[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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