[Federal Register Volume 72, Number 249 (Monday, December 31, 2007)]
[Rules and Regulations]
[Pages 74192-74193]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-25129]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 9373]
RIN 1545-BH30


Disclosure of Return Information to the Bureau of the Census

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Temporary regulation.

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SUMMARY: This document contains a temporary regulation that adds an 
additional item of return information that may be disclosed to the 
Bureau of the Census (Bureau). The regulation adds one item of return 
information for use in the Bureau's annual Survey of Industrial 
Research and Development. The temporary regulation provides guidance to 
IRS personnel responsible for disclosing the information. 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. The text of the temporary regulation 
also serves as the text of the proposed regulation (REG-147832-07) set 
forth in the Proposed Rules section in this issue of the Federal 
Register.

DATES: Effective Date: This regulation is effective on December 31, 
2007.
    Applicability Date: For dates of applicability, see Sec.  
301.6103(j)(1)-1T(e).

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

SUPPLEMENTARY INFORMATION:

Background

    Under section 6103(j)(1)(A), 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 temporary regulation that authorizes the IRS 
to disclose an additional item of return information, which has been 
requested by the Secretary of Commerce, that is necessary for the 
Bureau's annual Survey of Industrial Research and Development.
    The temporary 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)(A). This 
amendment to the 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.

Explanation of Provisions

    By letter dated February 6, 2006, the Secretary of Commerce 
requested that an additional item of return information be disclosed to 
the Bureau for purposes related to the Bureau's annual Survey of 
Industrial Research and Development. Specifically, the Secretary of 
Commerce requested categorical information on total qualified research 
expenses in three ranges: Greater than zero, but less than $1 million; 
greater than or equal to $1 million, but less than $3 million; and, 
greater than or equal to $3 million. The request indicates that because 
of the small number of companies with research and development expenses 
it is difficult to design an efficient sample that produces reliable 
estimates. Data on total qualified research expenses from the Form 
6765, Credit for Increasing Research Activities, will assist the Bureau 
in identifying companies that are actively engaged in research and 
development activities for the annual Survey of Industrial Research and 
Development.

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. 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, this regulation has been submitted 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 this temporary 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.

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 * * *

[[Page 74193]]


0
Par. 2. Section 301.6103(j)(1)-1T is amended by revising paragraphs 
(a), (b), and (e) and removing paragraph (f) to read as follows:


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

    (a) through (b)(3)(xxiv) [Reserved]. For further guidance, see 
Sec.  301.6103(j)(1)-1(a) and (b)(1) through (b)(3)(xxiv).
    (xxv) From Form 6765 (when filed with corporation income tax 
returns)--total qualified research expenses.
* * * * *
    (e) Effective/applicability date. This section is applicable to 
disclosures to the Bureau of Economic Analysis on or after July 6, 
2006. The amendment to paragraph (b)(3)(xxv) of this section is 
applicable to disclosures to the Bureau of the Census on or after 
December 31, 2007. The applicability of the amendment to paragraph 
(b)(3)(xxv) expires on or before December 28, 2010.

Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.

    Approved: December 18, 2007.
Eric Solomon,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. E7-25129 Filed 12-28-07; 8:45 am]
BILLING CODE 4830-01-P