[Federal Register Volume 68, Number 13 (Tuesday, January 21, 2003)]
[Rules and Regulations]
[Pages 2691-2695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-871]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 9037]
RIN 1545-AY52


Disclosure of Return Information to the Bureau of the Census

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations and removal of temporary regulations.

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SUMMARY: This document contains regulations relating to the list of 
items of tax information disclosed to the Bureau of the Census. These 
regulations reflect an agreement between the IRS and the Bureau of the 
Census as to items of tax information needed to more effectively meet 
the Bureau of the Census' program objectives as authorized under 
chapter 5 of title 13, United States Code (U.S.C.), including the 
Longitudinal Employer-Household Dynamics (LEHD) project and the Survey 
of Income and Program Participation (SIPP) project.

DATES: Effective Date: These regulations are effective January 21, 
2003.

FOR FURTHER INFORMATION CONTACT: Christine Irwin, (202) 622-4570 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    This document contains amendments to 26 CFR part 301 under section 
6103(j) of the Internal Revenue Code (Code). On February 13, 2001, the 
Federal Register published temporary regulations (TD 8943) regarding 
tax information disclosed to the Bureau of the Census for use in the 
LEHD and SIPP projects (66 FR 9957), and a notice of proposed 
rulemaking (REG-121109-00) cross-referencing the temporary regulations 
(66 FR 9991). A correction to the notice of proposed rulemaking by 
cross-reference to the temporary regulations was published on March 23, 
2001 (66 FR 16161). Three comments on these temporary regulations were 
received and considered, but no public hearing was requested or held. 
After consideration of the comments, the Treasury decision adopts the 
regulations as proposed with certain changes and removes the 
corresponding temporary regulations.
    The changes include corrections to punctuation and clarification of 
certain terms used in the regulations, e.g., references to Form SS-4 as 
a ``form'' as opposed to a tax ``return.'' Additional changes include 
adopting the generic term ``location code'' to refer to locations of 
IRS offices from which tax information is retrieved. Changes also 
include using the terms ``area/district office'' and ``campus/service'' 
center as examples of location codes. The tax information disclosed to 
the Bureau of the Census is retrieved from older files, as well as 
current files. The older information is retrieved from files which 
contain the terms ``district offices'' and ``service centers'' as the 
location codes, while the more recent information is retrieved from 
files that use the terms ``area offices'' and ``campuses'' (in addition 
to other location codes). Although the terms ``district offices'' and 
``service centers'' are no longer used by the IRS, having been replaced 
by the terms ``area offices'' and ``campuses'' respectively, as a 
result of the IRS reorganization mandated by section 1001 of the IRS 
Restructuring and Reform Act of 1998, the regulations' reference to 
``location code'' will encompass all of these terms to ensure that tax 
information may be retrieved from both older and more current files.
    Also, the final regulations narrow the tax information to be 
disclosed to the Bureau of the Census under Sec.  301.6103(j)(1)-
1(b)(3)(xxviii) pertaining to ``Gross Distributions from Form 1099-R.'' 
Although the temporary regulations authorized the disclosure of all 
gross distributions from Form 1099-R under Sec.  301.6103(j)(1)-
1T(b)(3)(xxviii), the Bureau of the Census needs only tax information 
related to distributions from employer-sponsored and individual 
retirement plans, according to a letter sent to the IRS from the 
Secretary of Commerce dated October 4, 2002. Therefore, the final 
regulations authorize the disclosure only of distributions from 
employer-sponsored and individual retirement plans from the Forms 1099-
R under Sec.  301.6103(j)(1)-1(b)(3)(xxviii).
    The final regulations also clarify the phrase ``return information 
reflected on returns''--language that was incorporated into Sec.  
301.6103(j)(1)-1 when the regulations were first promulgated in 1980 
(see 45 FR 65561). The phrase ``return information reflected on 
returns'' is used in the regulations to describe the type of return 
information that may be disclosed to agencies under sections 
6103(j)(1)(A) and (B) of the Code. (The phrase ``return information 
reflected on returns'' encompasses the phrases used in the statute 
under section 6103(j)(1)(A) and (B) of the Code that refer to ``return 
information reflected thereon'' and ``return information reflected on 
returns of corporations.'') The legislative history of section 
6103(j)(1)(A) of the Code, authorizing the disclosure of ``returns'' 
and ``return information reflected thereon'' to officers and employees 
of the Bureau of the Census, does not specifically define the phrase 
``return information reflected thereon.'' Nor does the legislative 
history of section 6103(j)(1)(B) of the Code, authorizing the 
disclosure of ``return information reflected on returns of 
corporations'' to officers and employees of the Bureau of Economic 
Analysis, define the phrase ``return information reflected on returns 
of corporations.'' These final regulations clarify the concept of 
``return information reflected on returns.'' Although the legislative 
history does not explicitly define the concept of ``return information 
reflected on returns,'' it does use the term ``information from tax 
returns'' and expresses Congress' intent that only ``limited 
information'' for statistical purposes should be provided to the Bureau 
of the Census and the Bureau of Economic Analysis. The legislative 
history does describe the type of information that the IRS provided to 
agencies when section 6103(j)(1) and (2) of the Code was enacted in the 
Tax Reform Act of 1976. This information included IRS transcript cards 
that

