[Federal Register Volume 60, Number 191 (Tuesday, October 3, 1995)]
[Rules and Regulations]
[Pages 51724-51725]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24467]



=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 8621]
RIN 1545-AT21


Authority of the Secretary of Agriculture To Share Employer 
Identification Numbers Collected From Retail Food Stores and Wholesale 
Food Concerns

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

-----------------------------------------------------------------------

SUMMARY: This document contains final regulations relating to the 
authority of the Secretary of Agriculture to share employer 
identification numbers collected from retail food stores and wholesale 
food concerns with other agencies or instrumentalities of the United 
States. These regulations reflect changes to the law made by section 
316(b) of the Social Security Independence and Program Improvements Act 
of 1994 and affect retail food stores and wholesale food concerns.

DATES: These regulations are effective October 3, 1995.
    For dates of applicability, see the ``Effective Dates'' section 
under the ``SUPPLEMENTARY INFORMATION'' portion of the preamble and the 
effective date provisions of the new or revised regulations.

FOR FURTHER INFORMATION CONTACT: Robert J. Basso (202) 622-6232 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    Section 6109(f) of the Internal Revenue Code (Code) was amended by 
section 316(b) of the Social Security Independence and Program 
Improvements Act of 1994, Pub. L. 103-296. The amendments to section 
6109(f) were effective on August 15, 1994.
    On May 10, 1995, a notice of proposed rulemaking (IA-007-95) under 
section 6109(f) of the Code relating to the authority of the Secretary 
of Agriculture to share employer identification numbers collected from 
retail food stores and wholesale food concerns with other agencies or 
instrumentalities of the United States was published in the Federal 
Register (60 FR 24811). Although written comments and requests for a 
public hearing were solicited, no written or oral comments were 
received and no public hearing was requested or held. Accordingly, the 
proposed regulations under section 6109(f) are adopted by this Treasury 
decision without any revisions.

Special Analyses

    It has been determined that this Treasury decision is not a 
significant regulatory action as defined in EO 12866. Therefore, a 
regulatory assessment is not required. It has also been determined that 
section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) 
and the Regulatory Flexibility Act (5 U.S.C. chapter 6) do not apply to 
these regulations, and, therefore, a Regulatory Flexibility Analysis is 
not required. Pursuant to section 7805(f) of the Internal Revenue Code, 
the notice of proposed rulemaking preceding these regulations was 
submitted to the Small Business Administration for comment on its 
impact on small business.

Effective Dates

    These regulations are effective on February 1, 1992, except that 
any provisions relating to the sharing of information by the Secretary 
of Agriculture with any other agency or instrumentality of the United 
States are effective on August 15, 1994.

Drafting Information

    The principal author of these regulations is Robert J. Basso, 
Office of the Assistant Chief Counsel (Income Tax and Accounting), IRS. 
However, other personnel from the IRS and Treasury Department 
participated in their development.

List of Subjects in 26 CFR Part 301

    Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income 
taxes, Penalties, Reporting and recordkeeping requirements.

Adoption of Amendments to the Regulations

    Accordingly, 26 CFR part 301 is amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

    Paragraph 1. The authority citation for part 301 continues to read 
in part as follows:

    Authority: 26 U.S.C. 7805 * * *

    Par. 2. Section 301.6109-2 is amended by revising paragraphs (c) 
through (g) and adding paragraph (h) to read as follows: 

[[Page 51725]]



Sec. 301.6109-2  Authority of the Secretary of Agriculture to collect 
employer identification numbers for purposes of the Food Stamp Act of 
1977.

