[Code of Federal Regulations]
[Title 27, Volume 2]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR70.26]

[Page 233-234]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 70_PROCEDURE AND ADMINISTRATION--Table of Contents
 
        Subpart C_Discovery of Liability and Enforcement of Laws
 
Sec.  70.26  Third-party recordkeepers.

    (a) Definitions--(1) Accountant. A person is an ``accountant'' under 
26 U.S.C. 7609(a)(3)(F) for purposes of determining whether that person 
is a third-party recordkeeper if the person is registered, licensed, or 
certified under State law as an accountant.
    (2) Attorney. A person is an ``attorney'' under 26 U.S.C. 
7609(a)(3)(E) for purposes of determining whether that person is a 
third-party recordkeeper if the person is admitted to the bar of a State 
or the District of Columbia.
    (3) Credit cards--(i) Person extending credit through credit cards. 
The term ``person extending credit through credit cards or similar 
devices'' under 26 U.S.C. 7609(a)(3)(C) generally includes any person 
who issues a credit card. It does not include a seller of goods or 
services that honors credit cards issued by other parties but does not 
extend credit on the basis of credit cards or similar devices issued by 
itself.
    (ii) [Reserved]
    (iii) Similar devices to credit cards. An object is a ``similar 
device'' to a credit card under 26 U.S.C. 7609(a)(3)(C) only if it is 
physical in nature, such as a coupon book, a charge plate, or a letter 
of credit. Thus, a person who extends credit by requiring credit 
customers to sign sales slips without requiring use of physical objects 
issued by that person is not a third-party recordkeeper under 26 U.S.C. 
7609(a)(3)(C).
    (b) When third-party recordkeeper status arises. A person is a 
``third-party recordkeeper'' with respect to a given set of records only 
if the person made or kept the records in the person's capacity as a 
third-party recordkeeper. Thus, for instance, an accountant is not a 
third-party recordkeeper (by reason of being an accountant) with respect 
to the accountant's records of a sale of property by the accountant to 
another person. Similarly, a credit card issuer is not a third-party 
recordkeeper (by reason of being a person extending credit through the 
use of credit

[[Page 234]]

cards or similar devices) with respect to:
    (1) Records relating to noncredit card transactions, such as a cash 
sale by the issuer to a holder of the issuer's credit card; or
    (2) Records relating to transactions involving the use of another 
issuer's credit card.
    (c) Duty of third-party recordkeeper--(1) In General. Upon receipt 
of a summons, the third-party recordkeeper (``recordkeeper'') must begin 
to assemble the summoned records. The recordkeeper must be prepared to 
produce the summoned records on the date which the summons states the 
records are to be examined regardless of the institution or anticipated 
institution of a proceeding to quash or the recordkeeper's intervention 
(as allowed under 26 U.S.C. 7609(a)(3)(C)) into a proceeding to quash.
    (2) Disclosing recordkeepers not liable-- (i) In general. A 
recordkeeper, or an agent or employee thereof, who makes a disclosure of 
records as required by this section, in good faith reliance on the 
``Certificate of the Secretary'' (as defined in paragraph (c)(2)(ii) of 
this section) or an order of a court requiring production of records, 
will not be liable for such disclosure to any customer, or to any party 
with respect to whose tax liability the summons was issued, or to any 
other person.
    (ii) Certificate of the Secretary. The appropriate TTB officer may 
issue to the recordkeeper a ``Certificate of the Secretary'' stating 
both:
    (A) That the 20-day period, within which a notified person may 
institute a proceeding to quash the summons has expired; and
    (B) That no proceeding has been properly instituted within that 
period.

The appropriate TTB officer may also issue a ``Certificate of the 
Secretary'' to the recordkeeper if the taxpayer, with respect to whose 
tax liability the summons was issued, expressly consents to the 
examination of the records summoned.
    (3) Reimbursement of costs. Recordkeepers may be entitled to 
reimbursement of their costs of assembling and preparing to produce 
summoned records, to the extent allowed by 26 U.S.C. 7610, even if the 
summons ultimately is not enforced.

(26 U.S.C. 7609)

[T.D. ATF-301, 55 FR 47608, Nov. 14, 1990]