[Federal Register Volume 72, Number 247 (Thursday, December 27, 2007)]
[Rules and Regulations]
[Pages 73261-73262]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-25014]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 9372]
RIN 1545-BE08


Disclosure of Return Information to the Bureau of the Census

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulation.

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SUMMARY: This document contains a final regulation relating to the list 
of items of return information disclosed to the Bureau of the Census 
(Bureau). The regulation adds two items of return information for use 
in producing demographic statistics programs, including the Bureau's 
Small Area Income and Poverty Estimates (SAIPE). The final regulation 
also removes four items that the Bureau has indicated are no longer 
necessary. This regulation facilitates the assistance of the IRS to the 
Bureau in its statistics programs and requires no action by taxpayers 
and has no effect on their tax liabilities.

DATES: Effective Date: This regulation is effective on December 27, 
2007.
    Applicability Date: For dates of applicability, see Sec.  
301.6103(j)(1)-1.

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

SUPPLEMENTARY INFORMATION: 

Background

    Under section 6103(j)(1), upon written request from the Secretary 
of Commerce, the Treasury Secretary is to furnish to the Bureau of the 
Census (Bureau) return information as may be prescribed by Treasury 
regulations for the purpose of, but only to the extent necessary in, 
structuring censuses and conducting related statistical activities 
authorized by law. Section 301.6103(j)(1)-1 of the regulations further 
defines such purposes by reference to 13 U.S.C. chapter 5 and provides 
an itemized description of the return information authorized to be 
disclosed for such purposes.
    This document adopts a final regulation that authorizes the IRS to 
disclose the additional items of return information that have been 
requested by the Secretary of Commerce in developing and preparing 
demographic statistics, including statutorily mandated Small Area 
Income and Poverty Estimates (SAIPE). The final regulation also removes 
certain items of return information that are authorized to be disclosed 
in the existing regulation but that the Secretary of Commerce has 
indicated are no longer needed.
    The final regulation in this issue of the Federal Register amends 
the Procedure and Administration Regulations (26 CFR part 301) relating 
to Internal Revenue Code (Code) section 6103(j)(1). The final 
regulation contains rules relating to the disclosure of return 
information reflected on returns to officers and employees of the 
Department of Commerce for structuring censuses and conducting related 
statistical activities authorized by law.
    A notice of proposed rulemaking (REG-147195-04, 2005-1 CB 888 [70 
FR 12166-01]) was published in the Federal Register on March 11, 2005. 
No comments were received from the public in response to the notice of 
proposed rulemaking. No public hearing was requested or held. The 
proposed regulation is adopted by this Treasury decision.

Explanation of Provisions

    As duly requested by the Secretary of Commerce and set forth in the 
proposed regulation, this final regulation permits disclosure to the 
Bureau of earned income and the number of Earned Income Credit-eligible 
qualifying children.
    The regulation also removes four items of return information that 
the Bureau indicated it no longer requires. These items are: (1) End-
of-year code; (2) months actively operated; (3) total number of 
documents and the total amount reported on the Form 1096 (Annual 
Summary and Transmittal of U.S. Information Returns) transmitting Forms 
1099-MISC (Miscellaneous Income); and (4) Form 941 (Employer's 
Quarterly Federal Tax Return) indicator and business address on 
Schedule C (Profit or Loss From Business) of Form 1040. Accordingly, 
the regulation has removed these items of return information from those 
that may be disclosed to the Bureau.

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 this regulation, and because the

[[Page 73262]]

regulation does 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 NPRM preceding this 
regulation was submitted to the Chief Counsel for Advocacy of the Small 
Business Administration for comment on its impact on small businesses.

Drafting Information

    The principal author of this regulation is Glenn Melcher, Office of 
the Associate Chief Counsel (Procedure & Administration).

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 continues to read in 
part as follows:

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

0
Par. 2. Section 301.6103(j)(1)-1 is amended by:
0
1. Revising paragraphs (b)(1) introductory text and (b)(3) introductory 
text, (b)(3)(xvii), (b)(3)(xviii), (b)(3)(xix), (b)(3)(xx), 
(b)(3)(xxi), (b)(3)(xxii), (b)(3)(xxiii), (b)(3)(xxiv), and (e).
0
2. Adding paragraphs (b)(1)(xvi) and (b)(1)(xvii).
0
3. Removing and reserving paragraph (b)(3)(xxv).
    The revisions and additions 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.

* * * * *
    (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:
* * * * *
    (xvi) Earned Income (as defined in section 32(c)(2)).
    (xvii) Number of Earned Income Tax Credit-eligible qualifying 
children.
* * * * *
    (b)(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 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.):
* * * * *
    (xvii) Principal industrial activity code, including the business 
description.
    (xviii) Consolidated return indicator.
    (xix) Wages, tips, and other compensation.
    (xx) Social Security wages.
    (xxi) Deferred wages.
    (xxii) Social Security tip income.
    (xxiii) Total Social Security taxable earnings.
    (xxiv) Gross distributions from employer-sponsored and individual 
retirement plans from Form 1099-R.
    (xxv) [Reserved].
* * * * *
    (e) Effective/applicability date. This section is applicable to 
disclosures to the Bureau of the Census on or after December 27, 2007.

Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
    Approved: December 18, 2007.
Eric Solomon,
Assistant Secretary of the Treasury (Tax Policy).
 [FR Doc. E7-25014 Filed 12-26-07; 8:45 am]
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