[Federal Register Volume 61, Number 1 (Tuesday, January 2, 1996)]
[Rules and Regulations]
[Pages 6-8]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31459]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 602
[TD 8652]
RIN 1545-AT06
Cash Reporting by Court Clerks
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations.
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SUMMARY: This document contains final regulations concerning the
information reporting requirements of Federal and State court clerks
upon receipt of more than $10,000 in cash as bail for any individual
charged with a specified criminal offense. The final regulations
reflect changes to the law made by the Violent Crime Control and Law
Enforcement Act of 1994, and affect court clerks who receive more than
$10,000 in cash as bail.
EFFECTIVE DATE: These regulations are effective February 13, 1995.
FOR FURTHER INFORMATION CONTACT: Susie K. Bird, (202) 622-4960 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collection of information contained in these final regulations
has been reviewed and approved by the Office of Management and Budget
in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under
control number 1545-1449. Responses to this collection of information
are required to implement the statutory requirements of section
6050I(g).
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless the collection of
information displays a valid control number.
The time estimates for the reporting requirements contained in this
regulation are reflected in the burden estimates for Form 8300.
Comments concerning the accuracy of this burden estimate and
suggestions for reducing this burden should be sent to the Internal
Revenue Service, Attn: IRS Reports Clearance Officer, T:FP, Washington,
DC 20224, and to the Office of Management and Budget, Attn: Desk
Officer for the Department of the Treasury, Office of Information and
Regulatory Affairs, Washington, DC 20503.
Books and records relating to this collection of information must
be retained as long as their contents may become material in the
administration of any internal revenue law. Generally, tax returns and
tax return information are confidential, as required by 26 U.S.C. 6103.
Background
This document provides final Income Tax Regulations (26 CFR parts 1
and 602) under section 6050I(g) of the Internal Revenue Code of 1986
(Code). This provision was added by section 20415 of the Violent Crime
Control and Law Enforcement Act of 1994 (the Act) (Public Law 103-322).
On December 15, 1994, the IRS published in the Federal Register
temporary regulations (TD 8572, 59 FR 64572) with a cross-reference to
a notice of proposed rulemaking (IA-57-94, 59 FR 64635).
Written comments responding to the notice were received. No public
hearing was requested or held. After consideration of all comments, the
proposed regulations are adopted as revised by this Treasury decision,
and the corresponding temporary regulations are removed.
Explanation of Revisions and Summary of Comments
Under the temporary and proposed regulations, reporting may be
required when more than $10,000 in cash is received as bail by a clerk
of a Federal or State court. The temporary and proposed regulations
provide that a clerk is the clerk's office or the office, department,
division, branch, or unit of the court that is authorized to receive
bail. One commentator suggested that the regulations clarify whether
reporting under section 6050I(g) is required by a clerk if an entity
that is not a part of the court receives bail. In some jurisdictions,
for example, a sheriff receives bail. The final regulations provide
that if someone other than a clerk receives bail on behalf of a clerk,
the clerk is treated as receiving the bail. Thus, the clerk must make
the return of information if the other requirements of section 6050I(g)
are satisfied.
Under the temporary and proposed regulations, a statement must be
sent to each payor of bail reporting certain information, including the
``aggregate amount of reportable cash received during the calendar year
by the clerk who made the information return required by [section
6050I(g)] in all cash transactions relating to the payor of bail.'' The
temporary and proposed regulations reflect the statutory requirement in
section 6050I(g)(5)(B) that clerks provide the aggregate amount of
reportable cash. A commentator asked whether separately reported
amounts satisfy this aggregate amount requirement. The final
regulations clarify that the aggregate amount requirement can be
satisfied either by sending a single written statement with an
aggregate amount listed or by furnishing a copy of each Form 8300
relating to that payor of bail.
In addition, the final regulations clarify that, if multiple
payments are made to satisfy bail reportable under this section and the
initial payment does not exceed $10,000, the initial payment and
subsequent payments must be aggregated and the information return
required by section 6050I(g) must be filed by the 15th day after
receipt of the payment that causes the aggregate amount to exceed
$10,000. However, payments made to satisfy separate bail requirements
are not required to be aggregated.
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 Chief Counsel for Advocacy of the Small Business
Administration for comment on their impact on small businesses.
Drafting Information
The principal author of these regulations is Susie K. Bird, Office
of Assistant Chief Counsel (Income Tax and Accounting). However, other
personnel from the IRS and Treasury Department participated in their
development.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
26 CFR Part 602
Reporting and recordkeeping requirements.