* * * * *
    (c) Sharing of information--(1) Sharing permitted with certain 
United States agencies and instrumentalities. The Secretary of 
Agriculture may share the information contained in the list described 
in paragraph (b) of this section with any other agency or 
instrumentality of the United States that otherwise has access to 
employer identification numbers, but only to the extent the Secretary 
of Agriculture determines sharing such information will assist in 
verifying and matching that information against information maintained 
by the other agency or instrumentality.
    (2) Restrictions on the use of shared information. The information 
shared by the Secretary of Agriculture pursuant to this section may be 
used by any other agency or instrumentality of the United States only 
for the purpose of effective administration and enforcement of the Food 
Stamp Act of 1977 or for the purpose of investigation of violations of 
other Federal laws or enforcement of those laws.
    (d) Safeguards--(1) Restrictions on access to employer 
identification numbers by individuals--(i) Numbers maintained by the 
Secretary of Agriculture. The individuals who are permitted access to 
employer identification numbers obtained pursuant to paragraph (a) of 
this section and maintained by the Secretary of Agriculture are 
officers and employees of the United States whose duties or 
responsibilities require access to such employer identification numbers 
for the purpose of effective administration or enforcement of the Food 
Stamp Act of 1977 or for the purpose of sharing the information in 
accordance with paragraph (c) of this section.
    (ii) Numbers maintained by any other agency or instrumentality. The 
individuals who are permitted access to employer identification numbers 
obtained pursuant to paragraph (c) of this section and maintained by 
any agency or instrumentality of the United States other than the 
Department of Agriculture are officers and employees of the United 
States whose duties or responsibilities require access to such employer 
identification numbers for the purpose of effective administration and 
enforcement of the Food Stamp Act of 1977 or for the purpose of 
investigation of violations of other Federal laws or enforcement of 
those laws.
    (2) Other safeguards. The Secretary of Agriculture, and the head of 
any other agency or instrumentality referred to in paragraph (c) of 
this section, must provide for any additional safeguards that the 
Secretary of the Treasury determines to be necessary or appropriate to 
protect the confidentiality of the employer identification numbers. The 
Secretary of Agriculture, and the head of any other agency or 
instrumentality referred to in paragraph (c) of this section, may also 
provide for any additional safeguards to protect the confidentiality of 
employer identification numbers, provided these safeguards are 
consistent with safeguards determined by the Secretary of the Treasury 
to be necessary or appropriate.
    (e) Confidentiality and disclosure of employer identification 
numbers. Employer identification numbers obtained pursuant to paragraph 
(a) or (c) of this section are confidential. No officer or employee of 
the United States who has or had access to any such employer 
identification number may disclose that number in any manner to an 
individual not described in paragraph (d) of this section. For purposes 
of this paragraph (e), officer or employee includes a former officer or 
employee.
    (f) Sanctions--(1) Unauthorized, willful disclosure of employer 
identification numbers. Sections 7213(a) (1), (2), and (3) apply with 
respect to the unauthorized, willful disclosure to any person of 
employer identification numbers that are maintained pursuant to this 
section by the Secretary of Agriculture, or any other agency or 
instrumentality with which information is shared pursuant to paragraph 
(c) of this section, in the same manner and to the same extent as 
sections 7213(a) (1), (2), and (3) apply with respect to unauthorized 
disclosures of returns and return information described in those 
sections.
    (2) Willful solicitation of employer identification numbers1. 
Section 7213(a)(4) applies with respect to the willful offer of any 
item of material value in exchange for any employer identification 
number maintained pursuant to this section by the Secretary of 
Agriculture, or any other agency or instrumentality with which 
information is shared pursuant to paragraph (c) of this section, in the 
same manner and to the same extent as section 7213(a)(4) applies with 
respect to offers (in exchange for any return or return information) 
described in that section.
    (g) Delegation. All references in this section to the Secretary of 
Agriculture are references to the Secretary of Agriculture or his or 
her delegate.
    (h) Effective date. Except as provided in the following sentence, 
this section is effective on February 1, 1992. Any provisions relating 
to the sharing of information by the Secretary of Agriculture with any 
other agency or instrumentality of the United States are effective on 
August 15, 1994.
Margaret Milner Richardson,
Commissioner of Internal Revenue.
    Approved: September 7, 1995.
Cynthia G. Beerbower,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 95-24467 Filed 10-2-95; 8:45 am]
BILLING CODE 4830-01-U