[Federal Register Volume 67, Number 223 (Tuesday, November 19, 2002)]
[Rules and Regulations]
[Pages 69673-69688]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-29077]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 601

[REG-251003-96]
RIN 1545-AR99


Statement of Procedural Rules

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Amendments to Statement of Procedural Rules.

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SUMMARY: This document amends the Statement of Procedural Rules to 
reflect changes effected by the Electronic Freedom of Information Act 
Amendments of 1996 to update organizational titles and addresses, and 
to make certain changes in the IRS's procedures for processing Freedom 
of Information Act requests. The rules affect persons requesting 
records from the IRS.

DATES: Effective Date: December 19, 2002.

FOR FURTHER INFORMATION CONTACT: Michael B. Frosch, 202-622-4590 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    This document contains final rules amending the Statement of 
Procedural Rules (SPR) (26 CFR 601.701 and 26 CFR 601.702), issued 
under the authority contained in 5 U.S.C. 301 and 552. The SPR is being 
updated to reflect changes effected by the Electronic Freedom of 
Information Act Amendments of 1996 (EFOIA), Public Law 104-231, 110 
Stat. 2422. Other amendments conform to procedures set forth in the 
Department of the Treasury's regulations on disclosure of records under 
the FOIA. 65 FR 40503 (June 30, 2000). Other amendments reflect 
procedures heretofore only available to the public in the Internal 
Revenue Manual, which is maintained in the IRS Freedom of Information 
Reading Room. The SPR is also updated to reflect changes in title or 
nomenclature and to reflect changes of addresses to be contacted for 
Freedom of Information requests in light of the IRS reorganization 
mandated by section 1001 of the Internal Revenue Service Restructuring 
and Reform Act of 1998 (RRA).

Discussion of Amendments in Section 601.701

    Section 601.701 is removed and reserved. Section 601.701 was simply 
a restatement of the statute as interpreted by the courts and does not 
need to be repeated in regulations.

Discussion of Amendments in Part 601.702

    The amendments are described in the order of the sections of the 
SPR being amended.
    Paragraph (a)(1) is amended to reflect changes in nomenclature.
    Paragraph (a)(2) is amended to reflect changes in nomenclature.
    Paragraph (b)(1) is amended to incorporate changes required by the 
Electronic Freedom of Information Act Amendments of 1996 (EFOIA). 
Specifically, this provision implements the new statutory requirement 
that any records that an agency processes and discloses in response to 
a FOIA request that the agency determines to have become or are likely 
to become the subject of subsequent requests for substantially the same 
records be placed in public reading rooms so that they are readily 
available to potential FOIA requesters. This provision also implements 
the statutory mandate to enhance the availability of reading room 
records by requiring: (1) That reading room records created on or after 
November 1, 1996, be available to the public by electronic means, e.g., 
the Internet, by November 1, 1997; and (2) an index of reading room 
records shall be made available on the Internet by December 31, 1999.
    Paragraph (b)(2) is amended to implement the EFOIA requirement that 
the extent of any deletion of information be indicated on the portion 
of the record which is made available or published, and where 
technically feasible, that the deletion be indicated at the place in 
the record where made.
    Paragraph (b)(3) is amended to reflect a change in the room 
location of the Freedom of Information Reading Room at the National 
Office. As a consequence of RRA, the IRS no longer has regional 
offices, and, therefore, the regional reading rooms have been 
eliminated. Paragraph (b)(3)(iii) is revised to clarify that fees shall 
not be charged for copying materials in the Freedom of Information 
Reading Room. Paragraph (b)(3)(iv), pertaining to mailing reading room 
material to other IRS office locations for personal inspection or 
directly to the requester, is removed. Neither the FOIA nor Department 
of the Treasury regulations or policy requires the IRS to provide this 
assistance to persons unable or unwilling to use the Freedom of 
Information Reading Room. The IRS determined that the administrative 
cost of providing such assistance outweighed the marginal public 
benefit, especially since all required records are on the Internet.
    Paragraph (c)(1) is amended to clarify IRS practice regarding the 
processing of valid FOIA requests within the statutory time period. It 
explicitly provides that invalid requests are not subject to the time 
constraints provided in paragraphs (c)(9) through (11). Newly 
designated paragraph (c)(1)(ii) reflects IRS practice that requests for 
the continuing production of records created after the date of receipt 
of the request shall not be honored.
    Paragraph (c)(2), a new provision, covers electronic format 
records. It implements the EFOIA requirement that the agency provide a 
requested record in any form or format requested if the record is 
readily reproducible by the agency in that form or format. Furthermore, 
it directs the IRS to make reasonable efforts to search for records in 
electronic form or format.
    Paragraph (c)(3), an amendment of former paragraph (c)(2) relating 
to requests for records not in control of the IRS, contains only minor 
revisions of word usage and cross references.
    Paragraph (c)(4), an amendment of former paragraph (c)(3), 
concerning the form of a request, is revised to clarify the procedures 
for making requests when the requesters are uncertain as to which 
office they should submit their requests; and to clarify IRS practice 
when requesters have an outstanding FOIA fee balance when subsequent 
requests are received.
    Paragraph (c)(5), an amendment of former paragraph (c)(4), dealing 
with reasonable description of records and identity and legal 
entitlement of the requester, is clarified to conform to section 
6103(e)(1)(D) and the Conference and Practice requirements of 26 CFR 
601.503 as to who may make a request on behalf of a corporation; to 
require the submission of the taxpayer identification number where the 
request seeks tax information to ensure the

[[Page 69674]]

requester's legal entitlement to statutorily protected records; and to 
conform to case law which permits the submission of a sworn statement, 
under penalty of perjury, in lieu of a notarized statement, as to proof 
of identity.
    Paragraph (c)(6), a new provision, implements the EFOIA requirement 
that agencies provide for expedited processing in cases where a 
requester demonstrates a compelling need. The provision defines 
compelling need; establishes the procedures for requesting expedited 
processing; sets a ten day time limit for determining whether a request 
for expedited processing will be granted; and sets a ten day time limit 
for deciding appeals of initial determinations to deny expedited 
processing.
    Paragraph (c)(7), a revision of paragraph (c)(5) concerning the 
date of receipt of a request, is amended to eliminate the requirement 
that the disclosure office issue a separate letter advising of the 
statutory period for response, where the final determination letter 
will be sent before the expiration of the statutory period or where a 
voluntary or statutory extension of time letter is sent.
    Paragraph (c)(8), a revision of paragraph (c)(6), is amended: (1) 
To eliminate language that the IRS is not required to tabulate or 
compile information for the purpose of creating a record (deemed 
confusing in light of EFOIA); and (2) to clarify that, as a general 
rule, only records in the possession and control of the IRS on the date 
of receipt of the FOIA request shall be considered in determining 
records responsive to the request.
    Paragraph (c)(9), an amendment of paragraph (c)(7), is revised to 
reflect nomenclature changes; to clarify IRS official's discretion not 
to issue a statement of fees before issuance of the determination 
letter, but rather to disclose the records simultaneous with the 
issuance of the determination letter under this provision; to clarify 
that fees will be incurred for the photocopying of records being made 
available for inspection; and to establish that IRS denial letters 
should identify the date the request was received in the appropriate 
disclosure office and the number of pages at issue.
    Paragraph (c)(10), an amendment of paragraph (c)(8) concerning 
administrative appeals, is amended to clarify that administrative 
appeals may be submitted from denials of fee waiver or reduction 
requests, as well as adverse fee category determinations, in addition 
to denials of records, and to reflect changes in nomenclature.
    Paragraph (c)(11), an amendment of paragraph (c)(9) relating to the 
unusual circumstances where extensions of time may be granted and the 
aggregation of requests, is amended to provide that consultations with 
business submitters regarding requests for disclosure of their 
information in records, in conformance with new paragraph (g), is one 
type of unusual circumstance; and to clarify that searches in Federal 
Records Centers or other storage locations for IRS records stored in 
such facilities is another. New paragraph (c)(11)(ii) is added to 
permit aggregation of requests, as authorized in EFOIA.
    Paragraph (c)(12), an amendment of paragraph (c)(10) on failure to 
comply, is amended in light of EFOIA to define the exceptional 
circumstances under which a court may retain jurisdiction and allow the 
IRS additional time to complete its processing of a FOIA request.
    Paragraph (c)(13), an amendment of paragraph (c)(11) relating to 
judicial review, is revised to clarify that judicial review may be 
sought from actual or constructive denials of fee waiver or reduction 
requests, as well as adverse fee category determinations, in addition 
to denials of records; and to change the office to which service of 
process on the IRS is to be made, from General Legal Services (GLS) to 
the Associate Chief Counsel (Procedure and Administration) (PA).
    Paragraph (c)(14), an amendment of paragraph (c)(12), contains no 
revisions. Former paragraph (c)(13) is removed.
    Paragraph (d) is amended to clarify that, for those types of 
records described in paragraphs (d) (1) through (8), requests 
denominated as Freedom of Information Act requests shall be diverted to 
other procedures provided for by the Internal Revenue Code for their 
appropriate handling and fee schedules, which procedures are generally 
as, or more expeditious than, handling through FOIA.
    Paragraph (d)(1) is amended to reflect that fees to be charged for 
requests for photocopies of tax returns and certain transcripts, made 
on IRS form 4506, ``Request for Copy or Transcript of Tax Form'' will 
be reasonable fees as determined by the Commissioner from time to time.
    Paragraph (d)(2) is amended to reflect a change in citation form.
    Paragraph (d)(3) is amended to reflect changes in the manner in 
which members of the public may obtain access to information relating 
to certain tax exempt organizations and certain trusts, consistent with 
section 6104.
    Paragraph (d)(4) is amended to reflect changes in the manner in 
which members of the public may obtain access to applications of 
certain organizations for tax exemption, consistent with section 6104.
    Paragraph (d)(5) is amended to reflect changes in which members of 
the public may obtain access to information relating to certain 
deferred compensation plans and accounts, consistent with section 6104.
    Paragraph (d)(7) is amended to clarify that comments received in 
response to solicitations for public comments, prepublication comments, 
as well as comments received in response to notices of proposed 
rulemaking, are available for inspection upon written request as set 
forth in the regulations; and to reflect changes in nomenclature and 
mailing address.
    Paragraph (d)(8) is amended to reflect that form 7249, ``Offer 
Acceptance Report,'' is the form which records accepted offers-in-
compromise.
    Paragraph (f)(1) is amended to reflect changes in nomenclature.
    Paragraph (f)(2) is amended to remove redundant information and to 
clarify that administrative appeals shall be received within 35 days of 
the date of the initial denial letter.
    Paragraph (f)(3) is amended to clarify that news media entities 
include computerized news services; to clarify that the category of 
educational institution requester does not include individuals wanting 
records for use in meeting individual academic research requirements; 
to confirm that the IRS shall determine the category of a requester 
based upon a review of the requester's submission and the IRS' own 
records; and to conform to Treasury regulations which permit only 
duplication fees to be charged to individual requesters seeking records 
about themselves maintained in agency systems of records.
    Paragraph (f)(4) is reorganized and amended to reflect changes in 
nomenclature.
    Paragraph (f)(5) is amended to clarify that fees for searches for 
non-computerized records are charged at the salary rate (basic pay plus 
16 percent) of the employee making the search; to clarify that searches 
for computerized records are charged based upon the actual direct cost 
of the search, including computer search time, runs, and the operator's 
salary; to clarify that services or material requested under, but not 
required by, the Freedom of Information Act may be chargeable to the 
requester at the actual direct cost in the discretion of the 
appropriate agency official; to reflect that the actual costs of 
duplicating videotapes and audiotapes will be borne by the requester; 
to

[[Page 69675]]

conform the fees chargeable for certain information relating to exempt 
organizations and deferred compensation plans to the fees charged for 
material requested under the Freedom of Information Act; to conform to 
case law that does not require agency officials to create new records 
where the condition of the existing record responsive to the request 
does not enable legible copies to be duplicated.
    Paragraph (f)(6) is amended to reflect changes in nomenclature.
    Paragraph (f)(7) is amended to reflect changes in citation form.
    Paragraph (f)(9) is amended to clarify that, in the event previous 
fees have not been paid in a timely fashion, or where estimated fees 
exceed $250, no processing of subsequently received requests will occur 
until such time as the requester remits all past due fees, as well as 
the fees estimated to be due as a result of the new request; and to 
clarify that the IRS reserves the right to require payment of fees 
after a request is processed and before any records are released to a 
requester.
    Paragraph (f)(10) is amended to reflect changes in nomenclature.
    Paragraph (g) has been amended to contain the revised business 
information procedures which were previously detailed in paragraph (h).
    Paragraph (h) is amended to contain the revised list of responsible 
officials and their addresses previously contained in paragraph (g).

