[Federal Register Volume 61, Number 104 (Wednesday, May 29, 1996)]
[Rules and Regulations]
[Pages 26788-26792]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-13397]



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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 301 and 602

[TD 8671]
RIN 1545-AS83


Taxpayer Identifying Numbers (TINs)

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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SUMMARY: This document contains final regulations relating to 
requirements for furnishing a taxpayer identifying number on returns, 
statements, or other documents. These regulations set forth procedures 
for requesting a taxpayer identifying number for certain alien 
individuals for whom a social security number is not available. These 
numbers are called ``IRS individual taxpayer identification numbers.'' 
These regulations also require foreign persons to furnish a taxpayer 
identifying number on their tax returns.

DATES: These regulations are effective May 29, 1996.
    For dates of applicability of these regulations, see Sec. 301.6109-
1(h).

FOR FURTHER INFORMATION CONTACT: Lilo A. Hester, (202) 874-1490 (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 1545-1461.
    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 estimated annual burden for the collection of information 
contained in Sec. 301.6109-1(d) is reflected in the burden of Form W-7.
    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, PC: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 or 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

    On June 8, 1995, the IRS published in the Federal Register (60 FR 
30211) the withdrawal of the notice of proposed rulemaking published in 
the Federal Register on September 27, 1990 at 55 FR 39427, a notice of 
proposed rulemaking, and a notice of public hearing relating to 
taxpayer identifying numbers as contained in the Income Tax Regulations 
(26 CFR part 301) under section 6109 of the Internal Revenue Code 
(Code).
    Written comments responding to the notice of proposed rulemaking 
were received, and a public hearing was held on September 28, 1995. 
After consideration of all the comments, the proposed regulations under 
6109 of the Code are adopted as revised by this Treasury decision. The 
comments and revisions are discussed below.

Explanation of Provisions and Revisions

A. Principal Changes

    Section 6109 of the Code generally provides that, when required by 
regulations, a person must furnish a taxpayer identifying number (TIN) 
for securing proper identification of that person on any return, 
statement, or other document made under the Code. The notice of 
proposed rulemaking contains two principal changes to the existing 
regulations. The first change is the introduction of a new IRS-issued 
TIN, called an IRS individual taxpayer identification number (ITIN), 
for use by alien individuals, whether resident or nonresident, who 
currently do not have, and are not eligible to obtain, social security 
numbers. The Social Security Administration generally limits its 
assignment of social security numbers to individuals who are U.S. 
citizens and alien individuals legally admitted to the United States 
for permanent residence or under other immigration categories which 
authorize U.S. employment. Therefore, this change is designed to help 
taxpayers (who need a TIN but cannot qualify for a social security 
number) maintain compliance with TIN requirements under the Code and 
regulations.
    The second change is to modify the existing rule set forth in 
Sec. 301.6109-1(g) that currently excludes from the general requirement 
of providing a TIN, foreign persons that do not have either (1) income 
effectively connected with the conduct of a U.S. trade or business or 
(2) a U.S. office or place of business or a U.S. fiscal or paying 
agent. Under these regulations, the exclusion is modified to require 
that any foreign person who makes a return of tax (i.e., income, gift, 
and estate tax returns, amended returns, or refund claims, but 
excluding information returns) furnish its TIN on that return. This 
change is intended to address the IRS' and Treasury's concern that, 
without TINs, taxpayers cannot be identified efficiently and tax 
returns cannot be processed effectively.

B. Comments

    Regarding the assignment of ITINs under Sec. 301.6109-1(d)(3)(iii) 
of the proposed regulations, commentators suggested that the IRS 
develop a process whereby either (1) the Social Security Administration 
(SSA) issues the ITIN when the individual is not eligible for a social 
security number, or (2) the Immigration and Naturalization Service 
(INS) (within the Department of Justice) and the U.S. consulate offices 
(within the Department of State) issue the ITIN

