[Federal Register Volume 77, Number 17 (Thursday, January 26, 2012)]
[Proposed Rules]
[Pages 3964-3966]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-1567]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG-208274-86]
RIN 1545-AJ93


Information Reporting by Passport Applicants

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Withdrawal of notice of proposed rulemaking; notice of proposed 
rulemaking.

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SUMMARY: This document contains proposed regulations that provide 
information reporting rules for certain passport applicants. These 
regulations do not provide information reporting rules for individuals 
applying to become permanent residents (green card holders). This 
document also withdraws the notice of proposed rulemaking (57 FR 61373) 
published in the Federal Register on December 24, 1992.

DATES: Comments and requests for a public hearing must be received by 
April 25, 2012.

ADDRESSES: Send submissions to CC:PA:LPD:PR (REG-208274-86), Room 5205, 
Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand-delivered Monday through 
Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-
208274-86), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue NW., Washington, DC, or sent electronically via the Federal 
eRulemaking Portal at http://www.regulations.gov (IRS REG-208274-86).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Lynn Dayan or Quyen Huynh at (202) 622-3880; concerning submissions of 
comments and requests for public hearing, Oluwafunmilayo Taylor, (202) 
622-7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act

    The collections of information contained in this notice of proposed 
rulemaking have been submitted to the Office of Management and Budget 
for review in accordance with the Paperwork Reduction Act of 1995 (44 
U.S.C. 3507(d)) and, pending receipt and evaluation of public comments 
approved by the Office of Management and Budget under control number 
1545-1359. Comments on the collections of information should be sent to 
the Office of Management and Budget, Attn: Desk Officer for the 
Department of the Treasury, Office of Information and Regulatory 
Affairs, Washington, DC 20503, with copies to the Internal Revenue 
Service, Attn: IRS Reports Clearance Officer, SE:W:CAR:MP:T:T:SP, 
Washington, DC 20224. Comments on the collection of information should 
be received by March 26, 2012. Comments are specifically requested 
concerning:
    Whether the proposed collection of information is necessary for the 
proper performance of the duties of the Internal Revenue Service, 
including whether the information will have practical utility;
    The accuracy of the estimated burden associated with the proposed 
collection of information;
    How the quality, utility, and clarity of the information to be 
collected may be enhanced;
    How the burden of complying with the proposed collection of 
information may be minimized, including through the application of 
automated collection techniques or other forms of information 
technology; and
    Estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of service to provide information.
    The collection of information in these proposed regulation is in 
Sec.  301.6039E-1(b). The information is required to be provided by 
individuals who apply for a United States passport or a renewal of a 
United States passport. The information provided by passport applicants 
will be used by the IRS for tax compliance purposes.
    Estimated total annual reporting burden: 1,213,354 hours.
    Estimated average annual burden hours per respondent: four to ten 
minutes.
    Estimated number of respondents: 12,133,537.
    Estimated annual frequency of responses: one.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a valid 
control

[[Page 3965]]

number assigned by the Office of Management and Budget.
    Books or records relating to a collection of information must be 
retained as long as their contents may become material in the 
administration of any internal revenue law. Generally, tax returns and 
tax return information are confidential, as required by 26 U.S.C. 6103.

Background

    This document contains proposed amendments to 26 CFR part 301 under 
section 6039E of the Internal Revenue Code. Section 6039E provides 
rules concerning information reporting by U.S. passport and permanent 
resident applicants, and requires specified Federal agencies to provide 
certain information to the IRS.
    On December 24, 1992, the Treasury Department and the IRS published 
a notice of proposed rulemaking (REG-208274-86, 1993-1 CB 822) in the 
Federal Register (57 FR 61373) under section 6039E (the 1992 proposed 
regulations). The 1992 proposed regulations provided guidance for both 
passport and permanent resident applicants to comply with information 
reporting rules under section 6039E, and indicated the responsibilities 
of specified Federal agencies to provide certain information to the 
IRS. No requests were received to testify on the 1992 proposed 
regulations and, accordingly, no public hearing was held. One written 
comment letter responding to the 1992 proposed regulations was 
received, which recommended modifications to Form 9003, ``Additional 
Questions to be Completed by All Applicants for Permanent Residence in 
the United States.'' Because Form 9003 is no longer in use and these 
proposed regulations do not address information reporting rules for 
permanent resident applicants, the comment was not considered in 
drafting these regulations. The proposed regulations do not provide 
rules concerning information reporting by individuals applying to 
become permanent residents; therefore such individuals are not within 
the scope of the proposed regulations.
    The information required to be provided by passport applicants 
under section 6039E is collected on the U.S. passport application form 
submitted by such applicants to the Department of State.
    The proposed regulations also withdraw the 1992 proposed 
regulations.