Special Analyses

    It has been determined that these rules are not major rules as 
defined in Executive Order 12291. Therefore, a Regulatory Impact 
Analysis is not required. It also has been determined that the 
Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply to these 
rules and therefore a Regulatory Flexibility Analysis is not required. 
The IRS has not published a notice of proposed rulemaking on these 
revisions, as allowed by 5 U.S.C. 553 when the agency determines, for 
good cause, that it is unnecessary to publish a proposed rule and 
obtain comments from interested persons. The IRS has determined that 
publication of a proposed rule is unnecessary inasmuch as these 
revisions (1) generally involve revisions consistent with the 
Department of the Treasury's title 31 revised FOIA regulations (65 FR 
40503 (June 30, 2000)); (2) involve only nomenclature and address 
changes; (3) merely represent the publication of existing procedures 
already in place as set forth in the Internal Revenue Manual; or (4) 
merely reflect procedures accepted or required by the courts.

Drafting Information

    The principal author of these rules is Michael B. Frosch of the 
Office of the Associate Chief Counsel (Procedure & Administration), 
Disclosure & Privacy Law Division.

List of Subjects in 26 CFR Part 601

    Administrative practice and procedure, Freedom of Information, 
Reporting and recordkeeping requirements, Taxes.

Amendments to the Statement of Procedural Rules

    Accordingly, 26 CFR part 601 is amended as follows:

PART 601--STATEMENT OF PROCEDURAL RULES

    Paragraph 1. The authority citation for part 601 continues to read 
as follows:

    Authority: 5 U.S.C. 301 and 552.


Sec.  601.701  [Removed]

    Par. 2. Section 601.701 is removed.
    Par. 3. Section 601.702 is revised to read as follows:


Sec.  601.702  Publication, public inspection, and specific requests 
for records.

    (a) Publication in the Federal Register--(1) Requirement. (i) 
Subject to the application of the exemptions and exclusions described 
in the Freedom of Information Act, 5 U.S.C. 552(b) and (c), and subject 
to the limitations provided in paragraph (a)(2) of this section, the 
IRS is required under 5 U.S.C. 552(a)(1), to state separately and 
publish currently in the Federal Register for the guidance of the 
public the following information--
    (A) Descriptions of its central and field organization and the 
established places at which, the persons from whom, and the methods 
whereby, the public may obtain information, make submittals or 
requests, or obtain decisions, from the IRS;
    (B) Statement of the general course and method by which its 
functions are channeled and determined, including the nature and 
requirements of all formal and informal procedures which are available;
    (C) Rules of procedure, descriptions of forms available or the 
places at which forms may be obtained, and instructions as to the scope 
and contents of all papers, reports, or examinations;
    (D) Substantive rules of general applicability adopted as 
authorized by law, and statements of general policy or interpretations 
of general applicability formulated and adopted by the IRS; and
    (E) Each amendment, revision, or repeal of matters referred to in 
paragraphs (a)(1)(i)(A) through (D) of this section.
    (ii) Pursuant to the foregoing requirements, the Commissioner 
publishes in the Federal Register from time to time a statement, which 
is not codified in this chapter, on the organization and functions of 
the IRS, and such amendments as are needed to keep the statement on a 
current basis. In addition, there are published in the Federal Register 
the rules set forth in this part 601 (Statement of Procedural Rules), 
such as those in paragraph E of this section, relating to conference 
and practice requirements of the IRS; the regulations in part 301 of 
this chapter (Procedure and Administration Regulations); and the 
various substantive regulations under the Internal Revenue Code of 
1986, such as the regulations in part 1 of this chapter (Income Tax 
Regulations), in part 20 of this chapter (Estate Tax Regulations), and 
in part 31 of this chapter (Employment Tax Regulations).
    (2) Limitations. (i) Incorporation by reference in the Federal 
Register. Matter which is reasonably available to the class of persons 
affected thereby, whether in a private or public publication, shall be 
deemed published in the Federal Register for purposes of paragraph 
(a)(1) of this section when it is incorporated by reference therein 
with the approval of the Director of the Office of the Federal 
Register. The matter which is incorporated by reference must be set 
forth in the private or public publication substantially in its 
entirety and not merely summarized or printed as a synopsis. Matter, 
the location and scope of which are familiar to only a few persons 
having a special working knowledge of the activities of the IRS, may 
not be incorporated in the Federal Register by reference. Matter may be 
incorporated by reference in the Federal Register only pursuant to the 
provisions of 5 U.S.C. 552(a)(1) and 1 CFR part 20.
    (ii) Effect of failure to publish. Except to the extent that a 
person has actual and timely notice of the terms of any matter referred 
to in paragraph (a)(1) of this section which is required to be 
published in the Federal Register, such person is not required in any 
manner to resort to, or be adversely affected by, such matter if it is 
not so published or is not incorporated by reference therein pursuant 
to paragraph (a)(2)(i) of this section. Thus, for example, any such 
matter which imposes an obligation and which is not so published or 
incorporated by reference shall not

[[Page 69676]]

adversely change or affect a person's rights.
    (b) Public inspection and copying--(1) In general.
    (i) Subject to the application of the exemptions described in 5 
U.S.C. 552(b) and the exclusions described in 5 U.S.C. 552(c), the IRS 
is required under 5 U.S.C. 552(a)(2) to make available for public 
inspection and copying or, in the alternative, to promptly publish and 
offer for sale the following information:
    (A) Final opinions, including concurring and dissenting opinions, 
and orders, if such opinions and orders are made in the adjudication of 
cases;
    (B) Those statements of policy and interpretations which have been 
adopted by the IRS but are not published in the Federal Register;
    (C) Its administrative staff manuals and instructions to staff that 
affect a member of the public; and
    (D) Copies of all records, regardless of form or format, which have 
been released to any person under 5 U.S.C. 552(a)(3) and which, because 
of the nature of their subject matter, the IRS determines have become 
or are likely to become the subject of subsequent requests for 
substantially the same records. The determination that records have 
become or may become the subject of subsequent requests shall be based 
on the following criteria:
    (1) The subject matter is clearly of interest to the public at 
large or to special interest groups from which more than one request is 
expected to be received; or
    (2) When more than four requests for substantially the same records 
have already been received.
    (ii) The IRS is also required by 5 U.S.C. 552(a)(2) to maintain and 
make available for public inspection and copying current indexes 
identifying any matter described in paragraphs (b)(1)(i)(A) through (C) 
of this section which is issued, adopted, or promulgated after July 4, 
1967, and which is required to be made available for public inspection 
or published. In addition, the IRS shall also promptly publish, 
quarterly or more frequently, and distribute (by sale or otherwise) 
copies of each index or supplements thereto unless it determines by 
order published in the Federal Register that the publication would be 
unnecessary and impracticable, in which case the IRS shall nonetheless 
provide copies of such indexes on request at a cost not to exceed the 
direct cost of duplication. No matter described in paragraphs 
(b)(1)(i)(A) through (C) of this section which is required by this 
section to be made available for public inspection or published may be 
relied upon, used, or cited as precedent by the IRS against a party 
other than an agency unless such party has actual and timely notice of 
the terms of such matter or unless the matter has been indexed and 
either made available for inspection or published, as provided by this 
paragraph (b). This paragraph (b) applies only to matters which have 
precedential significance. It does not apply, for example, to any 
ruling or advisory interpretation issued to a taxpayer or to a 
particular transaction or set of facts which applies only to that 
transaction or set of facts. Rulings, determination letters, technical 
advice memorandums, and Chief Counsel advice are open to public 
inspection and copying pursuant to 26 U.S.C. 6110. This paragraph (b) 
does not apply to matters which have been made available pursuant to 
paragraph (a) of this section.
    (iii) For records required to be made available for public 
inspection and copying pursuant to 5 U.S.C. 552(a)(2) and paragraphs 
(b)(1)(i)(A) through (D) of this section, which are created on or after 
November 1, 1996, the IRS shall make such records available on the 
Internet within one year after such records are created.
    (iv) The IRS shall make the index referred to in paragraph 
(b)(1)(ii) of this section available on the Internet.
    (2) Deletion of identifying details. To prevent a clearly 
unwarranted invasion of personal privacy, the IRS shall, in accordance 
with 5 U.S.C. 552(a)(2), delete identifying details contained in any 
matter described in paragraphs (b)(1)(i)(A) through (D) of this section 
before making such matter available for inspection or publication. Such 
matters shall also be subject to any applicable exemption set forth in 
5 U.S.C. 552(b). In every case where identifying details or other 
matters are so deleted, the justification for the deletion shall be 
explained in writing. The extent of such deletion shall be indicated on 
the portion of the record which is made available or published, unless 
including that indication would harm an interest protected by the 
exemption in 5 U.S.C. 552(b) under which the deletion is made. If 
technically feasible, the extent of the deletion shall be indicated at 
the place in the record where the deletion was made.
    (3) Freedom of Information Reading Room--(i) In general. The 
Headquarters Disclosure Office of the IRS shall provide a reading room 
where the matters described in paragraphs (b)(1)(i)(A) through (D) of 
this section which are required to be made available for public 
inspection, and the current indexes to such matters, shall be made 
available to the public for inspection and copying. The Freedom of 
Information Reading Room shall contain other matters determined to be 
helpful for the guidance of the public, including a complete set of 
rules and regulations (except those pertaining to alcohol, tobacco, 
firearms, and explosives) contained in this title, any Internal Revenue 
matters which may be incorporated by reference in the Federal Register 
(but not a copy of the Federal Register so doing) pursuant to paragraph 
(a)(2)(i) of this section, a set of Cumulative Bulletins, and copies of 
various IRS publications. The public shall not be allowed to remove any 
record from the Freedom of Information Reading Room.
    (ii) Location of Freedom of Information Reading Room. The location 
of the Headquarters Disclosure Office Freedom of Information Reading 
Room is: IRS, 1111 Constitution Avenue, NW., Room 1621, Washington, DC.
    (iii) Copying facilities. The Headquarters Disclosure Office shall 
provide facilities whereby a person may obtain copies of material 
located on the shelves of the Freedom of Information Reading Room.
    (c) Specific requests for other records--(1) In general. (i) 
Subject to the application of the exemptions described in 5 U.S.C. 
552(b) and the exclusions described in 5 U.S.C. 552(c), the IRS shall, 
in conformance with 5 U.S.C. 552(a)(3), make reasonably described 
records available to a person making a request for such records which 
conforms in every respect with the rules and procedures set forth in 
this section. Any request or any appeal from the initial denial of a 
request that does not comply with the requirements set forth in this 
section shall not be considered subject to the time constraints of 
paragraphs (c)(9), (10), and (11) of this section, unless and until the 
request or appeal is amended to comply. The IRS shall promptly advise 
the requester in what respect the request or appeal is deficient so 
that it may be resubmitted or amended for consideration in accordance 
with this section. If a requester does not resubmit a perfected request 
or appeal within 35 days from the date of a communication from the IRS, 
the request or appeal file shall be closed. When the resubmitted 
request or appeal conforms with the requirements of this section, the 
time constraints of paragraphs (c)(9), (10), and (11) of this section 
shall begin.
    (ii) Requests for the continuing production of records created or 
for records created after the date of receipt of the request shall not 
be honored.

