93172 Federal Register / Vol. 89, No. 228 / Tuesday, November 26, 2024 / Rules and Regulations 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 301 

[TD 10013] 

RIN 1545–BQ74 

Disclosures of Return Information 

Reflected on Returns to Officers and 

Employees of the Department of 

Commerce, Including the Bureau of the 

Census, for Certain Statistical 

Purposes and Related Activities 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations. 

SUMMARY: This document contains final 

regulations that amend existing 

regulations relating to the disclosure of 

specified return information to the 

Bureau of the Census (Bureau). The final 

regulations ensure the efficient and 

appropriate transfer of return 

information to the Bureau and permit 

the disclosure of additional return 

information pursuant to a request from 

the Secretary of Commerce. These 

regulations require no action by 

taxpayers and have no effect on their tax 

liabilities. 

DATES: 

Effective date: These final regulations 

are effective on November 26, 2024. 

Applicability date: For the date of 

applicability, see § 301.6103(j)(1)–1. 

FOR FURTHER INFORMATION CONTACT: 

Elizabeth Erickson of the Office of the 

Associate Chief Counsel (Procedure and 

Administration), at (202) 317–6834; (not 

a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Authority 

This document amends the Procedure 

and Administration Regulations, 26 CFR 

part 301, relating to section 6103(j)(1)(A) 

of the Internal Revenue Code (Code), by 

adding final regulations under section 

6103 (final regulations). Section 

6103(j)(1) provides an express 

delegation of authority to the Secretary 

of the Treasury or her delegate 

(Secretary), stating that, ‘‘[u]pon request 

in writing by the Secretary of 

Commerce, the Secretary shall furnish 

. . . such returns, or return information 

reflected thereon, to officers and 

employees of the Bureau of the Census’’ 

and ‘‘such return information reflected 

on returns of corporations to officers 

and employees of the Bureau of 

Economic Analysis’’ ‘‘as the Secretary 

may prescribe by regulation for the 

purpose of, but only to the extent 

necessary in, the structuring of censuses 

and national economic accounts and 

conducting related statistical activities 

authorized by law.’’ Section 6103(q) 

further authorizes the Secretary to 

‘‘prescribe such other regulations as are 

necessary to carry out the provisions of’’ 

section 6103. The final regulations are 

also issued under the express delegation 

of authority under section 7805(a) of the 

Code. 

Background 

There is a long history of providing 

return information to the Bureau under 

section 6103(j)(1)(A), and the 

regulations promulgated under this 

section have been amended periodically 

to increase the amount of return 

information provided to facilitate the 

statistical activities of the Bureau. See 

e.g., TD 9037, 68 FR 2693, January 21, 

2003; TD 9188, 70 FR 12141, March 11, 

2005; TD 9267, 71 FR 38263, July 6, 

2006; TD 9372, 72 FR 73262, December 

27, 2007; TD 9439, 73 FR 79361, 

December 29, 2008; TD 9500, 75 FR 

52459, August 26, 2010; TD 9631, 78 FR 

52857, August 27, 2013; TD 9754, 81 FR 

9767, February 26, 2016; TD 9856, 84 

FR 14011, April 9, 2019. 

The existing regulations under section 

6103(j)(1)(A) are set forth in 26 CFR 

301.6103(j)(1)–1. They authorize the 

Bureau to receive return information 

that supports many different Bureau 

projects and programs, including the 

Economic Census, the Longitudinal 

Employer-Household Dynamics 

program, and the Small Area Income 

and Poverty Estimates program, among 

others. 

Pursuant to section 6103(p)(4), the 

IRS sets stringent privacy and security 

requirements for agencies receiving 

return information, including the 

Bureau. These requirements are 

currently detailed in IRS Publication 

1075, Tax Information Security 

Guidelines For Federal, State and Local 

Agencies. See also § 301.6103(p)(4)–1. 

