[Federal Register Volume 67, Number 79 (Wednesday, April 24, 2002)]
[Rules and Regulations]
[Pages 20028-20032]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-9819]


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

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1, 301 and 602

[TD 8989]
RIN 1545-AY56


Guidance Necessary To Facilitate Electronic Tax Administration

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final and temporary regulations.

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

SUMMARY: This document contains regulations designed to eliminate 
regulatory impediments to the electronic filing of Form 1040, ``U.S. 
Individual Income Tax Return.'' These regulations generally affect 
taxpayers who file Form 1040 electronically and who are required to 
file any of the following forms: Form 56, ``Notice Concerning Fiduciary 
Relationship''; Form 2120, ``Multiple Support Declaration''; Form 2439, 
``Notice to Shareholder of Undistributed Long-Term Capital Gains''; 
Form 3468, ``Investment Credit''; and Form T (Timber), ``Forest 
Activities Schedules.'' The text of the temporary regulations also 
serves as the text of the proposed regulations set forth in the notice 
of proposed rulemaking on this subject in the Proposed Rules section in 
this issue of the Federal Register.

EFFECTIVE DATE: These regulations are effective April 24, 2002.

FOR FURTHER INFORMATION CONTACT: James C. Gibbons, (202) 622-4910 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    These regulations are being issued without prior notice and public 
procedure pursuant to the Administrative Procedure Act (5 U.S.C. 553). 
For this reason, the collections of information contained in these 
regulations have been reviewed and, pending receipt and evaluation of 
public comments, approved by the Office of Management and Budget under 
control number 1545-1783. Responses to these collections of information 
are mandatory.
    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 OMB control number.
    For further information concerning these collections of 
information, and where to submit comments on the collections of 
information and the accuracy of the estimated burden, and suggestions 
for reducing this burden, please refer to the preamble to the cross-
referencing notice of proposed rulemaking published in the Proposed 
Rules section of this issue of the Federal Register.
    Books or records relating to a 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 amendments to the Income Tax Regulations (26 
CFR part 1) and the Procedure and Administration Regulations (26 CFR 
part 301) designed to eliminate regulatory impediments to the 
electronic filing of Form 1040.
    In 1998, Congress enacted the Internal Revenue Service 
Restructuring and Reform Act of 1998 (RRA 1998), Public Law 105-206 
(112 Stat. 685) (1998). Section 2001(a) of RRA 1998 states that the 
policy of Congress is that paperless filing should be the preferred and 
most convenient means of filing Federal tax returns. Section 2001(a) of 
RRA 1998 also sets a long-range goal for the IRS to have at least 80 
percent of all Federal tax returns filed electronically by 2007. 
Section 2001(b) of RRA 1998 requires the IRS to establish a 10-year 
strategic plan to eliminate barriers to electronic filing. To the 
extent practicable, this plan is to provide for electronic filing of 
electronically prepared returns for taxable years beginning after 2001.
    The temporary regulations amend the Procedure and Administration 
Regulations to provide a regulatory statement of IRS authority to 
prescribe what return information or documentation must be filed with a 
return, statement or other document required to be made under any 
provision of the internal revenue laws or regulations. The regulations 
give the IRS maximum flexibility in prescribing (1) what needs to be 
filed in support of a return or claim, and (2) the form of the filing, 
e.g., electronic versus paper. The regulations permit the IRS to 
prescribe required return information in forms, instructions, or other 
appropriate guidance.
    In addition, the IRS identified five regulatory provisions that 
impede electronic filing by requiring the taxpayer to either include a 
third-party signature, or attach a document generated by a third party. 
The temporary regulations amend those provisions to eliminate the 
impediments.
    Although the regulatory impediments to the electronic filing of 
Form 1040 are eliminated by the temporary regulations, the IRS may 
instruct a taxpayer who files Form 1040 on paper to attach a document 
that would not be required in the case of a Form 1040 filed 
electronically.