[[Page 69677]]

    (iii) Specific requests under paragraph (a)(3) for material 
described in paragraph (a)(2)(A)through(C) and which is in the Freedom 
of Information Reading Room shall not be honored.
    (2) Electronic format records. (i) The IRS shall provide the 
responsive record or records in the form or format requested if the 
record or records are readily reproducible by the IRS in that form or 
format. The IRS shall make reasonable efforts to maintain its records 
in forms or formats that are reproducible for the purpose of 
disclosure. For purposes of this paragraph, the term readily 
reproducible means, with respect to electronic format, a record or 
records that can be downloaded or transferred intact to a floppy disk, 
computer disk (CD), tape, or other electronic medium using equipment 
currently in use by the office or offices processing the request. Even 
though some records may initially be readily reproducible, the need to 
segregate exempt from nonexempt records may cause the releasable 
material to be not readily reproducible.
    (ii) In responding to a request for records, the IRS shall make 
reasonable efforts to search for the records in electronic form or 
format, except where such efforts would significantly interfere with 
the operation of the agency's automated information system(s). For 
purposes of this paragraph (c), the term search means to locate, 
manually or by automated means, agency records for the purpose of 
identifying those records which are responsive to a request.
    (iii) Searches for records maintained in electronic form or format 
may require the application of codes, queries, or other minor forms of 
programming to retrieve the requested records.
    (3) Requests for records not in control of the IRS. (i) Where the 
request is for a record which is determined to be in the possession or 
under the control of a constituent unit of the Department of the 
Treasury other than the IRS, the request for such record shall 
immediately be transferred to the appropriate constituent unit and the 
requester notified to that effect. Such referral shall not be deemed a 
denial of access within the meaning of these regulations. The 
constituent unit of the Department to which such referral is made shall 
treat such request as a new request addressed to it and the time limits 
for response set forth in paragraphs (c)(9) and (c)(10) of this section 
shall commence when the referral is received by the designated office 
or officer of the constituent unit. Where the request is for a record 
which is of a type that is not maintained by any constituent unit of 
the Department of the Treasury, the requester shall be so advised.
    (ii) Where the record requested was created by another agency or 
constituent unit of the Department of the Treasury and a copy thereof 
is in the possession of the IRS, the IRS official to whom the request 
is delivered shall refer the request to the agency or constituent unit 
which originated the record for direct reply to the requester. The 
requester shall be informed of such referral. This referral shall not 
be considered a denial of access within the meaning of these 
regulations. Where the record is determined to be exempt from 
disclosure under 5 U.S.C. 552, the referral need not be made, but the 
IRS shall inform the originating agency or constituent unit of its 
determination. Where notifying the requester of its referral may cause 
a harm to the originating agency or constituent unit which would enable 
the originating agency or constituent unit to withhold the record under 
5 U.S.C. 552, then such referral need not be made. In both of these 
circumstances, the IRS official to whom the request is delivered shall 
process the request in accordance with the procedures set forth in this 
section.
    (iii) When a request is received for a record created by the IRS 
(i.e., in its possession and control) that includes information 
originated by another agency or constituent unit of the Department of 
the Treasury, the record shall be referred to the originating agency or 
constituent unit for review, coordination, and concurrence prior to 
being released to a requester. The IRS official to whom the request is 
delivered may withhold the record without prior consultation with the 
originating agency or constituent unit.
    (4) Form of request. (i) Requesters are advised that only requests 
for records which fully comply with the requirements of this section 
can be processed in accordance with this section. Requesters shall be 
notified promptly in writing of any requirements which have not been 
met or any additional requirements to be met. Every effort shall be 
made to comply with the requests as written. The initial request for 
records must--
    (A) Be made in writing and signed by the individual making the 
request;
    (B) State that it is made pursuant to the Freedom of Information 
Act, 5 U.S.C. 552, or regulations thereunder;
    (C) Be addressed to and mailed to the office of the IRS official 
who is responsible for the control of the records requested (see 
paragraph (h) of this section for the responsible officials and their 
addresses), regardless of where such records are maintained. Generally, 
requests for records pertaining to the requester, or other matters of 
local interest, should be directed to the office servicing the 
requester's geographic area of residence. Requests for records 
maintained in the Headquarters of the IRS and its National Office of 
Chief Counsel, concerning matters of nationwide applicability, such as 
published guidance (regulations and revenue rulings), program 
management, operations, or policies, should be directed to the 
Headquarters Disclosure Office. If the person making the request does 
not know the official responsible for the control of the records being 
requested, the person making the request may contact, by telephone or 
in writing, the disclosure office servicing the requester's geographic 
area of residence to ascertain the identity of the official having 
control of the records being requested so that the request can be 
addressed, and delivered, to the appropriate responsible official. 
Misdirected requests that otherwise satisfy the requirements of this 
section shall be immediately transferred to the appropriate responsible 
IRS official and the requester notified to that effect. Such transfer 
shall not be deemed a denial of access within the meaning of these 
regulations. The IRS official to whom the request is redirected shall 
treat such request as a new request addressed to it and the time limits 
for response set forth in paragraphs (c)(9) and (c)(11) of this section 
shall commence when the transfer is received by the designated office;
    (D) Reasonably describe the records in accordance with paragraph 
(c)(5)(i) of this section;
    (E) In the case of a request for records the disclosure of which is 
limited by statute or regulations (as, for example, the Privacy Act of 
1974 (5 U.S.C. 552a) or section 6103 and the regulations thereunder), 
establish the identity and the right of the person making the request 
to the disclosure of the records in accordance with paragraph 
(c)(5)(iii) of this section;
    (F) Set forth the address where the person making the request 
desires to be notified of the determination as to whether the request 
shall be granted;
    (G) State whether the requester wishes to inspect the records or 
desires to have a copy made and furnished without first inspecting 
them;
    (H) State the firm agreement of the requester to pay the fees for 
search, duplication, and review ultimately determined in accordance 
with paragraph (f) of this section, or, in accordance with paragraph 
(c)(4)(ii) of this section, place an upper limit for

[[Page 69678]]

such fees that the requester is willing to pay, or request that such 
fees be reduced or waived and state the justification for such request; 
and
    (I) Identify the category of the requester and, with the exception 
of ``other requesters,'' state how the records shall be used, as 
required by paragraph (f)(3) of this section.
    (ii) As provided in paragraph (c)(4)(i)(H) of this section, rather 
than stating a firm agreement to pay the fee ultimately determined in 
accordance with paragraph (f) of this section or requesting that such 
fees be reduced or waived, the requester may place an upper limit on 
the amount the requester agrees to pay. If the requester chooses to 
place an upper limit and the estimated fee is deemed to be greater than 
the upper limit, or where the requester asks for an estimate of the fee 
to be charged, the requester shall be promptly advised of the estimate 
of the fee and asked to agree to pay such amount. Where the initial 
request includes a request for reduction or waiver of the fee, the IRS 
officials responsible for the control of the requested records (or 
their delegates) shall determine whether to grant the request for 
reduction or waiver in accordance with paragraph (f) of this section 
and notify the requester of their decisions and, if their decisions 
result in the requester being liable for all or part of the fee 
normally due, ask the requester to agree to pay the amount so 
determined. The requirements of this paragraph shall not be deemed met 
until the requester has explicitly agreed to pay the fee applicable to 
the request for records, if any, or has made payment in advance of the 
fee estimated to be due. If the requester has any outstanding balance 
of search, review, or duplication fees, the requirements of this 
paragraph shall not be deemed met until the requester has remitted the 
outstanding balance due.
    (5) Reasonable description of records; identity and right of the 
requester. (i) The request for records must describe the records in 
reasonably sufficient detail to enable the IRS employees who are 
familiar with the subject matter of the request to locate the records 
without placing an unreasonable burden upon the IRS. While no specific 
formula for a reasonable description of a record can be established, 
the requirement shall generally be satisfied if the requester gives the 
name, taxpayer identification number (e.g., social security number or 
employer identification number), subject matter, location, and years at 
issue, of the requested records. If the request seeks records 
pertaining to pending litigation, the request shall indicate the title 
of the case, the court in which the case was filed, and the nature of 
the case. It is suggested that the person making the request furnish 
any additional information which shall more clearly identify the 
requested records. Where the requester does not reasonably describe the 
records being sought, the requester shall be afforded an opportunity to 
refine the request. Such opportunity may involve a conference with 
knowledgeable IRS personnel at the discretion of the disclosure 
officer. The reasonable description requirement shall not be used by 
officers or employees of the Internal Revenue as a device for 
improperly withholding records from the public.
    (ii) The IRS shall make a reasonable effort to comply fully with 
all requests for access to records subject only to any applicable 
exemption set forth in 5 U.S.C. 552(b) or any exclusion described in 5 
U.S.C. 552(c). In any situation in which it is determined that a 
request for voluminous records would unduly burden and interfere with 
the operations of the IRS, the person making the request shall be asked 
to be more specific and to narrow the request, or to agree on an 
orderly procedure for the production of the requested records, in order 
to satisfy the request without disproportionate adverse effect on IRS 
operations.
    (iii) Statutory or regulatory restrictions--(A) In the case of 
records containing information with respect to particular persons the 
disclosure of which is limited by statute or regulations, persons 
making requests shall establish their identity and right to access to 
such records. Persons requesting access to such records which pertain 
to themselves may establish their identity by--
    (1) The presentation of a single document bearing a photograph 
(such as a passport or identification badge), or the presentation of 
two items of identification which do not bear a photograph but do bear 
both a name and signature (such as a credit card or organization 
membership card), in the case of a request made in person,
    (2) The submission of the requester's signature, address, and one 
other identifier (such as a photocopy of a driver's license) bearing 
the requester's signature, in the case of a request by mail, or
    (3) The presentation in person or the submission by mail of a 
notarized statement, or a statement made under penalty of perjury in 
accordance with 28 U.S.C. 1746, swearing to or affirming such person's 
identity.
    (B) Additional proof of a person's identity shall be required 
before the requests shall be deemed to have met the requirement of 
paragraph (c)(4)(i)(E) of this section if it is determined that 
additional proof is necessary to protect against unauthorized 
disclosure of information in a particular case. Persons who have 
identified themselves to the satisfaction of IRS officials pursuant to 
this paragraph (c) shall be deemed to have established their right to 
access records pertaining to themselves. Persons requesting records on 
behalf of or pertaining to another person must provide adequate proof 
of the legal relationship under which they assert the right to access 
the requested records before the requirement of paragraph (c)(4)(i)(E) 
of this section shall be deemed met.
    (C) In the case of an attorney-in-fact, or other person requesting 
records on behalf of or pertaining to other persons, the requester 
shall furnish a properly executed power of attorney, Privacy Act 
consent, or tax information authorization, as appropriate. In the case 
of a corporation, if the requester has the authority to legally bind 
the corporation under applicable state law, such as its corporate 
president or chief executive officer, then a written statement or tax 
information authorization certifying as to that person's authority to 
make a request on behalf of the corporation shall be sufficient. If the 
requester is any other officer or employee of the corporation, then 
such requester shall furnish a written statement certifying as to that 
person's authority to make a request on behalf of the corporation by 
any principal officer and attested to by the secretary or other officer 
(other than the requester) that the person making the request on behalf 
of the corporation is properly authorized to make such a request. If 
the requester is other than one of the above, then such person may 
furnish a resolution by the corporation's board of directors or other 
governing body which provides that the person making the request on 
behalf of the corporation is properly authorized to make such a 
request, or shall otherwise satisfy the requirements set forth in 
section 6103(e). A person requesting access to records of a partnership 
or a subchapter S Corporation shall provide a notarized statement, or a 
statement made under penalty of perjury in accordance with 28 U.S.C. 
1746, that the requester was a member of the partnership or subchapter 
S corporation for a part of each of the years included in the request.
    (6) Requests for expedited processing. (i) When a requester 
demonstrates compelling need, a request shall be taken out of order and 
given expedited

