[Federal Register Volume 64, Number 183 (Wednesday, September 22, 1999)]
[Rules and Regulations]
[Pages 51241-51243]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-24313]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 301 and 602

[TD 8839]
RIN 1545-AV08


IRS Adoption Taxpayer Identification Numbers

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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SUMMARY: This document contains final regulations under section 6109 
relating to taxpayer identifying numbers. The final regulations provide 
rules for obtaining IRS adoption taxpayer identification numbers 
(ATINs), which are used to identify children placed for adoption. The 
regulations assist prospective adoptive parents in claiming tax 
benefits with respect to these children.

DATES: Effective Date: These regulations are effective September 22, 
1999.
    Dates of Applicability: For dates of applicability of these 
regulations, see Secs. 301.6109-1(h)(2)(iii) and 301.6109-3(d).

FOR FURTHER INFORMATION CONTACT: Beverly A. Baughman, (202) 622-4940 
(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The collection of information contained in these final regulations 
has been reviewed and approved by the Office of Management and Budget 
in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507) 
under control number 1545-1564. Responses to this collection of 
information are required to obtain ATINs, which are used by prospective 
adoptive parents to claim tax benefits with respect to children placed 
for adoption.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless the collection of 
information displays a valid control number.
    The collection of information in this final regulation is contained 
in Sec. 301.6109-3(c)(2). The information collection requirements of 
that section are satisfied by including the required information on 
Form W-7A or such other form as may be prescribed by the IRS to apply 
for an adoption taxpayer identification number (ATIN). The burden for 
this requirement is reflected in the burden estimated for the form. The 
current burden estimated for Form W-7A is 40 minutes per form.
    Comments concerning the accuracy of this burden estimate and 
suggestions for reducing this burden should be sent to the Internal 
Revenue Service, Attn: IRS Reports Clearance Officer, OP:FS:FP, 
Washington, DC 20224, and 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.
    Books or records relating to this 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

    This document contains final Regulations on Procedure and 
Administration (26 CFR part 301) relating to identifying numbers under 
section 6109.
    On November 24, 1997, final and temporary regulations (TD 8739) 
were published in the Federal Register (62 FR 62518). A notice of 
proposed rulemaking (REG-103330-97) cross-referencing the temporary 
regulations was published in the Federal Register for the same day (62 
FR 62538).
    Written comments responding to these notices were received and a 
public hearing was held on March 4, 1998. After consideration of all 
the comments, the proposed regulations under section 6109 are adopted 
with minor changes by this Treasury decision, and the corresponding 
temporary regulations are removed. The comments and revisions are 
discussed below.

Explanation of Revisions and Summary of Comments

    Comments were received concerning the requirement that, in order 
for an ATIN to be assigned, the child must be placed for adoption by an 
authorized placement agency as defined in Sec. 1.152-2(c)(2) of the 
regulations. The

[[Page 51242]]

commentators expressed concern that because of this requirement ATINs 
are not available in the case of independent adoptions as defined by 
state law. In general, independent adoptions take two forms. In one 
type the biological parent(s) places the child with the adoptive 
parents with the assistance of an attorney or other intermediary. In 
other independent adoptions, no such intermediary is necessary because 
the adoptive parents and the biological parent(s) know one another.
    The IRS and Treasury Department believe that, under section 1.152-
2(c), authorized placement agency is not limited to governmental and 
private organizations authorized by state law to place children for 
legal adoption, but also includes biological parents and other persons 
authorized by state law to place children for legal adoption. To 
address commentators' concerns regarding independent adoptions, the IRS 
and Treasury Department intend to amend section 1.152-2(c) to clarify 
that this is the meaning of authorized placement agency. Accordingly, 
the final ATIN regulations continue to provide that authorized 
placement agency has the same meaning as in section 1.152-2(c) of the 
regulations.