Explanation of Provisions

1. General Provision

    Section 6001(a) of the Internal Revenue Code (Code) provides that 
every person liable for any tax, or for the collection thereof, will 
keep such records, render such statements, make such returns, and 
comply with such

[[Page 20029]]

rules and regulations as the Secretary may from time to time prescribe. 
The Secretary may require any person, by notice served upon such person 
or by regulations, to make such returns, render such statements, or 
keep such records, as the Secretary deems sufficient to show whether or 
not such person is liable for tax.
    Section 6011(a) of the Code provides that any person liable for any 
tax, or for the collection thereof, will make a return or statement 
according to the forms and regulations prescribed by the Secretary. 
Every person required to make a return or statement shall include 
therein the information required by such forms and regulations.
    The temporary regulations amend the general provisions under 
Sec. 301.6011-1 of the Procedure and Administration Regulations to 
provide a regulatory statement of the Secretary's authority to 
prescribe in forms, instructions, or other appropriate guidance what 
information or documentation must be filed with any return or statement 
required to be made or other document required to be furnished under 
any provision of the internal revenue laws or regulations. Under this 
authority, the IRS may change forms and instructions to eliminate 
nonstatutory impediments, such as third-party signature or document 
requirements, to the electronic filing of Form 1040.

2. Form T (Timber): Forest Activities Schedules

    Section 611 of the Code generally provides a reasonable allowance 
for depletion and for depreciation of improvements in computing taxable 
income from timber. See Secs. 1.611-1(a) and 1.611-5(a) of the Income 
Tax Regulations. Section 1.611-3(h) provides that a taxpayer claiming a 
deduction for depletion of timber or for depreciation of plant and 
other improvements must attach to the taxpayer's income tax return a 
filled-out Form T for the taxable year covered by the income tax 
return. This section specifically provides that the information 
required by Form T will include a map, where necessary, to show clearly 
timber and land acquired, timber cut, and timber and land sold.
    The attachment of a map to Form T is a regulatory impediment to the 
electronic filing of Form 1040 because it is a diagram not easily 
incorporated into an electronic return. It is also often generated by a 
third party. To enable the electronic filing of Form T, the temporary 
regulations remove the requirement that a taxpayer attach a map to 
substantiate the claimed depletion and depreciation. Instead, the 
temporary regulations require the taxpayer to be prepared to furnish a 
map, where necessary, to substantiate any claimed depletion or 
depreciation.

3. Form 56: Notice Concerning Fiduciary Relationship

    Section 6903(b) of the Code requires a fiduciary to give notice of 
his or her qualification as a fiduciary to the IRS in accordance with 
regulations prescribed by the Secretary. Section 301.6903-1(b) of the 
Procedure and Administration Regulations provides that satisfactory 
evidence of the authority of the fiduciary to act for any other person 
in a fiduciary capacity must be filed with and made a part of the 
notice. Form 56, the notice concerning fiduciary relationship, requires 
a fiduciary to attach a certified copy of the document creating the 
fiduciary relationship. The attachment of evidence of fiduciary 
relationship is a regulatory impediment to the electronic filing of 
Form 56 because the evidence is a document generated by a third party.
    To eliminate the barrier to electronic filing, Form 56 should be 
filed separately from Form 1040. Further, to enable the electronic 
filing of Form 56, the temporary regulations remove the requirement 
that the fiduciary attach the evidence of fiduciary relationship to 
Form 56. Instead, the temporary regulations require the fiduciary to be 
prepared to furnish the evidence to substantiate the fiduciary 
relationship.

