[Federal Register Volume 78, Number 88 (Tuesday, May 7, 2013)]
[Rules and Regulations]
[Pages 26506-26507]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-10738]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 301
[TD 9618]
RIN 1545-BJ19
Disclosure of Returns and Return Information to Designee of
Taxpayer
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations.
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SUMMARY: This document contains final regulations extending the period
for submission to the IRS of taxpayer authorizations permitting
disclosure of returns and return information to third-party designees.
Specifically, the final regulations extend from 60 days to 120 days the
period within which a signed and dated authorization must be received
by the IRS (or an agent or contractor of the IRS) for it to be
effective. The final regulations will affect taxpayers who submit
authorizations permitting disclosure of returns and return information
to third-party designees.
DATES:
Effective date: The final regulations are effective on May 7, 2013.
Applicability date: For date of applicability, see Sec.
301.6103(c)-1(f).
FOR FURTHER INFORMATION CONTACT: Amy Mielke, (202) 622-4570 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collection of information contained in the final regulations
has been reviewed and approved by the Office of Management and Budget
in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3507(d)) under control number 1545-1816.
The collection of information in these final regulations is in
Sec. 301.6103(c)-1(b)(2). This information is required by the IRS to
identify the return or return information described in the request or
consent; to search for and, where found, compile such return or return
information; and to identify the person to whom any such return or
return information is to be provided.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a valid
control number assigned by the Office of Management and Budget.
Books and records relating to the collection of information must be
retained as long as their contents may become material in the
administration of any internal revenue law. Generally, tax returns and
return information are confidential, as required by section 6103.
Background
This document contains amendments to the Procedure and
Administration Regulations (26 CFR part 301), and amends Sec.
301.6103(c)-1 by extending the period for submission to the IRS of
taxpayer authorizations permitting disclosure of returns and return
information to designees of a taxpayer.
On December 18, 2009, the IRS published Notice 2010-8 2010-3 IRB
297 (available at IRS.gov), which announced the Treasury Department and
the IRS's intent to amend the regulations under Sec. 301.6103(c)-1 to
expand the time frame for submission of section 6103(c) authorizations.
The notice also announced interim rules extending from 60 days to 120
days the period within which section 6103(c) authorizations must be
received to be effective. The time period was extended because some
institutions charged with assisting taxpayers in their financial
dealings encountered difficulty in obtaining written authorizations and
submitting the authorizations within the 60-day period allowed by the
existing regulations. The interim rules apply to authorizations signed
and dated on or after October 19, 2009.
The Treasury Department and the IRS published a notice of proposed
rulemaking (REG-153338-09) in the Federal Register, 76 FR 14827, on
March 18, 2011, which adopted the interim rule in Notice 2010-8. A
public hearing was scheduled for June 9, 2011. The IRS did not receive
any requests to testify at the public hearing, and the public hearing
was cancelled. One written comment responding to the NPRM was received
and is available for public inspection at http://www.regulations.gov or
upon request. After consideration of the comment, the proposed
regulations are adopted by this Treasury decision without change.
Explanation and Summary of Comments
The IRS received one comment in response to the NPRM. The
commentator agreed that the period for submission of authorizations to
allow for the disclosure of taxpayer information to third-party
designees should be expanded. The commentator specifically suggested
that any reasonable time period beyond 120 days also be considered. The
Treasury Department and the IRS have concluded
[[Page 26507]]
that the 120-day period is a sufficient extension of time to assist
taxpayers whose designees have encountered difficulty in obtaining and
submitting the written authorizations. The 120-day period is a
reasonable limitation on the effective period of written authorizations
that helps ensure the currency of the authorization while protecting
taxpayer privacy. After carefully considering the comment, the proposed
regulations are adopted without modification.
Effect on Other Documents
The following publication is obsolete as of May 7, 2013: Notice
2010-8, 2010-3 IRB 297.
Special Analyses
It has been determined that this final rule is 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 Procedure Act (5 U.S.C. chapter 5) does not apply to
this regulation. Pursuant to section 7805(f) of the Internal Revenue
Code, the notice of proposed rulemaking preceding the final regulations
was submitted to the Chief Counsel for Advocacy of the Small Business
Administration for comment on its impact on small businesses, and no
comments were received from that office.
When an agency issues a final rule, the Regulatory Flexibility Act
(5 U.S.C. chapter 6) (RFA), requires the agency to ``prepare a final
regulatory flexibility analysis.'' (5 U.S.C. 604(a)). Section 605 of
the RFA provides an exception to this requirement if the agency
certifies that the rulemaking will not have a significant economic
impact on a substantial number of small entities. It is hereby
certified that the collection of information in this regulation will
not have a significant economic impact on a substantial number of small
entities. This certification is based upon the fact that any burden on
taxpayers is minimal, since the regulation applies only to taxpayers
who request or consent to the disclosure of their own returns or return
information, and since the information collected is only that necessary
to carry out the disclosure of returns or return information requested
or consented to by the taxpayer (such as the name and taxpayer
identification number of the taxpayer, the return or return information
to be disclosed, and the identity of the designee). Moreover, the
certification is based upon the fact that the regulation reduces the
burden imposed upon taxpayers by the prior regulation by extending the
period in which consents may be received by the IRS. Accordingly, a
Regulatory Flexibility Analysis is not required.
Drafting Information
The principal author of the final regulations is Amy Mielke, Office
of the Associate Chief Counsel (Procedure and 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 ADMINISTRATION
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(c)-1 is amended by revising paragraphs (b)(2)
and (f), and adding paragraph (g) to read as follows:
Sec. 301.6103(c)-1 Disclosure of returns and return information to
designee of taxpayer.
* * * * *
(b) * * *
(2) Requirement that request or consent be received within one
hundred twenty days of when signed and dated. The disclosure of a
return or return information authorized by a written request for or
written consent to the disclosure shall not be made unless the request
or consent is received by the Internal Revenue Service (or an agent or
contractor of the Internal Revenue Service) within 120 days following
the date upon which the request or consent was signed and dated by the
taxpayer.
* * * * *
(f) Applicability date. This section is applicable on April 29,
2003, except that paragraph (b)(2) is applicable to section 6103(c)
authorizations signed on or after October 19, 2009.
(g) Effective date. This section is effective on April 29, 2003,
except that paragraphs (b)(2) and (f) are effective on May 7, 2013.
Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
Approved: April 25, 2013.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2013-10738 Filed 5-6-13; 8:45 am]
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