[[Page 69679]]

treatment. A compelling need involves--
    (A) Circumstances in which the lack of expedited treatment could 
reasonably be expected to pose an imminent threat to the life or 
physical safety of an individual;
    (B) An urgency to inform the public concerning actual or alleged 
Federal government activity, if made by a person primarily engaged in 
disseminating information. A person primarily engaged in disseminating 
information, if not a full-time representative of the news media, as 
defined in paragraph (f)(3)(ii)(B) of this section, must establish that 
he or she is a person whose main professional activity or occupation is 
information dissemination, though it need not be his or her sole 
occupation. A person primarily engaged in disseminating information 
does not include individuals who are engaged only incidentally in the 
dissemination of information. The standard of urgency to inform 
requires that the records requested pertain to a matter of current 
exigency to the American public, beyond the public's right to know 
about government activity generally, and that delaying a response to a 
request for records would compromise a significant recognized interest 
to and throughout the American general public;
    (C) The loss of substantial due process rights.
    (ii) A requester who seeks expedited processing must submit a 
statement, certified to be true and correct to the best of his or her 
knowledge and belief, explaining in detail why there is a compelling 
need for expedited processing.
    (iii) A request for expedited processing may be made at the time of 
the initial request for records or at any later time. For a prompt 
determination, requests for expedited processing must be submitted to 
the responsible official of the IRS who maintains the records requested 
except that a request for expedited processing under paragraph 
(c)(6)(i)(B) of this section shall be submitted directly to the 
Director, Communications Division, whose address is Office of Media 
Relations, CL:C:M, Internal Revenue Service, Room 7032, 1111 
Constitution Avenue, NW., Washington, DC 20224.
    (iv) Upon receipt by the responsible official in the IRS, a request 
for expedited processing shall be considered and a determination as to 
whether to grant or deny the request shall be made, and the requester 
notified, within ten days of the date of the request, provided that in 
no event shall the IRS have less than five days (excluding Saturdays, 
Sundays, and legal public holidays) from the date of the responsible 
official's receipt of the request for such processing. The 
determination to grant or deny a request for expedited processing shall 
be made solely on the information initially provided by the requester.
    (v) An appeal of an initial determination to deny expedited 
processing must be made within ten days of the date of the initial 
determination to deny expedited processing, and must otherwise comply 
with the requirements of paragraph (c)(10) of this section. Both the 
envelope and the appeal itself shall be clearly marked, ``Appeal for 
Expedited Processing.''
    (vi) IRS action to deny or affirm denial of a request for expedited 
processing pursuant to this paragraph, and IRS failure to respond in a 
timely manner to such a request shall be subject to judicial review, 
except that judicial review shall be based on the record before the IRS 
at the time of the determination. A district court of the United States 
shall not have jurisdiction to review the IRS's denial of expedited 
processing of a request for records after the IRS has provided a 
complete response to the request.
    (7) Date of receipt of request. (i) Requests for records and any 
separate agreement to pay, final notification of waiver of fees, or 
letter transmitting payment, shall be promptly stamped with the date of 
delivery to or dispatch by the office of the IRS official responsible 
for the control of the records requested. A request for records shall 
be considered to have been received on the date on which a complete 
request containing the information required by paragraphs (c)(4)(i)(A) 
through (I) has been received by the IRS official responsible for the 
control of the records requested. A determination that a request is 
deficient in any respect is not a denial of access, and such 
determinations are not subject to administrative appeal.
    (ii) The latest of such stamped dates shall be deemed for purposes 
of this section to be the date of receipt of the request, provided that 
the requirements of paragraphs (c)(4)(i)(A) through (I) of this section 
have been satisfied, and, where applicable--
    (A) The requester has agreed in writing, by executing a separate 
contract or otherwise, to pay the fees for search, duplication, and 
review determined due in accordance with paragraph (f) of this section, 
or
    (B) The fees have been waived in accordance with paragraph (f) of 
this section, or
    (C) Payment in advance has been received from the requester.
    (8) Search for records requested. (i) Upon the receipt of a 
request, search services shall be performed by IRS personnel to 
identify and locate the requested records. Search time includes any and 
all time spent looking for material responsive to the request, 
including page-by-page or line-by-line identification of material 
within records. Where duplication of an entire record would be less 
costly than a line-by-line identification, duplication should be 
substituted for this kind of search. With respect to records maintained 
in computerized form, a search shall include services functionally 
analogous to a search for records which are maintained on paper.
    (ii) In determining which records are responsive to a request, the 
IRS official responsible for the control of the records requested shall 
include only those records within the official's possession and control 
as of the date of the receipt of the request by the appropriate 
disclosure officer.
    (9) Initial determination. (i) Responsible official.
    (A) The Associate Director, Personnel Security or delegate shall 
have the sole authority to make initial determinations with respect to 
requests for records under that office's control.
    (B) The Director of the Office of Governmental Liaison and 
Disclosure or delegate shall have the sole authority to make initial 
determinations with respect to all other requests for records of the 
IRS maintained in the Headquarters and its National Office of the Chief 
Counsel. For all other records within the control of the IRS, the 
initial determination with respect to requests for records may be made 
either by the Director, Office of Governmental Liaison and Disclosure, 
or by the IRS officials responsible for the control of the records 
requested, or their delegates (see paragraph (h) of this section).
    (ii) Processing of request. The appropriate responsible official or 
delegate shall respond in the approximate order of receipt of the 
requests, to the extent consistent with sound administrative practice. 
In any event, the initial determination shall be made and notification 
thereof mailed within 20 days (excepting Saturdays, Sundays, and legal 
public holidays) after the date of receipt of the request, as 
determined in accordance with paragraph (c)(7) of this section, unless 
the responsible official invokes an extension pursuant to paragraph 
(c)(11) of this section, the requester otherwise agrees to an extension 
of the 20 day time

[[Page 69680]]