[[Page 26789]]

when issuing a U.S. visa. These suggestions were not adopted. The IRS 
is the most appropriate federal agency to assign the ITIN because the 
number is intended for tax use only. Having the IRS as the sole issuer 
of ITINs will facilitate the general public's acceptance of the fact 
that the assignment of an ITIN creates no inference regarding the 
immigration status of an alien individual or the right of that 
individual to be legally employed in the United States. Over the past 
few years, the IRS has had extensive discussions with the SSA, the INS, 
and the State Department regarding the IRS' development of a new 
numbering system. These agencies concur that the IRS is the appropriate 
initiator of a numbering system dedicated solely for tax purposes, and 
have expressed a willingness to support the IRS' efforts to develop the 
system, to disseminate information about obtaining an ITIN, and to 
otherwise facilitate IRS' assignment of the ITINs.
    Regarding the IRS' solicitation of comments and suggestions 
regarding the type of documents that could be accepted to verify 
reliably a taxpayer's identity and foreign status, the commentators 
suggested passports and immigration documentation. This suggestion is 
already included partially in the proposed regulations which state that 
examples of acceptable documentary evidence may include items such as 
``passport, driver's license, birth certificate, identity card or U.S. 
visa.'' However, the proposed regulations use the term U.S. visa rather 
than the term immigration documentation. The term immigration 
documentation is broader in scope than the term U.S. visa, and 
encompasses various identifying documents (including a U.S. visa) 
required by U.S. immigration laws to support an alien's request for 
entry, and entry, into the United States. As such, Sec. 301.6109-
1(d)(3)(iii) of the final regulations has been revised to substitute 
the term immigration documentation for the term U.S. visa.
    Regarding the role of acceptance agents under Sec. 301.6109-
1(d)(3)(iv) of proposed regulations, some commentators suggested that 
acceptance agents should only be required to provide the necessary 
forms to the ITIN applicant and to forward the completed forms, 
together with copies of required documentation, to the IRS in order to 
avoid being held responsible for applicant's errors or being considered 
as the applicant's tax advisor. The adoption of this suggestion was not 
necessary because, under the proposed regulations, the precise role of 
an acceptance agent is a matter to be decided by written agreement 
between the particular person and the IRS. Under an agreement with the 
IRS, an acceptance agent could act as a conduit of information between 
the IRS and the applicant as suggested by the commentators or could 
take a more active role in the process by assuming responsibility for 
reviewing the required documentation and providing the necessary 
representations to the IRS for the issuance of a number. In the latter 
case, the acceptance agent would generally not be required to furnish 
any underlying documentation to the IRS, except as part of a 
verification process by which the IRS may periodically verify the 
agent's compliance with the agreement. Even in that case, the 
acceptance agent would not be considered a tax return preparer for 
purposes of section 7216 if it acted within the terms of the agreement 
with the IRS. In addition, under this agreement, an acceptance agent 
would not be responsible for an ITIN applicant's errors as long as the 
acceptance agent exercises due diligence under the agreement. The IRS 
is preparing further guidance on acceptance agent agreements.
    The rule proposed in Sec. 301.6109-1(b)(2)(iv) that would require 
foreign persons to furnish a TIN when making a return of tax has been 
restated to clarify that making a return of tax includes filing an 
amended return or a claim for refund. In addition, regarding this rule, 
commentators asked whether Form SS-4, Application for Employer 
Identification Number, is a return of tax for this purpose. For 
purposes of this rule, a return of tax includes income, estate, and 
gift tax returns, amended returns, or refund claims but excludes 
information returns, statements or other documents. Form SS-4 is a 
statement or document but not a return of tax; therefore, the foreign 
persons described in Sec. 301.6109-1(b)(2)(iv) of the proposed 
regulations are not required to obtain an ITIN in order to sign a Form 
SS-4. For example, a foreign individual signing Form SS-4 as a 
principal officer of a corporation need not obtain an ITIN for the sole 
purpose of signing the form. See for comparison, however, 
Sec. 301.6109-1(d)(4)(ii) regarding the requirement to furnish a 
previously-issued ITIN on Form SS-4 when a foreign individual is 
required to obtain an employer identification number for such 
individual's own business purposes. No further clarification is needed 
in these regulations.
    Regarding the proposed regulations becoming effective for any 
return, statement, or other document filed after December 31, 1995, 
commentators suggested that the effective date be delayed. This 
suggestion was adopted. Accordingly, the final regulations are 
generally effective on the date of publication in the Federal Register, 
except that the requirement for an estate to obtain an employer 
identification number applies on and after January 1, 1984, and the 
requirement for a foreign person as described in Sec. 301.6109-
1(b)(2)(iv) to furnish a TIN on a tax return is effective for tax 
returns filed after December 31, 1996. The IRS will begin accepting 
applications for ITINs (Form W-7) on or after July 1, 1996.

