[Federal Register Volume 79, Number 135 (Tuesday, July 15, 2014)]
[Rules and Regulations]
[Pages 41132-41133]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-16599]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 9677]
RIN 1545-BL60


Disclosures of Return Information Reflected on Returns to 
Officers and Employees of the Department of Commerce for Certain 
Statistical Purposes and Related Activities

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Temporary regulations.

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SUMMARY: This document contains temporary regulations that authorize 
the disclosure of certain items of return information to the Bureau of 
the Census (Bureau) pursuant to section 6103(j)(1) of the Internal 
Revenue Code (Code). The temporary regulations are made pursuant to a 
request from the Secretary of Commerce. These regulations require no 
action by taxpayers and have no effect on their tax liabilities. Thus, 
no taxpayers are likely to be affected by the disclosures authorized by 
this guidance. The text of the temporary regulations also serves as the 
text of the proposed regulations set forth in the Proposed Rules 
section in this issue of the Federal Register.

DATES: Effective date: These regulations are effective on July 15, 
2014.
    Applicability date: For dates of applicability, see Sec.  
301.6103(j)(1)-1T(e).

FOR FURTHER INFORMATION CONTACT: Melissa Avrutine, (202) 317-6833 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    This document contains amendments to 25 CFR part 301. Section 
6103(j)(1)(A) authorizes the Secretary of Treasury to furnish, upon 
written request by the Secretary of Commerce, such return or return 
information as the Secretary of Treasury may prescribe by regulation to 
officers and employees of the Bureau for the purpose of, but only to 
the extent necessary in, the structuring of censuses and conducting 
related statistical activities authorized by law. Section 
301.6103(j)(1)-1 of the existing regulations further defines such 
purposes by reference to 13 U.S.C. chapter 5 and provides an itemized 
description of the return information authorized to be disclosed for 
such purposes.
    By letter dated May 10, 2013, the Secretary of Commerce requested 
that additional items of return information be disclosed to the Bureau 
for the structuring of the decennial census. Specifically, the 
Secretary of Commerce requested disclosure of the following additional 
items: (1) From Form 1040, ``U.S. Individual Income Tax Return,'' 
processing: Electronic Filing System Indicator, Return Processing 
Indicator, and Paid Preparer Code and (2) From Form 1098, ``Mortgage 
Interest Statement'': Payee/Payer/Employee Taxpayer Identification 
Number, Payee/Payer/Employee Name (First, Middle, Last, Suffix), Street 
Address, City, State, ZIP Code (9 digit), Posting Cycle Week, Posting 
Cycle Year, and Document Code.
    The Secretary of Commerce determined that these items of return 
information are needed to design a decennial census that costs less per 
housing unit and still maintains high quality results. A major cost in 
previous decennial censuses was the high number of follow-up, in-person 
attempts to collect information from housing units that did not return 
a completed census form. The Bureau intends to conduct research and 
testing for the next decennial census using administrative data from 
federal agencies, state agencies, and commercial vendors to determine 
whether the number of non-response follow-up visits can be reduced 
through the strategic reuse of this data. Specifically, the

[[Page 41133]]

Bureau aims to achieve the following research initiatives: (1) 
Validating and enhancing the Master Address File; (2) Designing and 
assigning resources to carry out the next decennial census; (3) Un-
duplicating public, private, and census lists; and (4) Imputing missing 
data. All administrative data from the above sources, including return 
information, will be integrated into the Bureau's data system that is 
used for the next decennial census and housing counts and will be done 
in a manner such that the source (for example, commercial vendor, IRS, 
or Social Security Administration) will not be associated with any data 
element in the final decennial person-level census records.
    Thus, the Secretary of Commerce asserted that good cause exists to 
amend Sec.  301.6103(j)(1)-1 of the regulations to add these items to 
the list of items of return information that may be disclosed to the 
Bureau. The Treasury Department and the IRS agree that amending 
existing regulations to permit disclosure of these items to the Bureau 
is appropriate to meet the needs of the Bureau.
    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 of this issue of the 
Federal Register.

Explanation of Provisions

    Section 6103(j)(1)-1T will authorize the disclosure of the 
following additional items of return information from income tax 
returns (Form 1040): (1) Electronic Filing System Indicator; (2) Return 
Processing Indicator; and (3) Paid Preparer Code. Section 6103(j)(1)-1T 
will authorize the disclosure of the following items of return 
information from Form 1098: (1) Payee/Payer/Employee Taxpayer 
Identification Number; (2) Payee/Payer/Employee Name (First, Middle, 
Last, Suffix); (3) Street Address; (4) City; (5) State; (6) ZIP Code (9 
digit); (7) Posting Cycle Week; (8) Posting Cycle Year; and (9) 
Document Code.

Special Analyses

    It has been determined that these temporary regulations are 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 Procedures Act (5 U.S.C. chapter 5) does 
not apply to these regulations and because the regulation does not 
impose a collection of information on small entities, the Regulatory 
Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to 
section 7805(f) of the Code, this regulation has been submitted to the 
Chief Counsel for Advocacy of the Small Business Administration for 
comment on its impact on small business.

Drafting Information

    The principal author of these regulations is Melissa Avrutine, 
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.

Amendments to the Regulations

    Accordingly, 26 CFR part 301 is amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

0
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(j)(1)-1T is added to read as follows:


Sec.  301.6103(j)(1)-1T  Disclosures of return information reflected on 
returns to officers and employees of the Department of Commerce for 
certain statistical purposes and related activities (temporary).

    (a) through (b)(1)(xvii) [Reserved]. For further guidance see Sec.  
301.6103(j)(1)-1(a) through (b)(1)(xvii).
    (xviii) Electronic Filing System Indicator.
    (xix) Return Processing Indicator.
    (xx) Paid Preparer Code.
    (b)(2) through (b)(6)(iii) [Reserved]. For further guidance see 
Sec.  301.6103(j)(1)-1(b)(2) through (b)(6)(iii).
    (b)(7) Officers or employees of the Internal Revenue Service will 
disclose the following return information reflected on Form 1098 
``Mortgage Interest Statement'' to officers and employees of the Bureau 
of the Census for purposes of, but only to the extent necessary in, 
conducting and preparing, as authorized by chapter 5 of title 13, 
United States Code, demographic statistics programs, censuses, and 
surveys--
    (i) Payee/Payer/Employee Taxpayer Identification Number;
    (ii) Payee/Payer/Employee Name (First, Middle, Last, Suffix);
    (iii) Street Address;
    (iv) City;
    (v) State;
    (vi) ZIP Code (9 digit);
    (vii) Posting Cycle Week;
    (viii) Posting Cycle Year; and
    (ix) Document Code.
    (c) through (d)(3)(ii) [Reserved]. For further guidance see Sec.  
301.6103(j)(1)-1(c) through (d)(3)(ii).
    (e) Effective/applicability date. This section applies to 
disclosures to the Bureau of the Census made on or after July 15, 2014.
    (f) Expiration date. The applicability of this section expires on 
or before July 14, 2017.

John Dalrymple,
Deputy Commissioner for Services and Enforcement.
    Approved: June 9, 2014.
 Mark J. Mazur,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 2014-16599 Filed 7-14-14; 8:45 am]
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