[Federal Register Volume 65, Number 2 (Tuesday, January 4, 2000)]
[Rules and Regulations]
[Pages 215-217]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-54]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 8854]
RIN 1545-AX70


Disclosures of Return Information to Officers and Employees of 
the Department of Agriculture for Certain Statistical Purposes and 
Related Activities

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Temporary regulation.

-----------------------------------------------------------------------

SUMMARY: This document provides a temporary regulation relating to the 
disclosure of return information to officers and employees of the 
Department of Agriculture for certain statistical purposes and related 
activities. The temporary regulation would permit the IRS to disclose 
return information to the Department of Agriculture to structure, 
prepare, and conduct the Census of Agriculture. The text of this 
temporary regulation also serves as the text of the proposed regulation 
set forth in the notice of proposed rulemaking on this subject in the 
Proposed Rules section of this issue of the Federal Register.

DATES: Effective Date: This regulation is effective January 4, 2000.
    Applicability Date: For dates of applicability of this regulation, 
see, Sec. 301.6103(j)(5)-1T(d).

FOR FURTHER INFORMATION CONTACT: Jennifer S. McGinty, (202) 622-4570 
(not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    Section 6103(j) of the Internal Revenue Code (Code) provides for 
the disclosure of tax information for statistical purposes. Prior to 
the Census of Agriculture Act of 1997 (Pub. L. 105-113), the Bureau of 
Census had responsibility for preparing the Census of Agriculture. 
Section 6103(j)(1) authorized the Bureau of Census to receive tax 
information as prescribed in the regulations in structuring censuses. 
Treasury regulations implemented such authority with respect to the 
Census of Agriculture. The Census of Agriculture Act transferred 
responsibility for that Census from the Bureau of Census to the 
Department of Agriculture. In 1998, the Tax and Trade Relief Extension 
Act of 1998 (Pub. L. 105-277) added section 6103(j)(5) to provide 
disclosure authority for the Department of Agriculture to receive tax 
information to structure, prepare, and conduct the Census of 
Agriculture. By letter dated May 21, 1999, the Secretary of Agriculture 
requested that the regulations be amended so that the Department of 
Agriculture can begin to receive return information for purposes of the 
Census of Agriculture. This document contains a temporary regulation 
which authorizes the IRS to disclose return information to the 
Department of Agriculture for purposes of the Census of Agriculture.

Explanation of Provisions

    This temporary regulation will allow the IRS to disclose return 
information to the Department of Agriculture for purposes of the Census 
of Agriculture.
    The disclosure of the specific items of return information 
identified in this regulation is necessary in order for the Department 
of Agriculture to accurately identify, locate, and classify, as well as 
properly process, information from agricultural businesses to be 
surveyed for the statutorily mandated Census of Agriculture.

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 has also been 
determined that section 553(b) of the Administrative Procedure Act (5 
U.S.C. chapter 5) does not apply

[[Page 216]]

to these regulations. For the applicability of the Regulatory 
Flexibility Act (5 U.S.C. chapter 6) refer to the Special Analyses 
section of the preamble to 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 Code, this 
temporary regulation will be submitted to the Chief Counsel for 
Advocacy of the Small Business Administration for comment on its impact 
on small businesses.
    Drafting Information: The principal author of this regulation is 
Jennifer S. McGinty, Office of the Assistant Chief Counsel (Disclosure 
Litigation), IRS. However, other personnel from the IRS and Treasury 
Department participated in its development.

List of Subjects in 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 part 301 is amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

    Paragraph 1. The authority citation for part 301 is amended by 
adding an entry in numerical order to read in part as follows:

    Authority: 26 U.S.C. 7805 * * *

    Section 301.6103(j)(5)-1T also issued under 26 U.S.C. 6103(j)(5);* 
* *
    Par. 2. Section 301.6103(j)(5)-1T is added to read as follows:


Sec. 301.6103(j)(5)-1T  Disclosures of return information to officers 
and employees of the Department of Agriculture for certain statistical 
purposes and related activities (temporary).

