[Federal Register Volume 61, Number 240 (Thursday, December 12, 1996)]
[Rules and Regulations]
[Pages 65319-65321]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-31363]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 301

[TD 8689]
RIN 1545-AT23


Methods of Signing

AGENCY: Internal Revenue Service (IRS), Treasury.


[[Page 65320]]


ACTION: Final and temporary regulations.

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SUMMARY: This document contains regulations relating to the methods of 
signing returns, statements, or other documents. The final regulations 
clarify that the IRS may prescribe a method other than pen and ink for 
signing any return, statement, or other document. This clarification 
will facilitate the IRS' implementation of paperless filings.

EFFECTIVE DATE: These regulations are effective on December 12, 1996.

FOR FURTHER INFORMATION CONTACT: Celia Gabrysh (202) 622-4940 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    This document contains amendments to the Income Tax Regulations (26 
CFR part 1) and the Procedure and Administration Regulations (26 CFR 
part 301) that relate to signing returns, statements, and other 
documents. Section 6061 provides in part that ``* * * any return, 
statement, or other document required to be made under any provision of 
the internal revenue laws or regulations shall be signed in accordance 
with forms or regulations prescribed by the Secretary.'' Traditionally, 
the IRS has accepted pen-to-paper signatures. The IRS will prescribe 
additional methods of signing to be used for electronically filed 
returns and other documents.
    The final regulations clarify that the IRS may prescribe the 
specific method of signing any return, statement, or other document. 
The final regulations also provide that the IRS may require a return 
preparer to use a method of signing other than a pen-to-paper signature 
or a facsimile signature stamp when signing a return, statement, or 
other document.
    On July 21, 1995, temporary regulations (TD 8603) relating to the 
signing of returns, statements, and other documents were published in 
the Federal Register (60 FR 37589). A notice of proposed rulemaking 
(IA-10-95) cross-referencing the temporary regulations was published in 
the Federal Register for the same day (60 FR 37621).
    One comment responding to this notice was received. A public 
hearing was held on November 2, 1995. After consideration of the 
comment, the proposed regulations under sections 6061 and 6695 are 
adopted without change by this Treasury decision, and the corresponding 
temporary regulations are removed. The comment is discussed below.

Summary of Comments

    The commentator suggested that the IRS prescribe by regulation any 
new method of signing any return, statement, or other document to allow 
the public to comment on the method's feasibility. Also, the 
commentator suggested that a regulation would constitute substantial 
authority and would provide broader public exposure.
    The final regulations did not adopt the commentator's suggestion. 
The final regulations retain the full range of options for prescribing 
new methods of signing: forms, instructions, or other appropriate 
guidance. The final regulations provide the IRS with the flexibility to 
address the particular circumstances of any method of signing. The IRS 
will continue to inform the public about methods of signing.

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 regulations was 
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 Celia Gabrysh, Office of Assistant Chief Counsel (Income Tax & 
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 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 parts 1 and 301 are amended as follows:

PART 1--INCOME TAXES

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

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

    Par. 2. Section 1.6695-1 is amended by revising the first sentence 
of paragraph (b)(1) to read as follows:


Sec. 1.6695-1  Other assessable penalties with respect to the 
preparation of income tax returns for other persons.

* * * * *
    (b) * * * (1) Unless the Secretary has prescribed another method of 
signing pursuant to Sec. 301.6061-1(b) of this chapter on or after July 
21, 1995, an individual who is an income tax return preparer with 
respect to a return of tax under subtitle A of the Internal Revenue 
Code (Code) or claim for refund of tax under subtitle A of the Code 
shall manually sign the return or claim for refund (which may be a 
photocopy) in the appropriate space provided on the return or claim for 
refund after it is completed and before it is presented to the taxpayer 
(or nontaxable entity) for signature. * * *
* * * * *


Sec. 1.6695-1T  [Removed]

    Par. 3. Section 1.6695-1T is removed.

PART 301--PROCEDURE AND ADMINISTRATION

    Par. 4. The authority citation for part 301 is amended by removing 
the entry for section 301.6061-1T and adding an entry in numerical 
order to read as follows:

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

    Section 301.6061-1 also issued under 26 U.S.C. 6061; * * *

    Par. 5. Section 301.6061-1 is revised to read as follows:


Sec. 301.6061-1  Signing of returns and other documents.

    (a) In general. For provisions concerning the signing of returns 
and other documents, see the regulations relating to the particular 
tax.
    (b) Method of signing. The Secretary may prescribe in forms, 
instructions, or other appropriate guidance the method of signing any 
return, statement, or other document required to be made under any 
provision of the internal revenue laws or regulations.
    (c) Effective dates. The rule in paragraph (a) is effective 
December 12, 1996. The rule in paragraph (b) is effective on July 21, 
1995.


Sec. 301.6061-1T  [Removed]

    Par. 6. Section 301.6061-1T is removed.

[[Page 65321]]

    Approved: November 1, 1996.
Margaret Milner Richardson,
Commissioner of Internal Revenue.
Donald C. Lubick,


Acting Assistant Secretary of the Treasury.

[FR Doc. 96-31363 Filed 12-11-96; 8:45 am]
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