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 also has 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 final regulations has 
been submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on its impact on small business.

Drafting Information

    The principal author of these regulations is Lilo A. Hester of the 
Office of Associate Chief Counsel (International), IRS. However, other 
personnel from the IRS and Treasury Department participated in their 
development.

List of Subjects

26 CFR Part 301

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

26 CFR Part 602

    Reporting and recordkeeping requirements.

Adoption of Amendments to the Regulations

    Accordingly, 26 CFR parts 301 and 602 are amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

    Paragraph 1. The authority citation for part 301 is amended by 
adding an entry in numerical order to read in part as follows:


[[Page 26790]]


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

    Section 301.6109-1 also issued under 26 U.S.C. 6109 (a), (c), and 
(d). * * *
    Par. 2. Section Sec. 301.6109-1 is amended as follows:
    1. Paragraphs (a)(1), (b), (c), and (d)(2) are revised.
    2. Paragraphs (d)(3) and (4) are added.
    3. Paragraphs (f), (g), and (h) are revised.
    The revisions and additions read as follows:


Sec. 301.6109-1   Identifying numbers.

    (a) In general--(1) Taxpayer identifying numbers--(i) Types. There 
are generally three types of taxpayer identifying numbers: social 
security numbers, Internal Revenue Service (IRS) individual taxpayer 
identification numbers, and employer identification numbers. Social 
security numbers take the form 000-00-0000, IRS individual taxpayer 
identification numbers take the form 000-00-0000 but begin with a 
specific number designated by the IRS, and employer identification 
numbers take the form 00-0000000. Both social security numbers and IRS 
individual taxpayer identification numbers identify individual persons. 
For the definition of social security number and employer 
identification number, see Secs. 301.7701-11 and 301.7701-12, 
respectively. For the definition of IRS individual taxpayer 
identification number, see paragraph (d)(3) of this section.
    (ii) Uses. Except as otherwise provided in applicable regulations 
under this title or on a return, statement, or other document, and 
related instructions, taxpayer identifying numbers must be used as 
follows:
    (A) Except as otherwise provided in paragraphs (a)(1)(ii) (B) and 
(D) of this section, an individual required to furnish a taxpayer 
identifying number must use a social security number.
    (B) Except as otherwise provided in paragraph (a)(1)(ii)(D) of this 
section, an individual required to furnish a taxpayer identifying 
number but who is not eligible to obtain a social security number, must 
use an IRS individual taxpayer identification number.
    (C) Any person other than an individual (such as corporations, 
partnerships, nonprofit associations, trusts, estates, and similar 
nonindividual persons) that is required to furnish a taxpayer 
identifying number must use an employer identification number.
    (D) An individual, whether U.S. or foreign, who is an employer or 
who is engaged in a trade or business as a sole proprietor should use 
an employer identification number as required by returns, statements, 
or other documents and their related instructions.
* * * * *
    (b) Requirement to furnish one's own number--(1) U.S. persons. 
Every U.S. person who makes under this title a return, statement, or 
other document must furnish its own taxpayer identifying number as 
required by the forms and the accompanying instructions. A U.S. person 
whose number must be included on a document filed by another person 
must give the taxpayer identifying number so required to the other 
person on request. For penalties for failure to supply taxpayer 
identifying numbers, see sections 6721 through 6724. For provisions 
dealing specifically with the duty of employees with respect to their 
social security numbers, see Sec. 31.6011(b)-2 (a) and (b) of this 
chapter (Employment Tax Regulations). For provisions dealing 