4. Form 2120: Multiple Support Declaration

    Section 152(c) of the Code provides that a taxpayer will be treated 
as having contributed over half of the support of an individual for a 
calendar year if: (1) No one person contributed over half of the 
individual's support; (2) each person in the group that collectively 
contributed more than half of the support of the individual would have 
been entitled to claim the individual as a dependent but for the fact 
that the person did not contribute over half of the individual's 
support; (3) the taxpayer claiming the individual as a dependent 
contributed more than 10 percent of the individual's support; and (4) 
every other person in the group who contributed more than 10 percent of 
the support files a written declaration that the person will not claim 
the individual as a dependent for any taxable year beginning in such 
calendar year. Section 1.152-3(a)(4) and (c) of the Income Tax 
Regulations requires that a taxpayer claiming an individual as a 
dependent attach to the taxpayer's income tax return a written 
declaration of waiver signed by the other persons described in section 
152(c)(2). Form 2120 is used to make these waiver declarations.
    Attaching the Form 2120 with third-party waiver declarations to 
Form 1040 is a regulatory impediment to the electronic filing of Form 
1040 because third-party signatures are not easily incorporated into an 
electronic return. Therefore, the temporary regulations eliminate the 
requirement to attach the waiver declarations. Under the temporary 
regulations, a taxpayer claiming an individual as a dependent under a 
multiple support agreement is still required to obtain the waiver 
declarations but is no longer required to attach them to the taxpayer's 
income tax return. Instead, the temporary regulations require the 
taxpayer to attach a statement that (1) identifies the other persons 
described in section 152(c)(2) and (2) indicates that the taxpayer 
obtained waiver declarations from these persons. The temporary 
regulations will also require the taxpayer to retain the waiver 
declarations.

5. Form 2439: Notice to Shareholder of Undistributed Long-Term Capital 
Gains

    Under Sec. 1.852-4(b)(2) of the Income Tax Regulations, a person 
who is a shareholder of a regulated investment company at the close of 
the company's taxable year must include undistributed capital gain in 
long-term capital gain. Section 1.852-9(a)(1) requires the regulated 
investment company to give its shareholders notice of a designation of 
undistributed capital gains. The regulations provide that mailed copies 
of Form 2439 (copies B and C) constitute appropriate notice to 
shareholders. Section 1.852-9(c) requires the shareholder to attach 
copy B of Form 2439 to the shareholder's return for the taxable year in 
which the undistributed capital gain is includible in gross income.
    Attaching copy B of Form 2439 to the shareholder's income tax 
return prevents electronic filing of Form 1040 because copy B is a 
document generated by a third party. Therefore, the temporary 
regulations remove the requirement that the shareholder attach a copy 
of Form 2439 to Form 1040 but require that the shareholder retain a 
copy of Form 2439.
    A shareholder who files Form 1040 electronically will supply 
information from the shareholder's copy of the Form 2439. However, a 
shareholder who files Form 1040 on paper will continue to attach a copy 
of Form 2439 to the shareholder's paper Form 1040 in accordance with 
Form 2439 instructions.

[[Page 20030]]

6. Form 3468: Investment Credit

    Section 47 of the Code generally provides a credit for 
rehabilitation expenditures incurred for a qualified rehabilitated 
building or a certified historic structure. Section 1.48-12(d)(7)(i) of 
the Income Tax Regulations provides that a taxpayer claiming the credit 
for rehabilitation of a certified historic structure must file Form 
3468 with Form 1040. Form 3468 requires a copy of the final 
certification of completed work issued by the Secretary of the 
Interior. In addition, for returns filed after January 9, 1989, the 
taxpayer must submit evidence that the building is a certified historic 
structure. This status is evidenced by the final certification of 
completed work issued by the Secretary of the Interior. If the 
Secretary of the Interior has not issued a certification at the time 
the tax return is filed, Sec. 1.48-12(d)(7)(ii) provides that the 
taxpayer must attach (1) a copy of the first page of the certification 
application, with an indication that it has been received by the 
Secretary of the Interior or designate, and (2) proof that the building 
is a certified historic structure (or that such status has been 
requested). In addition, the taxpayer is required to submit a copy of 
the certification as an attachment to Form 3468 accompanying the first 
income tax return filed after certification.
    Attaching the certification impedes electronic filing of Form 3468 
because it is a document generated by a third party. Therefore, the 
temporary regulations revise Sec. 1.48-12(d)(7) to eliminate this 
requirement. For a return filed for a taxable year beginning after 
December 31, 2001, the taxpayer is required to provide on Form 3468 the 
NPS project number assigned by, and the date of the final certification 
of completed work received from, the Secretary of the Interior. For a 
taxpayer who has not received certification by the time the income tax 
return is filed for a year in which the credit is claimed, the current 
rules applicable to returns filed before receipt of the certification 
remain unchanged. However, the temporary regulations eliminate the 
requirement that the certification be attached to the first income tax 
return filed after its receipt. Instead, the taxpayer is required to 
provide the NPS project number assigned by, and the date of the final 
certification of completed work received from, the Secretary of the 
Interior on Form 3468 accompanying the first income tax return filed 
after certification.
    Every taxpayer claiming the credit for rehabilitation of a 
certified historic structure must provide the required information on 
Form 3468 (or its successor) filed with the taxpayer's return and 
retain a copy of the certification. For a building owned by a pass-
through entity (i.e., a partnership, S corporation, estate, or trust), 
only the pass-through entity, not the partner, shareholder or 
beneficiary, must provide on Form 3468 the NPS project number assigned 
by, and the date of the final certification of completed work received 
from, the Secretary of the Interior. However, each partner, 
shareholder, or beneficiary claiming a credit for qualified 
rehabilitation expenditures from a pass-through entity must provide the 
employer identification number of that entity on Form 3468 (or its 
successor).

