pursuant to the provisions of section 6420(e)(2), 6421(g)(2), 6427(j)(2), or 7602 shall be such time and place as may be fixed by the Secretary and as are reasonable under the circumstances. In the case of a summons under authority of paragraph (2) of section 7602, or under the corresponding authority of section 6420(e)(2), 6421(g)(2), or 6427(j)(2), the date fixed for appearance before the Secretary shall not be less than 10 days from the date of the summons. (b) Restrictions on examination of taxpayerNo taxpayer shall be subjected to unnecessary examination or investigations, and only one inspection of a taxpayer’s books of account shall be made for each taxable year unless the taxpayer requests otherwise or unless the Secretary, after investigation, notifies the taxpayer in writing that an additional inspection is necessary. (c) Cross referenceFor provisions restricting church tax inquiries and examinations, see section 7611. (Aug. 16, 1954, ch. 736, 68A Stat. 902; Apr. 2, 1956, ch. 160, § 4(i), 70 Stat. 91; June 29, 1956, ch. 462, title II, § 208(d)(4), 70 Stat. 396; Pub. L. 89–44, title II, § 202(c)(4), June 21, 1965, 79 Stat. 139; Pub. L. 91–172, title I, § 121(f), Dec. 30, 1969, 83 Stat. 548; Pub. L. 91–258, title II, § 207(d)(9), May 21, 1970, 84 Stat. 249; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 94–530, § 1(c)(6), Oct. 17, 1976, 90 Stat. 2488; Pub. L. 95–599, title V, § 505(c)(5), Nov. 6, 1978, 92 Stat. 2760; Pub. L. 96–223, title II, § 232(d)(4)(E), Apr. 2, 1980, 94 Stat. 278; Pub. L. 97–424, title V, § 515(b)(12), Jan. 6, 1983, 96 Stat. 2182; Pub. L. 98–369, div. A, title IX, § 911(d)(2)(G), title X, § 1033(c)(1), July 18, 1984, 98 Stat. 1007, 1039; Pub. L. 99–514, title XVII, § 1703(e)(2)(G), Oct. 22, 1986, 100 Stat. 2778; Pub. L. 100–647, title I, § 1017(c)(9), (12), Nov. 10, 1988, 102 Stat. 3576, 3577.)

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Legal Sources

US Code (Official) — 26 USC §7605 → Cornell Law Institute — 26 USC §7605 → Search IRS.gov for IRC §7605(b) → Treasury Regulations (26 CFR) →

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