Explanation of Provisions

    The proposed regulations set forth rules concerning information 
reporting by passport applicants under section 6039E. Section 
301.6039E-1(a) requires an individual applying for a U.S. passport 
(passport applicant), other than an individual who applies for an 
official passport, diplomatic passport or passport for use on other 
official U.S. government business, to provide certain information with 
his or her passport application.
    Section 301.6039E-1(b)(1) describes the required information to be 
provided by passport applicants: The applicant's full name and, if 
applicable, previous name; address of regular or principal place of 
residence within the country of residence and, if different, mailing 
address; taxpayer identifying number (TIN); and date of birth. Section 
301.6039E-1(b)(2) provides that the required information must be 
submitted with the passport application, regardless of where the 
applicant resides at the time it is submitted.
    Section 301.6039E-1(c) provides guidance on the circumstances under 
which the IRS may impose a $500 penalty amount on any passport 
applicant who fails to provide the required information.
    Section 301.6039E-1 is proposed to be applicable to passport 
applications submitted after the date of publication of the Treasury 
decision adopting these rules as final regulations in the Federal 
Register.

Special Analyses

    It has been determined that this notice of proposed rulemaking 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 Internal Revenue 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.

Comments and Request for Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any comments that are submitted timely 
to the IRS as prescribed in this preamble under the ADDRESSES heading. 
The IRS and the Treasury Department request comments on all aspects of 
the proposed rules. All comments will be available for public 
inspection and copying. A public hearing will be scheduled if requested 
in writing by any person that timely submits written comments. If a 
public hearing is scheduled, notice of the date, time, and place for 
the public hearing will be published in the Federal Register.

Drafting Information

    The principal author of these regulations is Quyen P. Huynh of the 
Office of Associate Chief Counsel (International). However, other 
personnel from the IRS and the Treasury Department participated in 
their development.

List of Subjects in 26 CFR Part 301

    Administrative practice and procedure, Alimony, Bankruptcy, Child 
support, Continental shelf, Courts, Crime, Employment taxes, Estate 
taxes, Excise taxes, Gift taxes, Income taxes, Investigations, Law 
enforcement, Oil pollution, Penalties, Pensions, Reporting and 
recordkeeping requirements, Seals and insignia, Statistics, Taxes.

Withdrawal of Proposed Regulations

    Accordingly, under the authority of 26 U.S.C. 7805, the notice of 
proposed rulemaking (INTL-978-86; REG-208274-86) that was published in 
the Federal Register on December 24, 1992 (57 FR 61373) is withdrawn.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 301 is proposed to be amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

    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 301.6039E-1 also issued under 26 U.S.C. 6039E.

    Par. 2. Section 301.6039E-1 is added to read as follows:


Sec.  301.6039E-1  Information reporting by passport applicants.

    (a) In general. Every individual who applies for a U.S. passport 
(passport applicant), other than an individual who applies for a U.S. 
passport for use in diplomatic, military, or other official U.S. 
government business, shall include with his or her passport application 
the

[[Page 3966]]

information described in paragraph (b) of this section.
    (b) Required information--(1) In general. The information required 
under paragraph (a) of this section shall include the following 
information:
    (i) The passport applicant's full name and, if applicable, previous 
name;
    (ii) Address of the passport applicant's regular or principal place 
of residence within the country of residence and, if different, mailing 
address;
    (iii) The passport applicant's taxpayer identifying number (TIN), 
if such a number has been issued to the passport applicant. A TIN means 
the individual's social security number (SSN) issued by the Social 
Security Administration. A passport applicant who does not have an SSN 
must enter zeros in the appropriate space on the passport application; 
and
    (iv) The passport applicant's date of birth.
    (2) Time for furnishing information. A passport applicant must 
provide the information required by this section at the time of 
submitting his or her passport application, whether by personal 
appearance or mail, to the Department of State (including United States 
Embassies and Consular posts abroad).
    (c) Penalties--(1) In general. If the information required by 
paragraph (b)(1) of this section is incomplete or incorrect, or the 
information is not timely filed, then the passport applicant shall be 
subject to a penalty equal to $500 per application. Before assessing a 
penalty under this section, the IRS will ordinarily provide to the 
passport applicant written notice of the potential assessment of the 
$500 penalty, requesting the information being sought, and offering the 
applicant an opportunity to explain why such information was not 
provided at the time the passport application was submitted. A passport 
applicant has 60 days (90 days if the notice is addressed to an 
applicant outside the United States) to respond to the notice. If, 
after considering all the surrounding circumstances, the passport 
applicant demonstrates to the satisfaction of the Commissioner or his 
delegate that the failure is due to reasonable cause and not due to 
willful neglect, then the IRS will not assess the penalty.
    (2) Example. The following example illustrates the provisions of 
paragraph (c) this section.

    Example. C, a citizen of the United States, makes an error in 
supplying information on his passport application. Based on the 
nature of the error and C's timely response to correct the error 
after being contacted by the IRS, and considering all the 
surrounding circumstances, the Commissioner concludes that the 
mistake is due to reasonable cause and not due to willful neglect. 
Accordingly, no penalty is assessed.

    (d) Effective/applicability date. The rules of this section apply 
to passport applications submitted after the date of publication of the 
Treasury decision adopting these rules as final regulations in the 
Federal Register.

Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2012-1567 Filed 1-25-12; 8:45 am]
BILLING CODE 4830-01-P