limitation, or the request is an expedited request.
    (iii) Granting of request. If the request is granted in full or in 
part, and if the requester wants a copy of the records, a statement of 
the applicable fees, if there are any, shall be mailed to the requester 
either at the time of the determination or shortly thereafter. In the 
case of a request for inspection, the records shall be made available 
promptly for inspection, at the time and place stated, normally at the 
appropriate office where the records requested are controlled. If the 
person making the request has expressed a desire to inspect the records 
at another office of the IRS, a reasonable effort shall be made to 
comply with the request. Records shall be made available for inspection 
at such reasonable and proper times so as not to interfere with their 
use by the IRS or to exclude other persons from making inspections. In 
addition, reasonable limitations may be placed on the number of records 
which may be inspected by a person on any given date. The person making 
the request shall not be allowed to remove the records from the office 
where inspection is made. If, after making inspection, the person 
making the request desires copies of all or a portion of the requested 
records, copies shall be furnished upon payment of the established fees 
prescribed by paragraph (f) of this section.
    (iv) Denial of request. If it is determined that some records shall 
be denied, the person making the request shall be so notified by mail. 
The letter of notification shall specify the city or other location 
where the requested records are situated, contain a brief statement of 
the grounds for not granting the request in full including the 
exemption(s) relied upon, the name and any title or position of the 
official responsible for the denial, and advise the person making the 
request of the right to appeal to the Commissioner in accordance with 
paragraph (c)(10) of this section.
    (A) In denying a request for records, in whole or in part, the IRS 
shall include the date that the request was received in the appropriate 
disclosure office, and shall provide an estimate of the volume of the 
denied matter to the person making the request, unless providing such 
estimate would harm an interest protected by an exemption in 5 U.S.C. 
552(b) or (c) pursuant to which the denial is made; and
    (B) The amount of information deleted shall be indicated on the 
released portion of the record, unless including that indication would 
harm an interest protected by an exemption in 5 U.S.C. 552(b) under 
which the deletion is made. If technically feasible, the amount of the 
information deleted and the asserted exemption shall be indicated at 
the place in the record where such deletion is made.
    (v) Inability to locate and evaluate within time limits. Where the 
records requested cannot be located and evaluated within the initial 
twenty day period or any extension thereof in accordance with paragraph 
(c)(11) of this section, the search for the records or evaluation shall 
continue, but the requester shall be notified, and advised that the 
requester may consider such notification a denial of the request for 
records. The requester shall be provided with a statement of judicial 
rights along with the notification letter. The requester may also be 
invited, in the alternative, to agree to a voluntary extension of time 
in which to locate and evaluate the records. Such voluntary extension 
of time shall not constitute a waiver of the requester's right to 
appeal or seek judicial review of any denial of access ultimately made 
or the requester's right to seek judicial review in the event of 
failure to comply with the time extension granted.
    (10) Administrative appeal. (i) The requester may submit an 
administrative appeal to the Commissioner of Internal Revenue by letter 
that is postmarked within 35 days after the later of the date of any 
letter of notification described in paragraph (c)(9)(iv) of this 
section, the date of any letter of notification of an adverse 
determination of the requester's category described in paragraph (f)(3) 
of this section, the date of any letter of notification of an adverse 
determination of the requester's fee waiver or reduction request 
described in paragraph (f)(2) of this section, the date of any letter 
determining that no responsive records exist, or the date of the last 
transmission of the last records released. An administrative appeal for 
denial of a request for expedited processing must be made to the 
Commissioner of Internal Revenue by letter that is postmarked within 10 
days after the date of any letter of notification discussed in 
paragraph (c)(6)(iv) of this section.
    (ii) The letter of appeal shall--(A) Be made in writing and signed 
by the requester;
    (B) Be addressed to the Commissioner and mailed to IRS Appeals, 
6377A Riverside Avenue, Suite 110, Riverside, California 92506-FOIA 
Appeal;
    (C) Reasonably describe the records requested to which the appeal 
pertains in accordance with paragraph (c)(5)(i) of this section;
    (D) Set forth the address where the appellant desires to be 
notified of the determination on appeal;
    (E) Specify the date of the request, the office to which the 
request was submitted, and where possible, enclose a copy of the 
initial request and the initial determination being appealed; and
    (F) Ask the Commissioner to grant the request for records, fee 
waiver, expedited processing, or favorable fee category, as applicable, 
or verify that an appropriate search was conducted and the responsive 
records were either produced or an appropriate exemption asserted. The 
person submitting the appeal may submit any argument in support of the 
appeal in the letter of appeal.
    (iii) Appeals shall be stamped promptly with the date of their 
receipt in the Office of Appeals, and the later of this stamped date or 
the stamped date of a document submitted subsequently which supplements 
the original appeal so that the appeal satisfies the requirements set 
forth in paragraphs (c)(10)(ii)(A) through (F) of this section shall be 
deemed by the IRS to be the date of receipt of the appeal for all 
purposes of this section. The Commissioner or a delegate shall 
acknowledge receipt of the appeal and advise the requester of the date 
of receipt and the date a response is due in accordance with this 
paragraph. If an appeal fails to satisfy any of the requirements of 
paragraph (c)(10)(ii)(A) through (F) of this section, the person making 
the request shall be advised promptly in writing of the additional 
requirements to be met. Except for appeals of denials of expedited 
processing, the determination to affirm the initial denial (in whole or 
in part) or to grant the request for records shall be made and 
notification of the determination shall be mailed within twenty days 
(exclusive of Saturdays, Sundays, and legal public holidays) after the 
date of receipt of the appeal unless extended pursuant to paragraph 
(c)(11)(i) of this section. Appeals of initial determinations to deny 
expedited processing must be made within 10 calendar days of the 
determination to deny the expedited processing. If it is determined 
that the appeal from the initial denial is to be denied (in whole or in 
part), the requester shall be notified in writing of the denial, the 
reasons therefor, the name and title or position of the official 
responsible for the denial on appeal, and the provisions of 5 U.S.C. 
552(a)(4) for judicial review of that determination.
    (11) Time extensions. (i) Unusual circumstances. (A) In unusual

[[Page 69681]]

circumstances, the time limitations specified in paragraphs (c)(9) and 
(10) of this section may be extended by written notice from the 
official charged with the duty of making the determinations to the 
person making the request or appeal setting forth the reasons for this 
extension and the date on which the determination is expected to be 
sent. As used in this paragraph, the term unusual circumstances means, 
but only to the extent reasonably necessary to the proper processing of 
the particular request:
    (1) The need to search for and collect the requested records from 
field facilities or other establishments that are separate from the 
office processing the request;
    (2) The need to search for, collect, and appropriately examine a 
voluminous amount of separate and distinct records which are demanded 
in a single request;
    (3) The need for consultation, which shall be conducted with all 
practicable speed, with another agency having a substantial interest in 
the determination of the request or among two or more constituent units 
of the Department of the Treasury having substantial subject matter 
interest therein; and
    (4) The need for consultation with business submitters to determine 
the nature and extent of proprietary information in accordance with 
this section.
    (B) Any extension or extensions of time for unusual circumstances 
shall not cumulatively total more than ten days (exclusive of Saturday, 
Sunday and legal public holidays). If additional time is needed to 
process the request, the IRS shall notify the requester and provide the 
requester an opportunity to limit the scope of the request or arrange 
for an alternative time frame for processing the request or a modified 
request. The requester shall retain the right to define the desired 
scope of the request, as long as it meets the requirements contained in 
this section.
    (ii) Aggregation of requests. If more than one request is received 
from the same requester, or from a group of requesters acting in 
concert, and the IRS believes that such requests constitute a single 
request which would otherwise satisfy the unusual circumstances 
specified in subparagraph (c)(11)(i) of this section, and the requests 
involve clearly related matters, the IRS may aggregate these requests 
for processing purposes. Multiple requests involving unrelated matters 
shall not be aggregated.
    (12) Failure to comply. If the IRS fails to comply with the time 
limitations specified in paragraphs (c)(9), (10), or paragraph 
(c)(11)(i) of this section, any person making a request for records 
satisfying the requirements of paragraphs (c)(4)(i)(A) through (I) of 
this section, shall be deemed to have exhausted administrative remedies 
with respect to such request. Accordingly, this person may initiate 
suit in accordance with paragraph (c)(13) of this section.
    (13) Judicial review. If an administrative appeal pursuant to 
paragraph (c)(10) of this section for records or fee waiver or 
reduction is denied, or if a request for expedited processing is denied 
and there has been no determination as to the release of records, or if 
a request for a favorable fee category under paragraph (f)(3) of this 
section is denied, or a determination is made that there are no 
responsive records, or if no determination is made within the twenty 
day periods specified in paragraphs (c)(9) and (10) of this section, or 
the period of any extension pursuant to paragraph (c)(11)(i) of this 
section, or by grant of the requester, respectively, the person making 
the request may commence an action in a United States district court in 
the district in which the requester resides, in which the requester's 
principal place of business is located, in which the records are 
situated, or in the District of Columbia, pursuant to 5 U.S.C. 
552(a)(4)(B). The statute authorizes an action only against the agency. 
With respect to records of the IRS, the agency is the IRS, not an 
officer or an employee thereof. Service of process in such an action 
shall be in accordance with the Federal Rules of Civil Procedure (28 
U.S.C. App.) applicable to actions against an agency of the United 
States. Delivery of process upon the IRS shall be directed to the 
Commissioner of Internal Revenue, Attention: CC:PA, 1111 Constitution 
Avenue, NW., Washington, DC 20224. The IRS shall serve an answer or 
otherwise plead to any complaint made under this paragraph within 30 
days after service upon it, unless the court otherwise directs for good 
cause shown. The district court shall determine the matter de novo, and 
may examine the contents of the IRS records in question in camera to 
determine whether such records or any part thereof shall be withheld 
under any of the exemptions described in 5 U.S.C. 552(b) and the 
exclusions described in 5 U.S.C. 552(c). The burden shall be upon the 
IRS to sustain its action in not making the requested records 
available. The court may assess against the United States reasonable 
attorney fees and other litigation costs reasonably incurred by the 
person making the request in any case in which the complainant has 
substantially prevailed.
    (14) Preservation of records. All correspondence relating to the 
requests received by the IRS under this chapter, and all records 
processed pursuant to such requests, shall be preserved, until such 
time as the destruction of such correspondence and records is 
authorized pursuant to title 44 of the United States Code. Under no 
circumstances shall records be destroyed while they are the subject of 
a pending request, appeal, or lawsuit under 5 U.S.C. 552.
    (d) Rules for disclosure of certain specified matters. Requests for 
certain specified categories of records shall be processed by the IRS 
in accordance with other established procedures.
    (1) Inspection of tax returns and attachments or transcripts. The 
inspection of returns and attachments is governed by the provisions of 
the internal revenue laws and regulations thereunder promulgated by the 
Secretary of the Treasury. See section 6103 and the regulations 
thereunder. Written requests for a copy of a tax return and attachments 
or a transcript of a tax return shall be made using IRS form 4506, 
``Request for Copy or Transcript of Tax Form.'' A reasonable fee, as 
the Commissioner may from time to time establish, may be charged for 
such copies.
    (2) Record of seizure and sale of real estate. Subject to the rules 
on disclosure set forth in section 6103, record 21, part 2, ``Record of 
seizure and sale of real estate'', is available for public inspection 
in the local IRS office where the real estate is located. Copies of 
Record 21, part 2 shall be furnished upon written request. Members of 
the public may call the toll-free IRS Customer Service number, 1-800-
829-1040, to obtain the address of the appropriate local office. Record 
21 does not list real estate seized for use in violation of the 
internal revenue laws (see section 7302).
    (3) Public inspection of certain information returns, notices, and 
reports furnished by certain tax-exempt organizations and certain 
trusts. Subject to the rules on disclosure set forth in section 6104: 
Information furnished on any form 990 series or form 1041-A returns, 
pursuant to sections 6033 and 6034, shall be made available for public 
inspection and copying, upon written request; information furnished by 
organizations exempt from tax under section 527 on forms 8871, 
Political Organization Notice of Section 527 Status, and forms 8872, 
Political Organization Report of Contributions and Expenditures, are 
available for

[[Page 69682]]

