[Federal Register Volume 67, Number 157 (Wednesday, August 14, 2002)]
[Rules and Regulations]
[Pages 52862-52864]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-20621]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 9014]
RIN 1545-AX27


Furnishing Identifying Number of Income Tax Return Preparer

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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SUMMARY: This document contains final regulations that allow income tax 
return preparers to elect an alternative to their social security 
number for purposes of identifying themselves on returns they prepare. 
The regulations are needed to implement section 6109(a) as amended by 
the Internal Revenue Service Restructuring and Reform Act of 1998. The 
regulations affect individual preparers who elect to identify 
themselves using a number other than their social security number.

DATES: Effective Date: These regulations are effective August 12, 2002.
    Applicability Date: For dates of applicability, see Secs. 1.6109-
2A(d) and 1.6109-2(d).

[[Page 52863]]


FOR FURTHER INFORMATION CONTACT: Michelle B. Baxter, (202) 622-4910 
(not a toll-free call).

SUPPLEMENTARY INFORMATION:

Background

    Section 6109(a)(4) of the Internal Revenue Code provides that any 
return or claim for refund prepared by an income tax return preparer 
must bear the identifying number of the preparer as required by 
regulations prescribed by the Secretary. Prior to the amendment of 
section 6109(a) by the Internal Revenue Service Restructuring and 
Reform Act of 1998 (Public Law 105-206, 112 Stat. 685 (RRA '98)), 
section 6109(a) limited the identifying number of an individual 
preparer to that preparer's social security number.
    Section 3710 of RRA '98 amended section 6109(a) by removing the 
requirement that an individual preparer's identifying number be the 
preparer's social security account number. Instead, under section 
6109(a)(4), the Secretary may prescribe alternatives to the social 
security account number for purposes of identifying individual 
preparers.
    On December 21, 1998, the IRS published Notice 98-63, 1998-2 C.B. 
760, to inform preparers of the IRS's intention to develop a system of 
alternative identifying numbers. On August 12, 1999, the Service 
published a temporary regulation (TD 8835) permitting a preparer to use 
an alternative identifying number. Federal Register (64 FR 43910). On 
August 12, 1999, the Service also published a notice of proposed 
rulemaking (REG-105237-99) allowing a preparer to use an alternative to 
their social security number for purposes of identifying themselves on 
returns they prepare. Federal Register (64 FR 43969). No public hearing 
was requested or held. No written comments were received. The proposed 
regulations are adopted by this Treasury decision, and the 
corresponding temporary regulations are removed.

Explanation of Provisions

    This document contains amendments to the Income Tax Regulations (26 
CFR part 1) to allow individual preparers to either use their social 
security number or elect an alternative identifying number for purposes 
of identifying themselves on returns they prepare. The IRS developed 
Form W-7P, Application for Preparer Tax Identification Number, on which 
preparers may apply for an alternative identifying number.

Effective Date

    The final regulations under Sec. 1.6109-2 apply to returns or 
claims for refund filed after December 31, 1999. The current rules of 
Sec. 1.6109-2, which are retained in Sec. 1.6109-2A, continue to apply 
with respect to returns or claims for refund filed prior to January 1, 
2000.

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 
these 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, these 
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 Michelle B. Baxter, 
Office of Associate Chief Counsel (Procedure and Administration), 
Administrative Provisions and Judicial Practice Division. However, 
other personnel from the IRS and Treasury Department participated in 
their development.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Adoption of 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. Immediately following Sec. 1.6115-1, an undesignated center 
heading is added to read as follows: REGULATIONS APPLICABLE TO RETURNS 
OR CLAIMS FOR REFUND FILED PRIOR TO JANUARY 1, 2000.

    Par. 3. Section 1.6109-2 is redesignated as Sec. 1.6109-2A, and 
transferred immediately after the undesignated center heading 
``REGULATIONS APPLICABLE TO RETURNS OR CLAIMS FOR REFUND FILED PRIOR TO 
JANUARY 1, 2000.''

    Par. 4. The second sentence of redesignated Sec. 1.6109-2A(d) is 
revised to read:


Sec. 1.6109-2A  Furnishing identifying number of income tax return 
preparer.

* * * * *
    (d) * * * For returns or claims for refund filed after December 31, 
1999, see Sec. 1.6109-2(a).
* * * * *

    Par. 5. New Sec. 1.6109-2 is added to read as follows:


Sec. 1.6109-2  Income tax return preparers furnishing identifying 
numbers for returns or claims for refund filed after December 31, 1999.

    (a) Furnishing identifying number.--(1) Each return of tax, or 
claim for refund of tax, under subtitle A of the Internal Revenue Code 
prepared by one or more income tax return preparers must include the 
identifying number of the preparer required by Sec. 1.6695-1(b) to sign 
the return or claim for refund. In addition, if there is a partnership 
or employment arrangement between two or more preparers, the 
identifying number of the partnership or employer must also appear on 
the return or claim for refund. For the definition of the term ``income 
tax return preparer'' (or ``preparer'') see section 7701(a)(36) and 
Sec. 301.7701-15 of this chapter.
    (2) The identifying number of a preparer who is an individual (not 
described in paragraph (a)(3) of this section) is that individual's 
social security account number, or such alternative number as may be 
prescribed by the Internal Revenue Service in forms, instructions, or 
other appropriate guidance.
    (3) The identifying number of a preparer (whether an individual, 
corporation, or partnership) who employs or engages one or more persons 
to prepare the return or claim for refund (other than for the preparer) 
is that preparer's employer identification number.
    (b) and (c) [Reserved]. For further guidance, see Sec. 1.6109-2A(b) 
and (c).
    (d) Effective date. Paragraph (a) of this section and this 
paragraph (d) apply to returns or claims for refund filed after 
December 31, 1999. For returns or claims for refund filed prior to 
January 1, 2000, see Sec. 1.6109-2A(a).


Sec. 1.6109-2T  [Removed]

    Par. 6. Section 1.6109-2T is removed.


[[Page 52864]]


    Approved: August 8, 2002.
David A. Mader,
Acting Deputy Commissioner of Internal Revenue.
Pamela F. Olson,
Acting Assistant Secretary of the Treasury.
[FR Doc. 02-20621 Filed 8-12-02; 2:56 pm]
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