specifically with the duty of employers with respect to employer 
identification numbers, see Sec. 31.6011(b)-1 of this chapter 
(Employment Tax Regulations).
    (2) Foreign persons. The provisions of paragraph (b)(1) of this 
section regarding the furnishing of one's own number shall apply to the 
following foreign persons--
    (i) A foreign person that has income effectively connected with the 
conduct of a U.S. trade or business at any time during the taxable 
year;
    (ii) A foreign person that has a U.S. office or place of business 
or a U.S. fiscal or paying agent at any time during the taxable year;
    (iii) A nonresident alien treated as a resident under section 
6013(g) or (h); and
    (iv) Any other foreign person who, with respect to taxes imposed 
under this title (including income, estate, and gift taxes), makes a 
return of tax, an amended return, or a refund claim, but excluding 
information returns, statements, or documents.
    (c) Requirement to furnish another's number. Every person required 
under this title to make a return, statement, or other document must 
furnish such taxpayer identifying numbers of other U.S. persons and 
foreign persons that are described in paragraph (b)(2)(i), (ii), or 
(iii) of this section as required by the forms and the accompanying 
instructions. If the person making the return, statement, or other 
document does not know the taxpayer identifying number of the other 
person, such person must request the other person's number. A request 
should state that the identifying number is required to be furnished 
under authority of law. When the person making the return, statement, 
or other document does not know the number of the other person, and has 
complied with the request provision of this paragraph, such person must 
sign an affidavit on the transmittal document forwarding such returns, 
statements, or other documents to the Internal Revenue Service, so 
stating. A person required to file a taxpayer identifying number shall 
correct any errors in such filing when such person's attention has been 
drawn to them.
    (d) * * *
    (2) Employer identification number. Any person required to furnish 
an employer identification number must apply for one, if not done so 
previously, on Form SS-4. A Form SS-4 may be obtained from any office 
of the Internal Revenue Service, U.S. consular office abroad, or from 
an acceptance agent described in paragraph (d)(3)(iv) of this section. 
The person must make such application far enough in advance of the 
first required use of the employer identification number to permit 
issuance of the number in time for compliance with such requirement. 
The form, together with any supplementary statement, must be prepared 
and filed in accordance with the form, accompanying instructions, and 
relevant regulations, and must set forth fully and clearly the 
requested data.
    (3) IRS individual taxpayer identification number-- (i) Definition. 
The term IRS individual taxpayer identification number means a taxpayer 
identifying number issued to an alien individual by the Internal 
Revenue Service, upon application, for use in connection with filing 
requirements under this title. The term IRS individual taxpayer 
identification number does not refer to a social security number or an 
account number for use in employment for wages. For purposes of this 
section, the term alien individual means an individual who is not a 
citizen or national of the United States.
    (ii) General rule for obtaining number. Any individual who is not 
eligible to obtain a social security number and is required to furnish 
a taxpayer identifying number must apply for an IRS individual taxpayer 
identification number on Form W-7, Application for IRS Individual 
Taxpayer Identification Number, or such other form as may be prescribed 
by the Internal Revenue Service. Form W-7 may be obtained from any 
office of the Internal Revenue Service, U.S. consular office abroad, or 
any acceptance agent described in paragraph (d)(3)(iv) of this section. 
The individual shall furnish the information required by the form and 
accompanying instructions, including the individual's