public inspection and copying from the IRS Web site at 
www.eforms.irs.gov. In addition, forms 8871 and 8872 shall be made 
available for public inspection and copying, upon written request; and 
information furnished by organizations exempt from tax under section 
527 on form 1120-POL pursuant to section 6012(a)(6) shall be made 
available for public inspection and copying upon written request. 
Written requests to inspect or obtain copies of any of the information 
described in this paragraph (d)(3) shall be made using form 4506-A, 
``Request for Public Inspection or Copy of Exempt or Political 
Organization IRS Form,'' and be directed to the appropriate address 
listed on form 4506-A.
    (4) Public inspection of applications and determinations of certain 
organizations for tax exemption. Subject to the rules on disclosure set 
forth in section 6104, applications, including forms 1023 and 1024, and 
certain papers submitted in support of such applications, filed by 
organizations described in section 501(c) or (d) and determined to be 
exempt from taxation under section 501(a), and any letter or other 
document issued by the IRS with respect to such applications, shall be 
made available for public inspection and copying, upon written request. 
Written requests to inspect or obtain copies of this information shall 
be made using form 4506-A, ``Request for Public Inspection or Copy of 
Exempt or Political Organization IRS Form'' and be directed to the 
appropriate address listed on form 4506-A.
    (5) Public inspection of applications and annual returns with 
respect to certain deferred compensation plans and accounts and 
employee plans. Subject to the rules on disclosure set forth in section 
6104; forms, applications, and papers submitted in support of such 
applications, with respect to the qualification of a pension, profit 
sharing, or stock bonus plan under sections 401(a), 403(a), or 405(a), 
an individual retirement account described in section 408(a), an 
individual retirement annuity described in section 408(b), or with 
respect to the exemption from tax of an organization forming part of 
such a plan or account, and any document issued by the IRS dealing with 
such qualification or exemption, shall be open to public inspection and 
copying upon written request. This paragraph shall not apply with 
respect to plans with no more than 25 plan participants. Written 
requests to inspect or obtain copies of such material shall be directed 
to IRS Customer Service--Tax Exempt & Government Entities Division 
(TEGE), PO Box 2508, Room 2023, Cincinnati, Ohio 45201; and information 
furnished on the Form 5500 series of returns, pursuant to section 6058, 
shall be made available for public inspection and copying upon written 
request. Except for requests for form 5500-EZ, written requests to 
inspect or to obtain a copy of this information shall be directed to 
the Department of Labor, Public Disclosure, Room N-5638, 200 
Constitution Avenue, NW., Washington, DC 20210. Written requests to 
inspect or to obtain a copy of form 5500-EZ shall be directed to the 
Internal Revenue Service Center, PO Box 9941, Stop 6716, Ogden, Utah 
84409.
    (6) Publication of statistics of income. Statistics with respect to 
the operation of the income tax laws are published annually in 
accordance with section 6108 and Sec.  301.6108-1.
    (7) Comments received in response to a notice of proposed 
rulemaking, a solicitation for public comments, or prepublication 
comments. Written comments received in response to a notice of proposed 
rulemaking, a solicitation for public comments, or prepublication 
comments, may be inspected, upon written request, by any person upon 
compliance with the provisions of this paragraph. Comments may be 
inspected in the Freedom of Information Reading Room, IRS, 1111 
Constitution Avenue, NW., Room 1621, Washington, DC. The request to 
inspect comments must be in writing and signed by the person making the 
request and shall be addressed to the Commissioner of Internal Revenue, 
Attn: CC:ITA:RU, PO Box 7604, Ben Franklin Station, Washington, DC 
20044. The person submitting the written request may inspect the 
comments that are the subject of the request during regular business 
hours. If the requester wishes to inspect the documents, the requester 
shall be contacted by IRS Freedom of Information Reading Room personnel 
when the documents are available for inspection. Copies of comments may 
be made in the Freedom of Information Reading Room by the person making 
the request or may be requested, in writing, to the Commissioner of 
Internal Revenue, Attn: CC:ITA:RU, PO Box 7604, Ben Franklin Station, 
Washington, DC 20044. The IRS shall comply with requests for records 
under the paragraph within a reasonable time. The provisions of 
paragraph (f)(5)(iii) of this section, relating to fees for 
duplication, shall apply with respect to requests made in accordance 
with this paragraph.
    (8) Accepted offers in compromise. For one year after the date of 
execution, a copy of the form 7249, ``Offer Acceptance Report,'' for 
each accepted offer in compromise with respect to any liability for a 
tax imposed by title 26 shall be made available for inspection and 
copying in the location designated by the Compliance Area Director or 
Compliance Services Field Director within the Small Business and Self-
Employed Division (SBSE) of the taxpayer's geographic area of 
residence.
    (9) Public inspection of written determinations. Certain rulings, 
determination letters, technical advice memorandums, and Chief Counsel 
advice are open to public inspection pursuant to section 6110.
    (e) Other disclosure procedures. For procedures to be followed by 
officers and employees of the IRS upon receipt of a request or demand 
for certain internal revenue records or information the disclosure 
procedure for which is not covered by this section, see Sec.  301.9000-
1.
    (f) Fees for services--(1) In general. Except as otherwise 
provided, the fees to be charged for search, duplication, and review 
services performed by the IRS, with respect to the processing of 
Freedom of Information Act requests, shall be determined and collected 
in accordance with the provisions of this subsection. A fee shall not 
be charged for monitoring a requester's inspection of records which 
contains exempt matter. The IRS may recover the applicable fees even if 
there is ultimately no disclosure of records. Should services other 
than the services described in this paragraph be requested and 
rendered, which are not required by the Freedom of Information Act, 
fees shall be charged to recover the actual direct cost to the IRS.
    (2) Waiver or reduction of fees. (i) The fees authorized by this 
paragraph may be waived or reduced on a case-by-case basis in 
accordance with this subsection by any IRS official who is authorized 
to make the initial determination pursuant to paragraph (c)(9) of this 
section. Fees shall be waived or reduced by such official when it is 
determined that disclosure of the requested information is in the 
public interest because it is likely to contribute significantly to 
public understanding of the operations or activities of the IRS and is 
not primarily in the commercial interest of the requester. Such 
officials shall consider several factors, including, but not limited 
to, paragraphs (f)(2)(i) through (vi), in determining requests for 
waiver or reduction of fees-(A) Whether the subject of the releasable 
records concerns the agency's operations or activities;

[[Page 69683]]

    (B) Whether the releasable records are likely to contribute to an 
understanding of the agency's operations or activities;
    (C) Whether the releasable records are likely to contribute to the 
general public's understanding of the agency's operations or activities 
(e.g., how will the requester convey the information to the general 
public);
    (D) The significance of the contribution to the general public's 
understanding of the agency's operations or activities (e.g., is the 
information contained in the releasable records already available to 
the general public);
    (E) The existence and magnitude of the requester's commercial 
interest, as that term is used in paragraph (f)(3)(i)(A) of this 
section, being furthered by the releasable records; and
    (F) Whether the magnitude of the requester's commercial interest is 
sufficiently large in comparison to the general public's interest.
    (ii) Requesters asking for reduction or waiver of fees must state 
the reasons why they believe disclosure meets the standards set forth 
in paragraph (f)(2)(ii) of this section in a written request signed by 
the requester.
    (iii) The indigence of the requester shall not be considered as a 
factor to determine if the requester is entitled to a reduction or 
waiver of fees.
    (iv) Normally, no charge shall be made for providing records to 
federal, state, local, or foreign governments, or agencies or offices 
thereof, or international governmental organizations.
    (v) The initial request for waiver or reduction of fees shall be 
addressed to the official of the IRS to whose office the request for 
disclosure is delivered pursuant to paragraph (c)(4)(i)(C) of this 
section. Appeals from denials of requests for waiver or reduction of 
fees shall be decided by the Commissioner's delegate in accordance with 
the criteria set forth in paragraph (f)(2)(ii) of this section. Appeals 
shall be received by the Commissioner's delegate within 35 days of the 
date of the letter of notification denying the initial request for 
waiver or reduction and shall be decided promptly. See paragraph 
(c)(10)(ii)(B) of this section for the appropriate address. Upon 
receipt of the determination on appeal to deny a request for waiver of 
fees, the requester may initiate an action in a United States district 
court to review the request for waiver of fees. In such action, the 
court shall consider the matter de novo, except that the court's review 
of the matter shall be limited to the record before the IRS official to 
whose office the request for waiver is delivered. In such action, the 
court shall consider the matter under the arbitrary and capricious 
standard.
    (3) Categories of requesters--(i) Attestation. A request for 
records under this section shall include an attestation as to the 
status of the requester for use by the IRS official to whose office the 
request is delivered in determining the appropriate fees to be 
assessed. No attestation is required for a requester who falls within 
paragraph (f)(3)(ii)(E)(an ``other requester'').
    (ii) Categories. (A) Commercial use requester. Any person who seeks 
information for a use or purpose that furthers the commercial, trade, 
or profit interests of the requester or the person on whose behalf the 
request is made.
    (B) News media requester. Any person actively gathering news for an 
entity that is organized and operated to publish or broadcast news 
(i.e., information about current events or of current interest to the 
public) to the public. News media entities include, but are not limited 
to, television or radio stations broadcasting to the public at large, 
publishers of periodicals, to the extent they disseminate news, who 
make their periodicals available for purchase or subscription by the 
general public, computerized news services and telecommunications. Free 
lance journalists shall be included as media requesters if they can 
demonstrate a solid basis for expecting publication through a 
qualifying news entity (e.g., publication contract, past publication 
record). Specialized periodicals, although catering to a narrower 
audience, may be considered media requesters so long as they are 
available to the public generally, via newsstand or subscription.
    (C) Educational institution requester. Any person who, on behalf of 
a preschool, public or private elementary or secondary school, 
institution of undergraduate or graduate higher education, institution 
of professional or vocational education, which operates a program or 
programs of scholarly research, seeks records in furtherance of the 
institution's scholarly research and is not for a commercial use. This 
category does not include requesters wanting records for use in meeting 
individual academic research or study requirements.
    (D) Noncommercial scientific institution requester. Any person on 
behalf of an institution that is not operated on a commercial basis, 
that is operated solely for the purpose of conducting scientific 
research whose results are not intended to promote any particular 
product or industry.
    (E) Other requester. Any requester who does not fall within the 
categories described in paragraphs (f)(3)(ii)(A) through (D).
    (iii) Determination of proper category. Where the IRS has 
reasonable cause to doubt the use to which a requester shall put the 
records sought, or where that use is not clear from the record itself, 
the IRS shall seek additional clarification from the requester before 
assigning the request to a specific category. In any event, a 
determination of the proper category of requester shall be based upon a 
review of the requester's submission and may also be based upon the 
IRS' own records.
    (iv) Allowable charges. (A) Commercial use requesters. Records 
shall be provided to commercial use requesters for the cost of search, 
duplication, and review (including doing all that is necessary to 
excise and otherwise prepare records for release) of records. 
Commercial use requesters are not entitled to two hours of free search 
time or 100 pages of free duplication.
    (B) News media, educational institution, and noncommercial 
scientific institution requesters. Records shall be provided to news 
media, educational institution, and noncommercial scientific 
institution requesters for the cost of duplication alone, excluding 
fees for the first 100 pages.
    (C) Other requesters. Requesters who do not fit into any of the 
above categories shall be charged fees that shall cover the full actual 
direct cost of searching for and duplicating records, except that the 
first two hours of search time and first 100 pages of duplication shall 
be furnished without charge. Requests from individuals for records 
about themselves maintained in the IRS's systems of records shall 
continue to be treated under the fee provisions of the Privacy Act of 
1974, which permits fees only for duplication after the first 100 pages 
are furnished free of charge.
    (4) Avoidance of unexpected fees. (i) In order to protect 
requesters from unexpected fees, all requests for records shall state 
the agreement of the requesters to pay the fees determined in 
accordance with paragraph (f)(5) of this section or state the upper 
limit they are willing to pay to cover the costs of processing their 
requests.
    (ii) When the fees for processing requests are estimated by the IRS 
to exceed the upper limit agreed to by a requester, or when a requester 
has failed to state a limit and the costs are estimated to exceed $250, 
and the IRS has not then determined to waive or reduce the fees, a 
notice shall be sent to the requester. This notice shall--

[[Page 69684]]

