[Federal Register Volume 73, Number 249 (Monday, December 29, 2008)]
[Rules and Regulations]
[Pages 79361-79362]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-30599]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 9439]
RIN 1545-BC93


Disclosure of Return Information to the Bureau of Economic 
Analysis

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulation and removal of temporary regulations.

-----------------------------------------------------------------------

SUMMARY: This document contains final regulations relating to 
disclosures of corporate tax return information to the Bureau of 
Economic Analysis (Bureau). The final regulations authorize the IRS to 
disclose certain items of corporate tax return information to the 
Secretary of Commerce for purposes of structuring United States 
national economic accounts and conducting related statistical 
activities authorized by law. The final regulations facilitate the 
assistance of the IRS to the Bureau in its statistics programs, require 
no action by taxpayers, and have no effect on their tax liabilities.

DATES: Effective Date: These regulations are effective on December 29, 
2008.
    Applicability Date: These regulations apply to disclosures made to 
the Bureau of Economic Analysis on or after December 29, 2008.

FOR FURTHER INFORMATION CONTACT: Charles B. Christopher (202) 622-4570 
(not a toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    This document contains final regulations amending the Procedure and 
Administration Regulations (26 CFR Part 301) under section 
6103(j)(1)(B) of the Internal Revenue Code (Code). The final 
regulations contain rules relating to the disclosure of corporate tax 
return information to the Bureau of Economic Analysis (Bureau) of the 
Department of Commerce for the purpose of, but only to the extent 
necessary in, structuring national economic accounts and conducting 
related statistical activities authorized by law.
    Section 6103(j)(1)(B) provides that, upon written request from the 
Secretary of Commerce, the Secretary of the Treasury shall furnish to 
BEA 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. Prior regulations under section 
6103(j)(1)(B) permitted the disclosure to BEA of return information 
from corporate returns processed by the IRS's Statistics of Income 
Division for its corporate sample file.
    By letter dated December 18, 2003, the Department of Commerce 
requested disclosure of certain items of return information obtained 
from all corporate returns, not just those processed by the IRS's 
Statistics of Income Division for its corporate sample file. Proposed 
regulations (REG-148864-03, 2006-2 CB 320; 71 FR 38323) and temporary 
regulations (TD 9267, 71 FR 38262) were published in the Federal 
Register on July 6, 2006. The Department of Commerce thereafter 
submitted comments requesting certain technical corrections to the 
items of corporate return information authorized to be disclosed. No 
other comments were received, and no public hearing was requested or 
held. After consideration of the comments received from the Department 
of Commerce, the proposed regulations, as amended by this Treasury 
decision, are adopted as final regulations, and the corresponding 
temporary regulations are removed. See Sec.  601.601(d)(2)(ii)(b). 
These final regulations generally retain the provisions of the proposed 
regulations with the inclusion of the additional requested items as 
explained in more detail in this preamble.

Explanation and Summary of Comments

    Proposed Sec.  301.6103(j)(1)-1(c)(3) provided an itemized 
description of the corporate tax return information authorized to be 
disclosed to the Bureau for the purpose of structuring national 
economic accounts and conducting related statistical activities 
required by law. In its comments, the Department of Commerce requested 
that certain additional items of corporate tax return information that 
are essential to the Bureau's ability to measure accurately U.S. 
economic activity be included in the itemized list in the final 
regulations. Most of the additional items of corporate tax return 
information to which the Department of Commerce requests access are 
slightly different variants of the same items authorized in the 
proposed regulations. The inclusion of these items will enable the 
Bureau to measure accurately corporate profits, gross domestic product, 
and other measures of activity in the economy. After consideration of 
these comments, the Treasury Department and IRS have included the 
additional requested items in the final regulations.

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. 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 Internal Revenue Code, the 
notice of proposed rulemaking preceding these regulations was submitted 
to the Chief Counsel for Advocacy of the Small Business Administration 
for comment on their impact on small businesses.

Drafting Information

    The principal author of these regulations is Robin M. Tuczak, 
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 revising paragraphs (c) 
introductory text, (c)(1), and (e), removing and reserving paragraph 
(c)(2), and adding paragraph (c)(3) to read as follows:

[[Page 79362]]

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

* * * * *
    (c) Disclosure of return information reflected on returns of 
corporations to officers and employees of the Bureau of Economic 
Analysis.
    (1) As authorized by law for purposes of, but only to the extent 
necessary in, conducting and preparing statistical analyses, the 
Internal Revenue Service will disclose to officers and employees of the 
Bureau of Economic Analysis all return information, regardless of 
format or medium and including edited information from the Statistics 
of Income sample, of designated classes or categories of corporations 
with respect to the tax imposed by chapter 1 of the Internal Revenue 
Code.
    (2) [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)) with respect to corporate taxpayers;
    (B) Business or industry activity codes;
    (C) Filing requirement code; and
    (D) Physical location.
    (ii) From Form SS-4, ``Application for Employer Identification 
Number,'' 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 taxpayers, including Form 1120, 
``U.S. Corporation Income Tax Return,'' Form 851, ``Affiliations 
Schedule,'' 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 a parent corporation, affiliate, or 
subsidiary; a shareholder; a foreign corporation of which one or more 
U.S. shareholders (as defined in section 951(b)) own at least 10% of 
the voting stock; a foreign trust; and a U.S. agent of a foreign trust;
    (B) Gross sales and receipts;
    (C) Gross income, including life insurance company gross income;
    (D) Gross income from sources outside the U.S.;
    (E) Gross rents from real property;
    (F) Other Gross Rents;
    (G) Total Gross Rents;
    (H) Returns and allowances;
    (I) Percentage of foreign ownership of corporations and trusts;
    (J) Fact of ownership of foreign partnerships;
    (K) Fact of ownership of foreign entity disregarded as a foreign 
entity;
    (L) Country of the foreign owner;
    (M) Gross value of the portion of the foreign trust owned by filer;
    (N) Country of incorporation;
    (O) Cost of labor, salaries, and wages;
    (P) Total assets;
    (Q) The quantity of certain forms attached that are returns of U.S. 
persons with respect to foreign disregarded entities, partnerships, and 
corporations.
    (R) Posting cycle date relative to filing;
    (S) Accounting period covered;
    (T) Master file tax account code (MFT);
    (U) Document code; and
    (V) Principal industrial activity code.
* * * * *
    (e) Effective/applicability date. This section applies to 
disclosures to the Bureau of Economic Analysis on or after December 29, 
2008.


Sec.  301.6103(j)(1)-1T  [Removed]

0
Par. 3. Section 301.6103(j)(1)-1T is removed.

Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
    Approved: December 17, 2008.
Eric Solomon,
Assistant Secretary of the Treasury (Tax Policy).
 [FR Doc. E8-30599 Filed 12-24-08; 8:45 am]
BILLING CODE 4830-01-P