    (a) General rule. Pursuant to the provisions of section 6103(j)(5) 
of the Internal Revenue Code (Code) and subject to the requirements of 
paragraph (c) of this section, officers or employees of the Internal 
Revenue Service (IRS) will disclose return information to officers and 
employees of the Department of Agriculture to the extent, and for such 
purposes as may be, provided by paragraph (b) of this section.
    (b) Disclosure of return information to officers and employees of 
the Department of Agriculture. (1) Officers or employees of the IRS 
will disclose the return information in this paragraph (b) for 
individuals, partnerships, and corporations with agricultural activity, 
as determined generally by industry code classification or the filing 
of returns for such activity, to officers and employees of the 
Department of Agriculture for purposes of, but only to the extent 
necessary in, structuring, preparing, and conducting, as authorized by 
chapter 55 of title 7, United States Code, the Census of Agriculture.
    (2) From Form 1040/Schedule F--
    (i) Taxpayer Identity Information (as defined in section 6103(b)(6) 
of the Code);
    (ii) Spouse's SSN;
    (iii) Annual Accounting Period;
    (iv) Principal Business Activity (PBA) Code;
    (v) Sales of livestock and produce raised;
    (vi) Taxable cooperative distributions;
    (vii) Income from custom hire and machine work;
    (viii) Gross income;
    (ix) Master File Tax (MFT) Code;
    (x) Document Locator Number (DLN);
    (xi) Cycle Posted;
    (xii) Final return indicator; and
    (xiii) Part year return indicator.
    (3) From Form 943--
    (i) Taxpayer Identity Information;
    (ii) Annual Accounting Period;
    (iii) Total wages subject to Medicare taxes;
    (iv) Master File Tax (MFT) Code;
    (v) Document Locator Number (DLN);
    (vi) Cycle Posted;
    (vii) Final return indicator; and
    (viii) Part year return indicator.
    (4) From Form 1120 series--
    (i) Taxpayer Identity Information;
    (ii) Annual Accounting Period;
    (iii) Gross receipts less returns and allowances;
    (iv) PBA code;
    (v) Parent corporation Employer Identification Number, and related 
Name and PBA Code for entities with agricultural activity;
    (vi) Master File Tax (MFT) Code;
    (vii) Document Locator Number (DLN);
    (viii) Cycle posted;
    (ix) Final return indicator;
    (x) Part year return indicator; and
    (xi) Consolidated return indicator.
    (5) From Form 851--
    (i) Subsidiary Taxpayer Identity Information;
    (ii) Annual Accounting Period;
    (iii) Subsidiary PBA Code;
    (iv) Parent Taxpayer Identity Information;
    (v) Parent PBA Code;
    (vi) Master File Tax (MFT) Code;
    (vii) Document Locator Number (DLN); and
    (viii) Cycle Posted.
    (6) From Form 1065 series--
    (i) Taxpayer Identity Information;
    (ii) Annual Accounting Period;
    (iii) PBA Code;
    (iv) Gross receipts less returns and allowances;
    (v) Net farm profit (loss);
    (vi) Master File Tax (MFT) Code;
    (vii) Document Locator Number (DLN);
    (viii) Cycle Posted;
    (ix) Final return indicator; and
    (x) Part year return indicator.
    (c) Procedures and Restrictions. (1) Disclosure of return 
information by officers or employees of the IRS as provided by 
paragraph (b) of this section will be made only upon written request 
designating, by name and title, the officers and employees of the 
Department of Agriculture to whom such disclosure is authorized, to the 
Commissioner of Internal Revenue by the Secretary of the Department of 
Agriculture and describing--
    (i) The particular return information to be disclosed;
    (ii) The taxable period or date to which such return information 
relates; and
    (iii) The particular purpose for which the return information is to 
be used.
    (2) No such officer or employee to whom return information is 
disclosed pursuant to the provisions of paragraph (b) of this section 
shall disclose such return information to any person, other than the 
taxpayer to whom such return information relates or other officers or 
employees of the Department of Agriculture whose duties or 
responsibilities require such disclosure for a purpose described in 
paragraph (b) of this section, except in a form that cannot be 
associated with, or otherwise identify, directly or indirectly, a 
particular taxpayer. If the IRS determines that the Department of 
Agriculture, or any officer or employee thereof, has failed to, or does 
not, satisfy the requirements of section 6103(p)(4) of the Code or 
regulations or published procedures thereunder, the IRS may take such 
actions as are deemed necessary to ensure that such requirements are or 
will be satisfied, including suspension of disclosures of return 
information otherwise authorized by section 6103(j)(5) and paragraph 
(b) of this section, until the IRS determines that such requirements 
have been or will be satisfied.

[[Page 217]]

    (d) Effective date. This section is applicable from January 4, 
2000, through January 3, 2003.
Robert Wenzel,
Acting Commissioner of Internal Revenue.
    Approved: December 13, 1999.
Jonathan Talisman,
Acting Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 00-54 Filed 1-3-00; 8:45 am]
BILLING CODE 4830-01-U