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. It is hereby 
certified that the collection of information in these regulations will 
not have a significant economic impact on a substantial number of small 
entities. This certification is based upon the fact that the persons 
responsible for recordkeeping are principally individuals, and the 
burden is not significant as described earlier in the preamble. 
Therefore, a Regulatory Flexibility Analysis under the Regulatory 
Flexibility Act (5 U.S.C. chapter 6) is not required. Pursuant to 
section 7805(f) of the Internal Revenue Code, these temporary 
regulations will be 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 Sara Paige Shepherd, 
Office of Associate Chief Counsel (Procedure and Administration), 
Administrative Provisions and Judicial Practice Division. However, 
other personnel from the IRS and the Treasury Department participated 
in the development of the regulations.

List of Subjects

26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

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 1, 301 and 602 are amended as follows:

PART 1--INCOME TAXES

    1. The authority citation for part 1 continues to read in part as 
follows:

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

    2. In Sec. 1.48-12, paragraph (d)(7)(iii) is added to read as 
follows:


Sec. 1.48-12  Qualified rehabilitated building; expenditures incurred 
after December 31, 1981.

* * * * *
    (d) * * *
    (7) * * *
    (iii) Effective dates. Paragraph (d)(7)(i) of this section applies 
to returns for taxable years beginning before January 1, 2002. The 
requirement in the fourth sentence of paragraph (d)(7)(ii) of this 
section applies only if the first income tax return filed after receipt 
by the taxpayer of the certification is for a taxable year beginning 
before January 1, 2002. For rules applicable to returns for taxable 
years beginning after December 31, 2001, see Sec. 1.48-12T(d)(7)(iii).

    3. Section 1.48-12T is revised to read as follows:


Sec. 1.48-12T  Qualified rehabilitated building; expenditures incurred 
after December 31, 1981 (temporary).

    (a) through (d)(7)(ii) [Reserved] For further guidance, see 
Sec. 1.48-12(a) through (d)(7)(ii).
    (iii) Returns for taxable years beginning after December 31, 2001--
(A) In general. Except as otherwise provided in Sec. 1.48-12(d)(7)(ii) 
and this paragraph (d)(7)(iii), a taxpayer claiming the credit for 
rehabilitation of a certified historic structure (within the meaning of 
section 47(c)(3) and Sec. 1.48-12(d)(1)) for a taxable year beginning 
after December 31, 2001, must provide with the return for the taxable 
year in which the credit is claimed, the NPS project number assigned 
by, and the date of the final certification of completed work received 
from, the Secretary of the Interior. If a credit (including a credit 
for a taxable year beginning before January 1, 2002) is claimed under 
the late certification procedures of Sec. 1.48-12(d)(7)(ii) and the 
first income tax return filed by the taxpayer after receipt of the 
certification is for a taxable year beginning after