By letter dated February 29, 2024, the 

Secretary of Commerce requested the 

Secretary amend existing 

§ 301.6103(j)(1)–1 to provide for the 

disclosure of additional items of return 

information to the Bureau to enable the 

Bureau to perform mission critical 

statistical functions. The Secretary of 

Commerce further stated that the 

additional items would allow the 

Bureau to conduct its economic, 

demographic, decennial, and research 

statistics programs, censuses, and 

related program evaluations. The 

amendments to the existing regulations 

would permit the Bureau to publish 

statistical information, enhance the use 

of administrative records, improve the 

quality of program estimates, and 

support the reduction of burden. The 

Secretary of Commerce’s letter lists the 

additional items of return information 

requested based on the Bureau’s specific 

need for each item of information. 

On March 29, 2024, a notice of 

proposed rulemaking (REG–123376–22) 

was published in the Federal Register 

(89 FR 22101) (proposed regulations). 

The proposed regulations proposed 

amending the regulations that authorize 

disclosure of specified return 

information to the Bureau. The 

proposed regulations would allow the 

disclosure of additional items of return 

information requested by the Secretary 

of Commerce to enable the Bureau to 

perform mission critical statistical 

functions. The proposed regulations 

would also permit the disclosure of 

return information if an item of return 

information currently listed in the 

regulations is subsequently reported in 

a substantially similar format or on a 

substantially similar document. 

The proposed regulations would 

formalize existing practice to include (1) 

the requirement that all projects that use 

return information disclosed under 

these regulations be approved by the 

IRS Director of Statistics of Income, and 

(2) language related to the IRS’s and the 

Bureau’s disclosure review obligations. 

Summary of Comments and 

Explanation of Revisions 

The Department of the Treasury 

(Treasury Department) and the IRS 

received eighteen comments in response 

to the proposed regulations. The 

comments are available for public 

inspection at https://

www.regulations.gov or upon request. 

There was no request for a public 

hearing, and none was held. After full 

consideration of the comments received, 

which are described in this Summary of 

Comments and Explanation of 

Revisions, these final regulations adopt 

the proposed regulations with minor 

changes. 

A. Comments Supporting the Proposed 

Regulations 

Nine of the comments received did 

not seek to modify the items of return 

information permitted to be disclosed to 

the Bureau pursuant to the proposed 

regulations. Of these comments, six 

were supportive of the proposed 

regulations. One comment noted the 

importance of administrative tax data in 

measuring and understanding income 

and wealth in the United States. 

Another comment noted that the 

proposed regulations would improve 

the Bureau’s ability to accurately 

estimate household income and 

otherwise evaluate and improve the 


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Bureau’s statistical products. This same 

comment also encouraged the IRS and 

the Bureau, along with the Office of 

Management and Budget and other 

statistical agencies, to explore 

additional pathways for increasing the 

statistical agencies’ access to Federal tax 

data, as well as a greater sharing of 

administrative data across statistical 

agencies, noting that increased use of 

administrative data has significant 

promise for improving statistics on U.S. 

households and businesses. Finally, this 

comment noted its support for further 

consideration of possible means of 

expanding access to tax data for 

appropriate purposes in a reliably 

secure and confidential way. 

Another comment supported the 

proposed regulations and stated that the 

data that could be disclosed as outlined 

in the proposed regulations was crucial 

for the IRS’s efforts to advance equity. 

As one example, this comment noted 

that, if finalized, the proposed 

regulations would provide an important 

opportunity for government and 

independent researchers to understand 

demographic trends regarding the Child 

Tax Credit (CTC) and other refundable 

credits, as well as to identify and track 

potential disparities in tax 

administration. Another comment noted 

that the proposed changes to the 

existing regulations would enable the 

Bureau to produce data that provides 

more detail about the economic 

conditions of various populations across 

the United States, including populations 

that have been historically underserved, 

marginalized, and adversely affected by 

health inequity. 

