[Federal Register Volume 66, Number 30 (Tuesday, February 13, 2001)]
[Proposed Rules]
[Pages 9991-9992]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-1990]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG-121109-00]
RIN 1545-AY52


Disclosure of Return Information to the Bureau of the Census

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

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SUMMARY: In the Rules and Regulations section of this issue of Federal 
Register, the IRS is issuing temporary regulations relating to 
additions to the list of items of information disclosed to the Bureau 
of the Census for use in the Longitudinal Employer-Household Dynamics 
(LEHD) project and the Survey of Income and Program Participation 
(SIPP) project. These regulations provide guidance to IRS and Social 
Security Administration (SSA) personnel responsible for disclosing the 
information. The text of those temporary regulations also serves as the 
text of these proposed regulations.

DATES: Written and electronic comments and requests for a public 
hearing must be received by May 14, 2001.

ADDRESSES: Send submissions to: CC:M&SP:RU (REG-121109-00), room 5226, 
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, 
DC 20044. In the alternative, submissions may be hand-delivered between 
the hours of 8 a.m. and 5 p.m. to CC:M&SP:RU (REG-121109-00), Courier's 
Desk, Internal Revenue

[[Page 9992]]

Service, 1111 Constitution Avenue, NW., Washington, DC or sent 
electronically, via the IRS Internet site at: http://
www.irs.ustreas.gov/tax__regs/reglist.html.

FOR FURTHER INFORMATION CONTACT: Stuart Murray, (202) 622-4580 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    Under section 6103(j)(1), 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 further defines such purposes by 
reference to 13 U.S.C. Chapter 5 and provides an itemized description 
of the return information authorized to be disclosed for such purposes. 
Section 301.6103(j)(1)-1(b)(5) of the regulations provides a list of 
information provided to the Social Security Administration (SSA) 
pursuant to Internal Revenue Code section 6103(l)(1)(A) or (5) that 
officers or employees of SSA may disclose to the Bureau. Periodically, 
the disclosure regulations are amended to reflect the changing needs of 
the Bureau for data for its statutorily authorized statistical 
activities.
    This document contains proposed amendments to the regulations 
authorizing IRS and SSA personnel to disclose additional items of 
return information that have been requested by the Secretary of 
Commerce for specified purposes related to the LEHD and SIPP projects.
    The text of the temporary regulations also serves as the text of 
these proposed regulations. The preamble to the temporary regulations 
explains the regulations.

Special Analyses

    It has been determined that this notice of proposed rulemaking 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, this 
notice of proposed rulemaking will be submitted to the Chief Counsel 
for Advocacy of the Small Business Administration for comment on its 
impact on small business.

Comments and Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any electronic and written comments (a 
signed original and eight (8) copies) that are submitted timely to the 
IRS. The IRS and Treasury Department specifically request comments on 
the clarity of the proposed regulation and how they can be made easier 
to understand. All comments will be available for public inspection and 
copying. A public hearing may be scheduled if requested in writing by a 
person that timely submits comments. If a public hearing is scheduled, 
notice of the date, time, and place for the hearing will be published 
in the Federal Register.

Drafting Information

    The principal author of these regulations is Jamie G. Bernstein, 
Office of the Associate Chief Counsel, Procedure & Administration 
(Disclosure & Privacy Law Division), Internal Revenue Service. 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.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR Part 301 is proposed to be 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 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. Adding paragraphs (b)(2)(v) and (vi).
    2. Adding paragraphs (b)(3)(xxiii), (xxiv), (xxv), (xxvi), (xxvii) 
and (xxviii).
    3. Adding paragraphs (b)(5)(iii), (iv), and (v).
    4. Revising paragraph (e).
    The additions and revision read as follows:


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

* * * * *
    (b) * * *
    (2)(v) and (vi) [The text of proposed paragraphs (b)(2)(v) and (vi) 
is the same as the text of Sec. 301.6103(j)(1)-1T(b)(2)(v) and (vi) 
published elsewhere in this issue of the Federal Register].
    (3) [The text of proposed paragraphs (b)(3)(xxiii), (xxiv), (xxv), 
(xxvi), (xxvii) and (xxviii) is the same as the text of 
Sec. 301.6103(j)(1)-1T(b)(3)(xxiii), (xxiv), (xxv), (xxvi), (xxvii) and 
(xxviii) published elsewhere in this issue of the Federal Register].
* * * * *
    (5)(iii), (iv), and (v) [The text of proposed paragraphs 
(b)(5)(iii), (iv), and (v) is the same as the text of 
Sec. 301.6103(j)(1)-T(b)(5)(iii), (iv), and (v) published elsewhere in 
this issue of the Federal Register].
* * * * *
    (e) [The text of proposed paragraph (e) is the same as the text of 
Sec. 301.6103(j)(1)-T(e) published elsewhere in this issue of the 
Federal Register].

Robert E. Wenzel,
Deputy Commissioner of the Internal Revenue.
[FR Doc. 01-1990 Filed 2-12-01; 8:45 am]
BILLING CODE 6830-01-P