[Federal Register Volume 71, Number 129 (Thursday, July 6, 2006)]
[Rules and Regulations]
[Pages 38262-38264]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-9556]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 9267]
RIN 1545-BE02


Disclosure of Return Information to the Bureau of Economic 
Analysis

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Temporary regulations.

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SUMMARY: This document contains temporary regulations regarding 
additional items of return information disclosable to the Bureau of 
Economic Analysis (Bureau) of the Department of Commerce. The text of 
these temporary regulations serves as the text of the proposed 
regulations set forth in the notice of proposed rulemaking on this 
subject in the Proposed Rules section of this issue of the Federal 
Register.

DATES: Effective Date: These temporary regulations are effective July 
6, 2006. Applicability Date: For dates of applicability, see Sec.  
301.6103(j)(1)-1T(f).

[[Page 38263]]


FOR FURTHER INFORMATION CONTACT: Joel D. McMahan, (202) 622-4580 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    Under section 6103(j)(1)(B) of the Internal Revenue Code (Code), 
upon written request from the Secretary of Commerce, the Secretary of 
the Treasury shall furnish to the Bureau return information that is 
prescribed by Treasury regulations for the purpose of, but only to the 
extent necessary in, structuring of national economic accounts and 
conducting related statistical activities authorized by law. This 
document adopts temporary regulations that authorize the IRS to 
disclose the additional items of return information that have been 
requested by the Department of Commerce for purposes related to 
measuring economic change in the U.S. national economic accounts.
    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend the Procedure and Administration 
Regulations (26 CFR part 301) under Code section 6103(j)(1)(B). The 
temporary regulations contain rules relating to the disclosure of 
return information reflected on returns to officers and employees of 
the Department of Commerce for structuring national economic accounts 
and conducting related statistical activities authorized by law.

Explanation of Provisions

    By letter dated December 18, 2003, the Department of Commerce 
requested that additional items of return information be disclosed to 
the Bureau for purposes related to measuring economic change in the 
U.S. national economic accounts. Specifically, the Department of 
Commerce requested access to return information, obtained from all 
corporate returns, not just those processed by the IRS's Statistics of 
Income Division for its corporate sample file. Under this temporary 
regulation, the IRS will disclose to the Bureau's officers and 
employees designated items of return information from returns filed by 
all corporations.

Special Analyses

    It has been determined that these temporary regulations are 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. For 
applicability of the Regulatory Flexibility Act (5 U.S.C. chapter 6), 
please refer to the cross-referenced notice of proposed rulemaking 
published elsewhere in this issue of the Federal Register. Pursuant to 
section 7805(f) of the Code, these temporary regulations will be 
submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on their impact on small business.

Draft Information

    The principal author of these temporary regulations is Joel D. 
McMahan, Office of the Associate Chief Counsel (Procedure & 
Administration), Disclosure and 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.

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 adding 
an entry in numerical order to read, in part, as follows:

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

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

0
Par. 2. Section 301.6103(j)(1)-1 is amended by revising paragraphs (c) 
introductory text 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.

* * * * *
    (c) * * * (1) [Reserved]. For further guidance, see Sec.  
301.6103(j)(1)-1T(c).
* * * * *

0
Par. 3. Section 301.6103(j)(1)-1T is revised to read as follows:


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

    (a) and (b) [Reserved]. For further guidance, see Sec.  
301.6103(j)(1)-1(a) and (b).
    (c) Disclosure of return information reflected on returns of 
corporations to officers and employees of the Bureau of Economic 
Analysis.
    (1) 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 statistical 
analyses, as authorized by law, all return information from the 
Statistics of Income sample, including edited information and 
regardless of format or medium, of designated classes or categories of 
corporations with respect to the tax imposed by chapter 1 of the 
Internal Revenue Code.
    (2) [Removed and Reserved]
    (3) The Internal Revenue Service will disclose the following return 
information reflected on returns filed by corporations to officers and 
employees of the Bureau of Economic Analysis:
    (i) From the business master files of the Internal Revenue 
Service--
    (A) Taxpayer identity information (as defined in section 6103(b)(6) 
of the Internal Revenue Code) with respect to corporate taxpayers;
    (B) Business or industry activity codes;
    (C) Filing requirement code; and
    (D) Physical location.
    (ii) From Form SS-4 filed by an entity identifying itself on the 
form as a corporation or a private services corporation--
    (A) Taxpayer identity information (as defined in section 
6103(b)(6), including legal, trade, and business name);
    (B) Physical location;
    (C) State or Country of incorporation;
    (D) Entity Type (Corporate only);
    (E) Estimated highest number of employees expected in the next 12 
months;
    (F) Principal activity of the business;
    (G) Principal line of merchandise;
    (H) Posting cycle date relative to filing; and
    (I) Document code.
    (iii) From an employment tax return filed by a corporation--
    (A) Taxpayer identity information (as defined in section 
6103(b)(6));
    (B) Total compensation reported;
    (C) Taxable wages paid for purposes of Chapter 21 to each employee;
    (D) Master file tax account code (MFT);
    (E) Total number of individuals employed in the taxable period 
covered by the return;
    (F) Posting cycle date relative to filing;
    (G) Accounting period covered; and
    (H) Document code.
    (iv) From returns of corporate taxpayer, including Forms 1120, 851, 
and other business returns, schedules and forms that the Internal 
Revenue Service may issue--
    (A) Taxpayer identity information (as defined in section 
6103(b)(6)), including that of parent corporation, affiliate or 
subsidiary, and shareholder;

[[Page 38264]]

    (B) Gross sales and receipts;
    (C) Returns and allowances;
    (D) Cost of labor, salaries, and wages;
    (E) Total assets;
    (F) Posting cycle date relative to filing;
    (G) Accounting period covered;
    (H) Master file tax account code (MFT);
    (I) Document code; and
    (J) Principal industrial activity code.
    (d) [Reserved]. For further guidance, see Sec.  301.6103(j)(1)-
1(d).
    (e) [Reserved]. For further guidance, see Sec.  301.6103(j)(1)-
1(e).
    (f) Effective date. This section is applicable to disclosures to 
the Bureau of Economic Analysis on or after July 6, 2006.

Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
    Approved: June 5, 2006.
Eric Solomon,
Acting Deputy Assistant Secretary of the Treasury (Tax Policy).
 [FR Doc. E6-9556 Filed 7-5-06; 8:45 am]
BILLING CODE 4830-01-P