[Federal Register Volume 67, Number 118 (Wednesday, June 19, 2002)]
[Rules and Regulations]
[Pages 41621-41622]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-15351]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 9001]
RIN 1545-BA56


Disclosure 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: Final regulation.

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SUMMARY: This contains a final regulation relating to return 
information to be disclosed to the Department of Agriculture 
(Department) for use in conducting the Census of Agriculture. The 
regulation provides for the disclosure of an additional item of return 
information to the Department. The regulation provides guidance to IRS 
personnel responsible for disclosing the return information.

DATES: Effective Date: This final regulation is effective June 19, 
2002.
    Applicability Date: For dates of applicability of this final 
regulation, see Sec. 301.6103(j)(5)-1(d).

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

SUPPLEMENTARY INFORMATION:

Background

    Under section 6103(j)(5) of the Internal Revenue Code (Code), upon 
written request from the Secretary of Agriculture, the Secretary of the 
Treasury shall furnish such returns or return information as prescribed 
by Treasury regulation to officers and employees of the Department 
whose official duties require access to such returns or return 
information for the purpose of, but only to the extent necessary in, 
structuring, preparing, and conducting the Census of Agriculture 
pursuant to the Census of Agriculture Act of 1997. Currently, 
Sec. 301.6103(j)(5)-1 provides an itemized description of the return 
information authorized to be disclosed for this purpose. By letter 
dated May 8, 2001, the Secretary of Agriculture requested that the 
Treasury Regulations be amended to authorize the disclosure of an 
additional item of return information, the taxpayer's telephone number 
contained on Form 1040/Schedule F.
    This document adopts a final regulation that authorizes IRS 
personnel to disclose the additional item of return information that 
has been requested by the Secretary of Agriculture.

Explanation of Provisions

    This final regulation will permit the IRS to disclose to the 
Department, for its use in structuring, preparing, and conducting the 
Census of Agriculture, an additional item of return information, the 
taxpayer's telephone number provided on the Form 1040/Schedule F. 
According to the Department, the disclosure of this additional item of 
return information will improve the efficiency of the Department's 
list-building operations by reducing the potential for duplication in 
the Census of Agriculture. After receiving information from the IRS, 
the Department attempts to link such information to other records held 
by or available to the Department, doing so where possible on the basis 
of names, social security numbers or employer identification numbers, 
and addresses. The Department intends to use taxpayer telephone numbers 
to match records that cannot be matched otherwise or to determine that 
questionable links between records, such as those based merely on name 
and address information, constitute or do not constitute definite 
matches. By means of the matching process, the Department avoids 
duplicate contacts and furthers its classification of farms for Census 
of Agriculture purposes. The IRS will provide taxpayer telephone 
numbers to the Department under this final regulation with the 
understanding that the Department will only use them for such purpose, 
and that it will not use the information to telephone taxpayers.

Special Analyses

    Section 553 of the Administrative Procedure Act (5 U.S.C. chapter 
5) requires that a notice of proposed rulemaking be published in the 
Federal Register and, after such notice, that the Federal agency that 
issued the notice give interested persons an opportunity to participate 
in the rulemaking through submission of written comments, with or 
without opportunity for oral presentation. These requirements are 
subject to certain exceptions, including when the agency for good cause 
finds that notice and public comment are impracticable, unnecessary, or 
contrary to the public interest. Because the final regulation merely 
amends a preexisting regulation (Sec. 301.6103(j)(5)-(1) to add a 
single item of information to a list of such items, it is determined 
that the notice and public-comment procedure required by 5 U.S.C. 553 
is unnecessary in this case pursuant to the exception in 5 U.S.C. 
553(b)(3)(B). For the same reason, a delayed effective date is not 
required pursuant to 5 U.S.C. 553(d)(3).
    It has also 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. Because no notice 
of proposed rulemaking is required, the provisions of the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.) do not apply. Pursuant to 
section 7805(f) of the Code, this regulation was submitted to the Chief 
Counsel of the Small Business Administration for comment on its impact 
on small business.

Drafting Information

    The principal author of this temporary regulation is Joseph Conley, 
Office of Associate Chief Counsel (Procedure & Administration), 
Disclosure and Privacy Law Division.

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)-1 also issued under 26 U.S.C. 6103(j)(5); * 
* *
    Par. 2. Section 301.6103(j)(5)-1 is amended by:
    1. Adding paragraph (b)(2)(xiv).
    2. Revising paragraph (d).
    The addition and revision read as follows:

[[Page 41622]]

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

* * * * *
    (b) * * *
    (2) * * *
    (xiv) Taxpayer telephone number.
* * * * *
    (d) Effective dates. This section is applicable on July 31, 2001, 
except paragraph (b)(2)(xiv) which is applicable on June 19, 2002.

Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
    Approved: June 10, 2002.
Pamela F. Olson,
Acting Assistant Secretary of the Treasury.
[FR Doc. 02-15351 Filed 6-18-02; 8:45 am]
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