99-438. Revision to the NASA FAR Supplement Coverage on Information to the Internal Revenue Service

[Federal Register Volume 64, Number 6 (Monday, January 11, 1999)]
[Rules and Regulations]
[Page 1528]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-438]


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NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 1804


Revision to the NASA FAR Supplement Coverage on Information to 
the Internal Revenue Service

AGENCY: National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: This is a final rule amending the NASA FAR Supplement (NFS) to 
provide guidance to NASA employees about furnishing to payment offices 
the taxpayer identification numbers of NASA contractors. The guidance 
will simplify NASA's efforts in meeting requirements for reporting 
payment information to the Internal Revenue Service.

EFFECTIVE DATE: January 11, 1999.

FOR FURTHER INFORMATION CONTACT: Dave Beck, NASA, Office of 
Procurement, Contract Management Division (Code HK), [phone].

SUPPLEMENTARY INFORMATION:

Background

    FAR 4.203 and subpart 4.9 have requirements for collecting. 
Taxpayer Identification Numbers (TIN's) and providing the TIN's to the 
payment office. Payment offices use the TIN's to meet requirements for 
reporting information to the IRS using IRS Form 1099. Payment offices 
can also use the TIN's to meet requirements under the Debt Collection 
Improvement Act of 1996 to collect and report on any delinquent amounts 
arising out of the contractor's relationship with the Government.
    Payment offices use IRS Form 1099 to report to the IRS payments for 
services. Payments for merchandise are exempt from the reporting 
requirement. However under this final rule, each NASA installation, 
that has its own employer identification number, may elect to report to 
the IRS the payments for merchandise. This optional reporting 
eliminates the need for the NASA installation to distinguish payments 
for merchandise from payments for services. This reporting does not 
change a taxpayer's obligation to record the payments, regardless of 
type, as ``gross receipts and sales'' on tax forms.
    This final rule makes one other change. Section 1804.203 is added 
to permit NASA installations to have their own procedures for 
distributing TIN's from the contracting office to the payment office, 
in place of using the last page of the contract as stated in FAR 4.203.

Impact

    NASA certifies that this regulation will not have a significant 
economic impact on a substantial number of small business entities 
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) because the 
rule does not change the obligation of small entities to report income 
on tax forms. This final rule does not impose any reporting or 
recordkeeping requirements subject to the Paperwork Reduction Act.

List of Subjects in 48 CFR Part 1804

    Government procurement.
Tom Luedtke,
Acting Associate Administrator for Procurement.

    Accordingly, 48 CFR Part 1804 is amended as follows:
    1. The authority citation for 48 CFR Part 1804 continues to read as 
follows:

    Authority: 42 U.S.C. 2473(c)(1).

PART 1804--ADMINISTRATIVE MATTERS


1804.203  [Added]

    2. Section 1804.203 is added to read as follows:


1804.203  Taxpayer identification information.

    Instead of using the last page of the contract to provide the 
information listed in FAR 4.203, NASA installations may allow 
contracting officers to use a different distribution method, such as 
annotating the cover page of the payment office copy of the contract.

Subpart 1804.9--[Added]

    3. Subpart 1804.9 is added to read as follows:

Subpart 1804.9--Taxpayer Identification Number Information


1804.904  Reporting payment information to the IRS.

    Each NASA installation, that has its own employer identification 
number, may elect to report to the IRS payments under purchase orders 
and contracts for merchandise and other exempt bills.

[FR Doc. 99-438 Filed 1-8-99; 8:45 am]
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