[Federal Register Volume 65, Number 231 (Thursday, November 30, 2000)]
[Rules and Regulations]
[Pages 71256-71257]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-30227]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 8908]
RIN 1545-AV84


Disclosure of Return Information to the Bureau of the Census

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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SUMMARY: This document contains final regulations relating to additions 
to, and deletions from, the list of items of information disclosed to 
the Bureau of the Census for use in certain statistical programs. These 
regulations reflect agreement between the IRS and the Bureau of the 
Census as to items of business tax information needed to more 
effectively meet the Bureau of the Census' program objectives with 
respect to existing economic programs.

DATES: Effective Date: These regulations are effective on November 30, 
2000.
    Applicability Date: For the date of applicability, see 
Sec. 301.6103(j)(1)-1(e).

FOR FURTHER INFORMATION CONTACT: Stuart Murray, (202) 622-4570 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    On January 25, 1999, a temporary regulation (TD 8811) relating to 
disclosure of return information to the Bureau of the Census was 
published in the Federal Register (64 FR 3631). A notice of proposed 
rulemaking (REG-121806-97) cross-referencing the temporary regulations 
was published in the Federal Register for the same day (64 FR 3669). No 
public hearing was requested or held. No written or electronic comments 
responding to the notice of proposed rulemaking were received. 
Accordingly, the proposed regulations are adopted as revised by this 
Treasury decision, and the corresponding temporary regulations are 
removed.
    The regulations proposed by REG-121806-97 are adopted by this 
Treasury decision without revision and are discussed below.

Explanation of Provisions

    Under section 6103(j)(1) of the Internal Revenue Code, upon written 
request from the Secretary of Commerce, the Secretary is to furnish to 
the Bureau of the Census (Bureau) tax return information that is 
prescribed by Treasury regulations for the purpose of but only to the 
extent necessary in structuring censuses and national economic accounts 
and conducting related statistical activities authorized by law. 
Section 301.6103(j)(1)-1 of the regulations provides an itemized 
description of the return information authorized to be disclosed for 
this purpose. Periodically, the disclosure regulations are amended to 
reflect the changing needs of the Bureau for data for its statutorily 
authorized statistical activities.
    The amendments adopted by this Treasury decision authorize IRS 
personnel to disclose additional items of return information that have 
been requested by the Secretary of Commerce, and to delete certain 
items of return information that are enumerated in the regulations but 
that the Secretary of Commerce has indicated are no longer needed.

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 the 
regulations do not impose a collection of information on small 
entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not 
apply. Pursuant to section 7805(f) of the Internal Revenue Code, the 
notice of proposed rulemaking preceding these regulations was 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 Jamie Bernstein of the 
Office of Associate Chief Counsel, Procedure & Administration 
(Disclosure & Privacy Law Division). 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.

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 in part 
by removing the entry for Section 301.6103(j)(1)-1T and adding an entry 
in numerical order to read as follows:


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

    Section 301.6103(j)(1)-1 also issued under 26 U.S.C. 6103(j)(1); 
* * *


    Par. 2. Section 301.6103(j)(1)-1 is amended by:
    1. Revising paragraphs (b)(3) and (b)(6)(i)(A).
    2. Adding paragraphs (b)(6)(iii) and (e).
    The revisions and addition read as follows:


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

* * * * *
    (b) * * *
    (3) Officers or employees of the Internal Revenue Service will 
disclose the following business related return information reflected on 
the return of a taxpayer to officers and employees of the Bureau of the 
Census for purposes of, but only to the extent necessary in, conducting 
and preparing, as authorized by chapter 5 of title 13, United States 
Code, demographic and economic statistics programs, censuses, and 
surveys. The ``return of a taxpayer'' includes, but is not limited to, 
Form 941; Form 990 series; Form 1040 series and Schedules C and SE; 
Form 1065 and all attending schedules and Form 8825; Form 1120 series 
and all attending schedules and Form 8825; Form 851; Form 1096; and 
other business returns, schedules and forms that the Internal Revenue 
Service may issue--

[[Page 71257]]

    (i) Taxpayer identity information (as defined in section 
6103(b)(6)) including parent corporation, shareholder, partner, and 
employer identity information;
    (ii) Gross income, profits, or receipts;
    (iii) Returns and allowances;
    (iv) Cost of labor, salaries, and wages;
    (v) Total expenses or deductions;
    (vi) Total assets;
    (vii) Beginning- and end-of-year inventory;
    (viii) Royalty income;
    (ix) Interest income, including portfolio interest;
    (x) Rental income, including gross rents;
    (xi) Tax-exempt interest income;
    (xii) Net gain from sales of business property;
    (xiii) Other income;
    (xiv) Total income;
    (xv) Percentage of stock owned by each shareholder;
    (xvi) Percentage of capital ownership of each partner;
    (xvii) End-of-year code;
    (xviii) Months actively operated;
    (xix) Principal industrial activity code, including the business 
description;
    (xx) Total number of documents and the total amount reported on the 
Form 1096 transmitting Forms 1099-MISC;
    (xxi) Form 941 indicator and business address on Schedule C; and
    (xxii) Consolidated return indicator.
* * * * *
    (6)(i) * * *
    (A) From the business master files of the Internal Revenue 
Service--
    (1) Taxpayer identity information (as defined in section 
6103(b)(6)), including parent corporation identity information;
    (2) Document code;
    (3) District office code;
    (4) Consolidated return and final return indicators;
    (5) Principal industrial activity code;
    (6) Partial year indicator;
    (7) Annual accounting period;
    (8) Gross receipts less returns and allowances; and
    (9) Total assets.
* * * * *
    (iii) Information from an employment tax return disclosed pursuant 
to paragraphs (b)(2)(iii) (A), (B), (D), (I) and (J) of this section 
may be used by officers and employees of the Bureau of the Census for 
the purpose described in and subject to the limitations of this 
paragraph (b)(6).
* * * * *
    (e) Effective date. This section is applicable to the Bureau of the 
Census on November 30, 2000.


Sec. 301.6103(j)(1)-1T  [Removed]

    Par. 3. Section 301.6103(j)(1)-1T is removed.

Robert E. Wenzel,
Deputy Commissioner of the Internal Revenue.
    Approved: November 21, 2000.
Jonathan Talisman,
Acting Assistant Secretary of the Treasury.
[FR Doc. 00-30227 Filed 11-29-00; 8:45 am]
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