These comments reflect support for 

the proposed regulations’ items of 

return information permitted to be 

disclosed to the Bureau. The Treasury 

Department and IRS agree that 

disclosure of this information will 

further the needs of the Bureau by 

authorizing the Bureau to receive return 

information that supports many 

different Bureau projects and programs, 

including the Economic Census, the 

Longitudinal Employer-Household 

Dynamics program, and the Small Area 

Income and Poverty Estimates program, 

among others. 

B. Comments Proposing That Additional 

Items of Return Information Be 

Disclosed to the Bureau 

Two comments suggested that 

additional information on the variety of 

energy credits under the Inflation 

Reduction Act of 2022 (IRA) be 

furnished to the Bureau. The IRA, 

Public Law 117–169, 136 Stat. 1818 

(August 16, 2022), featured a significant 

number of new tax provisions related to 

clean energy. Section 6103(j)(1)(A) 

provides that the Secretary ‘‘shall 

furnish’’ returns or return information 

requested by the Secretary of Commerce 

‘‘for the purpose of, but only to the 

extent necessary in, the structuring of 

the censuses and national economic 

accounts and conducting related 

statistical activities authorized by law.’’ 

In her request to the Secretary, the 

Secretary of Commerce did not request 

the furnishing of the return information 

recommended by the comments. 

Because the Secretary of Commerce did 

not request that information, the final 

regulations do not adopt these 

comments. 

Similarly, two other comments 

recommended that additional data 

regarding partnership returns be 

furnished to the Bureau—specifically, 

the zip code of partners included on 

Form 1065, U.S. Return of Partnership 

Income, Schedule K–1. The Secretary of 

Commerce in her request to the 

Secretary did not request the return 

information recommended by the 

comments. Accordingly, the final 

regulations do not adopt these 

comments. 

One comment suggested that it is 

important for the Bureau to have access 

to the series of Forms 1099 for both 

filers and non-filers because such 

information is important for measuring 

and understanding income and its 

distribution, and that the accuracy of 

income estimates would improve. The 

comment in particular identified Forms 

1099–INT, Interest Income, and 1099– 

DIV, Dividends and Distributions, along 

with certain data from Form 1098–T, 

Tuition Statement (identifiers of the 

college attended, and tuition amount). 

The Secretary of Commerce in her 

request to the Secretary did not request 

the disclosure of the Form 1099 series 

in general or the Forms 1099–INT or 

1099–DIV specifically. The proposed 

regulations would permit the disclosure 

of payments received for qualified 

tuition and related expenses as well as 

the identity of the eligible educational 

institution filing Form 1098–T. 

Accordingly, no change to the final 

regulations is necessary to adopt these 

comments. 

Two other comments requested that 

payer and payee taxpayer identification 

numbers (TINs) from information 

returns be disclosed to the Bureau. 

Payer and payee TINs may already be 

disclosed to the Bureau under the 

existing regulations. See 

§§ 301.6103(j)(1)–1(b)(1) (relating to 

individual taxpayers); 301.6103(j)(1)– 

1(b)(2)(i) (relating to taxpayers engaged 

in a trade or business); 301.6103(j)(1)– 

1(b)(3) (relating to business-related 

return information); and 301.6103(j)(1)– 

1(b)(4) (relating to tax-exempt 

organizations). The proposed 

regulations similarly provide for the 

ability to disclose payer and payee TINs. 

See proposed §§ 301.6103(j)(1)– 

1(b)(1)(i)(A) (relating to individual 

taxpayers); 301.6103(j)(1)–1(b)(1)(ii) 

(relating to returns filed on behalf of a 

trade or business); 301.6103(j)(1)– 

1(b)(1)(iii) (relating to tax-exempt 

organizations). Accordingly, no change 

to the final regulations is necessary to 

adopt these comments. 