    (A) Inform the requester of the estimated costs;
    (B) Extend an offer to the requester to confer with agency 
personnel in an attempt to reformulate the request in a manner which 
shall reduce the fees and still meet the needs of the requester;
    (C) If the requester is not amenable to reformulation, which would 
reduce fees to under $250, then advance payment of the estimated fees 
shall be required; and
    (D) Inform the requester that the time period, within which the IRS 
is obliged to make a determination on the request, shall not begin to 
run, pending a reformulation of the request or the receipt of advance 
payment from the requester, as appropriate.
    (5) Fees for services. The fees for services performed by the IRS 
shall be imposed and collected as set forth in this paragraph. No fees 
shall be charged if the costs of routine collecting and processing the 
fees allowable under 5 U.S.C. 552(a)(4)(A) are likely to equal or 
exceed the amount of the fee.
    (i) Search services. Fees charged for search services are as 
follows:
    (A) Searches for records other than computerized records. The IRS 
shall charge for search services at the salary rate(s) (i.e., basic pay 
plus 16 percent) of the employee(s) making the search. An average rate 
for the range of grades typically involved may be established. Fees may 
be charged for search time as prescribed in this section even if the 
time spent searching does not yield any records, or if records are 
denied.
    (B) Searches for computerized records. Actual direct cost of the 
search, including computer search time, runs, and the operator's 
salary. The fee for computer output shall be actual direct costs. For 
requesters in the ``other requester'' category, the charge for the 
computer search shall begin when the cost of the search (including the 
operator time and the cost of operating the computer) equals the 
equivalent dollar amount of two hours of the salary of the person 
performing the search.
    (C) Searches requiring travel or transportation. Shipping charges 
to transport records from one location to another, or for the 
transportation of an employee to the site of requested records when it 
is necessary to locate rather than examine the records, shall be at the 
rate of the actual cost of such shipping or transportation.
    (ii) Review Services--(A) Review defined. Review is the process of 
examining records in response to a commercial use requester, as that 
term is defined in paragraph (f)(3)(i)(A), upon initial consideration 
of the applicability of an exemption described in 5 U.S.C. 552(b) or an 
exclusion described in 5 U.S.C. 552(c) to the requested records, be it 
at the initial request or administrative appeal level, to determine 
whether any portion of any record responsive to the request is 
permitted to be withheld. Review includes doing all that is necessary 
to excise and otherwise prepare the records for release. Review does 
not include the time spent on resolving general legal or policy issues 
regarding the applicability of exemptions to the requested records.
    (B) Fees charged for review services. The IRS shall charge 
commercial use requesters for review of records at the initial 
determination stage at the salary rate(s) (i.e., basic pay plus 16 
percent) of the employee(s) making the review. An average rate for the 
range of grades typically involved may be established by the 
Commissioner.
    (iii) Duplication other than for tax returns and attachments. (A) 
Duplication fees charged for copies of paper records shall be a 
reasonable fee, as the Commissioner may from time to time establish.
    (B) The actual direct cost of duplication for photographs, films, 
videotapes, audiotapes, compact disks, and other materials shall be 
charged.
    (C) Records may be provided to a private contractor for copying and 
the requester shall be charged for the actual cost of duplication 
charged by the private contractor.
    (D) When other duplication processes not specifically identified 
above are requested and provided pursuant to the Freedom of Information 
Act, their actual direct cost to the IRS shall be charged.
    (E) Where the condition of the record does not enable the IRS to 
make legible copies, the IRS shall not attempt to reconstruct it. The 
official having jurisdiction over the record shall furnish the best 
copy that is available and advise the requester of this fact.
    (iv) Charges for copies of tax returns and attachments, and 
transcripts of tax returns. A charge shall be made for each copy of a 
tax return and its attachments, and transcripts of tax returns, 
supplied in response to a form 4506, ``Request for Copy of Tax Form.'' 
The amount of the charge shall be a reasonable fee as computed by the 
Commissioner from time to time, and as set forth on form 4506.
    (v) Other services. Other services and materials requested (e.g., 
certification, express mailing) which are not specifically covered by 
this part and/or not required by the Freedom of Information Act are 
provided at the discretion of the IRS and are chargeable at the actual 
direct cost to the IRS.
    (6) Printed material. Certain relevant government publications 
which shall be placed on the shelves of the Freedom of Information 
Reading Room shall not be sold at that location. Copies of pages of 
these publications may be duplicated on the premises and a fee for such 
service may be charged in accordance with paragraph (f)(5)(iii) of this 
section. A person desiring to purchase the complete publication, for 
example, an Internal Revenue Bulletin, should contact the 
Superintendent of Documents, U.S. Government Printing Office, 
Washington, DC 20402.
    (7) Search, duplication, and deletion services with respect to 
records open to public inspection pursuant to section 6110. Fees 
charged for searching for, making deletions in, and copies of records 
subject to public inspection pursuant to section 6110 only upon written 
request shall be at the actual cost, as the Commissioner may from time 
to time establish.
    (8) Form of payment. Payment shall be made by check or money order, 
payable to the order of the Treasury of the United States.
    (9) Advance payments. (i) If previous fees have not been paid in a 
timely fashion, as defined in paragraph (f)(10) of this section, or 
where the estimated fees exceed $250, the IRS shall require payment in 
full of any outstanding fees and all estimated fees prior to processing 
a request. Additionally, the IRS reserves the right to require payment 
of fees after a request is processed and before any records are 
released to a requester. For purposes of this paragraph, a requester is 
the individual in whose name a request is made; however, where a 
request is made on behalf of another individual, and previous fees have 
not been paid within the designated time period by either the requester 
or the individual on whose behalf the request is made, then the IRS 
shall require payment in full of all outstanding fees and all estimated 
fees before processing the request.
    (ii) When the IRS acts pursuant to paragraph (f)(9)(i) of this 
section, the administrative time limits prescribed in paragraphs (c)(9) 
and (10) of this section, plus permissible extensions of these time 
limits as prescribed in paragraph (c)(11)(i) of this section, shall 
begin only after the IRS official to whom the request is delivered has 
received the fees described above in paragraph (f)(9)(i) of this 
section.
    (10) Interest. Interest shall be charged to requesters who fail to 
pay the fees in a timely fashion; that is, within 30 days following the 
day on which the statement of fees as set forth in paragraph (c)(9)(i) 
of this section was

[[Page 69685]]

sent by the IRS official to whom the request was delivered. Whenever 
interest is charged, the IRS shall begin assessing interest on the 31st 
day following the date the statement of fees was mailed to the 
requester. Interest shall be at the rate prescribed in 31 U.S.C. 3717. 
In addition, the IRS shall take all steps authorized by the Debt 
Collection Act of 1982, including administrative offset, disclosure to 
consumer reporting agencies, and use of collection agencies, as 
otherwise authorized by law to effect payment.
    (11) Aggregating requests. When the IRS official to whom a request 
is delivered reasonably believes that a requester or group of 
requesters is attempting to break down a request into a series of 
requests for the purpose of evading the assessment of fees, the IRS 
shall aggregate such requests and charge accordingly, upon notification 
to the requester and/or requesters.
    (g) Business information and contractor proposal procedures-- (1) 
In general. Business information provided to the IRS by a business 
submitter shall not be disclosed pursuant to a Freedom of Information 
Act request except in accordance with this section.
    (2) Definition. Business information is any trade secret or other 
confidential financial or commercial (including research) information.
    (3) Notice to business submitters. Except where it is determined 
that the information is covered by paragraph (g)(9), the official 
having control over the requested records, which includes business 
information, shall provide a business submitter with prompt written 
notice of a request encompassing its business information whenever 
required in accordance with paragraph (g)(4) of this section. Such 
written notice shall either describe the exact nature of the business 
information requested or provide copies of the records or portions 
thereof containing the business information.
    (4) When notice is required. (i) For business information submitted 
to the IRS prior to October 13, 1987, the official having control over 
the requested records shall provide a business submitter with notice of 
a request whenever--
    (A) The business information was submitted to the IRS upon a 
commitment of confidentiality; or
    (B) The business information was voluntarily submitted and it is of 
a kind that would customarily not be released to the public by the 
person from whom it was obtained; or
    (C) The official has reason to believe that disclosure of the 
information may result in commercial or financial injury to the 
business submitter.
    (ii) For business information submitted to the IRS on or after 
October 13, 1987, the IRS shall provide a business submitter with 
notice of a request whenever--
    (A) The business submitter has designated the information as 
commercially or financially sensitive information; or
    (B) The official has reason to believe that disclosure of the 
information may result in commercial or financial injury to the 
business submitter.
    (iii) The business submitter's designation that the information is 
commercially or financially sensitive information should be supported 
by a statement or certification by an officer or authorized 
representative of the business providing specific justification that 
the information in question is, in fact, confidential commercial or 
financial information and has not been disclosed to the public.
    (iv) Notice of a request for business information falling within 
paragraph (g)(4)(ii)(A) of this section shall be required for a period 
of not more than ten years after the date of submission unless the 
business submitter requests, and provides acceptable justification for, 
a specific notice period of greater duration.
    (5) Opportunity to object to disclosure. Through the notice 
described in paragraph (g)(3) of this section, the official having 
control over the requested records shall afford a business submitter 
ten days (excepting Saturdays, Sundays and legal public holidays) 
within which to provide the official with a detailed statement of any 
objection to disclosure. Such statement shall specify all grounds for 
withholding any of the information, with particular attention to why 
the information is claimed to be trade secret or commercial or 
financial information that is privileged and confidential. Information 
provided by a business submitter pursuant to this paragraph may itself 
be subject to disclosure under 5 U.S.C. 552.
    (6) Notice of intent to disclose. The IRS shall consider a business 
submitter's objections and specific grounds for nondisclosure prior to 
determining whether to disclose business information. Whenever the 
official having control over the requested records decides to disclose 
business information over the objection of a business submitter, the 
official shall forward to the business submitter a written notice which 
shall include--
    (i) A statement of the reasons for which the business submitter's 
disclosure objections were not sustained;
    (ii) A description of the business information to be disclosed; and
    (iii) A specified disclosure date, which is ten days (excepting 
Saturdays, Sundays and legal public holidays) after the notice of the 
final decision to release the requested records has been mailed to the 
submitter. Except as otherwise prohibited by law, a copy of the 
disclosure notice shall be forwarded to the requester at the same time.
    (7) Judicial review. (i) In general. The IRS' disposition of the 
request and the submitter's objections shall be subject to judicial 
review under paragraph (c)(14) of this section. A requester is not 
required to exhaust administrative remedies if a complaint has been 
filed under this paragraph by a business submitter of the information 
contained in the requested records. Likewise, a business submitter is 
not required to exhaust administrative remedies if a complaint has been 
filed by the requester of these records.
    (ii) Notice of FOIA lawsuit. Whenever a requester brings suit 
seeking to compel disclosure of business information covered by 
paragraph (g)(4) of this section, the official having control over the 
requested records shall promptly provide the business submitter with 
written notice thereof.
    (iii) Exception to notice requirement. The notice requirements of 
this paragraph shall not apply if--
    (A) The official having control over the records determines that 
the business information shall not be disclosed;
    (B) The information lawfully has been published or otherwise made 
available to the public; or
    (C) Disclosure of the information is required by law (other than 5 
U.S.C. 552).
    (8) Appeals. Procedures for administrative appeals from denials of 
requests for business information are to be processed in accordance 
with paragraph (c)(10) of this section.
    (9) Contractor Proposals. (i) Pursuant to 41 U.S.C. 253b(m), the 
IRS shall not release under the Freedom of Information Act any proposal 
submitted by a contractor in response to the requirements of a 
solicitation for a competitive proposal, unless that proposal is set 
forth or incorporated by reference in a contract entered into between 
the IRS and the contractor that submitted the proposal. For purposes of 
this paragraph, the term proposal means any proposal, including a 
technical, management, or cost proposal, submitted by a contractor in 
response to the requirements of a solicitation for a competitive 
proposal.