[[Page 7]]
Adoption of Amendments to the Regulations
Accordingly, 26 CFR parts 1 and 602 are amended as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation for part 1 is amended by
removing the entry for Sec. 1.6050I-2T and adding an entry in numerical
order to read as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.6050I-2 also issued under 26 U.S.C. 6050I. * * *
Secs. 1.6050I-0T and 1.6050I-2T [Removed]
Par. 2. Sections 1.6050I-0T and 1.6050I-2T are removed.
Par. 3. Sections 1.6050I-0 and 1.6050I-2 are added to read as
follows:
Sec. 1.6050I-0 Table of contents.
This section lists the major captions that appear in Secs. 1.6050I-
1 and 1.6050I-2.
Sec. 1.6050I-1 Returns relating to cash in excess of $10,000
received in a trade or business.
(a) Reporting requirement.
(1) In general.
(2) Cash received for the account of another.
(3) Cash received by agents.
(i) General rule.
(ii) Exception.
(iii) Example.
(b) Multiple payments.
(1) Initial payment in excess of $10,000.
(2) Initial payment of $10,000 or less.
(3) Subsequent payments.
(4) Example.
(c) Meaning of terms.
(1) Cash.
(i) Amounts received prior to February 3, 1992.
(ii) Amounts received on or after February 3, 1992.
(iii) Designated reporting transaction.
(iv) Exception for certain loans.
(v) Exception for certain installment sales.
(vi) Exception for certain down payment plans.
(vii) Examples.
(2) Consumer durable.
(3) Collectible.
(4) Travel or entertainment activity.
(5) Retail sale.
(6) Trade or business.
(7) Transaction.
(8) Recipient.
(d) Exceptions to the reporting requirements of section 6050I.
(1) Receipt of cash by certain financial institutions.
(2) Receipt of cash by certain casinos having gross annual
gaming revenue in excess of $1,000,000.
(i) In general.
(ii) Casinos exempt under 31 CFR 103.45(c).
(iii) Reporting of cash received in a nongaming business.
(iv) Example.
(3) Receipt of cash not in the course of the recipient's trade
or business.
(4) Receipt is made with respect to a foreign cash transaction.
(i) In general.
(ii) Example.
(e) Time, manner, and form of reporting.
(1) Time of reporting.
(2) Form of reporting.
(3) Manner of reporting.
(i) Where to file.
(ii) Verification.
(iii) Retention of returns.
(f) Requirement of furnishing statements.
(1) In general.
(2) Form of statement.
(3) When statement is to be furnished.
(g) Cross-reference to penalty provisions.
(1) Failure to file correct information return.
(2) Failure to furnish correct statement.
(3) Criminal penalties.
Sec. 1.6050I-2 Returns relating to cash in excess of $10,000
received as bail by court clerks.
(a) Reporting requirement.
(b) Meaning of terms.
(c) Time, form, and manner of reporting.
(1) Time of reporting.
(i) In general.
(ii) Multiple payments.
(2) Form of reporting.
(3) Manner of reporting.
(i) Where to file.
(ii) Verification of identity.
(d) Requirement to furnish statements.
(1) Information to Federal prosecutors.
(i) In general.
(ii) Form of statement.
(2) Information to payors of bail.
(i) In general.
(ii) Form of statement.
(iii) Aggregate amount.
(e) Cross-reference to penalty provisions.
(f) Effective date.
Sec. 1.6050I-2 Returns relating to cash in excess of $10,000 received
as bail by court clerks.
(a) Reporting requirement. Any clerk of a Federal or State court
who receives more than $10,000 in cash as bail for any individual
charged with a specified criminal offense must make a return of
information with respect to that cash receipt. For purposes of this
section, a clerk is the clerk's office or the office, department,
division, branch, or unit of the court that is authorized to receive
bail. If someone other than a clerk receives bail on behalf of a clerk,
the clerk is treated as receiving the bail for purposes of this
paragraph (a).
(b) Meaning of terms. The following definitions apply for purposes
of this section--
Cash means--
(1) The coin and currency of the United States, or of any other
country, that circulate in and are customarily used and accepted as
money in the country in which issued; and
(2) A cashier's check (by whatever name called, including
treasurer's check and bank check), bank draft, traveler's check, or
money order having a face amount of not more than $10,000.
Specified criminal offense means--
(1) A Federal criminal offense involving a controlled substance (as
defined in section 802 of title 21 of the United States Code), provided
the offense is described in Part D of Subchapter I or Subchapter II of
title 21 of the United States Code;
(2) Racketeering (as defined in section 1951, 1952, or 1955 of
title 18 of the United States Code);
(3) Money laundering (as defined in section 1956 or 1957 of title
18 of the United States Code); and
(4) Any State criminal offense substantially similar to an offense
described in this paragraph (b).