[[Page 20031]]

December 31, 2001, the taxpayer must provide the NPS project number 
assigned by, and the date of the final certification of completed work 
received from, the Secretary of the Interior with that return.
    (B) Reporting and recordkeeping requirements. The information 
required under paragraph (d)(7)(iii)(A) of this section must be 
provided on Form 3468 (or its successor) filed with the taxpayer's 
return. In addition, the taxpayer must retain a copy of the final 
certification of completed work for as long as its contents may become 
material in the administration of any internal revenue law.
    (C) Passthrough entities. In the case of a credit for qualified 
rehabilitation expenditures of a partnership, S corporation, estate, or 
trust, the requirements of this paragraph (d)(7)(iii) apply only to the 
entity. Each partner, shareholder or beneficiary claiming a credit for 
such qualified rehabilitation expenditures from a passthrough entity 
must, however, provide the employer identification number of the entity 
on Form 3468 (or its successor).
    (D) Effective dates. This paragraph (d)(7)(iii) applies to returns 
and records for taxable years beginning after December 31, 2001. For 
rules applicable to returns and records for taxable years beginning 
before January 1, 2002, see Sec. 1.48-12(d)(7)(i) and the fourth 
sentence of Sec. 1.48-12(d)(7)(ii).
    (e) through (f)(3) [Reserved]. For further guidance, see Sec. 1.48-
12(e) through (f)(3).


Sec. 1.152-3  [Amended]

    4. In Sec. 1.152-3, paragraph (c) is removed and reserved.

    5. Section 1.152-3T is added to read as follows:


Sec. 1.152-3T  Multiple support agreements (temporary).

    (a) through (b) [Reserved]. For further guidance, see Sec. 1.152-
3(a) and (b).
    (c)(1) The member of a group of contributors who claims an 
individual as a dependent for a taxable year beginning before January 
1, 2002, under the multiple support agreement provisions of section 
152(c) must attach to the member's income tax return for the year of 
the deduction a written declaration from each of the other persons who 
contributed more than 10 percent of the support of such individual and 
who, but for the failure to contribute more than half of the support of 
the individual, would have been entitled to claim the individual as a 
dependent.
    (2) The taxpayer claiming an individual as a dependent for a 
taxable year beginning after December 31, 2001, under the multiple 
support agreement provisions of section 152(c) must provide with the 
income tax return for the year of the deduction--
    (i) A statement identifying each of the other persons who 
contributed more than 10 percent of the support of the individual and 
who, but for the failure to contribute more than half of the support of 
the individual, would have been entitled to claim the individual as a 
dependent; and
    (ii) A statement indicating that the taxpayer obtained a written 
declaration from each of the persons described in section 152(c)(2) 
waiving the right to claim the individual as a dependent.
    (3) The taxpayer claiming the individual as a dependent for a 
taxable year beginning after December 31, 2001, must retain the waiver 
declarations and should be prepared to furnish the waiver declarations 
and any other information necessary to substantiate the claim of the 
taxpayer. Other information that will substantiate the dependency claim 
of the taxpayer may include a statement showing the names of all 
contributors (whether or not members of the group described in section 
152(c)(2)) and the amount contributed by each to the support of the 
claimed dependent.


Sec. 1.611-3  [Amended]

    6. In Sec. 1.611-3, paragraph (h) is removed and reserved.
    7. Section 1.611-3T is added to read as follows:


Sec. 1.611-3T  Rules applicable to timber (temporary).

