Regs Provide Guidance to IRS Personel Responsible for Disclosing the Information to the Bureau of the Census

 [4630-01]

 ACTION: Final regulations.

 SUMMARY: This document contains final regulations that amend the regulations on Procedure and Administration. The final regulations authorize the disclosure of three additional items of return information to the Bureau of the Census for use in certain statistical programs and delete the authority to disclose those items of return information that the Bureau no longer needs. These regulations provide guidance to Internal Revenue Service personnel responsible for disclosing the information.

 EFFECTIVE DATE: These regulations are effective March 28, 1990.

 FOR FURTHER INFORMATION CONTACT: Paul Winkler, 202-566-4430 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

BACKGROUND

This document adopts without change the proposed amendments to the regulations on Procedure and Administration (26 CFR Part 301) under section 6103(j)(1) of the Internal Revenue Code of 1986 that were published in 53 FR 50243 (December 14, 1988).

 Before adopting the final regulations, the Internal Revenue Service solicited comments and requests for a public hearing on the proposed amendments. No comments or requests for a public hearing were received.

 Under section 6103(j)(1), upon written request from the Secretary of Commerce, the Secretary of the Treasury or his delegate is to furnish such tax return information as may be prescribed by Treasury regulations to the Bureau of the Census for statutorily authorized 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, the disclosure regulations are amended to reflect the changing statistical needs of the Bureau of the Census for tax information, and these final regulations are an update of those regulations.

EXPLANATION OF PROVISIONS

 The request by the Secretary of Commerce for amendment of the regulations indicates that the Bureau of the Census needs the following three new data items from returns of individual taxpayers for use in its statutorily authorized postcensal population and per capita income estimates programs: (1) the type of tax return filed (i.e., Form 1040, Form 1040A, etc.); (2) whether the taxpayer itemized deductions for federal income tax purposes; and (3) whether the taxpayer received Social Security benefits. The Bureau needs this information to help it determine whether a taxpayer is over 65 years of age.

 These regulations amend section 301.6103(j)(1)-1 of the present regulations to add three items to the list of return information authorized to be disclosed and deletes two items of return information that the Bureau of the Census no longer needs.

SPECIAL ANALYSES

 It has been determined that these rules are not major rules as defined in Executive Order 12291. Therefore, a Regulatory Impact Analysis is not required. It has also been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. Chapter 5) and the Regulatory Flexibility Act (5 U.S.C. Chapter 6) do not apply to these regulations, and, therefore, a final Regulatory Flexibility Analysis is not required. Pursuant to section 7805(f) of the Internal Revenue Code, the notice of proposed rulemaking for the regulations was submitted to the Administrator of the Small Business Administration for comment on their impact on small business.

DRAFTING INFORMATION

 The principal author of these regulations is Paul Winkler, Office of the Assistant Chief Counsel (Income Tax & Accounting), Internal Revenue Service. However, personnel from other offices of the IRS and Treasury Department participated in their development.

LIST OF SUBJECTS IN 26 CFR PART 301

 Administrative practice and procedure, Bankruptcy, Courts, Crime, Employment taxes, Estate taxes, Excise taxes, Gift, Income taxes, Investigations, Law enforcement, Penalties, Pensions, Statistics, Taxes, Disclosure of information, Filing requirements.

Treasury Decision 8296

ADOPTION OF AMENDMENTS

Accordingly, Title 26, Part 301 of the Code of Federal Regulations is amended as follows:

PART 301 - [AMENDED]

Paragraph 1. The authority for Part 301 continues to read in part:

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

Section 301.6103(j)(1)-1 also issued under 26 U.S.C. 6103(j).

Par. 2. In 301.6103(j)(1)-1, paragraphs (b)(1)(i) through (xiv) are revised and paragraph (b)(1)(xv) is added to read as follows:

SECTION 301.6103(j)(1)-1 DISCLOSURES OF RETURN INFORMATION TO OFFICERS AND EMPLOYEES OF THE DEPARTMENT OF COMMERCE FOR CERTAIN STATISTICAL PURPOSES AND RELATED ACTIVITIES.

* * * * *

(b) DISCLOSURE OF RETURN INFORMATION TO OFFICERS AND EMPLOYEES OF THE BUREAU OF THE CENSUS.

(1) * * *

(i) Taxpayer identity information (as defined in section 6103(b)(6) of the Code), validity code with respect to the taxpayer identifying number (as described in section 6109), and taxpayer identifying number of spouse, if reported;

(ii) District office and service center codes;

(iii) Marital status;

(iv) Numbers and classifications of report exemptions;

(v) Adjusted gross income;

(vi) Wage and salary income;

(vii) Dividend income;

(viii) Interest income;

(ix) Gross rent and royalty income;

(x) Type of tax return filed;

(xi) Residence information from the revenue sharing question;

(xii) Code indicators for Form 1040; Schedules C, D, E, F, and SE;

(xiii) Julian date relative to filing;

(xiv) Whether deductions were itemized; and

(xv) Social Security benefits.

* * * * *