[Federal Register Volume 62, Number 198 (Tuesday, October 14, 1997)]
[Proposed Rules]
[Pages 53274-53275]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-26859]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG-252936-96]
RIN 1545-AU85


Rewards for Information Relating to Violations of Internal 
Revenue Laws

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

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SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations relating to 
rewards for information that relates to violations of the internal 
revenue laws. The text of the temporary regulations also serves as the 
text of these proposed regulations.

DATES: Written comments and requests for a public hearing must be 
received by January 12, 1998.

ADDRESSES: Send submissions to: CC:DOM:CORP:T:R (REG-252936-96), room 
5228, Internal Revenue Service, POB 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may also be hand delivered between 
the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:T:R (REG-252936-96), 
Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue 
N.W., Washington, DC. Alternatively, taxpayers may submit comments 
electronically via the internet by selecting the ``Tax Regs'' option on 
the IRS Home Page, or by submitting comments directly to the IRS 
internet site at: http://www.irs.ustreas.gov/prod/tax__regs/
comments.html.

FOR FURTHER INFORMATION CONTACT: Judith A. Lintz (202) 622-4940 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The collections of information contained in this notice of proposed 
rulemaking have been submitted to the Office of Management and Budget 
for review in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507(d)). Comments on the collections of information should be 
sent 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, with copies to the Internal Revenue 
Service, Attn: IRS Reports Clearance Officer, T:FP, Washington, DC 
20224. Comments on the collections of information should be received by 
December 15, 1997. Comments are specifically requested concerning: 
Whether the proposed collections of information are necessary for the 
proper performance of the functions of the Internal Revenue Service, 
including whether the information will have practical utility; the 
accuracy of the estimated burden associated with the proposed 
collections of information (see below); how the quality, utility, and 
clarity of the information to be collected may be enhanced; how the 
burden of complying with the proposed collections of information may be 
minimized, including through the application of automated collection 
techniques or other forms of information technology; and estimates of 
capital or start-up costs and costs of operation, maintenance, and 
purchase of service to provide information.
    The collections of information in this proposed regulation are in 
Secs. 301.7623-1T(b)(3), 301.7623-1T(d), and 301.7623-1T(f). The 
collections of information are required to provide information relating 
to violations of the internal revenue laws, and to identify the proper 
claimant of a reward. The collection of information is voluntary with 
respect to the provision of information relating to violations of the 
internal revenue laws. The collections of information are required to 
obtain a benefit with respect to filing a claim for reward. The likely 
respondents are individuals, although non-individual claimants are also 
allowed.
    Estimated total annual reporting burden: 30,000 hours.
    Estimated average annual burden hours per respondent: 3 hours.
    Estimated number of respondents: 10,000.
    Estimated annual frequency of responses: on occasion.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a valid 
control number assigned by the Office of Management and Budget.
    Books or records relating to a 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

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend the Procedure and Administration 
Regulations (26 CFR part 301) relating to section 7623. The temporary 
regulations contain rules relating to rewards for information that 
relates to violations of the internal revenue laws. The text of those 
temporary regulations also serves as the text of these proposed 
regulations. The preamble to the temporary regulations explains the 
temporary regulations.

Special Analyses

    It has been determined that this notice of proposed rulemaking 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) does not apply to these regulations.
    It is hereby certified that the regulations in this document will 
not have a significant economic impact on a substantial number of small 
entities. This certification is based on a determination that in the 
past approximately 10,000 persons have filed claims for reward on an 
annual basis. Of these persons, almost all have been individuals. 
Accordingly, a regulatory flexibility analysis under the Regulatory 
Flexibility Act (5 U.S.C. chapter 6) is not required.
    Pursuant to section 7805(f) of the Internal Revenue Code, this 
notice of proposed rulemaking will be submitted to the Chief Counsel 
for Advocacy of the Small Business Administration for comments on its 
impact on small businesses.

Comments and Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written (a signed original and eight 
(8) copies) or electronic comments that are submitted timely to the 
IRS. All comments will be available for public inspection and copying.
    A public hearing may be scheduled if requested in writing by any 
person who timely submits written or electronic comments. If a public 
hearing is scheduled, notice of the date, time, and place for the 
hearing will be published in the Federal Register.

[[Page 53275]]

    Drafting Information: The principal author of the regulations is 
Judith A. Lintz, Office of Assistant Chief Counsel (Income Tax & 
Accounting), Internal Revenue Service. 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.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 301 is proposed to be 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 301.7623-1 is revised to read as follows:


Sec. 301.7623-1  Rewards for information relating to violations of 
internal revenue laws.

    [The text of this proposed revised section is the same as the text 
of Sec. 301.7623-1T published elsewhere in this issue of the Federal 
Register.]
Michael P. Dolan,
Acting Commissioner of Internal Revenue.
[FR Doc. 97-26859 Filed 10-10-97; 8:45 am]
BILLING CODE 4830-01-U