[[Page 2692]]

summarized information from 500 to 1,000 returns of the largest 
corporations, taxpayer names, addresses, employer identification 
numbers, gross receipts, accounting periods, industry codes, and sample 
codes. (See Staff of Joint Committee on Internal Revenue Taxation, 94th 
Cong., 2d Sess., Tax Revision Issues--1976 (H.R. 10612), No. 6: 
Administrative Matters, at 40-41 (Comm. Print, April 14, 1976) (Joint 
Committee Report)). According to the legislative history, the ``sample 
code'' provided the ``sampling process used by the IRS with respect to 
its Statistics of Income (not with respect to audit, etc.). * * * '' 
See Joint Committee Report at 41. These sample codes were not 
information submitted by taxpayers on tax returns filed with the IRS. 
Rather, these codes were information generated by the IRS in 
conjunction with returns and disclosed by the IRS to at least one 
agency for statistical purposes. Therefore, when Congress enacted 
section 6103(j)(1)(A) and (B) of the Code in 1976, adopting the 
language ``return information reflected thereon'' and ``such return 
information reflected on returns of corporations'' to describe the type 
of information that could be disclosed to agencies for statistical 
purposes, the information described includes not only information on 
returns, but also information derived from the processing of such 
returns, and/or information related to the establishment and 
maintenance of taxpayer information in IRS data bases, such as sample 
codes. Therefore, these final regulations clarify the phrase ``return 
information reflected on returns'' by stating that it includes, but is 
not limited to, information on returns, information derived from 
processing such returns, and information derived from the Social 
Security Administration (SSA) and other sources for the purposes of 
establishing and maintaining taxpayer information relating to returns. 
This includes information derived from returns and Forms SS-4 
``Application for Employer Identification Number,'' monthly corrections 
of, and additions to, taxpayer information contained in IRS and SSA 
databases (e.g., taxpayer address and name changes) that are obtained 
from SSA and other sources, and computer codes compiled by the IRS and 
the SSA derived from returns and/or tax forms and integrated within 
taxpayer data bases.
    Further, these final regulations clarify a restriction that was 
imposed by the temporary regulations with respect to the disclosure of 
tax information to the Bureau of the Census. Specifically, the 
explanation of provisions section to the temporary regulations stated 
that information will be furnished under the temporary regulations only 
for the purposes of conducting the LEHD project and/or SIPP/SSA project 
as specified in the request letters and with the understanding that the 
information will be used strictly in accordance with the provisions of 
the Code pertaining to confidentiality (see 66 FR 9958 under 
``Explanation of Provisions'' of the preamble ). These tax disclosure 
restrictions to the LEHD and SIPP projects were included during the 
inception of an agreement entered into between the IRS and the Bureau 
of the Census that provides detailed criteria for the review and 
approval by the IRS of Census Bureau projects that use Federal tax 
information. This inter-agency agreement between the IRS and the Bureau 
of the Census dated September 15, 2000, is entitled ``Criteria for the 
Review and Approval of Census Projects that Use Federal Tax 
Information'' (inter-agency agreement) and provides detailed procedures 
for implementing the requirements set forth in Sec.  301.6103(j)(1)-
1(d) of the regulations. According to Sec.  301.6103(j)(1)-1(d) of the 
regulations and the inter-agency agreement, the IRS must approve the 
proposed uses for tax information disclosed on a project-by-project 
basis. The implementation of this inter-agency agreement has 
strengthened the IRS' review process for approving proposed uses for 
tax information disclosed to the Bureau of the Census. It has also 
improved the ability of the IRS and the Bureau of the Census to ensure 
that appropriate procedures, especially relating to safeguards and 
approved usage documentation, are employed for access to, and use of, 
Federal tax information.
    Although the explanation of provisions section to the temporary 
regulations stated that the additional tax information authorized for 
disclosure under the temporary regulations under Sec.  301.6103(j)(1)-
1T(b)(2), (3), and (5) would be disclosed only for purposes of 
conducting the LEHD and/or SIPP projects, the actual language of the 
temporary regulations under Sec.  301.6103(j)(1)-1T(b)(2), (3), and (5) 
did not contain such a limitation. Rather, the temporary regulations 
adopted the same language describing the authorized use of the tax 
information by the Bureau of the Census that appeared in Sec.  
301.6103(j)(1)-1(b)(2), (3), and (5) of the previous regulations (prior 
to the implementation of the temporary regulations). This language 
authorizes a broader use of the disclosed tax information by the Bureau 
of the Census for demographic and economic statistics programs, 
censuses, and surveys authorized by chapter 5 of title 13, U.S.C. These 
final regulations do not change this language pertaining to the 
authorized uses of the tax information by the Bureau of the Census in 
Sec.  301.6103(j)(1)-1 (b)(2), (3), and (5). Accordingly, these final 
regulations permit the disclosure of tax information to the Bureau of 
the Census, not only for the LEHD and SIPP projects, but also to the 
extent necessary in conducting and preparing demographic and economic 
statistics programs, censuses, and surveys, as authorized by chapter 5 
of title 13, U.S.C., and as approved for these purposes by the IRS 
according to procedures reflected in the September 15, 2000 inter-
agency agreement described above and Sec.  301.6103(j)(1)-1(d) of the 
regulations.

