[Federal Register Volume 64, Number 6 (Monday, January 11, 1999)]
[Rules and Regulations]
[Page 1528]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-438]
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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Part 1804
Revision to the NASA FAR Supplement Coverage on Information to
the Internal Revenue Service
AGENCY: National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: This is a final rule amending the NASA FAR Supplement (NFS) to
provide guidance to NASA employees about furnishing to payment offices
the taxpayer identification numbers of NASA contractors. The guidance
will simplify NASA's efforts in meeting requirements for reporting
payment information to the Internal Revenue Service.
EFFECTIVE DATE: January 11, 1999.
FOR FURTHER INFORMATION CONTACT: Dave Beck, NASA, Office of
Procurement, Contract Management Division (Code HK), (202) 358-0482.
SUPPLEMENTARY INFORMATION:
Background
FAR 4.203 and subpart 4.9 have requirements for collecting.
Taxpayer Identification Numbers (TIN's) and providing the TIN's to the
payment office. Payment offices use the TIN's to meet requirements for
reporting information to the IRS using IRS Form 1099. Payment offices
can also use the TIN's to meet requirements under the Debt Collection
Improvement Act of 1996 to collect and report on any delinquent amounts
arising out of the contractor's relationship with the Government.
Payment offices use IRS Form 1099 to report to the IRS payments for
services. Payments for merchandise are exempt from the reporting
requirement. However under this final rule, each NASA installation,
that has its own employer identification number, may elect to report to
the IRS the payments for merchandise. This optional reporting
eliminates the need for the NASA installation to distinguish payments
for merchandise from payments for services. This reporting does not
change a taxpayer's obligation to record the payments, regardless of
type, as ``gross receipts and sales'' on tax forms.
This final rule makes one other change. Section 1804.203 is added
to permit NASA installations to have their own procedures for
distributing TIN's from the contracting office to the payment office,
in place of using the last page of the contract as stated in FAR 4.203.
Impact
NASA certifies that this regulation will not have a significant
economic impact on a substantial number of small business entities
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) because the
rule does not change the obligation of small entities to report income
on tax forms. This final rule does not impose any reporting or
recordkeeping requirements subject to the Paperwork Reduction Act.
List of Subjects in 48 CFR Part 1804
Government procurement.
Tom Luedtke,
Acting Associate Administrator for Procurement.
Accordingly, 48 CFR Part 1804 is amended as follows:
1. The authority citation for 48 CFR Part 1804 continues to read as
follows:
Authority: 42 U.S.C. 2473(c)(1).
PART 1804--ADMINISTRATIVE MATTERS
1804.203 [Added]
2. Section 1804.203 is added to read as follows:
1804.203 Taxpayer identification information.
Instead of using the last page of the contract to provide the
information listed in FAR 4.203, NASA installations may allow
contracting officers to use a different distribution method, such as
annotating the cover page of the payment office copy of the contract.
Subpart 1804.9--[Added]
3. Subpart 1804.9 is added to read as follows:
Subpart 1804.9--Taxpayer Identification Number Information
1804.904 Reporting payment information to the IRS.
Each NASA installation, that has its own employer identification
number, may elect to report to the IRS payments under purchase orders
and contracts for merchandise and other exempt bills.
[FR Doc. 99-438 Filed 1-8-99; 8:45 am]
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