    (a) through (g) [Reserved]. For further guidance, see Sec. 1.611-
3(a) through (g).
    (h) Reporting and recordkeeping requirements--(1) Taxable years 
beginning before January 1, 2002. A taxpayer claiming a deduction for 
depletion of timber for a taxable year beginning before January 1, 
2002, shall attach to the income tax return of the taxpayer a filled-
out Form T (Timber) for the taxable year covered by the income tax 
return, including the following information--
    (i) A map where necessary to show clearly timber and land acquired, 
timber cut, and timber and land sold;
    (ii) Description of, cost of, and terms of purchase of timberland 
or timber, or cutting rights, including timber or timber rights 
acquired under any type of contract;
    (iii) Profit or loss from sale of land, or timber, or both;
    (iv) Description of timber with respect to which claim for loss, if 
any, is made;
    (v) Record of timber cut;
    (vi) Changes in each timber account as a result of purchase, sale, 
cutting, reestimate, or loss;
    (vii) Changes in improvements accounts as the result of additions 
to or deductions from capital and depreciation, and computation of 
profit or loss on sale or other disposition of such improvements;
    (viii) Operation data with respect to raw and finished material 
handled and inventoried;
    (ix) Statement as to application of the election under section 
631(a) and pertinent information in support of the fair market value 
claimed thereunder;
    (x) Information with respect to land ownership and capital 
investment in timberland; and
    (xi) Any other data which will be helpful in determining the 
reasonableness of the depletion or depreciation deductions claimed in 
the return.
    (2) Taxable years beginning after December 31, 2001. A taxpayer 
claiming a deduction for depletion of timber on a return filed for a 
taxable year beginning after December 31, 2001, shall attach to the 
income tax return of the taxpayer a filled-out Form T (Timber) for the 
taxable year covered by the income tax return. In addition, the 
taxpayer must retain records sufficient to substantiate the right of 
the taxpayer to claim the deduction, including a map, where necessary, 
to show clearly timber and land acquired, timber cut, and timber and 
land sold for as long as their contents may become material in the 
administration of any internal revenue law.


Sec. 1.852-9  [Amended]

    8. In Sec. 1.852-9, paragraph (c)(1) is removed and reserved.
    9. Section 1.852-9T is added to read as follows:


Sec. 1.852-9T  Special procedural requirements applicable to 
designation under section 852(b)(3)(D) (temporary).

    (a) through (b)(3) [Reserved]. For further guidance, see 
Sec. 1.852-9(a) through (b)(3).
    (c) Shareholders--(1)(i) Return requirements for taxable years 
beginning before January 1, 2002. For taxable years beginning before 
January 1, 2002, the copy B of Form 2439 furnished to a shareholder by 
the regulated investment company or by a nominee, as provided in 
Sec. 1.852-9(a) or (b) shall be attached to the income tax return of 
the shareholder for the taxable year in which the amount of 
undistributed capital gains is includible in gross income as provided 
in Sec. 1.852-4(b)(2).

[[Page 20032]]

    (ii) Recordkeeping requirements for taxable years beginning after 
December 31, 2001. For taxable years beginning after December 31, 2001, 
the shareholder shall retain a copy of Form 2439 for as long as its 
contents may become material in the administration of any internal 
revenue law.
    (c)(2) through (d) [Reserved] For further guidance, see Sec. 1.852-
9(c)(2) through (d) .
* * * * *

PART 301--PROCEDURE AND ADMINISTRATION

    10. The authority citation for part 301 continues to read as 
follows:

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


Sec. 301.6011-1  [Removed]

    11. Section 301.6011-1 is removed.
    12. Section 301.6011-1T is added to read as follows:


Sec. 301.6011-1T  General requirement of return, statement or list 
(temporary).

    (a) For provisions requiring returns, statements, or lists, see the 
regulations relating to the particular tax.
    (b) The Secretary may prescribe in forms, instructions, or other 
appropriate guidance the information or documentation required to be 
included with any return or any statement required to be made or other 
document required to be furnished under any provision of the internal 
revenue laws or regulations.


Sec. 301.6903-1  [Amended]

    13. In Sec. 301.6903-1, paragraph (b) is removed and reserved.
    14 Section 301.6903-1T is added to read as follows:


Sec. 301.6903-1T  Notice of fiduciary (temporary).

