[Federal Register Volume 59, Number 47 (Thursday, March 10, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4382]
[[Page Unknown]]
[Federal Register: March 10, 1994]
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DEPARTMENT OF DEFENSE
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 4 and 52
[FAC 90-20; FAR Case 91-52; Item I]
RIN 9000-AF09
Federal Acquisition Regulation; Section 6050M of the Tax Reform
Act of 1986
AGENCIES: Department of Defense (DOD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Interim rule adopted as final.
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SUMMARY: This adopts as final, with one change, the interim rule
published at 57 FR 44259, September 24, 1992, as Item I of FAC 90-13.
That rule amended the coverage ``Information Reporting to the Internal
Revenue Service (IRS),'' of the Federal Acquisition Regulation (FAR),
to ensure the collection and reporting of the Taxpayer Identification
Number (TIN) of certain contract modifications occurring on or after
April 1, 1990, when the initial contract was entered into before
January 1, 1989. In addition, the coverage has been rearranged for
clarification and the provision entitled ``Taxpayer Identification''
has been revised to update a reference. When the IRS issued its final
regulations implementing section 6050M of the Tax Reform Act of 1986
(Public Law 99-514), the reporting requirements included the
requirement to report certain modifications to contracts that were
awarded before January 1, 1989. The Office of Federal Procurement
Policy (OFPP) requested that the Civilian Agency Acquisition Council
and the Defense Acquisition Regulations Council consider revising the
FAR accordingly. The rule is being adopted as a final rule with one
change. The approved change is to the provision entitled ``Taxpayer
Identification'' and consists of replacing the previous 20 percent
figure with a 31 percent figure as a result of an amendment to 26
U.S.C. 3406(a)(1).
EFFECTIVE DATE: March 10, 1994.
FOR FURTHER INFORMATION CONTACT:
Ms. Linda Klein at (202) 501-3775 in reference to this FAR case. For
general information, contact the FAR Secretariat, room 4037, GS
Building, Washington, DC 20405 (202) 501-4755. Please cite FAC 90-20,
FAR case 91-52.
SUPPLEMENTARY INFORMATION:
A. Background
Section 6050M of title 26, United States Code, requires heads of
Federal executive agencies to report certain contract information to
the IRS. The information returns filed under section 6050M are used as
a source of information to collect delinquent Federal tax liabilities
of persons who enter into contracts with Federal executive agencies.
On December 6, 1989, the IRS published regulations that implemented
section 6050M of the Tax Reform Act of 1986 (Pub. L. 99-514). The
regulations apply to Federal executive agencies' contracts entered into
on or after January 1, 1989, except that, with respect to a basic or
initial contract entered into before January 1, 1989, the regulations
do not apply to an increase contract action treated as a new contract
if the increase occurred before April 1, 1990, or if the increase is
not in excess of $50,000. The information required to be reported for
contract actions over $25,000 includes name, address, and TIN of the
Contractor, name and TIN of the common parent (if any); date of the
contract action; amount obligated on the contract; and duration of the
contract.
The OFPP requested that the FAR be revised to ensure that agency
reporting requirements include the requirement to report certain
modifications to contracts that were awarded before January 1, 1989.
Interim rule coverage was published on September 24, 1992, with a
request for comment. One response (a ``no comment'') was received.
However, one change was made to paragraph (b) of 52.204-3, Taxpayer
Identification, as a result of an amendment to 26 U.S.C. 3406(a)(1).
B. Regulatory Flexibility Act
The Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration certify that this
final rule will not have a significant economic impact on a substantial
number of small entities under the Regulatory Flexibility Act, 5 U.S.C.
601, et seq., because all taxpayers are required to have a TIN, and
this rule merely requests that contractors provide that number for
certain contract modifications.
This rule was published as an interim rule with a request for
comments (see 57 FR 44259, September 24, 1992), and no comments were
received regarding the Regulatory Flexibility Act statement.
C. Paperwork Reduction Act
The Paperwork Reduction Act (Pub. L. 96-511) applies because the
final rule increases the existing burden. Accordingly, a request for
approval of a revised information collection requirement concerning OMB
Control Number 9000-0097, Information Reporting to the Internal Revenue
Service (IRS) (Taxpayer Identification Number) was submitted to the
Office of Management and Budget (OMB) under 44 U.S.C. 3501, et seq.,
and was published in the Federal Register on October 16, 1992. OMB
approved the collection through December 31, 1995.
List of Subjects in 48 CFR Parts 4 and 52
Government procurement.
Dated: February 15, 1994.
Albert A. Vicchiolla,
Director, Office of Federal Acquisition Policy.
Interim Rule Adopted as Final With One Change
Accordingly, the interim rule amending 48 CFR parts 4 and 52, which
was published at 57 FR 44259 on September 24, 1992, is adopted as a
final rule with the following change:
PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES
1. The authority citation for 48 CFR parts 4 and 52 continues to
read as follows:
Authority: 40 U.S.C. 486(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
52.204-3 [Amended]
Section 52.204-3 is amended in the last sentence of paragraph (b)
by removing the figure ``20'' and inserting ``31'' in its place.
[FR Doc. 94-4382 Filed 3-9-94; 8:45 am]
BILLING CODE 6820-34-M