(c) Time, form, and manner of reporting--(1) Time of reporting--(i)
In general. The information return required by this section must be
filed with the Internal Revenue Service by the 15th day after the date
the cash bail is received.
(ii) Multiple payments. If multiple payments are made to satisfy
bail reportable under this section and the initial payment does not
exceed $10,000, the initial payment and subsequent payments must be
aggregated and the information return required by this section must be
filed with the Internal Revenue Service by the 15th day after receipt
of the payment that causes the aggregate amount to exceed $10,000.
However, if payments are made to satisfy separate bail requirements, no
aggregation is required. Thus, if in Month 1 a clerk receives $6,000 in
bail for an individual charged with a specified criminal offense and
later, in Month 2, receives $7,000 in bail for that same individual
charged with another specified criminal offense, no aggregation is
required.
(2) Form of reporting. The return of information required by
paragraph (a) of this section must be made on Form 8300 and must
contain the following information--
(i) The name, address, and taxpayer identification number (TIN) of
the individual charged with the specified criminal offense;
(ii) The name, address, and TIN of each person posting the bail
(payor of bail), other than a person posting bail who is licensed as a
bail bondsman in the jurisdiction in which the bail is received;
(iii) The amount of cash received;
(iv) The date the cash was received; and
[[Page 8]]
(v) Any other information required by Form 8300 or its
instructions.
(3) Manner of reporting--(i) Where to file. Returns required by
this section must be filed with the Internal Revenue Service office
designated in the instructions for Form 8300. A copy of the information
return required to be filed under this section must be retained for
five years from the date of filing.
(ii) Verification of identity. A clerk required to make an
information return under this section must, in accordance with
Sec. 1.6050I-1(e)(3)(ii), verify the identity of each payor of bail
listed in the return.
(d) Requirement to furnish statements--(1) Information to Federal
prosecutors--(i) In general. A clerk required to make an information
return under this section must furnish a written statement to the
United States Attorney for the jurisdiction in which the individual
charged with the specified crime resides and the United States Attorney
for the jurisdiction in which the specified criminal offense occurred
(applicable United States Attorney(s)). The written statement must be
filed with the applicable United States Attorney(s) by the 15th day
after the date the cash bail is received.
(ii) Form of statement. The written statement must include the
information required by paragraph (c)(2) of this section. The
requirement of this paragraph (d)(1)(ii) will be satisfied if the clerk
provides to the applicable United States Attorney(s) a copy of the Form
8300 that is filed with the Internal Revenue Service pursuant to this
section.
(2) Information to payors of bail--(i) In general. A clerk required
to make an information return under this section must furnish a written
statement to each payor of bail whose name is set forth in a return
required by this section. A statement required under this paragraph
(d)(2) must be furnished to a payor of bail on or before January 31 of
the year following the calendar year in which the cash is received. A
statement will be considered furnished to a payor of bail if it is
mailed to the payor's last known address.
(ii) Form of statement. The statement required by this paragraph
(d)(2) need not follow any particular format, but must contain the
following information--
(A) The name and address of the clerk's office making the return;
(B) The aggregate amount of reportable cash received during the
calendar year by the clerk who made the information return required by
this section in all cash transactions relating to the payor of bail;
and
(C) A legend stating that the information contained in the
statement has been reported to the Internal Revenue Service and the
applicable United States Attorney(s).
(iii) Aggregate amount. The requirement of furnishing the aggregate
amount in paragraph (d)(2)(ii)(B) of this section will be satisfied if
the clerk provides to the payor of bail either a single written
statement listing the aggregate amount, or a copy of each Form 8300
relating to that payor of bail.
(e) Cross-reference to penalty provisions. See sections 6721
through 6724 for penalties relating to the failure to comply with the
provisions of this section.
(f) Effective date. This section applies to cash received by court
clerks on or after February 13, 1995.
PART 602--OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT
Par. 4. The authority citation for part 602 continues to read as
follows:
Authority: 26 U.S.C. 7805.
Sec. 602.101 [Amended]
Par. 5. In Sec. 602.101, paragraph (c) is amended by removing the
entry ``1.6050I-2T'' from the table and adding the entry ``1.6050I-2
......1545-1449'' in numerical order in the table.
Margaret Milner Richardson,
Commissioner of Internal Revenue.
Approved: December 12, 1995.
Leslie Samuels,
Assistant Secretary of the Treasury.
[FR Doc. 95-31459 Filed 12-29-95; 8:45 am]
BILLING CODE 4830-01-U