[Federal Register Volume 64, Number 155 (Thursday, August 12, 1999)]
[Rules and Regulations]
[Pages 43910-43911]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-20485]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[TS 8835]
RIN 1545-AX27
Furnishing Identifying Number of Income Tax Return Preparer
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Temporary and final regulations.
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SUMMARY: This document contains temporary and final regulations that
allow income tax return preparers to elect an alternative to their
social security number (SSN) for purposes of identifying themselves on
returns they prepare. The regulations are needed to implement changes
made to the applicable law by the Internal Revenue Service
Restructuring and Reform Act of 1998. The regulations affect individual
preparers who elect to identify themselves using a number other than
their SSN. The text of the temporary regulations also serves as the
text of the proposed regulations set forth in the notice of proposed
rulemaking on this subject in the Proposed Rules section in this issue
of the Federal Register.
DATES: Effective Date: These regulations are effective August 12, 1999.
Applicability Date: For dates of applicability of these regulation,
see Secs. 1.6109-2(d) and 1.609-2T(d).
FOR FURTHER INFORMATION CONTACT: Andrew J. Keyso, (202) 622-4910 (not a
toll-free call).
SUPPLEMENTARY INFORMATION:
Background
Section 6109(a)(4) of the Internal Revenue Code provides that any
return or claim for refund prepared by an income tax return preparer
must bear the identifying number of the preparer as required by
regulations prescribed by the Secretary. Prior to its amendment by the
Internal Revenue Service Restructuring and Reform Act of 1998 (Public
Law 105-206, 112 Stat. 685 (RRA '98)), section 6109(a) provided that
the identifying number of an individual preparer was that preparer's
social security number (SSN).
Section 3710 of RRA '98 amended section 6109(a) by removing the
requirement that an individual preparer's identifying number be the
preparer's SSN. Instead, the Secretary may prescribe alternatives to
the SSN for purposes of identifying individual preparers.
Explanation of Provisions
On December 21, 1998, the IRS published Notice 98-63, 1998-51 IRB
15, to inform preparers of the IRS's intention to develop a system of
alternative identifying numbers. This document contains amendments to
the Income Tax Regulations (26 CFR part 1) to allow individual
preparers to either use their SSN or elect an alternative identifying
number for purposes of identifying themselves on returns they prepare.
The IRS will develop a form on which preparers may apply for an
alternative identifying number.
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, and because
these regulations do not impose a collection of information on small
entities, the
[[Page 43911]]
Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. For the
applicability of the Regulatory flexibility Act (5 U.S.C. chapter 6)
refer to the Special Analyses section of the preamble of the cross-
reference notice of proposed rulemaking published in the Proposed Rules
section in this issue of the Federal Register. Pursuant to section
7805(f) of the Internal Revenue Code, these regulations will be
submitted to the Chief Counsel for Advocacy of the Small Business
Administration for comment on their impact on small business.
Drafting Information
The principal author of these regulations is Andrew J. Keyso,
Office of Assistant Chief Counsel (Income Tax & Accounting). However,
other personnel from the IRS and Treasury Department participated in
their development.
List of Subjects in 26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
Adoption of Amendments to the Regulations
Accordingly, 26 CFR part 1 is amended as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation for part 1 continues to read in
part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1,6109-2 is amended by:
1. Revising the first sentence of paragraph (a) introductory text;
2. Adding paragraph (d).
The revision and addition read as follows:
Sec. 1.6109-2 Furnishing identifying number of income tax return
preparer.
(a) Furnishing identifying number. For returns or claims for refund
filed prior to January 1, 2000, each return of tax under subtitle A of
the Internal Revenue Code or claim for refund of tax under subtitle A
of the Internal Revenue Code prepared by one or more income tax return
preparers must bear the identifying number of the preparer required by
Sec. 1.6695-1(b) to sign the return or claim for refund. * * *
* * * * *
(d) Effective date. Paragraph (a) of this section and this
paragraph (d) apply to returns or claims for refund filed prior to
January 1, 2000. For returns or claims for refund filed after December
31, 1999, see Sec. 1.6109-2T(a).
Par. 3. Section 1.6109-2T is added to read as follows:
Sec. 1.6109-2T Furnishing identifying number of income tax return
preparer (temporary).
(a) Furnishing identifying number. (1) Each return of tax, or claim
for refund of tax, under subtitle A of the Internal Revenue Code
prepared by one or more income tax return preparers must include the
identifying number of the preparer required by Sec. 1.6695-1(b) to sign
the return or claim for refund. In addition, if there is a partnership
or employment arrangement between two or more preparers, the
identifying number of the partnership or employer must also appear on
the return or claim for refund. For the definition of the term income
tax return preparer (or preparer) see section 7701(a)(36) and
Sec. 301.7701-15 of this chapter.
(2) The identifying number of a preparer who is an individual (not
described in paragraph (a)(3) of this section) is that individual's
social security account number, or such alternative number as may be
prescribed by the Internal Revenue Service in forms, instructions, or
other appropriate guidance.
(3) The identifying number of a preparer (whether an individual,
corporation, or partnership) who employs or engages one or more persons
to prepare the return or claim for refund (other than for the preparer)
is that preparer's employer identification number.
(b) and (c) [Reserved]. For further guidance, see Sec. 1.6109-2(b)
and (c).
(d) Effective date. Paragraph (a) of this section and this
paragraph (d) apply to returns or claims for refund filed after
December 31, 1999. For returns or claims for refund filed prior to
January 1, 2000, see Sec. 1.6109-2(a).
Approved: August 3, 1999.
Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
Donald C. Lubick,
Assistant Secretary of the Treasury.
[FR Doc. 99-20485 Filed 8-11-99; 8:45 am]
BILLING CODE 4830-01-M