[[Page 69686]]

    (ii) A copy of the FOIA request for information protected from 
disclosure under this paragraph shall be furnished to the contractor 
who submitted the proposal.
    (h) Responsible officials and their addresses. For purposes of this 
section, the IRS officials in the disclosure offices listed below are 
responsible for the control of records within their geographic area. In 
the case of records of the Headquarters Office (including records of 
the National Office of the Office of Chief Counsel), except as provided 
in paragraph (c)(9)(i)(A), the Director, Office of Governmental Liaison 
and Disclosure, or delegate, is the responsible official. Requests for 
these records should be sent to: IRS FOIA Request, Headquarters 
Disclosure Office, CL:GLD:D, 1111 Constitution Avenue, NW., Washington, 
DC 20224.
    (1) For Personnel Background Investigation Records, the address of 
the responsible official is: Internal Revenue Service, Attn: Associate 
Director, Personnel Security, Room 4244, A:PS:PSO, 1111 Constitution 
Avenue, NW. Washington, DC 20224.
    (2) For records of the Office of Chief Counsel other than those 
located in the Headquarters or Division Counsel immediate offices, 
records shall be deemed to be under the jurisdiction of the local area 
Disclosure Office. Requesters seeking records under this section should 
send their requests to the local area Disclosure Office address listed 
for the state where the requester resides or any activity associated 
with the records occurred (for states with multiple offices, the 
request should be sent to the nearest office):

Alabama

IRS FOIA Request
New Orleans Disclosure Office
Mail Stop 40
600 S. Maestri Place
New Orleans, LA 70130

Alaska

IRS FOIA Request
Oakland Disclosure Office
1301 Clay Street, Suite 840-S
Oakland, CA 94612-5210

Arkansas

IRS FOIA Request
Nashville Disclosure Office
MDP 44
801 Broadway, Room 480
Nashville, TN 37203

Arizona

IRS FOIA Request
Phoenix Disclosure Office
Mail Stop 7000 PHX
210 E. Earll Drive
Phoenix, AZ 85012

California

IRS FOIA Request
Laguna Niguel Disclosure Office
24000 Avila Road, M/S 2201
Laguna Niguel, CA 92677-0207

IRS FOIA Request
Los Angeles Disclosure Office
Mail Stop 1020
300 N. Los Angeles Street
Los Angeles, CA 90012-3363

IRS FOIA Request
Oakland Disclosure Office
1301 Clay Street, Suite 840-S
Oakland, CA 94612

IRS FOIA Request
San Jose Disclosure Office
Mail Stop HQ-4603
55 South Market Street
San Jose, CA 95113

Colorado

IRS FOIA Request
Denver Disclosure Office
Mail Stop 7000 DEN
600 17th Street
Denver, CO 80202-2490

Connecticut

IRS FOIA Request
Hartford Disclosure Office
William R. Cotter F.O.B.
Mail Stop 140
135 High Street
Hartford, CT 06103

Delaware

IRS FOIA Request
Baltimore Disclosure Office
George Fallon Fed. Bldg.
31 Hopkins Plaza, Room 1210
Baltimore, MD 21201

District of Columbia

IRS FOIA Request
Baltimore Disclosure Office
George Fallon Fed. Bldg.
31 Hopkins Plaza, Room 1210
Baltimore, MD 21201

Florida

IRS FOIA Request
Fort Lauderdale Disclosure Off.
Mail Stop 4030
7850 SW 6th Court, Rm. 260
Plantation, FL 33324-3202

IRS FOIA Request
Jacksonville Disclosure Office
MS 4030
400 West Bay Street
Jacksonville, FL 32202-4437

Georgia

IRS FOIA Request
Atlanta Disclosure Office
Mail Stop 602D, Room 1905
401 W. Peachtree Street, NW
Atlanta, GA 30308

Hawaii

IRS FOIA Request
Laguna Niguel Disclosure Office
24000 Avila Road, M/S 2201
Laguna Niguel, CA 92677-0207

Idaho

IRS FOIA Request
Seattle Disclosure Office
Mail Stop W625
915 2nd Avenue
Seattle, WA 98174

Illinois

IRS FOIA Request
Chicago Disclosure Office
Mail Stop 7000 CHI, Room 2820
230 S. Dearborn Street
Chicago, IL 60604

Indiana

IRS FOIA Request
Indianapolis Disclosure Office
Mail Stop CL 658
575 N. Penn. Street
Indianapolis, IN 46204

Iowa

IRS FOIA Request
St. Paul Disclosure Office
Stop 7000
316 N. Robert Street
St. Paul, MN 55101

Kansas

IRS FOIA Request
St. Louis Disclosure Office
Mail Stop 7000 STL
PO Box 66781
St. Louis, MO 63166

Kentucky

IRS FOIA Request
Cincinnati Disclosure Office
Post Office Box 1818, Rm. 7019
Cincinnati, OH 45201

Louisiana

IRS FOIA Request
New Orleans Disclosure Office
Mail Stop 40
600 S. Maestri Place
New Orleans, LA 70130

Maine

IRS FOIA Request
Boston Disclosure Office
Mail Stop 41150
Post Office Box 9112
JFK Building
Boston, MA 02203

Maryland

IRS FOIA Request
Baltimore Disclosure Office
George Fallon Fed. Bldg.
31 Hopkins Plaza, Room 1210
Baltimore, MD 21201

Massachusetts

IRS FOIA Request

[[Page 69687]]

Boston Disclosure Office
Mail Stop 41150
JFK Building
Post Office Box 9112
Boston, MA 02203

Michigan

IRS FOIA Request
Detroit Disclosure Office
Mail Stop 11
Post Office Box 330500
Detroit, MI 48232-6500

Minnesota

IRS FOIA Request
St. Paul Disclosure Office
Stop 7000
316 N. Robert Street
St. Paul, MN 55101

Mississippi

IRS FOIA Request
New Orleans Disclosure Office
Mail Stop 40
600 S. Maestri Place
New Orleans, LA 70130

Missouri

IRS FOIA Request
St. Louis Disclosure Office
Mail Stop 7000 STL
PO Box 66781
St. Louis, MO 63166

Montana

IRS FOIA Request
Denver Disclosure Office
Mail Stop 7000 DEN
600 17th Street
Denver, CO 80202-2490

Nebraska

IRS FOIA Request
St. Paul Disclosure Office
Stop 7000
316 N. Robert Street
St. Paul, MN 55101

Nevada

IRS FOIA Request
Phoenix Disclosure Office
Mail Stop 7000 PHX
210 E. Earll Drive
Phoenix, AZ 85012

New Hampshire

IRS FOIA Request
Boston Disclosure Office
Mail Stop 41150
Post Office Box 9112
JFK Building
Boston, MA 02203

New Mexico

IRS FOIA Request
Phoenix Disclosure Office
Mail Stop 7000 PHX
210 E. Earll Drive
Phoenix, AZ 85012

New Jersey

IRS FOIA Request
Springfield Disclosure Office
PO Box 748
Springfield, NJ 07081-0748

New York (Brooklyn, Queens, and the Counties of Nassau and Suffolk)

IRS FOIA Request
Brooklyn Disclosure Office
10 Metro Tech Center
625 Fulton Street
4th Floor, Suite 611
Brooklyn, NY 11201-5404

New York (Manhattan, Staten Island, the Bronx, and the Counties of 
Rockland and Westchester)

IRS FOIA Request
Manhattan Disclosure Office
110 W. 44th Street
New York, NY 10036

New York (All Other Counties)

IRS FOIA Request
Buffalo Disclosure Office
111 West Huron St., Room 505
Buffalo, NY 14202

North Carolina

IRS FOIA Request
Greensboro Disclosure Office
320 Federal Place, Room 409
Greensboro, NC 27401

North Dakota

IRS FOIA Request
St. Paul Disclosure Office
Stop 7000
316 N. Robert Street
St. Paul, MN 55101

Ohio

IRS FOIA Request
Cincinnati Disclosure Office
Post Office Box 1818, Rm. 7019
Cincinnati, OH 45201

Oklahoma

IRS FOIA Request
Oklahoma City Disclosure Office
Mail Stop 7000 OKC
55 N. Robinson
Oklahoma City, OK 73102

Oregon

IRS FOIA Request
Seattle Disclosure Office
Mail Stop W625
915 2nd Avenue
Seattle, WA 98174

Pennsylvania

IRS FOIA Request
Philadelphia Disclosure Office
600 Arch Street, Room 3214
Philadelphia, PA 19106

Rhode Island

IRS FOIA Request
Hartford Disclosure Office
William R. Cotter F.O.B.
Mail Stop 140
135 High Street
Hartford, CT 06103

South Carolina

IRS FOIA Request
Greensboro Disclosure Office
320 Federal Place, Room 409
Greensboro, NC 27401

South Dakota

IRS FOIA Request
St. Paul Disclosure Office
Stop 7000
316 N. Robert Street
St. Paul, MN 55101

Tennessee

IRS FOIA Request
Nashville Disclosure Office
MDP 44
801 Broadway, Room 480
Nashville, TN 37203

Texas

IRS FOIA Request
Austin Disclosure Office
Mail Stop 7000 AUS
300 East 8th Street, Room 262
Austin, TX 78701

IRS FOIA Request
Dallas Disclosure Office
Mail Stop 7000 DAL
1100 Commerce Street
Dallas, TX 75242

IRS FOIA Request
Houston Disclosure Office
Mail Stop 7000 HOU
1919 Smith Street
Houston, TX 77002

Utah

IRS FOIA Request
Denver Disclosure Office
Mail Stop 7000 DEN
600 17th Street
Denver, CO 80202-2490

Vermont

IRS FOIA Request
Boston Disclosure Office
Mail Stop 41150
Post Office Box 9112
JFK Building
Boston, MA 02203

Virginia

IRS FOIA Request
Richmond Disclosure Office
PO Box 10107
Richmond, VA 23240

Washington

IRS FOIA Request
Seattle Disclosure Office
Mail Stop 625
915 2nd Avenue
Seattle, WA 98174

West Virginia

IRS FOIA Request

[[Page 69688]]

Cincinnati Disclosure Office
Post Office Box 1818, Rm. 7019
Cincinnati, OH 45201

Wisconsin

IRS FOIA Request
Milwaukee Disclosure Office
Mail Stop 7000 MIL
310 W. Wisconsin Avenue
Milwaukee, WI 53203-2221

Wyoming

IRS FOIA Request
Denver Disclosure Office
Mail Stop 7000 DEN
600 17th Street
Denver, CO 80202-2490

All APO and FPO Addresses

IRS FOIA Request
Headquarters Disclosure Office
CL:GLD:D
1111 Constitution Avenue, NW.
Washington, DC 20224

David Mader,
Assistant Deputy Commissioner of Internal Revenue.
[FR Doc. 02-29077 Filed 11-18-02; 8:45 am]
BILLING CODE 4830-01-P