SECTION 7. RESOURCES

.01 The taxpayer must provide the Service at the time of an examination with the resources ( e.g., appropriate hardware and software, terminal access, computer time, personnel, etc.) that the District Director determines is necessary to process the taxpayer’s machine-sensible books and records. At the request of the taxpayer, the District Director may, at the District Director’s discretion:

(1) identify the taxpayer’s resources that are not necessary to process books and records;

.02 DBMS.

(1) A taxpayer has the discretion to

1998–11 I.R.B. 9 March 16, 1998

(2) allow a taxpayer to convert machine-sensible records to a different medium (e.g., from mainframe files to microcomputer diskette(s));

(3) allow the taxpayer to satisfy the processing needs of the Service during off-peak hours; and

(4) allow the taxpayer to provide the Service with third-party equipment.

.02 An ADP system must not be subject, in whole or in part, to any agreement (such as a contract or license) that would limit or restrict the Service’s access to and use of the ADP system on the taxpayer’s premises (or any other place where the ADP system is maintained), including personnel, hardware, software, files, indexes, and software documentation.