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) 
does not apply to these regulations, and because the regulation does 
not impose a collection of information on small entities, the 
Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. Only 
individuals may receive ATINs under this Treasury decision.
    Pursuant to section 7805(f) of the Internal Revenue Code, the 
notice of proposed rulemaking that preceded 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 Beverly A. Baughman of 
the Office of Assistant Chief Counsel (Income Tax and Accounting). 
However, other personnel from the IRS and Treasury Department 
participated in their development.

List of Subjects

26 CFR Part 301

    Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income 
taxes, Penalties, Reporting and recordkeeping requirements.

26 CFR Part 602

    Reporting and recordkeeping requirements.

Adoption of Amendments to the Regulations

    Accordingly, 26 CFR parts 301 and 602 are amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

    Paragraph 1. The authority citation for part 301 is amended by:
    1. Removing the entries for sections 301.6109-1T and 301.6109-3T; 
and
    2. Adding an entry in numerical order to read in part as follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 301.6109-3 also issued under 26 U.S.C. 6109; * * *

    Par. 2 Section 301.6109-1 is amended by:
    1. Revising paragraph (a)(1)(i).
    2. Revising the introductory text of paragraph (a)(1)(ii).
    3. Revising paragraph (a)(1)(ii)(A).
    4. Revising paragraph (a)(1)(ii)(B).
    5. Revising paragraph (h)(2)(iii).
    The revisions read as follows:


Sec. 301.6109-1  Identifying numbers.

    (a) In general--(1) Taxpayer identifying numbers--(i) Principal 
types. There are several types of taxpayer identifying numbers that 
include the following: social security numbers, Internal Revenue 
Service (IRS) individual taxpayer identification numbers, IRS adoption 
taxpayer identification numbers, and employer identification numbers. 
Social security numbers take the form 000-00-0000. IRS individual 
taxpayer identification numbers and IRS adoption taxpayer 
identification numbers also take the form 000-00-0000 but include a 
specific number or numbers designated by the IRS. Employer 
identification numbers take the form 00-0000000.
    (ii) Uses. Social security numbers, IRS individual taxpayer 
identification numbers, and IRS adoption taxpayer identification 
numbers are used to identify individual persons. Employer 
identification numbers are used to identify employers. For the 
definition of social security number and employer identification 
number, see Secs. 301.7701-11 and 301.7701-12, respectively. For the 
definition of IRS individual taxpayer identification number, see 
paragraph (d)(3) of this section. For the definition of IRS adoption 
taxpayer identification number, see Sec. 301.6109-3(a). Except as 
otherwise provided in applicable regulations under this chapter or on a 
return, statement, or other document, and related instructions, 
taxpayer identifying numbers must be used as follows:
    (A) Except as otherwise provided in paragraph (a)(1)(ii)(B) and (D) 
of this section, and Sec. 301.6109-3, an individual required to furnish 
a taxpayer identifying number must use a social security number.
    (B) Except as otherwise provided in paragraph (a)(1)(ii)(D) of this 
section and Sec. 301.6109-3, an individual required to furnish a 
taxpayer identifying number but who is not eligible to obtain a social 
security number must use an IRS individual taxpayer identification 
number.
* * * * *
    (h) * * *
    (2) * * *
    (iii) Paragraphs (a)(1)(i), (a)(1)(ii) introductory text, 
(a)(1)(ii)(A), and (a)(1)(ii)(B) of this section apply to income tax 
returns due (without regard to extensions) on or after April 15, 1998.


Sec. 301.6109-1T  [Removed]

    Par. 3. Section 301.6109-1T is removed.
    Par. 4. Section 301.6109-3 is added to read as follows:


Sec. 301.6109-3  IRS adoption taxpayer identification numbers.

