[Federal Register Volume 65, Number 2 (Tuesday, January 4, 2000)]
[Rules and Regulations]
[Pages 215-217]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-54]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 301
[TD 8854]
RIN 1545-AX70
Disclosures of Return Information to Officers and Employees of
the Department of Agriculture for Certain Statistical Purposes and
Related Activities
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Temporary regulation.
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SUMMARY: This document provides a temporary regulation relating to the
disclosure of return information to officers and employees of the
Department of Agriculture for certain statistical purposes and related
activities. The temporary regulation would permit the IRS to disclose
return information to the Department of Agriculture to structure,
prepare, and conduct the Census of Agriculture. The text of this
temporary regulation also serves as the text of the proposed regulation
set forth in the notice of proposed rulemaking on this subject in the
Proposed Rules section of this issue of the Federal Register.
DATES: Effective Date: This regulation is effective January 4, 2000.
Applicability Date: For dates of applicability of this regulation,
see, Sec. 301.6103(j)(5)-1T(d).
FOR FURTHER INFORMATION CONTACT: Jennifer S. McGinty, (202) 622-4570
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
Section 6103(j) of the Internal Revenue Code (Code) provides for
the disclosure of tax information for statistical purposes. Prior to
the Census of Agriculture Act of 1997 (Pub. L. 105-113), the Bureau of
Census had responsibility for preparing the Census of Agriculture.
Section 6103(j)(1) authorized the Bureau of Census to receive tax
information as prescribed in the regulations in structuring censuses.
Treasury regulations implemented such authority with respect to the
Census of Agriculture. The Census of Agriculture Act transferred
responsibility for that Census from the Bureau of Census to the
Department of Agriculture. In 1998, the Tax and Trade Relief Extension
Act of 1998 (Pub. L. 105-277) added section 6103(j)(5) to provide
disclosure authority for the Department of Agriculture to receive tax
information to structure, prepare, and conduct the Census of
Agriculture. By letter dated May 21, 1999, the Secretary of Agriculture
requested that the regulations be amended so that the Department of
Agriculture can begin to receive return information for purposes of the
Census of Agriculture. This document contains a temporary regulation
which authorizes the IRS to disclose return information to the
Department of Agriculture for purposes of the Census of Agriculture.
Explanation of Provisions
This temporary regulation will allow the IRS to disclose return
information to the Department of Agriculture for purposes of the Census
of Agriculture.
The disclosure of the specific items of return information
identified in this regulation is necessary in order for the Department
of Agriculture to accurately identify, locate, and classify, as well as
properly process, information from agricultural businesses to be
surveyed for the statutorily mandated Census of Agriculture.
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 has also been
determined that section 553(b) of the Administrative Procedure Act (5
U.S.C. chapter 5) does not apply
[[Page 216]]
to these regulations. For the applicability of the Regulatory
Flexibility Act (5 U.S.C. chapter 6) refer to the Special Analyses
section of the preamble to 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 Code, this
temporary regulation will be submitted to the Chief Counsel for
Advocacy of the Small Business Administration for comment on its impact
on small businesses.
Drafting Information: The principal author of this regulation is
Jennifer S. McGinty, Office of the Assistant Chief Counsel (Disclosure
Litigation), IRS. However, other personnel from the IRS and Treasury
Department participated in its development.
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 is amended by
adding an entry in numerical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 301.6103(j)(5)-1T also issued under 26 U.S.C. 6103(j)(5);*
* *
Par. 2. Section 301.6103(j)(5)-1T is added to read as follows:
Sec. 301.6103(j)(5)-1T Disclosures of return information to officers
and employees of the Department of Agriculture for certain statistical
purposes and related activities (temporary).
(a) General rule. Pursuant to the provisions of section 6103(j)(5)
of the Internal Revenue Code (Code) and subject to the requirements of
paragraph (c) of this section, officers or employees of the Internal
Revenue Service (IRS) will disclose return information to officers and
employees of the Department of Agriculture to the extent, and for such
purposes as may be, provided by paragraph (b) of this section.
