[Federal Register Volume 64, Number 155 (Thursday, August 12, 1999)]
[Rules and Regulations]
[Pages 43910-43911]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20485]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TS 8835]
RIN 1545-AX27


Furnishing Identifying Number of Income Tax Return Preparer

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Temporary and final regulations.

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SUMMARY: This document contains temporary and final regulations that 
allow income tax return preparers to elect an alternative to their 
social security number (SSN) for purposes of identifying themselves on 
returns they prepare. The regulations are needed to implement changes 
made to the applicable law by the Internal Revenue Service 
Restructuring and Reform Act of 1998. The regulations affect individual 
preparers who elect to identify themselves using a number other than 
their SSN. The text of the temporary regulations also serves as the 
text of the proposed regulations set forth in the notice of proposed 
rulemaking on this subject in the Proposed Rules section in this issue 
of the Federal Register.

DATES: Effective Date: These regulations are effective August 12, 1999.
    Applicability Date: For dates of applicability of these regulation, 
see Secs. 1.6109-2(d) and 1.609-2T(d).

FOR FURTHER INFORMATION CONTACT: Andrew J. Keyso, (202) 622-4910 (not a 
toll-free call).

SUPPLEMENTARY INFORMATION:

Background

    Section 6109(a)(4) of the Internal Revenue Code provides that any 
return or claim for refund prepared by an income tax return preparer 
must bear the identifying number of the preparer as required by 
regulations prescribed by the Secretary. Prior to its amendment by the 
Internal Revenue Service Restructuring and Reform Act of 1998 (Public 
Law 105-206, 112 Stat. 685 (RRA '98)), section 6109(a) provided that 
the identifying number of an individual preparer was that preparer's 
social security number (SSN).
    Section 3710 of RRA '98 amended section 6109(a) by removing the 
requirement that an individual preparer's identifying number be the 
preparer's SSN. Instead, the Secretary may prescribe alternatives to 
the SSN for purposes of identifying individual preparers.

Explanation of Provisions

    On December 21, 1998, the IRS published Notice 98-63, 1998-51 IRB 
15, to inform preparers of the IRS's intention to develop a system of 
alternative identifying numbers. This document contains amendments to 
the Income Tax Regulations (26 CFR part 1) to allow individual 
preparers to either use their SSN or elect an alternative identifying 
number for purposes of identifying themselves on returns they prepare. 
The IRS will develop a form on which preparers may apply for an 
alternative identifying number.

Special Analyses

    It has been determined that this Treasury decision is not a 
significant regulatory action as defined in Executive Order 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) does not apply to these regulations, and because 
these regulations do not impose a collection of information on small 
entities, the

[[Page 43911]]

Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. For the 
applicability of the Regulatory flexibility Act (5 U.S.C. chapter 6) 
refer to the Special Analyses section of the preamble of the cross-
reference notice of proposed rulemaking published in the Proposed Rules 
section in this issue of the Federal Register. Pursuant to section 
7805(f) of the Internal Revenue Code, these regulations will be 
submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on their impact on small business.

Drafting Information

    The principal author of these regulations is Andrew J. Keyso, 
Office of Assistant Chief Counsel (Income Tax & Accounting). However, 
other personnel from the IRS and Treasury Department participated in 
their development.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Adoption of Amendments to the Regulations

    Accordingly, 26 CFR part 1 is 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 1,6109-2 is amended by:
    1. Revising the first sentence of paragraph (a) introductory text;
    2. Adding paragraph (d).
    The revision and addition read as follows:


Sec. 1.6109-2  Furnishing identifying number of income tax return 
preparer.

    (a) Furnishing identifying number. For returns or claims for refund 
filed prior to January 1, 2000, each return of tax under subtitle A of 
the Internal Revenue Code or claim for refund of tax under subtitle A 
of the Internal Revenue Code prepared by one or more income tax return 
preparers must bear the identifying number of the preparer required by 
Sec. 1.6695-1(b) to sign the return or claim for refund. * * *
* * * * *
    (d) Effective date. Paragraph (a) of this section and this 
paragraph (d) apply to returns or claims for refund filed prior to 
January 1, 2000. For returns or claims for refund filed after December 
31, 1999, see Sec. 1.6109-2T(a).
    Par. 3. Section 1.6109-2T is added to read as follows:


Sec. 1.6109-2T  Furnishing identifying number of income tax return 
preparer (temporary).

    (a) Furnishing identifying number. (1) Each return of tax, or claim 
for refund of tax, under subtitle A of the Internal Revenue Code 
prepared by one or more income tax return preparers must include the 
identifying number of the preparer required by Sec. 1.6695-1(b) to sign 
the return or claim for refund. In addition, if there is a partnership 
or employment arrangement between two or more preparers, the 
identifying number of the partnership or employer must also appear on 
the return or claim for refund. For the definition of the term income 
tax return preparer (or preparer) see section 7701(a)(36) and 
Sec. 301.7701-15 of this chapter.
    (2) The identifying number of a preparer who is an individual (not 
described in paragraph (a)(3) of this section) is that individual's 
social security account number, or such alternative number as may be 
prescribed by the Internal Revenue Service in forms, instructions, or 
other appropriate guidance.
    (3) The identifying number of a preparer (whether an individual, 
corporation, or partnership) who employs or engages one or more persons 
to prepare the return or claim for refund (other than for the preparer) 
is that preparer's employer identification number.
    (b) and (c) [Reserved]. For further guidance, see Sec. 1.6109-2(b) 
and (c).
    (d) Effective date. Paragraph (a) of this section and this 
paragraph (d) apply to returns or claims for refund filed after 
December 31, 1999. For returns or claims for refund filed prior to 
January 1, 2000, see Sec. 1.6109-2(a).

    Approved: August 3, 1999.
Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.

Donald C. Lubick,
Assistant Secretary of the Treasury.
[FR Doc. 99-20485 Filed 8-11-99; 8:45 am]
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