[Federal Register Volume 66, Number 250 (Monday, December 31, 2001)]
[Rules and Regulations]
[Pages 67687-67688]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-31848]



  Federal Register / Vol. 66, No. 250 / Monday, December 31, 2001 / 
Rules and Regulations  

[[Page 67687]]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8974]
RIN 1545-BA48


Amendment to Section 6050I Cross-Referencing Section 5331 of 
Title 31 Relating to Reporting of Certain Currency Transactions by 
Nonfinancial Trades or Businesses Under the Bank Secrecy Act

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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SUMMARY: This document contains final amendments to the Income Tax 
Regulations under section 6050I of the Internal Revenue Code which 
requires persons to report information about financial transactions to 
the IRS, and section 5331 of title 31 which requires persons to report 
similar information about certain transactions to the Financial Crimes 
Enforcement Network. These regulations provide that this information 
shall be reported on the same form as prescribed by the Secretary.

DATES: Effective Date: These regulations are effective December 31, 
2001.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, contact 
Tiffany P. Smith at (202) 622-4910 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background and Explanation of Provisions

    This document amends the Income Tax Regulations (26 CFR part 1) 
under section 6050I of the Internal Revenue Code (Code). These final 
regulations address the related reporting requirements of section 6050I 
of the Code and section 5331 of title 31.
    The Bank Secrecy Act, Titles I and II of Public Law 91-508 (84 
Stat. 1116) as amended, codified at 12 U.S.C. 1829b, 12 U.S.C. 1951-
1959, and 31 U.S.C. 5311, et seq., authorizes the Secretary of the 
Treasury, inter alia, to issue regulations requiring financial 
institutions to keep records and file reports that are determined to 
have a high degree of usefulness in criminal, tax, and regulatory 
matters, and to implement counter-money laundering programs and 
compliance procedures. Regulations implementing Title II of the Bank 
Secrecy Act (codified at 31 U.S.C. 5311, et seq.), appear at 31 CFR 
part 103.
    Section 365 of the Uniting and Strengthening America by Providing 
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 
2001 (the USA PATRIOT Act), Public Law 107-56 (115 Stat. 272) amended 
the Bank Secrecy Act by adding section 5331. Under 31 U.S.C. 5331, any 
person who is engaged in a trade or business and who, in the course of 
such trade or business, receives more than $10,000 in coins or currency 
in one transaction (or two or more related transactions), is required 
to file a report with respect to such transaction (or related 
transactions) with the Treasury Department. Reporting under section 
5331 does not apply to amounts received in a transaction reported under 
31 U.S.C. 5313 and the accompanying regulations.
    The reporting requirement under section 5331 of title 31 is 
analogous to the reporting requirement administered by the IRS, under 
section 6050I of title 26, United States Code, and 26 CFR 1.6050I-1. 
Inasmuch as section 6050I of title 26 requires persons to report 
information about financial transactions to the IRS, and section 5331 
of title 31 requires persons to report similar information about 
certain transactions to the Financial Crimes Enforcement Network, these 
final regulations provide that this information shall be reported on 
the same form as prescribed by the Secretary.

Effective Date of Regulations

    These regulations are effective as of the date of publication in 
the Federal Register.

Special Analyses

    Because this regulation merely advises taxpayers that information 
reported under section 6050I is, with one exception, also reported 
under 31 U.S.C. 5331, and imposes no requirement on any person, notice 
and public procedure are unnecessary pursuant to 5 U.S.C. 553(b)(B). 
For this reason, a delayed effective date is not required pursuant to 5 
U.S.C. 553(d)(3)
    It has been determined that this final regulation is not a 
significant regulatory action as defined in Executive Order 12866. 
Therefore, a regulatory assessment is not required. Because no notice 
of proposed rulemaking is required, the provisions of the Regulatory 
Flexibility Act (5 U.S.C. chapter 6) do not apply. Pursuant to section 
7805(f) of the Code, this final regulation 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 final regulations is Tiffany P. 
Smith, Office of the Associate Chief Counsel (Procedure and 
Administration), Administrative Provisions and Judicial Practice 
Division.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Final 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 1.6050I-0 is amended by revising the entry for 
Sec. 1.6050I(a)(1) and adding entries to the table for Sec. 1.6050I-
1(a)(1)(i) and (a)(1)(ii) to read as follows:


Sec. 1.6050I-0  Table of contents.

* * * * *


Sec. 1.6050I-1  Returns relating to cash in excess of $10,000 received 
in a trade or business.

    (a) * * *
    (1) Reportable transaction.
    (i) In general.
    (ii) Certain financial transactions.
* * * * *

    Par. 3. Section 1.6050I-1 is amended by:

    1. Redesignating paragraph (a)(1) as paragraph (a)(1)(i).

    2. Adding a new paragraph heading for (a)(1).

    3. Adding paragraph (a)(1)(ii).
    The additions read as follows:


Sec. 1.6050I-1  Returns relating to cash in excess of $10,000 received 
in a trade or business.

    (a) Reporting requirement--(1) Reportable transaction--(i) In 
general. * * *
    (ii) Certain financial transactions. Section 6050I of title 26 of 
the United States Code requires persons to report information about 
financial transactions to the Internal Revenue Service, and section 
5331 of title 31 of the United States Code requires persons to report 
similar information about certain transactions to the Financial Crimes 
Enforcement Network. This information shall be reported on the same 
form as prescribed by the Secretary.
* * * * *


[[Page 67688]]


    Approved: December 20, 2001.
Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
Mark Weinberger,
Assistant Secretary of the Treasury.
[FR Doc. 01-31848 Filed 12-28-01; 8:45 am]
BILLING CODE 4830-01-P