Summary of Comments

    With respect to the three comments received in response to the 
temporary regulations, two strongly supported, and one objected to, the 
additional disclosure of tax information to the Bureau of the Census. 
Specifically, two of the comments supported the additions to the list 
of items of tax information disclosed to the Bureau of the Census for 
use in the SIPP project. One comment stated that these additional 
disclosures to the Census Bureau will make it possible to provide an 
accurate measure of prospective pension benefits that is critically 
important in providing estimates of the future economic well-being of 
an increasingly large segment of the population and will provide 
legislators, policy analysts, and researchers with a much more useful 
measure of the net government transfers to different households than 
that provided by the current SIPP. These additional disclosures will 
also provide a crucial source of information for assessing potential 
reforms of the Social Security System, according to the comment.
    The third comment expressed opposition to the compiling of data by 
the Bureau of Census beyond that necessary to determine population 
distribution for the purpose of legislative redistricting. This 
objection does not recognize that the Bureau of the Census is 
authorized under chapter 5 of title 13, U.S.C., to conduct various 
demographic, economic, and agricultural statistics programs and 
censuses and related program evaluation that includes the LEHD and SIPP 
projects. Therefore, the comment was not adopted.

[[Page 2693]]

Special Analyses

    It has been determined that this Treasury decision is not a 
significant regulatory action as defined in Executive Order 12866. 
Therefore, a regulatory assessment is not required. It also has been 
determined that section 553(b) of the Administrative Procedure Act (5 
U.S.C. chapter 5) does not apply to these regulations, and because the 
regulations do not impose a collection of information on small 
entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not 
apply. Pursuant to section 7805(f) of the Code, the notice of proposed 
rulemaking preceding these regulations was submitted to the Chief 
Counsel for Advocacy of the Small Business Administration for comment 
on its impact on small business.

Drafting Information

    The principal author of these regulations is Christine Irwin, 
Office of the Associate Chief Counsel, Procedure & Administration 
(Disclosure & Privacy Law Division).

List of Subjects in 26 CFR Part 301

    Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income 
taxes, Penalties, Reporting and record keeping requirements.

