IRS Financial Records Summons

Question:

Our bank received a Financial Records Summons (form 6639) from the IRS. The record keeper processed the request and submitted the requested items within two days of receipt of the information. Upon review of the form, a reference to Sec. 7609 'Special procedures for third-party summons' was noted. The wording in this section is very similar to the wording in the Right to Financial Privacy Act which gives the individual the opportunity to quash the summons. Should we have required a certificate verifying that the period to quash had expired prior to releasing the documentation?

Answer:

No. Theoretically, the RFPA does not apply to the IRS because it is unnecessary; the story is that the IRC contains comparable consumer protection provisions.

Both structures give the individual an opportunity to fight a request for information, but neither requires the third party record keeper to wait and see if the consumer wants to fight. In both cases, you are obligated to gather the information promptly and deliver it within the stated time frame. Between the two, only the RFPA allows you to require a certification that the government has complied with the law before you turn over the documents requested.

First published on BankersOnline.com 11/16/09