[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