Adoption of Amendments to the Regulations

    Accordingly, 26 CFR part 301 is amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

    Paragraph 1. The authority citation for part 301 is amended by 
removing the entry for ``Section 301.6103(j)(1)-lT'' and continues to 
read in part as follows:

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

    Par. 2. Section 301.6103(j)(1)-1 is revised to read as follows:


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

    (a) General rule. Pursuant to the provisions of section 6103(j)(1) 
of the Internal Revenue Code and subject to the requirements of 
paragraph (d) of this section, officers or employees of the Internal 
Revenue Service will disclose return information (as defined by section 
6103(b)(2) but not including return information described in section 
6103(o)(2)) reflected on returns to officers and employees of the 
Department of Commerce to the extent, and for such purposes as may be, 
provided by paragraphs (b) and (c) of this section. Further, in the 
case of any disclosure of return information reflected on returns so 
provided by paragraphs (b) and (c) of this section, the tax period or 
accounting period to which such information relates will also be 
disclosed. ``Return information reflected on returns'' includes, but is 
not limited to, information on returns, information derived from 
processing such returns, and information derived from the Social 
Security Administration and other sources for the purposes of 
establishing and maintaining taxpayer information relating to returns.
    (b) Disclosure of return information reflected on returns to 
officers and employees of the Bureau of the Census.
    (1) Officers or employees of the Internal Revenue Service will 
disclose the following return information reflected on returns of 
individual taxpayers to officers and employees of the Bureau of the 
Census for purposes of, but only to the extent necessary in, conducting 
and preparing, as authorized by chapter 5 of title 13, United States 
Code, intercensal estimates of population and income for all geographic 
areas included in the population estimates program and demographic 
statistics programs, censuses, and related program evaluation:
    (i) Taxpayer identity information (as defined in section 6103(b)(6) 
of the Internal Revenue Code), validity code with respect to the 
taxpayer identifying number (as described in section 6109), and 
taxpayer identity information of spouse and dependents, if reported.
    (ii) Location codes (including area/district office and campus/
service center codes).
    (iii) Marital status.
    (iv) Number and classification of reported exemptions.
    (v) Wage and salary income.
    (vi) Dividend income.
    (vii) Interest income.
    (viii) Gross rent and royalty income.
    (ix) Total of--
    (A) Wages, salaries, tips, etc.;
    (B) Interest income;
    (C) Dividend income;
    (D) Alimony received;
    (E) Business income;
    (F) Pensions and annuities;
    (G) Income from rents, royalties, partnerships, estates, trusts, 
etc.;
    (H) Farm income;
    (I) Unemployment compensation; and
    (J) Total Social Security benefits.
    (x) Adjusted gross income.
    (xi) Type of tax return filed.
    (xii) Entity code.
    (xiii) Code indicators for Form 1040, Form 1040 (Schedules A, C, D, 
E, F, and SE), and Form 8814.
    (xiv) Posting cycle date relative to filing.
    (xv) Social Security benefits.
    (2) Officers or employees of the Internal Revenue Service will 
disclose to officers and employees of the Bureau of the Census for 
purposes of, but only to the extent necessary in, conducting, as 
authorized by chapter 5 of title 13, United States Code, demographic, 
economic, and agricultural statistics programs and censuses and related 
program evaluation--
    (i) From the business master files of the Internal Revenue 
Service--the taxpayer name directory and entity records consisting of 
taxpayer identity information (as defined in section 6103(b)(6)) with 
respect to taxpayers engaged in a trade or business, the principal 
industrial activity code, the filing requirement code, the employment 
code, the physical location, the location codes (including area/
district office and campus/service center codes), and monthly 
corrections of, and additions to, such entity records;
    (ii) From Form SS-4--all information reflected on such form;
    (iii) From an employment tax return--
    (A) Taxpayer identifying number (as described in section 6109) of 
the employer;
    (B) Total compensation reported;
    (C) Master file tax account code (MFT);
    (D) Taxable period covered by such return;
    (E) Employer code;
    (F) Document locator number;
    (G) Record code;
    (H) Total number of individuals employed in the taxable period 
covered by the return;
    (I) Total taxable wages paid for purposes of chapter 21; and
    (J) Total taxable tip income reported for purposes of chapter 21;
    (iv) From Form 1040 (Schedule SE)--
    (A) Taxpayer identifying number of self-employed individual;
    (B) Business activities subject to the tax imposed by chapter 21;
    (C) Net earnings from farming;
    (D) Net earnings from nonfarming activities;
    (E) Total net earnings from self-employment; and
    (F) Taxable self-employment income for purposes of chapter 2;
    (v) Total Social Security taxable earnings; and
    (vi) Quarters of Social Security coverage.
    (3) Officers or employees of the Internal Revenue Service will 
disclose the following business related return information reflected on 
returns of taxpayers to officers and employees of