    (a) In general--(1) Definition. An IRS adoption taxpayer 
identification number (ATIN) is a temporary taxpayer identifying number 
assigned by the Internal Revenue Service (IRS) to a child (other than 
an alien individual as defined in Sec. 301.6109-1(d)(3)(i)) who has 
been placed, by an authorized placement agency, in the household of a 
prospective adoptive parent for legal adoption. An ATIN is assigned to 
the child upon application for use in connection with filing 
requirements under the Internal Revenue Code and the regulations 
thereunder. When an adoption becomes final, the adoptive parent must 
apply for a social security number for the child. After the social 
security number is assigned, that number, rather than the ATIN, must be 
used as the child's taxpayer identification number on all returns, 
statements, or other documents required under the Internal Revenue Code 
and the regulations thereunder.
    (2) Expiration and extension. An ATIN automatically expires two 
years after the number is assigned. However,

[[Page 51243]]

upon request, the IRS may grant an extension if the IRS determines the 
extension is warranted.
    (b) Definitions. For purposes of this section--
    (1) Authorized placement agency has the same meaning as in 
Sec. 1.152-2(c) of this chapter;
    (2) Prospective adoptive child or child means a child who has not 
been adopted, but who has been placed in the household of a prospective 
adoptive parent for legal adoption by an authorized placement agency; 
and
    (3) Prospective adoptive parent or parent means an individual in 
whose household a prospective adoptive child is placed by an authorized 
placement agency for legal adoption.
    (c) General rule for obtaining a number--(1) Who may apply. A 
prospective adoptive parent may apply for an ATIN for a child if--
    (i) The prospective adoptive parent is eligible to claim a personal 
exemption under section 151 with respect to the child;
    (ii) An authorized placement agency places the child with the 
prospective adoptive parent for legal adoption;
    (iii) The Social Security Administration will not process an 
application for an SSN by the prospective adoptive parent on behalf of 
the child (for example, because the adoption is not final); and
    (iv) The prospective adoptive parent has used all reasonable means 
to obtain the child's assigned social security number, if any, but has 
been unsuccessful in obtaining this number (for example, because the 
biological parent who obtained the number is not legally required to 
disclose the number to the prospective adoptive parent).
    (2) Procedure for obtaining an ATIN. If the requirements of 
paragraph (c)(1) of this section are satisfied, the prospective 
adoptive parent may apply for an ATIN for a child on Form W-7A, 
Application for Taxpayer Identification Number for Pending Adoptions 
(or such other form as may be prescribed by the IRS). An application 
for an ATIN should be made far enough in advance of the first intended 
use of the ATIN to permit issuance of the ATIN in time for such use. An 
application for an ATIN must include the information required by the 
form and accompanying instructions, including the name and address of 
each prospective adoptive parent and the child's name and date of 
birth. In addition, the application must include such documentary 
evidence as the IRS may prescribe to establish that a child was placed 
in the prospective adoptive parent's household by an authorized 
placement agency for legal adoption. Examples of acceptable documentary 
evidence establishing placement for legal adoption by an authorized 
placement agency may include--
    (i) A copy of a placement agreement entered into between the 
prospective adoptive parent and an authorized placement agency;
    (ii) An affidavit or letter signed by the adoption attorney or 
government official who placed the child for legal adoption pursuant to 
state law;
    (iii) A document authorizing the release of a newborn child from a 
hospital to a prospective adoptive parent for adoption; and
    (iv) A court document ordering or approving the placement of a 
child for adoption.
    (d) Effective date. The provisions of this section apply to income 
tax returns due (without regard to extension) on or after April 15, 
1998.


Sec. 301.6109-3T  [Removed]

    Par. 5. Section 301.6109-3T is removed.

PART 602--OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT

    Par. 6. The authority citation for part 602 continues to read as 
follows:

    Authority: 26 U.S.C. 7805.

    Par. 7. In Sec. 602.101, paragraph (b) is amended by removing the 
entry for 301.6109-3T from the table and adding an entry in numerical 
order to the table to read as follows:


Sec. 602.101  OMB Control numbers.

* * * * *
    (b) * * *

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                                                            Current OMB
   CFR part or section where identified and described       control No.
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                  *        *        *        *        *
301.6109-3..............................................       1545-1564
 
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    Approved: June 17, 1999.
Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
Donald C. Lubick,
Assistant Secretary of the Treasury.
[FR Doc. 99-24313 Filed 9-21-99; 8:45 am]
BILLING CODE 4830-01-U