[Federal Register Volume 71, Number 35 (Wednesday, February 22, 2006)]
[Rules and Regulations]
[Pages 8945-8946]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-1531]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 9245]
RIN 1545-BE15


Disclosure of Return Information to the Department of Agriculture

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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SUMMARY: This document contains final regulations that incorporate and 
clarify the phrase ``return information reflected on returns'' in 
conformance with the terms of section 6103(j)(5) of the Internal 
Revenue Code (Code), which provides for limited disclosures of returns 
and return information in connection with the census of agriculture. 
These final regulations also remove certain items of return information 
that the Department of Agriculture no longer needs for conducting the 
census of agriculture.

DATES: Effective Date: These regulations are effective on February 22, 
2006.

FOR FURTHER INFORMATION CONTACT: Deborah Lambert-Dean at (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 Code. On June 6, 2003, the Federal Register published a 
temporary regulation (TD 9060) regarding disclosure of return 
information to the Department of Agriculture (68 FR 33857) and a notice 
of proposed rulemaking (NPRM) (REG-103809-03) cross-referencing the 
temporary regulations (68 FR 33887). There were no comments submitted 
in response to the NPRM. There was no request for a public hearing, and 
none took place. The proposed regulations are adopted and the 
corresponding temporary regulations are removed.

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 IRS submitted the 
NPRM preceding this Treasury decision 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 Deborah Lambert-Dean, 
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 recordkeeping requirements.

Adoption of Amendments to the Regulations

0
Accordingly, 26 CFR part 301 is amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

0
Paragraph 1. The authority citation for part 301 is amended by removing 
the entry for ``Section 301.6103(j)(5)-1T and adding an entry in 
numerical order to read in part as follows:

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

    Section 301.6103(j)(5)-1 also issued under 26 U.S.C. 6103(j)(5). * 
* *


301.6103(j)(5)-1T  [Removed]

0
Par. 2. Section 301.6103(j)(5)-1T is removed.
0
Par. 3. Section 301.6103(j)(5)-1 is added to read as follows:


Sec.  301.6103(j)(5)-1  Disclosures of return information reflected on 
returns to officers and employees of the Department of Agriculture for 
conducting the census of agriculture.

    (a) General rule. Pursuant to the provisions of section 6103(j)(5) 
of the Internal Revenue Code and subject to the requirements of 
paragraph (c) of this section, officers or employees of the Internal 
Revenue Service will disclose return information reflected on returns 
to officers and employees of the Department of Agriculture to the 
extent, and for such purposes, as may be provided by paragraph (b) of 
this section. ``Return information reflected on returns'' includes, but 
is not limited to, information on returns, information derived from 
processing such returns, and information derived from 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 Department of Agriculture. (1) Officers 
or employees of the Internal Revenue Service will disclose the 
following return information reflected on returns described in this 
paragraph (b) for individuals, partnerships and corporations with 
agricultural activity, as determined generally by industry code 
classification or the filing of returns for such activity, to officers 
and employees of the Department of Agriculture for purposes of, but 
only to the extent necessary in, structuring, preparing, and 
conducting, as authorized by chapter 55 of title 7, United States Code, 
the census of agriculture.
    (2) From Form 1040 ``U.S. Individual Income Tax Return'', Form 1041 
``U.S. Income Tax Return for Estates and Trusts'', Form 1065 ``U.S. 
Return of Partnership Income'' and Form 1065-B ``U.S. Return of Income 
for Electing Large Partnerships'' (Schedule F)--
    (i) Taxpayer identity information (as defined in section 6103(b)(6) 
of the Internal Revenue Code);
    (ii) Spouse's Social Security Number;
    (iii) Annual accounting period;
    (iv) Principal Business Activity (PBA) code;
    (v) Taxable cooperative distributions;
    (vi) Income from custom hire and machine work;
    (vii) Gross income;
    (viii) Master File Tax (MFT) code;
    (ix) Document Locator Number (DLN);
    (x) Cycle posted;
    (xi) Final return indicator;
    (xii) Part year return indicator; and
    (xiii) Taxpayer telephone number.

[[Page 8946]]

    (3) From Form 943, ``Employer's Annual Tax Return for Agricultural 
Employees''--
    (i) Taxpayer identity information;
    (ii) Annual accounting period;
    (iii) Total wages subject to Medicare taxes;
    (iv) MFT code;
    (v) DLN;
    (vi) Cycle posted;
    (vii) Final return indicator; and
    (viii) Part year return indicator.
    (4) From Form 1120 series, ``U.S. Corporation Income Tax Return''--
    (i) Taxpayer identity information;
    (ii) Annual accounting period;
    (iii) Gross receipts less returns and allowances;
    (iv) PBA code;
    (v) MFT Code;
    (vi) DLN;
    (vii) Cycle posted;
    (viii) Final return indicator;
    (ix) Part year return indicator; and
    (x) Consolidated return indicator.
    (5) From Form 1065 series, ``U.S. Return of Partnership Income''--
    (i) Taxpayer identity information;
    (ii) Annual accounting period;
    (iii) PBA code;
    (iv) Gross receipts less returns and allowances;
    (v) Net farm profit (loss);
    (vi) MFT code;
    (vii) DLN;
    (viii) Cycle posted;
    (ix) Final return indicator; and
    (x) Part year return indicator.
    (c) Procedures and Restrictions. (1) Disclosure of return 
information reflected on returns by officers or employees of the 
Internal Revenue Service as provided by paragraph (b) of this section 
will be made only upon written request designating, by name and title, 
the officers and employees of the Department of Agriculture to whom 
such disclosure is authorized, to the Commissioner of Internal Revenue 
by the Secretary of Agriculture and describing--
    (i) The particular return information reflected on returns for 
disclosure;
    (ii) The taxable period or date to which such return information 
reflected on returns relates; and
    (iii) The particular purpose for the requested return information 
reflected on returns.
    (2)(i) No such officer or employee to whom the Internal Revenue 
Service discloses return information reflected on returns pursuant to 
the provisions of paragraph (b) 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 the Department of Agriculture whose duties or responsibilities 
require such disclosure for a purpose described in paragraph (b)(1) of 
this section, except in a form that cannot be associated with, or 
otherwise identify, directly or indirectly, a particular taxpayer.
    (ii) If the Internal Revenue Service determines that the Department 
of Agriculture, 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, 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)(5) and paragraph (b) of this 
section, until the Internal Revenue Service determines that such 
requirements have been or will be satisfied.
    (d) Effective date. This section is applicable on February 22, 
2006.

Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
    Approved: February 11, 2006.
Eric Solomon,
Acting Deputy Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 06-1531 Filed 2-21-06; 8:45 am]
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