[Federal Register Volume 76, Number 53 (Friday, March 18, 2011)]
[Proposed Rules]
[Pages 14827-14829]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-6449]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG-153338-09]
RIN 1545-BJ19


Disclosure of Returns and Return Information to Designee of 
Taxpayer

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking and notice of public hearing.

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SUMMARY: This document contains a proposed regulation pertaining to the 
period for submission to the IRS of taxpayer authorizations permitting 
disclosure of returns and return information to third-party designees. 
Specifically, the proposed regulation extends 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) in order for 
it to be effective. The proposed regulation extends the period as some 
institutions charged with assisting taxpayers in their financial 
dealings have encountered difficulty in obtaining written 
authorizations and submitting the authorizations within the 60-day 
period allowed by the existing regulations. The proposed regulation 
will affect taxpayers who submit authorizations permitting disclosure 
of returns and return information to third-party designees. This 
document also provides notice of a public hearing on the proposed 
regulation.

DATES: Written or electronic comments must be received by May 17, 2011. 
Outlines of topics to be discussed at the public hearing scheduled for 
Thursday, June 9, 2011 at 10 a.m. must be received by Wednesday, May 
18, 2011.

ADDRESSES: Send submissions to CC:PA:LPD:PR (REG-153338-09), room 5205, 
Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand delivered Monday through 
Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-
153338-09), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue, NW., Washington, DC, or sent electronically via the Federal 
eRulemaking Portal at www.regulations.gov (IRS REG-153338-09). The 
public hearing will be held in Auditorium, Internal Revenue Service, 
1111 Constitution Avenue, NW., Washington, DC.

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulation, 
contact Amy Mielke, (202) 622-4570; concerning submissions of comments, 
the hearing, or to be placed on the building access list to attend the 
hearing, Oluwafunmilayo Taylor, (202) 622-7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

    The collection of information contained in this proposed regulation 
has been previously 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.
    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 
tax return information are confidential, as required by section 6103.

Background

    This document contains proposed amendments to the Procedure and 
Administration Regulations (26 CFR part 301). Section 6103(c) of the 
Internal Revenue Code (Code) authorizes the IRS (or an agent or 
contractor of the IRS) to disclose returns and return information to 
such person or persons as the taxpayer may designate in a request for 
or consent to disclosure. The proposed regulation 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. Specifically, the proposed 
regulation extends 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) in order for it to be effective.
    On December 18, 2009, the IRS published Notice 2010-8, 2010-3 IRB 
297, which announced an intention to amend the regulation under Sec.  
301.6103(c)-1 to expand the time frame for submission of section 
6103(c) authorizations. The notice additionally announced interim rules 
extending from 60 days to 120 days the period within which section 
6103(c) authorizations must be received in order to be effective. The 
interim rules apply to authorizations signed and dated on or after 
October 19, 2009. Per Notice 2010-

[[Page 14828]]

8, the interim rules remain in effect until promulgation of a final 
regulation under section 6103(c). See Sec.  601.601(d)(2)(ii)(d).

Explanation of Provisions

    The IRS recognizes the importance of limiting the effective period 
of authorizations provided pursuant to section 6103(c). Reasonable 
limitation on the effective period of written authorizations helps 
ensure the currency of the authorization and protects taxpayer privacy. 
The 60-day period allowed by the existing regulation, however, has 
proven problematic. Some institutions charged with assisting taxpayers 
in their financial dealings have encountered difficulty in obtaining 
written authorizations and submitting the authorizations to the IRS 
within the 60 days allowed by the existing regulation. To reduce the 
burden on taxpayers and the institutions and professionals assisting 
them, the IRS proposes amending the regulation under section 6103(c) to 
extend from 60 days to 120 days the period within which taxpayer-
provided authorizations must be received by the IRS (or an agent or 
contractor of the IRS) in order to be effective.

Proposed Effective Date

    This regulation, as proposed, will be effective upon publication in 
the Federal Register of a Treasury decision adopting this rule as a 
final regulation. The regulation, once effective, will apply to section 
6103(c) authorizations signed on or after October 19, 2009.

Effect on Other Documents

    Notice 2010-8, 2010-3 IRB 297, will be obsolete upon publication in 
the Federal Register of a Treasury decision adopting this rule as a 
final regulation.

Special Analyses

    It has been determined that this proposed regulation is not a 
significant regulatory action as defined in Executive Order 12866. 
Therefore, a regulatory assessment is not required. It has also 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 Code, this notice of proposed rulemaking has 
been submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on its impact on small businesses.
    When an agency issues a rulemaking proposal, the Regulatory 
Flexibility Act (5 U.S.C. chapter 6), requires the agency to ``prepare 
and make available for public comment an initial regulatory flexibility 
analysis'' that will ``describe the impact of the proposed rule on 
small entities.'' (5 U.S.C. 603(a)). Section 605 of the RFA provides an 
exception to this requirement if the agency certifies that the proposed 
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 only applies to taxpayers which request or consent to the 
disclosure of 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, it 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.

Comments and Public Hearing

    Before this proposed regulation is adopted as a final regulation, 
consideration will be given to any written comments (a signed original 
and eight (8) copies) and electronic comments that are timely submitted 
to the IRS. The IRS and the Treasury Department request comments on the 
clarity of the proposed rules and how they can be made easier to 
understand. All comments will be available for public inspection and 
copying.
    The public hearing is scheduled for Thursday, June 9, 2011 at 10 
a.m., and will be held in Auditorium, Internal Revenue Service, 1111 
Constitution Avenue, NW., Washington, DC. Due to building security 
procedures, visitors must enter at the Constitution Avenue entrance. 
All visitors must present photo identification to enter the building. 
Because of access restrictions, visitors will not be admitted beyond 
the immediate entrance area more than 30 minutes before the hearing 
starts. For information about having your name placed on the building 
access list to attend the hearing, see the section of this preamble 
titled FOR FURTHER INFORMATION CONTACT.
    The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who 
wish to present oral comments at the hearing must submit electronic or 
written comments 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 Wednesday, May 18, 2011. A period of 10 minutes will be allotted to 
each person for the making of 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 this proposed regulation is Amy Mielke, 
Office of the Associate Chief Counsel (Procedure and Administration).

List of Subjects in 26 CFR Part 301

    Administrative practice and procedure, Alimony, Bankruptcy, Child 
support, Continental shelf, Courts, Crime, Employment taxes, Estate 
taxes, Excise taxes, Gift taxes, Income taxes, Investigations, Law 
enforcement, Oil pollution, Penalties, Pensions, Reporting and 
recordkeeping requirements, Seals and insignia, Statistics, Taxes.

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 continues to read 
as follows:

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

    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 to section 
6103(c)

[[Page 14829]]

authorizations signed on or after October 19, 2009.
    (g) Effective date. This section is effective on the date that the 
final regulations are published in the Federal Register.

Steven T. Miller,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 2011-6449 Filed 3-17-11; 8:45 am]
BILLING CODE 4830-01-P