[[Page 2694]]

the Bureau of the Census for purposes of, but only to the extent 
necessary in, conducting and preparing, as authorized by chapter 5 of 
title 13, United States Code, demographic and economic statistics 
programs, censuses, and surveys. (The ``returns of taxpayers'' include, 
but are not limited to: Form 941; Form 990 series; Form 1040 series and 
Schedules C and SE; Form 1065 and all attending schedules and Form 
8825; Form 1120 series and all attending schedules and Form 8825; Form 
851; Form 1096; and other business returns, schedules and forms that 
the Internal Revenue Service may issue.):
    (i) Taxpayer identity information (as defined in section 
6103(b)(6)) including parent corporation, shareholder, partner, and 
employer identity information.
    (ii) Gross income, profits, or receipts.
    (iii) Returns and allowances.
    (iv) Cost of labor, salaries, and wages.
    (v) Total expenses or deductions.
    (vi) Total assets.
    (vii) Beginning- and end-of-year inventory.
    (viii) Royalty income.
    (ix) Interest income, including portfolio interest.
    (x) Rental income, including gross rents.
    (xi) Tax-exempt interest income.
    (xii) Net gain from sales of business property.
    (xiii) Other income.
    (xiv) Total income.
    (xv) Percentage of stock owned by each shareholder.
    (xvi) Percentage of capital ownership of each partner.
    (xvii) End-of-year code.
    (xviii) Months actively operated.
    (xix) Principal industrial activity code, including the business 
description.
    (xx) Total number of documents and the total amount reported on the 
Form 1096 transmitting Forms 1099-MISC.
    (xxi) Form 941 indicator and business address on Form 1040 
(Schedule C).
    (xxii) Consolidated return indicator.
    (xxiii) Wages, tips, and other compensation.
    (xxiv) Social Security wages.
    (xxv) Deferred wages.
    (xxvi) Social Security tip income.
    (xxvii) Total Social Security taxable earnings.
    (xxviii) Gross distributions from employer-sponsored and individual 
retirement plans from Form 1099-R.
    (4) Officers or employees of the Internal Revenue Service will 
disclose return information reflected on returns of taxpayers contained 
in the exempt organization master files of the Internal Revenue Service 
to officers and employees of the Bureau of the Census for purposes of, 
but only to the extent necessary in, conducting and preparing, as 
authorized by chapter 5 of title 13, United States Code, economic 
censuses. This return information reflected on returns of taxpayers 
consists of taxpayer identity information (as defined in section 
6103(b)(6)), activity codes, and filing requirement code, and monthly 
corrections of, and additions to, such information.
    (5) Subject to the requirements of paragraph (d) of this section 
and Sec.  301.6103(p)(2)(B)-1, officers or employees of the Social 
Security Administration to whom the following return information 
reflected on returns has been disclosed as provided by section 
6103(l)(1)(A) or (l)(5) may disclose such information to officers and 
employees of the Bureau of the Census for necessary purposes described 
in paragraph (b)(2) or (3) of this section:
    (i) From Form SS-4--all information reflected on such form.
    (ii) From Form 1040 (Schedule SE)--
    (A) Taxpayer identifying number of self-employed individual;
    (B) Business activities subject to the tax imposed by chapter 21;
    (C) Net earnings from farming;
    (D) Net earnings from nonfarming activities;
    (E) Total net earnings from self-employment; and
    (F) Taxable self-employment income for purposes of chapter 2.
    (iii) From Form W-2, and related forms and schedules--
    (A) Social Security number;
    (B) Employer identification number;
    (C) Wages, tips, and other compensation;
    (D) Social Security wages; and
    (E) Deferred wages.
    (iv) Total Social Security taxable earnings.
    (v) Quarters of Social Security coverage.
    (6)(i) Officers or employees of the Internal Revenue Service will 
disclose the following return information (but not including return 
information described in section 6103(o)(2)) reflected on returns of 
corporations with respect to the tax imposed by chapter 1 to officers 
and employees of the Bureau of the Census for purposes of, but only to 
the extent necessary in, developing and preparing, as authorized by 
law, the Quarterly Financial Report:
    (A) From the business master files of the Internal Revenue 
Service--
    (1) Taxpayer identity information (as defined in section 
6103(b)(6)), including parent corporation identity information;
    (2) Document code;
    (3) Location codes (including area/district office and campus/
service center codes);
    (4) Consolidated return and final return indicators;
    (5) Principal industrial activity code;
    (6) Partial year indicator;
    (7) Annual accounting period;
    (8) Gross receipts less returns and allowances; and
    (9) Total assets.
    (B) From Form SS-4--
    (1) Month and year in which such form was executed;
    (2) Taxpayer identity information; and
    (3) Principal industrial activity, geographic, firm size, and 
reason for application codes.
    (ii) Subject to the requirements of paragraph (d) of this section 
and Sec.  301.6103(p)(2)(B)-1, officers or employees of the Social 
Security Administration to whom return information reflected on returns 
of corporations described in paragraph (b)(6)(i)(B) of this section has 
been disclosed as provided by section 6103(l)(1)(A) or (l)(5) may 
disclose such information to officers and employees of the Bureau of 
the Census for a purpose described in this paragraph (b)(6). (iii) 
Return information reflected on employment tax returns disclosed 
pursuant to paragraphs (b)(2)(iii) (A), (B), (D), (I) and (J) of this 
section may be used by officers and employees of the Bureau of the 
Census for the purpose described in and subject to the limitations of 
this paragraph (b)(6).
    (c) Disclosure of return information reflected on returns of 
corporations to officers and employees of the Bureau of Economic 
Analysis. (1) Officers or employees of the Internal Revenue Service 
will disclose to officers and employees of the Bureau of Economic 
Analysis for purposes of, but only to the extent necessary in, 
conducting and preparing, as authorized by law, statistical analyses 
return information consisting of Statistics of Income transcript-edit 
sheets containing return information reflected on returns of designated 
classes or categories of corporations with respect to the tax imposed 
by chapter 1 of the Internal Revenue Code and microfilmed records of 
return information reflected on such returns where needed for further 
use in connection with such conduct or preparation.
    (2) Subject to the requirements of paragraph (d) of this section 
and Sec.  301.6103(p)(2)(B)-1, officers and employees of the Social 
Security Administration to whom the following return information 
reflected on returns of designated classes or categories of 
corporations has been disclosed as