    (a) [Reserved] For further guidance, see Sec. 301.6903-1(a).
    (b) Manner of notice--(1) Notices filed before April 24, 2002. This 
paragraph (b)(1) applies to notices filed before April 24, 2002. The 
notice shall be signed by the fiduciary, and shall be filed with the 
Internal Revenue Service office where the return of the person for whom 
the fiduciary is acting is required to be filed. The notice must state 
the name and address of the person for whom the fiduciary is acting, 
and the nature of the liability of such person; that is, whether it is 
a liability for tax, and, if so, the type of tax, the year or years 
involved, or a liability at law or in equity of a transferee of 
property of a taxpayer, or a liability of a fiduciary under section 
3467 of the Revised Statutes, as amended (31 U.S.C. 192) in respect of 
the payment of any tax from the estate of the taxpayer. Satisfactory 
evidence of the authority of the fiduciary to act for any other person 
in a fiduciary capacity must be filed with and made a part of the 
notice. If the fiduciary capacity exists by order of court, a certified 
copy of the order may be regarded as satisfactory evidence. When the 
fiduciary capacity has terminated, the fiduciary, in order to be 
relieved of any further duty or liability as such, must file with the 
Internal Revenue Service office with whom the notice of fiduciary 
relationship was filed written notice that the fiduciary capacity has 
terminated as to him, accompanied by satisfactory evidence of the 
termination of the fiduciary capacity. The notice of termination should 
state the name and address of the person, if any, who has been 
substituted as fiduciary. Any written notice disclosing a fiduciary 
relationship which has been filed with the Commissioner under the 
Internal Revenue Code of 1939 or any prior revenue law shall be 
considered as sufficient notice within the meaning of section 6903. Any 
satisfactory evidence of the authority of the fiduciary to act for 
another person already filed with the Commissioner or district director 
need not be resubmitted.
    (2) Notices filed on or after April 24, 2002. This paragraph (b)(2) 
applies to notices filed on or after April 24, 2002. The notice shall 
be signed by the fiduciary, and shall be filed with the Internal 
Revenue Service Center where the return of the person for whom the 
fiduciary is acting is required to be filed. The notice must state the 
name and address of the person for whom the fiduciary is acting, and 
the nature of the liability of such person; that is, whether it is a 
liability for tax, and if so, the type of tax, the year or years 
involved, or a liability at law or in equity of a transferee of 
property of a taxpayer, or a liability of a fiduciary under 31 U.S.C. 
3713(b), in respect of the payment of any tax from the estate of the 
taxpayer. The fiduciary must retain satisfactory evidence of his or her 
authority to act for any other person in a fiduciary capacity as long 
as the evidence may become material in the administration of any 
internal revenue law.
    (c) through (e) [Reserved]. For further guidance, see 
Sec. 301.6903-1(c) through (e).

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

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

    Authority: 26 U.S.C. 7805.

    16. In Sec. 602.101, paragraph (b) is amended by adding the 
following entries in numerical order to the table to read as follows:


Sec. 602.101  OMB Control numbers.

* * * * *
    (b) * * *

------------------------------------------------------------------------
                                                             Current OMB
     CFR part or section where identified and described      control No.
------------------------------------------------------------------------
 
                 *        *         *        *        *
1.48-12T...................................................    1545-0155
                                                               1545-1783
 
                 *        *         *        *        *
1.152-3T...................................................    1545-0071
                                                               1545-1783
 
                 *        *         *        *        *
1.611-3T...................................................    1545-0007
                                                              1545-0099,
                                                               1545-1784
 
                 *        *         *        *        *
1.852-9T...................................................    1545-0074
                                                               1545-0123
                                                               1545-0144
                                                               1545-0145
                                                               1545-1783
 
                 *        *         *        *        *
301.6903-1T................................................    1545-0013
                                                               1545-1783
 
                 *        *         *        *        *
------------------------------------------------------------------------


    Approved: March 22, 2002.
Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
Mark Weinberger,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 02-9819 Filed 4-23-02; 8:45 am]
BILLING CODE 4830-01-P