IRS Adoption Taxpayer Identification Numbers

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG-103330-97]

RIN 1545-AV08

IRS Adoption Taxpayer Identification Numbers

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary

regulations and notice of public hearing.

-----------------------------------------------------------------------

SUMMARY: In the Rules and Regulations section of this issue of the

Federal Register, the IRS is issuing temporary regulations under

section 6109 relating to taxpayer identifying numbers. The temporary

regulations provide rules for obtaining and using IRS adoption taxpayer

identification numbers. The temporary regulations assist individuals

who are in the process of adopting children and wish to claim certain

tax benefits with respect to these children. The text of those

temporary regulations also serves as the text of these proposed

[[Page 62539]]

regulations. This document also provides notice of a public hearing on

these proposed regulations.

DATES: Written comments must be received by February 23, 1998. Requests

to speak and outlines of topics to be discussed at the public hearing

scheduled for March 4, 1998, at 10:00 a.m., must be received by

February 11, 1998.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (REG-103330-97), room

5228, Internal Revenue Service, POB 7604, Ben Franklin Station,

Washington, DC 20044. Submissions may be hand delivered between the

hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (REG-103330-97), Courier's

Desk, Internal Revenue Service, 1111 Constitution Avenue NW,

Washington, DC.

Taxpayers may also submit comments electronically via the internet

by selecting the ``Tax Regs'' option on the IRS Home Page, or by

submitting comments directly to the IRS internet site at http://

www.irs.ustreas.gov/prod/tax2/3regs/comments.html. The public hearing

will be held in Room 2615, Internal Revenue Building, 1111 Constitution

Avenue, N.W., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,

Michael L. Gompertz, (202) 622-4910; concerning submissions and the

hearing, Michael Slaughter, (202) 622-7190 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

The collection of information contained in this notice of proposed

rulemaking has been submitted to the Office of Management and Budget

for review in accordance with the Paperwork Reduction Act of 1995 (44

U.S.C. 3507(d)). Comments on the collection of information should be

sent to the Office of Management and Budget, Attn: Desk Officer for the

Department of the Treasury, Office of Information and Regulatory

Affairs, Washington, DC 20503, with copies to the Internal Revenue

Service, Attn: IRS Reports Clearance Officer, T:FP, Washington, DC

20224. Comments on the collection of information should be received by

February 23, 1998. Comments are specifically requested concerning:

Whether the proposed collection of information is necessary for the

proper performance of the functions of the Internal Revenue Service,

whether the collection will have a practical utility;

The accuracy of the estimated burden associated with the proposed

collection of information (see below);

How the quality, utility, and clarity of the information to be

collected may be enhanced;

How the burden of complying with the proposed collection of

information may be minimized, including through the application of

automated collection techniques or other forms of information

technology; and

Estimates of capital or start-up costs and costs of operation,

maintenance, and purchase of services to provide information.

The collection of information in this proposed regulation is in

Sec. 301.6109-3T(c). This information is required by the IRS to assign

IRS adoption taxpayer identification numbers (ATINs) to children who

are in the process of being adopted. Unless an ATIN is assigned to a

prospective adoptive child, the prospective adoptive parent cannot

claim a dependency exemption for the child under section 151, a

dependent care credit for the child under section 21, or, for taxable

years beginning after December 31, 1997, a child tax credit under

section 24. The collection of information in Sec. 301.6109-3T is thus

required to obtain a benefit. The likely respondents are individuals.

The collection of information in Sec. 301.6109-3T is satisfied by

including the required information on Form W-7A or other form as may be

prescribed by the IRS to apply for an ATIN. The burden for this

requirement is reflected in the burden estimate for Form W-7A.

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 or records relating to a 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

tax return information are confidential, as required by 26 U.S.C. 6103.

Background

Temporary regulations in the Rules and Regulations section of this

issue of the Federal Register amend the Regulations on Procedure and

Administration (26 CFR part 301) relating to section 6109. The text of

those temporary regulations also serves as the text of these proposed

regulations. The preamble to the temporary regulations explains the

regulations.

Special Analyses

It has been determined that this notice of proposed rulemaking is

not a significant regulatory action as defined in EO 12866. 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 these regulations, and because the

regulations do 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 Internal Revenue Code, this

notice of proposed rulemaking will be submitted to the Chief Counsel

for Advocacy of the Small Business Administration for comment on its

impact on small business.

Comments and Public Hearing

Before these proposed regulations are adopted as final regulations,

consideration will be given to any written comments (a signed original

and eight (8) copies) that are submitted timely to the IRS. All

comments will be available for public inspection and copying.

A public hearing has been scheduled for Wednesday, March 4, 1998,

at 10:00 a.m. in Room 2615. Because of access restrictions, visitors

will not be admitted beyond the building lobby more than 15 minutes

before the hearing starts.

The rules of 26 CFR 601.601(a)(3) apply to the hearing.

Persons that wish to present oral comments at the hearing must

submit written comments by February 23, 1998 and submit requests to

speak and an outline of the topics to be discussed and the time to be

devoted to each topic (signed original and eight (8) copies) by

February 11, 1998.

A period of 10 minutes will be allotted to each person for making

comments.

An agenda showing the scheduling of the speakers will be prepared

after the deadline for receiving outlines has passed. Copies of the

agenda will be available free of charge at the hearing.

Drafting Information

The principal author of these regulations is Michael L. Gompertz,

Office of Assistant Chief Counsel (Income Tax and Accounting). However,

other personnel from the IRS and Treasury Department participated in

their development.

List of Subjects in 26 CFR Part 301

Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income

taxes,

[[Page 62540]]

Penalties, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

Accordingly, 26 CFR part 301 is proposed to be amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

Paragraph 1. The authority citation for part 301 is amended by

adding entries in numerical order to read as follows:

Authority: 26 U.S.C. 7805 * * *

Section 301.6109-1 also issued under 26 U.S.C. 6109;

Section 301.6109-3 also issued under 26 U.S.C. 6109; * * *

Par. 2. Section 301.6109-1 is amended by revising paragraphs

(a)(1)(i), (a)(1)(ii) introductory text, (a)(1)(ii)(A), and

(a)(1)(ii)(B) to read as follows:

Sec. 301.6109-1 Identifying numbers.

(a) * * * (1) Taxpayer identifying numbers--(i) [The text of

proposed paragraph (a)(1)(i) is the same as the text of Sec. 301.6109-

1T(a)(1)(i) published elsewhere in this issue of the Federal Register].

(ii) [The text of proposed paragraph (a)(1)(ii) introductory text

is the same as the text of Sec. 301.6109-1T(a)(1)(ii) introductory text

published elsewhere in this issue of the Federal Register].

(A) and (B) [The text of proposed paragraphs (a)(1)(ii)(A) and (B)

are the same as the text of Sec. 301.6109-1T(a)(1)(ii)(A) and (B)

published elsewhere in this issue of the Federal Register].

* * * * *

Par. 3. Section 301.6109-3 is added to read as follows:

Sec. 301.6109-3 IRS adoption taxpayer identification numbers.

[The text of this proposed section is the same as the text of

Sec. 301.6109-3T published elsewhere in this issue of the Federal

Register].

Michael P. Dolan,

Acting Commissioner of Internal Revenue.

[FR Doc. 97-30549 Filed 11-21-97; 8:45 am]

BILLING CODE 4830-01-P