[Federal Register Volume 78, Number 166 (Tuesday, August 27, 2013)]
[Rules and Regulations]
[Pages 52856-52857]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-21006]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 9631]
RIN 1545-BL66


Disclosures of Return Information Reflected on Returns to 
Officers and Employees of the Department of Commerce for Certain 
Statistical Purposes and Related Activities

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations and removal of temporary regulations.

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SUMMARY: This document contains final regulations that authorize the 
disclosure of certain items of return information to the Bureau of the 
Census (Bureau) in conformance with section 6103(j)(1) of the Internal 
Revenue Code (Code). The final regulations are made pursuant to a 
request from the Secretary of Commerce. Because the return information 
will be disclosed to the Bureau in statistical format, specific 
taxpayers will not be identified, and, therefore, no taxpayers are 
affected by the disclosures authorized by this guidance.

DATES: Effective Date: These regulations are effective on August 27, 
2013.
    Applicability Date: For dates of applicability, see Sec.  
301.6103(j)(1)-1(e).

FOR FURTHER INFORMATION CONTACT: Melissa Avrutine, (202) 622-7950 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION: 

Background

    This document contains amendments to 26 CFR part 301. Section 
6103(j)(1)(A) authorizes the Secretary of Treasury to furnish, upon 
written request by the Secretary of Commerce, such return or return 
information as the Secretary of Treasury may prescribe by regulation to 
officers and employees of the Bureau for the purpose of, but only to 
the extent necessary in, the structuring of censuses and conducting 
related statistical activities authorized by law. Section 
301.6103(j)(1)-1 of the existing 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.
    By letter dated July 24, 2009, the Secretary of Commerce requested 
that additional items of return information be disclosed to the Bureau 
for purposes of allowing the Bureau to study a developing trend of 
increased use of contract workers. Specifically, the Secretary of 
Commerce requested disclosure of the following additional items: (1) 
Total number of documents reported on Form 1096 transmitting Forms 
1099-MISC and (2) total amount reported on Form 1096 transmitting Forms 
1099-MISC.
    Section 301.6103(j)(1)-1 of the regulations formerly permitted 
disclosure of the total number of documents reported on Form 1096 
transmitting Forms 1099-MISC and the total amount reported on Form 1096 
transmitting Forms 1099-MISC. At the request of the Secretary of 
Commerce, the Treasury Department removed these items from the list of 
items of return information authorized to be disclosed, as disclosure 
of this return information was no longer necessary (See TD 9372, 72 FR 
73262 [Dec. 27, 2007]).
    In 2009, the Secretary of Commerce determined that these items of 
return information were needed again to provide critical data about 
contract labor necessary to estimate total employment and payroll in 
the United States. The employment and compensation data compiled by the 
Bureau are important to analysts and policy makers in both the public 
and private sectors. Thus, the Secretary of Commerce asserted that good 
cause existed to amend Sec.  301.6103(j)(1)-1 of the regulations to 
restore these items to the list of items of return information that may 
be disclosed to the Bureau. The Treasury Department and the IRS agree 
that amending existing regulations to permit disclosure of these items 
to the Bureau is appropriate to meet the analytical needs of the 
Bureau.

Explanation of Provisions

    On August 26, 2010, the IRS and the Treasury Department published 
temporary regulations under Sec.  6103(j)(1) and issued a notice of 
proposed rulemaking cross-referencing those temporary regulations. See 
TD 9500 (75

[[Page 52857]]

FR 52458), REG-137486-09 (75 FR 52486), and 26 CFR 301.6103(j)(1)-1T. 
No comments were received, and no public hearing was requested or held. 
These final regulations adopt the proposed rules with no substantive 
change.
    Section 301.6103(j)(1)-1T authorizes disclosure of three items of 
return information. Upon publication, these final regulations remove 
Sec.  301.6103(j)(1)-1T because all three items of return information 
listed in Sec.  301.6103(j)(1)-1T will now be contained in Sec.  
301.6103(j)(1)-1. On December 31, 2007, temporary regulations were 
published authorizing one of the items of return information contained 
in Sec.  301.6103(j)(1)-1T: The disclosure of 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) 
(Sec.  301.6103(j)(1)(xxv)-1T). See TD 9500 (75 FR 52458). On August 
26, 2010, those temporary regulations were finalized, but Sec.  
301.6103(j)(1)(xxv)-1T was inadvertently not removed. Accordingly, 
these final regulations remove those temporary regulations as well as 
the remaining two items of return information contained in Sec.  
301.6103(j)(1)-1T: total number of documents reported on Form 1096 
transmitting Forms 1099-MISC and the total amount reported on Form 1096 
transmitting Forms 1099-MISC (subsections xxix and xxx of section 
6103(j)(1)-1T).

Special Analyses

    It has been determined that these final regulations are 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 Procedures Act (5 U.S.C. chapter 5) does 
not apply to these regulations, and because the regulation does 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 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 its impact 
on small business, and no comments were received.

Drafting Information

    The principal author of these regulations is Melissa Avrutine, 
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

    Accordingly, 26 CFR part 301 is amended as follows:

PART 301--PROCEDURE AND ADMINISITRATION

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:
0
1. Adding paragraphs (b)(3)(xxix) and (b)(3)(xxx).

0
2. Revising paragraph (e),
    The additions and revision read as follows:


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

* * * * *
    (b) * * *
    (3) * * *
    (xxix) Total number of documents reported on Form 1096 transmitting 
Forms 1099-MISC.
    (xxx) Total amount reported on Form 1096 transmitting Forms 1099-
MISC.
* * * * *
    (e) Effective/applicability date. Paragraphs (b)(3)(xxv), 
(b)(3)(xxix), and (b)(3)(xxx) of this section apply to disclosures to 
the Bureau of the Census made on or after August 27, 2013. For rules 
that apply to disclosures to the Bureau of the Census before that date, 
see 26 CFR 301.6103(j)(1)-1 (revised as of April 1, 2013).

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

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

Heather C. Maloy,
Acting Deputy Commissioner for Services and Enforcement.
    Approved: August 19, 2013.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2013-21006 Filed 8-26-13; 8:45 am]
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