Disclosure of Return Information to the Bureau of the Census

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG-121806-97]

RIN 1545-AV84

Disclosure of Return Information to the Bureau of the Census

AGENCY: Internal Revenue Service (IRS), Treasury.

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

regulations.

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

Register, the IRS is issuing temporary regulations relating to

additions to, and deletions from, the list of items of information

disclosed to the Bureau of the Census for use in certain statistical

programs. The text of those temporary regulations also serves as the

text of these proposed regulations.

DATES: Written and electronic comments and requests for a public

hearing must be received by February 24, 1999.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (REG-121806-97), room

5226, Internal Revenue Service, POB 7604, Ben Franklin Station,

Washington, DC 20044. Submissions may be hand delivered Monday through

Friday between the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (REG-

121806-97), Courier's Desk, Internal Revenue Service, 1111 Constitution

Avenue, NW., Washington, DC. Alternatively, taxpayers may 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/tax_regs/

comments.html.

FOR FURTHER INFORMATION CONTACT: Jamie Bernstein, (202) 622-4570 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Background

Under section 6103(j)(1) of the Internal Revenue Code, upon written

request from the Secretary of Commerce, the Secretary is to furnish to

the Bureau of the Census (''Bureau'') tax return information that is

prescribed by Treasury regulations for the purpose of structuring

censuses and national economic accounts and conducting related

statistical activities. Section 301.6103(j)(1)-1 of the regulations

provides an itemized description of the return information authorized

to be disclosed for this purpose. Periodically,

[[Page 3670]]

the disclosure regulations are amended to reflect the changing needs of

the Bureau for data for its statutorily authorized statistical

activities.

This document contains proposed amendments to the regulations

authorizing Internal Revenue Service personnel to disclose additional

items of return information that have been requested by the Secretary

of Commerce, and to delete certain items of return information that are

enumerated in the regulations but that the Secretary of Commerce has

indicated are no longer needed.

The text of the 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 Requests for a Public Hearing

Before these proposed regulations are adopted as final regulations,

consideration will be given to any electronic and written comments (a

signed original and eight (8) copies) that are submitted timely to the

IRS. The IRS and Treasury Department specifically request comments on

the clarity of the proposed regulation and how they can be made easier

to understand. All comments will be available for public inspection and

copying. A public hearing may be scheduled if requested in writing by a

person that timely submits comments. If a public hearing is scheduled,

notice of the date, time, and place for the hearing will be published

in the Federal Register.

Drafting Information: The principal author of these regulations is

Douglas Giblen, Office of the Associate Chief Counsel

(International)(formerly of the Office of Assistant Chief Counsel

(Disclosure Litigation)). 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, 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 an entry in numerical order to read as follows:

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

Section 301.6103(j)(1)-1 also issued under 26 U.S.C.

6103(j)(1);* * *

Par. 2. Section 301.6103(j)(1)-1 is amended by:

1. Revising paragraphs (b)(3) and (b)(6)(i)(A).

2. Adding paragraph (b)(6)(iii).

The revisions and addition read as follows:

Sec. 301.6103(j)(1)-1 Disclosure of return information to officers and

employees of the Department of Commerce for certain statistical

purposes and related activities.

* * * * *

(b) * * *

(3) [The text of this proposed paragraph (b)(3) is the same as the

text of Sec. 301.6103(j)(1)-1T (b)(3) published elsewhere in this issue

of the Federal Register].

* * * * *

(6)(i) * * *

(A) [The text of this proposed paragraph (b)(6)(i)(A) is the same

as the text of Sec. 301.6103(j)(1)-T(b)(6)(i)(A) published elsewhere in

this issue of the Federal Register].

* * * * *

(iii) [The text of this proposed paragraph (b)(6)(iii) is the same

as the text of Sec. 301.6103(j)(1)-1T(b)(6)(iii) published elsewhere in

this issue of the Federal Register].

* * * * *

Robert E. Wenzel,

Deputy Commissioner of the Internal Revenue.

[FR Doc. 99-1285 Filed 1-22-99; 8:45 am]

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