[Federal Register Volume 68, Number 131 (Wednesday, July 9, 2003)]
[Proposed Rules]
[Pages 40849-40850]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-17228]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG-142538-02]
RIN 1545-BB21


Authority To Charge Fees for Furnishing Copies of Exempt 
Organizations' Material Open to Public Inspection

AGENCY: Internal Revenue Service (IRS), Treasury.

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

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SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations relating to 
fees for copies of exempt organizations' material available to the 
public under section 6104 of the Internal Revenue Code (Code). The text 
of the temporary regulations also serves as the text of the proposed 
regulations.

DATES: Written and electronic comments and requests for a public 
hearing must be received by October 7, 2003.

ADDRESSES: Send submissions to CC:PA:RU (REG-142538-02), Room 5226, 
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, 
DC 20044. Submissions may be delivered Monday through Friday between 
the hours of 8 a.m. and 5 p.m. to CC:PA:RU (REG-142538-02), Courier's 
Desk, Internal Revenue Service, 1111 Constitution Avenue, NW., 
Washington, DC. Alternatively, taxpayers may submit electronic comments 
directly to the IRS Internet site at: http://www.irs.gov/regs.

FOR FURTHER INFORMATION CONTACT: Sarah Tate, 202-622-4590 (not a toll-
free number).

SUPPLEMENTARY INFORMATION:

Background

    The IRS' obligation under section 6104 of the Code to make certain 
information open to public inspection is satisfied by making the 
information available to the public at such times and places as the IRS 
shall reasonably prescribe. The existing regulations provide that 
copies of the information that the IRS must make open to public 
inspection shall be available to members of the public upon written 
request. Currently, Sec.  301.6104(a)-6(d) provides that the IRS will 
charge a ``fee'' for copies of material available to the public under 
section 6104(a)(1) of the Code, including approved applications for 
recognition of tax-exempt status and supporting papers. Currently, 
Sec.  301.6104(b)-1(d)(4) provides that the Commissioner of Internal 
Revenue (Commissioner) may prescribe a ``reasonable fee'' for copies of 
material available to the public under section 6104(b) of the Code, 
including certain information furnished on exempt organization annual 
information returns.
    This notice of proposed rulemaking amends the existing regulations 
to clarify that any fee assessed by the IRS in the exercise of its 
discretion, whether in the case of requests for photocopies,

[[Page 40850]]

or for special media (e.g., computer printouts, transcripts, CD-ROM 
reproductions), shall be no more than the fee that would be assessed 
under the fee schedule promulgated pursuant to section (a)(4)(A)(i) of 
the Freedom of Information Act (FOIA), 5 U.S.C. Sec.  552(a)(4)(A)(i), 
by the Commissioner from time to time (the ``IRS' FOIA fee schedule''). 
For paper copies, the IRS' FOIA fee schedule, at 26 CFR Sec.  
601.702(f)(3)(iv), grants the first 100 pages free of charge to 
requesters other than commercial use requesters, but otherwise sets a 
per-page copying fee applicable to all requesters. The IRS' FOIA fee 
schedule, at 26 CFR Sec.  601.702(f)(5), authorizes fees based on the 
actual cost of non-paper products, such as computer disks.
    Currently, Sec.  301.6104(d)-1(d)(3)(i) provides that an exempt 
organization required to furnish copies to a requester may charge a 
copying fee corresponding to that which the IRS may charge. This notice 
of proposed rulemaking amends the existing regulations to make clear 
that an exempt organization may charge the applicable per-page copying 
fee under the IRS' FOIA fee schedule. An exempt organization need not 
provide the first 100 pages of copies free of charge to requesters 
other than commercial use requesters as the IRS does.
    Through December 18, 2002, the IRS' FOIA fee schedule set fees of 
$1.00 for the first page and $.15 for each subsequent page of exempt 
organization returns and related documents. 26 CFR Sec.  
601.702(f)(5)(iv)(B). Effective December 19, 2002, the fees are to be 
established by the Commissioner from time to time. 26 CFR Sec.  
601.702(f) as updated at 67 FR 69673, 69682. Currently, the 
Commissioner has established fees of $.20 per page, up to 8\1/2\ by 14 
inches, made by photocopy or similar process, and actual cost for other 
types of duplication. 31 CFR Sec.  1.7(g)(1)(i), (ii) and (iii).

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 these regulations, and because 
these regulations do not impose a collection of information on small 
entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not 
apply. Pursuant to section 7805(f) of the Code, this notice of proposed 
rulemaking will be submitted to the Chief Counsel of the Small Business 
Administration for comment on its impact on small businesses.

Comments and Request for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
the IRS will consider any electronic or written comments (a signed 
original and eight (8) copies) that the IRS timely receives. All 
comments will be available for public inspection and copying. A public 
hearing may be scheduled if requested in writing by a 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 notice of proposed rulemaking is Sarah 
Tate, Office of the Associate Chief Counsel (Procedure & 
Administration), Disclosure & Privacy Law Division.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 301 is proposed to be amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

    1. The authority citation for part 301 is amended by adding entries 
in numerical order to read as follows:

    Authority: 26 U.S.C. 7805 * * *
    Section 301.6104(a)-6(d) is also issued under 5 U.S.C. 552
    Section 301.6104(b)-1(d)(4) is also issued under 5 U.S.C. 552
    Section 301.6104(d)-1(d)(3)(i) is also issued under 5 U.S.C. 552 
* * *

    2. In Sec.  301.6104(a)-6(d), the fourth sentence is revised to 
read as follows:
    [The text of this proposed revision is the same as the text of 
Sec.  301.6104(a)-6(d)-T published elsewhere in this issue of the 
Federal Register].
    3. In Sec.  301.6104(b)-1(d)(4), the last sentence is revised to 
read as follows:
    [The text of this proposed revision is the same as the text of 
Sec.  301.6104(b)-1(d)(4)-T published elsewhere in this issue of the 
Federal Register].
    4. In Sec.  301.6104(d)-1(d)(3)(i), the second sentence is revised 
to read as follows:
    [The text of this proposed revision is the same as the text of 
Sec.  301.6104(d)-1(d)(3)(i)-T published elsewhere in this issue of the 
Federal Register].

Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
[FR Doc. 03-17228 Filed 7-8-03; 8:45 am]
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