[[Page 2695]]

provided by section 6103(l)(1)(A) or (l)(5) may disclose such 
information to officers and employees of the Bureau of Economic 
Analysis for necessary purposes described in paragraph (c)(1) of this 
section:
    (i) From Form SS-4--Principal industrial activity and geographic 
codes.
    (ii) From an employment tax return--
    (A) Total compensation reported; and
    (B) Taxable wages paid for purposes of chapter 21 to each employee.
    (d) Procedures and restrictions. Disclosure of return information 
reflected on returns by officers or employees of the Internal Revenue 
Service or the Social Security Administration as provided by paragraphs 
(b) and (c) of this section will be made only upon written request to 
the Commissioner of Internal Revenue by the Secretary of Commerce 
describing--
    (1) The particular return information reflected on returns to be 
disclosed;
    (2) The taxable period or date to which such return information 
reflected on returns relates; and
    (3)(i) The particular purpose for which the return information 
reflected on returns is to be used, and designating by name and title 
the officers and employees of the Bureau of the Census or the Bureau of 
Economic Analysis to whom such disclosure is authorized.
    (ii) No such officer or employee to whom return information 
reflected on returns is disclosed pursuant to the provisions of 
paragraph (b) or (c) of this section shall disclose such information to 
any person, other than the taxpayer to whom such return information 
reflected on returns relates or other officers or employees of such 
bureau whose duties or responsibilities require such disclosure for a 
purpose described in paragraph (b) or (c) of this section, except in a 
form which cannot be associated with, or otherwise identify, directly 
or indirectly, a particular taxpayer. If the Internal Revenue Service 
determines that the Bureau of the Census or the Bureau of Economic 
Analysis, or any officer or employee thereof, has failed to, or does 
not, satisfy the requirements of section 6103(p)(4) of the Internal 
Revenue Code or regulations or published procedures thereunder (see 
Sec.  601.601(d)(2) of this chapter), the Internal Revenue Service may 
take such actions as are deemed necessary to ensure that such 
requirements are or will be satisfied, including suspension of 
disclosures of return information reflected on returns otherwise 
authorized by section 6103 (j)(1) and paragraph (b) or (c) of this 
section, until the Internal Revenue Service determines that such 
requirements have been or will be satisfied.
    (e) Effective date. This section is applicable to the Bureau of the 
Census on January 21, 2003.


Sec.  301.6103(j)(1)-1T  [Removed]

    Par. 3. Section 301.6103(j)(1)-1T is removed.

David A. Mader,
Assistant Deputy Commissioner of Internal Revenue.
    Approved: December 20, 2002.
Pamela F. Olson,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 03-871 Filed 1-17-03; 8:45 am]
BILLING CODE 4830-01-P