[[Page 26791]]

name, address, foreign tax identification number (if any), and specific 
reason for obtaining an IRS individual taxpayer identification number. 
The individual must make such application far enough in advance of the 
first required use of the IRS individual taxpayer identification number 
to permit issuance of the number in time for compliance with such 
requirement. The application form, together with any supplementary 
statement and documentation, must be prepared and filed in accordance 
with the form, accompanying instructions, and relevant regulations, and 
must set forth fully and clearly the requested data.
    (iii) General rule for assigning number. Under procedures issued by 
the Internal Revenue Service, an IRS individual taxpayer identification 
number will be assigned to an individual upon the basis of information 
reported on Form W-7 (or such other form as may be prescribed by the 
Internal Revenue Service) and any such accompanying documentation that 
may be required by the Internal Revenue Service. An applicant for an 
IRS individual taxpayer identification number must submit such 
documentary evidence as the Internal Revenue Service may prescribe in 
order to establish alien status and identity. Examples of acceptable 
documentary evidence for this purpose may include items such as an 
original (or a certified copy of the original) passport, driver's 
license, birth certificate, identity card, or immigration 
documentation.
    (iv) Acceptance agents--(A) Agreements with acceptance agents. A 
person described in paragraph (d)(3)(iv)(B) of this section will be 
accepted by the Internal Revenue Service to act as an acceptance agent 
for purposes of the regulations under this section upon entering into 
an agreement with the Internal Revenue Service, under which the 
acceptance agent will be authorized to act on behalf of taxpayers 
seeking to obtain a taxpayer identifying number from the Internal 
Revenue Service. The agreement must contain such terms and conditions 
as are necessary to insure proper administration of the process by 
which the Internal Revenue Service issues taxpayer identifying numbers 
to foreign persons, including proof of their identity and foreign 
status. In particular, the agreement may contain--
    (1) Procedures for providing Form SS-4 and Form W-7, or such other 
necessary form to applicants for obtaining a taxpayer identifying 
number; application form together with a certification that the 
acceptance agent has reviewed the required documentation and that it 
has no actual knowledge or reason to know that the documentation is not 
complete or accurate;
    (2) Procedures for providing assistance to applicants in completing 
the application form or completing it for them;
    (3) Procedures for collecting, reviewing, and maintaining, in the 
normal course of business, a record of the required documentation for 
assignment of a taxpayer identifying number;
    (4) Procedures for submitting the application form and required 
documentation to the Internal Revenue Service, or if permitted under 
the agreement, submitting the application form together with a 
certification that the acceptance agent has reviewed the required 
documentation and that it has no actual knowledge or reason to know 
that the documentation is not complete or accurate;
    (5) Procedures for assisting taxpayers with notification procedures 
described in paragraph (g)(2) of this section in the event of change of 
foreign status;
    (6) Procedures for making all documentation or other records 
furnished by persons applying for a taxpayer identifying number 
promptly available for review by the Internal Revenue Service, upon 
request; and
    (7) Provisions that the agreement may be terminated in the event of 
a material failure to comply with the agreement, including failure to 
exercise due diligence under the agreement.
    (B) Persons who may be acceptance agents. An acceptance agent may 
include any financial institution as defined in section 265(b)(5) or 
Sec. 1.165-12(c)(1)(v) of this chapter, any college or university that 
is an educational organization as defined in Sec. 1.501(c)(3)-
1(d)(3)(i) of this chapter, any federal agency as defined in section 
6402(f) or any other person or categories of persons that may be 
authorized by regulations or Internal Revenue Service procedures. A 
person described in this paragraph (d)(3)(iv)(B) that seeks to qualify 
as an acceptance agent must have an employer identification number for 
use in any communication with the Internal Revenue Service. In 
addition, it must establish to the satisfaction of the Internal Revenue 
Service that it has adequate resources and procedures in place to 
comply with the terms of the agreement described in paragraph 
(d)(3)(iv)(A) of this section.
    (4) Coordination of taxpayer identifying numbers--(i) Social 
security number. Any individual who is duly assigned a social security 
number or who is entitled to a social security number will not be 
issued an IRS individual taxpayer identification number. The individual 
can use the social security number for all tax purposes under this 
title, even though the individual is, or later becomes, a nonresident 
alien individual. Further, any individual who has an application 
pending with the Social Security Administration will be issued an IRS 
individual taxpayer identification number only after the Social 
Security Administration has notified the individual that a social 
security number cannot be issued. Any alien individual duly issued an 
IRS individual taxpayer identification number who later becomes a U.S. 
citizen, or an alien lawfully permitted to enter the United States 
either for permanent residence or under authority of law permitting 
U.S. employment, will be required to obtain a social security number. 
Any individual who has an IRS individual taxpayer identification number 
and a social security number, due to the circumstances described in the 
preceding sentence, must notify the Internal Revenue Service of the 
acquisition of the social security number and must use the newly-issued 
social security number as the taxpayer identifying number on all future 
returns, statements, or other documents filed under this title.
    (ii) Employer identification number. Any individual with both a 
social security number (or an IRS individual taxpayer identification 
number) and an employer identification number may use the social 
security number (or the IRS individual taxpayer identification number) 
for individual taxes, and the employer identification number for 
business taxes as required by returns, statements, and other documents 
and their related instructions. Any alien individual duly assigned an 
IRS individual taxpayer identification number who also is required to 
obtain an employer identification number must furnish the previously-
assigned IRS individual taxpayer identification number to the Internal 
Revenue Service on Form SS-4 at the time of application for the 
employer identification number. Similarly, where an alien individual 
has an employer identification number and is required to obtain an IRS 
individual taxpayer identification number, the individual must furnish 
the previously-assigned employer identification number to the Internal 
Revenue Service on Form W-7, or such other form as may be prescribed by 
the Internal Revenue Service, at the time of

