[Federal Register Volume 59, Number 47 (Thursday, March 10, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4382]


[[Page Unknown]]

[Federal Register: March 10, 1994]


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DEPARTMENT OF DEFENSE
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 4 and 52

[FAC 90-20; FAR Case 91-52; Item I]
RIN 9000-AF09

 

Federal Acquisition Regulation; Section 6050M of the Tax Reform 
Act of 1986

AGENCIES: Department of Defense (DOD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Interim rule adopted as final.

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SUMMARY: This adopts as final, with one change, the interim rule 
published at 57 FR 44259, September 24, 1992, as Item I of FAC 90-13. 
That rule amended the coverage ``Information Reporting to the Internal 
Revenue Service (IRS),'' of the Federal Acquisition Regulation (FAR), 
to ensure the collection and reporting of the Taxpayer Identification 
Number (TIN) of certain contract modifications occurring on or after 
April 1, 1990, when the initial contract was entered into before 
January 1, 1989. In addition, the coverage has been rearranged for 
clarification and the provision entitled ``Taxpayer Identification'' 
has been revised to update a reference. When the IRS issued its final 
regulations implementing section 6050M of the Tax Reform Act of 1986 
(Public Law 99-514), the reporting requirements included the 
requirement to report certain modifications to contracts that were 
awarded before January 1, 1989. The Office of Federal Procurement 
Policy (OFPP) requested that the Civilian Agency Acquisition Council 
and the Defense Acquisition Regulations Council consider revising the 
FAR accordingly. The rule is being adopted as a final rule with one 
change. The approved change is to the provision entitled ``Taxpayer 
Identification'' and consists of replacing the previous 20 percent 
figure with a 31 percent figure as a result of an amendment to 26 
U.S.C. 3406(a)(1).

EFFECTIVE DATE: March 10, 1994.

FOR FURTHER INFORMATION CONTACT:
Ms. Linda Klein at (202) 501-3775 in reference to this FAR case. For 
general information, contact the FAR Secretariat, room 4037, GS 
Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-20, 
FAR case 91-52.

SUPPLEMENTARY INFORMATION:

A. Background

    Section 6050M of title 26, United States Code, requires heads of 
Federal executive agencies to report certain contract information to 
the IRS. The information returns filed under section 6050M are used as 
a source of information to collect delinquent Federal tax liabilities 
of persons who enter into contracts with Federal executive agencies.
    On December 6, 1989, the IRS published regulations that implemented 
section 6050M of the Tax Reform Act of 1986 (Pub. L. 99-514). The 
regulations apply to Federal executive agencies' contracts entered into 
on or after January 1, 1989, except that, with respect to a basic or 
initial contract entered into before January 1, 1989, the regulations 
do not apply to an increase contract action treated as a new contract 
if the increase occurred before April 1, 1990, or if the increase is 
not in excess of $50,000. The information required to be reported for 
contract actions over $25,000 includes name, address, and TIN of the 
Contractor, name and TIN of the common parent (if any); date of the 
contract action; amount obligated on the contract; and duration of the 
contract.
    The OFPP requested that the FAR be revised to ensure that agency 
reporting requirements include the requirement to report certain 
modifications to contracts that were awarded before January 1, 1989. 
Interim rule coverage was published on September 24, 1992, with a 
request for comment. One response (a ``no comment'') was received. 
However, one change was made to paragraph (b) of 52.204-3, Taxpayer 
Identification, as a result of an amendment to 26 U.S.C. 3406(a)(1).

B. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not have a significant economic impact on a substantial 
number of small entities under the Regulatory Flexibility Act, 5 U.S.C. 
601, et seq., because all taxpayers are required to have a TIN, and 
this rule merely requests that contractors provide that number for 
certain contract modifications.
    This rule was published as an interim rule with a request for 
comments (see 57 FR 44259, September 24, 1992), and no comments were 
received regarding the Regulatory Flexibility Act statement.

C. Paperwork Reduction Act

    The Paperwork Reduction Act (Pub. L. 96-511) applies because the 
final rule increases the existing burden. Accordingly, a request for 
approval of a revised information collection requirement concerning OMB 
Control Number 9000-0097, Information Reporting to the Internal Revenue 
Service (IRS) (Taxpayer Identification Number) was submitted to the 
Office of Management and Budget (OMB) under 44 U.S.C. 3501, et seq., 
and was published in the Federal Register on October 16, 1992. OMB 
approved the collection through December 31, 1995.

List of Subjects in 48 CFR Parts 4 and 52

    Government procurement.

    Dated: February 15, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.

Interim Rule Adopted as Final With One Change

    Accordingly, the interim rule amending 48 CFR parts 4 and 52, which 
was published at 57 FR 44259 on September 24, 1992, is adopted as a 
final rule with the following change:

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

    1. The authority citation for 48 CFR parts 4 and 52 continues to 
read as follows:

    Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).


52.204-3  [Amended]

    Section 52.204-3 is amended in the last sentence of paragraph (b) 
by removing the figure ``20'' and inserting ``31'' in its place.

[FR Doc. 94-4382 Filed 3-9-94; 8:45 am]
BILLING CODE 6820-34-M