[Federal Register Volume 68, Number 79 (Thursday, April 24, 2003)]
[Proposed Rules]
[Pages 20089-20090]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-10191]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-141659-02]
RIN 1545-BB34


Tax Return Preparers--Electronic Filing

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulation.

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SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing a temporary regulation relating to 
a paid income tax preparer's obligation to retain and furnish copies of 
income tax returns and claims for refund. The text of that temporary 
regulation also serves as the text of this proposed regulation.

DATES: Written and electronic comments and requests for a public 
hearing must be received by July 23, 2003.

ADDRESSES: Send submissions to: CC:PA:RU (REG-141659-02), room 5226, 
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, 
DC 20044. Submissions may be hand delivered Monday through Friday 
between the hours of 8 a.m. and 4 p.m. to CC:PA:RU (REG-141659-02), 
courier's desk, Internal Revenue Service, 1111 Constitution Avenue, 
NW., Washington, DC. Alternatively, taxpayers may submit comments 
electronically directly to the IRS Internet site at http://www.irs.gov/regs.

FOR FURTHER INFORMATION CONTACT: Concerning the regulation, Richard 
Charles Grosenick, (202) 622-7940; concerning submissions, LaNita Van 
Dyke, (202) 622-7190 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend the Income Tax Regulations (26 CFR 
part 1) under sections 6107 and 6695 of the Internal Revenue Code. The 
temporary regulations eliminate the references to manually signed 
returns in the regulations under section 6695. In addition, they 
provide that the Commissioner may prescribe, in forms, instructions, or 
other appropriate guidance, the manner in which preparers may satisfy 
their obligations under section 6107 to furnish returns to

[[Page 20090]]

taxpayers and to retain copies of returns.
    The text of those temporary regulations also serves as the text of 
these proposed regulations. The preamble to the temporary regulations 
explains the temporary regulations.

Special Analyses

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

Comments and Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written comments, either 
electronically or on paper (a signed original and 8 copies), that are 
timely submitted to the IRS. The IRS and Treasury Department 
specifically request comments on the clarity of the proposed 
regulations and how they can be made easier to understand. All comments 
will be available for public inspection and copying. A public hearing 
may be scheduled if requested in writing by any person who timely 
submits written comments. If a public hearing is scheduled, notice of 
the date, time, and place for the hearing will be published in the 
Federal Register.

Drafting Information

    The principal author of this regulation is Richard Charles 
Grosenick, Office of Assistant Chief Counsel (Administrative Provisions 
& Judicial Practice). However, other personnel from the IRS and the 
Treasury Department participated in its development.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 1 is proposed to be amended as follows:

PART 1--INCOME TAXES

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

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

    Par. 2 Section 1.6107-2 is added to read as follows:


Sec.  1.6107-2  Form and manner of furnishing copy of return and 
retaining copy or record.

    [The text of this proposed section is the same as the text of Sec.  
1.6107-2T published elsewhere in this issue of the Federal Register].
    Par. 3. Section 1.6695-1 is amended by revising paragraph (b) to 
read as follows:


Sec.  1.6695-1  Other assessable penalties with respect to the 
preparation of income tax returns for other persons.

* * * * *
    (b) [The text of this proposed paragraph (b) is the same as the 
text of Sec.  1.6695-1T(b) published elsewhere in this issue of the 
Federal Register].
* * * * *

David A. Mader,
Assistant Deputy Commissioner of Internal Revenue.
[FR Doc. 03-10191 Filed 4-23-03; 8:45 am]
BILLING CODE 4830-01-P