(b) Disclosure of return information to officers and employees of
the Department of Agriculture. (1) Officers or employees of the IRS
will disclose the return information in this paragraph (b) for
individuals, partnerships, and corporations with agricultural activity,
as determined generally by industry code classification or the filing
of returns for such activity, to officers and employees of the
Department of Agriculture for purposes of, but only to the extent
necessary in, structuring, preparing, and conducting, as authorized by
chapter 55 of title 7, United States Code, the Census of Agriculture.
(2) From Form 1040/Schedule F--
(i) Taxpayer Identity Information (as defined in section 6103(b)(6)
of the Code);
(ii) Spouse's SSN;
(iii) Annual Accounting Period;
(iv) Principal Business Activity (PBA) Code;
(v) Sales of livestock and produce raised;
(vi) Taxable cooperative distributions;
(vii) Income from custom hire and machine work;
(viii) Gross income;
(ix) Master File Tax (MFT) Code;
(x) Document Locator Number (DLN);
(xi) Cycle Posted;
(xii) Final return indicator; and
(xiii) Part year return indicator.
(3) From Form 943--
(i) Taxpayer Identity Information;
(ii) Annual Accounting Period;
(iii) Total wages subject to Medicare taxes;
(iv) Master File Tax (MFT) Code;
(v) Document Locator Number (DLN);
(vi) Cycle Posted;
(vii) Final return indicator; and
(viii) Part year return indicator.
(4) From Form 1120 series--
(i) Taxpayer Identity Information;
(ii) Annual Accounting Period;
(iii) Gross receipts less returns and allowances;
(iv) PBA code;
(v) Parent corporation Employer Identification Number, and related
Name and PBA Code for entities with agricultural activity;
(vi) Master File Tax (MFT) Code;
(vii) Document Locator Number (DLN);
(viii) Cycle posted;
(ix) Final return indicator;
(x) Part year return indicator; and
(xi) Consolidated return indicator.
(5) From Form 851--
(i) Subsidiary Taxpayer Identity Information;
(ii) Annual Accounting Period;
(iii) Subsidiary PBA Code;
(iv) Parent Taxpayer Identity Information;
(v) Parent PBA Code;
(vi) Master File Tax (MFT) Code;
(vii) Document Locator Number (DLN); and
(viii) Cycle Posted.
(6) From Form 1065 series--
(i) Taxpayer Identity Information;
(ii) Annual Accounting Period;
(iii) PBA Code;
(iv) Gross receipts less returns and allowances;
(v) Net farm profit (loss);
(vi) Master File Tax (MFT) Code;
(vii) Document Locator Number (DLN);
(viii) Cycle Posted;
(ix) Final return indicator; and
(x) Part year return indicator.
(c) Procedures and Restrictions. (1) Disclosure of return
information by officers or employees of the IRS as provided by
paragraph (b) of this section will be made only upon written request
designating, by name and title, the officers and employees of the
Department of Agriculture to whom such disclosure is authorized, to the
Commissioner of Internal Revenue by the Secretary of the Department of
Agriculture and describing--
(i) The particular return information to be disclosed;
(ii) The taxable period or date to which such return information
relates; and
(iii) The particular purpose for which the return information is to
be used.
(2) No such officer or employee to whom return information is
disclosed pursuant to the provisions of paragraph (b) of this section
shall disclose such return information to any person, other than the
taxpayer to whom such return information relates or other officers or
employees of the Department of Agriculture whose duties or
responsibilities require such disclosure for a purpose described in
paragraph (b) of this section, except in a form that cannot be
associated with, or otherwise identify, directly or indirectly, a
particular taxpayer. If the IRS determines that the Department of
Agriculture, or any officer or employee thereof, has failed to, or does
not, satisfy the requirements of section 6103(p)(4) of the Code or
regulations or published procedures thereunder, the IRS may take such
actions as are deemed necessary to ensure that such requirements are or
will be satisfied, including suspension of disclosures of return
information otherwise authorized by section 6103(j)(5) and paragraph
(b) of this section, until the IRS determines that such requirements
have been or will be satisfied.
[[Page 217]]
(d) Effective date. This section is applicable from January 4,
2000, through January 3, 2003.
Robert Wenzel,
Acting Commissioner of Internal Revenue.
Approved: December 13, 1999.
Jonathan Talisman,
Acting Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 00-54 Filed 1-3-00; 8:45 am]
BILLING CODE 4830-01-U