[[Page 26792]]

application for the IRS individual taxpayer identification number.
* * * * *
    (f) Penalty. For penalties for failure to supply taxpayer 
identifying numbers, see sections 6721 through 6724.
    (g) Special rules for taxpayer identifying numbers issued to 
foreign persons--(1) General rule--(i) Social security number. A social 
security number is generally identified in the records and database of 
the Internal Revenue Service as a number belonging to a U.S. citizen or 
resident alien individual. A person may establish a different status 
for the number by providing proof of foreign status with the Internal 
Revenue Service under such procedures as the Internal Revenue Service 
shall prescribe, including the use of a form as the Internal Revenue 
Service may specify. Upon accepting an individual as a nonresident 
alien individual, the Internal Revenue Service will assign this status 
to the individual's social security number.
    (ii) Employer identification number. An employer identification 
number is generally identified in the records and database of the 
Internal Revenue Service as a number belonging to a U.S. person. 
However, the Internal Revenue Service may establish a separate class of 
employer identification numbers solely dedicated to foreign persons 
which will be identified as such in the records and database of the 
Internal Revenue Service. A person may establish a different status for 
the number either at the time of application or subsequently by 
providing proof of U.S. or foreign status with the Internal Revenue 
Service under such procedures as the Internal Revenue Service shall 
prescribe, including the use of a form as the Internal Revenue Service 
may specify. The Internal Revenue Service may require a person to apply 
for the type of employer identification number that reflects the status 
of that person as a U.S. or foreign person.
    (iii) IRS individual taxpayer identification number. An IRS 
individual taxpayer identification number is generally identified in 
the records and database of the Internal Revenue Service as a number 
belonging to a nonresident alien individual. If the Internal Revenue 
Service determines at the time of application or subsequently, that an 
individual is not a nonresident alien individual, the Internal Revenue 
Service may require that the individual apply for a social security 
number. If a social security number is not available, the Internal 
Revenue Service may accept that the individual use an IRS individual 
taxpayer identification number, which the Internal Revenue Service will 
identify as a number belonging to a U.S. resident alien.
    (2) Change of foreign status. Once a taxpayer identifying number is 
identified in the records and database of the Internal Revenue Service 
as a number belonging to a U.S. or foreign person, the status of the 
number is permanent until the circumstances of the taxpayer change. A 
taxpayer whose status changes (for example, a nonresident alien 
individual with a social security number becomes a U.S. resident alien) 
must notify the Internal Revenue Service of the change of status under 
such procedures as the Internal Revenue Service shall prescribe, 
including the use of a form as the Internal Revenue Service may 
specify.
    (3) Waiver of prohibition to disclose taxpayer information when 
acceptance agent acts. As part of its request for an IRS individual 
taxpayer identification number or submission of proof of foreign status 
with respect to any taxpayer identifying number, where the foreign 
person acts through an acceptance agent, the foreign person will agree 
to waive the limitations in section 6103 regarding the disclosure of 
certain taxpayer information. However, the waiver will apply only for 
purposes of permitting the Internal Revenue Service and the acceptance 
agent to communicate with each other regarding matters related to the 
assignment of a taxpayer identifying number and change of foreign 
status.
    (h) Effective date--(1) General rule. Except as otherwise provided 
in this paragraph (h), the provisions of this section are generally 
effective for information that must be furnished after April 15, 1974. 
However, the provisions relating to IRS individual taxpayer 
identification numbers apply after May 29, 1996. An application for an 
IRS individual taxpayer identification number (Form W-7) may be filed 
at any time on or after July 1, 1996.
    (2) Special rules--(i) Employer identification number of an estate. 
The requirement under paragraph (a)(1)(ii)(C) of this section that an 
estate obtain an employer identification number applies on and after 
January 1, 1984.
    (ii) Taxpayer identifying numbers of certain foreign persons. The 
requirement under paragraph (b)(2)(iv) of this section that certain 
foreign persons furnish a TIN on a return of tax is effective for tax 
returns filed after December 31, 1996.

PART 602--OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT

    Par. 3. The authority for part 602 continues to read as follows:

    Authority: 26 U.S.C. 7805.

    Par. 4. In Sec. 602.101, the table in paragraph (c) is amended by 
revising the entry for 301.6109-1 to read as follows:

301.6109-1 ................................................    1545-0003
                                                               1545-0295
                                                               1545-0367
                                                               1545-0387
                                                               1545-0957
                                                               1545-1461
                                                                        

Margaret Milner Richardson,
Commissioner of Internal Revenue.
    Approved: May 20, 1996
Leslie Samuels,
Assistant Secretary of the Treasury.
[FR Doc. 96-13397 Filed 5-28-96; 8:45 am]
BILLING CODE 4830-01-U