[Federal Register Volume 78, Number 88 (Tuesday, May 7, 2013)]
[Rules and Regulations]
[Pages 26506-26507]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-10738]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 9618]
RIN 1545-BJ19


Disclosure of Returns and Return Information to Designee of 
Taxpayer

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

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SUMMARY: This document contains final regulations extending the period 
for submission to the IRS of taxpayer authorizations permitting 
disclosure of returns and return information to third-party designees. 
Specifically, the final regulations extend from 60 days to 120 days the 
period within which a signed and dated authorization must be received 
by the IRS (or an agent or contractor of the IRS) for it to be 
effective. The final regulations will affect taxpayers who submit 
authorizations permitting disclosure of returns and return information 
to third-party designees.

DATES: 
    Effective date: The final regulations are effective on May 7, 2013.
    Applicability date: For date of applicability, see Sec.  
301.6103(c)-1(f).

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

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act

    The collection of information contained in the final regulations 
has been reviewed and approved by the Office of Management and Budget 
in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 
3507(d)) under control number 1545-1816.
    The collection of information in these final regulations is in 
Sec.  301.6103(c)-1(b)(2). This information is required by the IRS to 
identify the return or return information described in the request or 
consent; to search for and, where found, compile such return or return 
information; and to identify the person to whom any such return or 
return information is to be provided.
    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 number assigned by the Office of Management and Budget.
    Books and records relating to the 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 
return information are confidential, as required by section 6103.

Background

    This document contains amendments to the Procedure and 
Administration Regulations (26 CFR part 301), and amends Sec.  
301.6103(c)-1 by extending the period for submission to the IRS of 
taxpayer authorizations permitting disclosure of returns and return 
information to designees of a taxpayer.
    On December 18, 2009, the IRS published Notice 2010-8 2010-3 IRB 
297 (available at IRS.gov), which announced the Treasury Department and 
the IRS's intent to amend the regulations under Sec.  301.6103(c)-1 to 
expand the time frame for submission of section 6103(c) authorizations. 
The notice also announced interim rules extending from 60 days to 120 
days the period within which section 6103(c) authorizations must be 
received to be effective. The time period was extended because some 
institutions charged with assisting taxpayers in their financial 
dealings encountered difficulty in obtaining written authorizations and 
submitting the authorizations within the 60-day period allowed by the 
existing regulations. The interim rules apply to authorizations signed 
and dated on or after October 19, 2009.
    The Treasury Department and the IRS published a notice of proposed 
rulemaking (REG-153338-09) in the Federal Register, 76 FR 14827, on 
March 18, 2011, which adopted the interim rule in Notice 2010-8. A 
public hearing was scheduled for June 9, 2011. The IRS did not receive 
any requests to testify at the public hearing, and the public hearing 
was cancelled. One written comment responding to the NPRM was received 
and is available for public inspection at http://www.regulations.gov or 
upon request. After consideration of the comment, the proposed 
regulations are adopted by this Treasury decision without change.

Explanation and Summary of Comments

    The IRS received one comment in response to the NPRM. The 
commentator agreed that the period for submission of authorizations to 
allow for the disclosure of taxpayer information to third-party 
designees should be expanded. The commentator specifically suggested 
that any reasonable time period beyond 120 days also be considered. The 
Treasury Department and the IRS have concluded

[[Page 26507]]

that the 120-day period is a sufficient extension of time to assist 
taxpayers whose designees have encountered difficulty in obtaining and 
submitting the written authorizations. The 120-day period is a 
reasonable limitation on the effective period of written authorizations 
that helps ensure the currency of the authorization while protecting 
taxpayer privacy. After carefully considering the comment, the proposed 
regulations are adopted without modification.

Effect on Other Documents

    The following publication is obsolete as of May 7, 2013: Notice 
2010-8, 2010-3 IRB 297.

Special Analyses

    It has been determined that this final rule is not a significant 
regulatory action as defined in Executive Order 12866, as supplemented 
by Executive Order 13563. 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. Pursuant to section 7805(f) of the Internal Revenue 
Code, the notice of proposed rulemaking preceding the final regulations 
was submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on its impact on small businesses, and no 
comments were received from that office.
    When an agency issues a final rule, the Regulatory Flexibility Act 
(5 U.S.C. chapter 6) (RFA), requires the agency to ``prepare a final 
regulatory flexibility analysis.'' (5 U.S.C. 604(a)). Section 605 of 
the RFA provides an exception to this requirement if the agency 
certifies that the rulemaking will not have a significant economic 
impact on a substantial number of small entities. It is hereby 
certified that the collection of information in this regulation will 
not have a significant economic impact on a substantial number of small 
entities. This certification is based upon the fact that any burden on 
taxpayers is minimal, since the regulation applies only to taxpayers 
who request or consent to the disclosure of their own returns or return 
information, and since the information collected is only that necessary 
to carry out the disclosure of returns or return information requested 
or consented to by the taxpayer (such as the name and taxpayer 
identification number of the taxpayer, the return or return information 
to be disclosed, and the identity of the designee). Moreover, the 
certification is based upon the fact that the regulation reduces the 
burden imposed upon taxpayers by the prior regulation by extending the 
period in which consents may be received by the IRS. Accordingly, a 
Regulatory Flexibility Analysis is not required.

Drafting Information

    The principal author of the final regulations is Amy Mielke, Office 
of the Associate Chief Counsel (Procedure and 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

    Accordingly, 26 CFR part 301 is amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

    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(c)-1 is amended by revising paragraphs (b)(2) 
and (f), and adding paragraph (g) to read as follows:


Sec.  301.6103(c)-1  Disclosure of returns and return information to 
designee of taxpayer.

* * * * *
    (b) * * *
    (2) Requirement that request or consent be received within one 
hundred twenty days of when signed and dated. The disclosure of a 
return or return information authorized by a written request for or 
written consent to the disclosure shall not be made unless the request 
or consent is received by the Internal Revenue Service (or an agent or 
contractor of the Internal Revenue Service) within 120 days following 
the date upon which the request or consent was signed and dated by the 
taxpayer.
* * * * *
    (f) Applicability date. This section is applicable on April 29, 
2003, except that paragraph (b)(2) is applicable to section 6103(c) 
authorizations signed on or after October 19, 2009.
    (g) Effective date. This section is effective on April 29, 2003, 
except that paragraphs (b)(2) and (f) are effective on May 7, 2013.

Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
    Approved: April 25, 2013.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2013-10738 Filed 5-6-13; 8:45 am]
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