A comment supported the language in 

the proposed regulations that would 

provide the Bureau with information on 

health coverage (such as marketplace 

coverage parameters, and employer 

coverage on Forms 1095–A, Health 

Insurance Marketplace Statement, 

1095–B, Health Coverage, and 1095–C, 

Employer-Provided Health Insurance 

Offer and Coverage) noting that the 

information reported on these forms 

provides a comprehensive record of 

health coverage nationwide and fills 

important gaps in data. The comment 

also noted that information regarding 

health savings accounts (HSAs) from 

Form 5498–SA, HSA, Archer MSA, or 

Medicare Advantage MSA Information, 

would also be valuable to policymakers, 

as the policy considerations with 

respect to HSAs are a frequent and 

important focus of ongoing research. 

The Treasury Department and the IRS 

note that certain data from Form 5498– 

SA are already included in the 

information that would be permitted to 

be disclosed to the Bureau under the 

proposed regulations. The final 

regulations in this regard adopt the 

proposed regulations without 

modification. 

This same comment requested that 

the Bureau release (a) enhanced Annual 

Social and Economic Supplement 

(ASEC) of the Current Population 

Survey (CPS) data with new IRS data 

matched to it, and (b) detailed cross 

tabulations of newly released tax data 

by income, geographic area, filing type, 

and other available tax return statistics. 

In addition, this comment also 

encouraged the IRS to continue to 

carefully evaluate technical and policy 

solutions for safely sharing the various 

blended data and implement data 

governance principles such as 

accessibility and transparency, through 

the blending of IRS and Bureau data. 

This same comment suggested that 

various data elements should be 

disclosed to the Bureau to allow the 

Bureau to have a more accurate 

understanding of the impact of current 

tax benefits and the potential impact of 

modifications to these provisions. The 


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suggested data elements included: taxfiling status, income from various 

sources, the number of earned income 

tax credit (EITC) eligible qualifying 

children, the amount of tax credits like 

EITC and the CTC that families receive, 

and tax liabilities. Each of these data 

elements may be disclosed either 

directly or indirectly under the existing 

regulations and also under the proposed 

regulations. See proposed 

§§ 301.6103(j)(1)–1(b)(1)(i) (reflecting 

returns and return information related 

to individual taxpayers); 301.6103(j)(1)– 

1(b)(1)(i)(B) (regarding tax-filing status); 

301.6103(j)(1)–1(b)(1)(i)(O) (regarding 

earned income as defined under section 

32(c)(2)); 301.6103(j)(1)–1(b)(1)(i)(GG) 

(regarding the EITC); 301.6103(j)(1)– 

1(b)(1)(i)(P) (regarding EITC-eligible 

qualifying children); 301.6103(j)(1)– 

1(b)(1)(i)(PP) (regarding the CTC). The 

overall tax liability of an individual 

taxpayer, which the Treasury 

Department and IRS interpret to mean 

the total amount of tax due or paid by 

an individual taxpayer, may be 

ascertained through the items of 

income, gain, deduction, and credit, that 

may similarly be disclosed under the 

proposed and final regulations. 

Accordingly, the final regulations adopt 

the proposed regulations in this respect 

without modification. 

C. Comments Expressing Concerns 

Regarding Data Security 

One comment suggested that in its 

finalized form, the proposed regulations 

should state affirmatively that, in 

addition to IRS data privacy protections, 

data are and will remain confidential 

under 13 U.S.C. 9, whether in their 

original form or when comingled or 

linked. 

The final regulations do not adopt this 

recommendation. The provision cited in 

the comment, 13 U.S.C. 9, governs the 

protection and use of confidential data 

by the Department of Commerce. 

Section 214 of title 13, United States 

Code governs criminal penalties against 

employees or staff members of the 

Bureau for prohibited disclosure of such 

confidential data. The disclosures that 

would be permitted by the proposed 

regulations concern disclosures made by 

the IRS under section 6103(j) of Title 26, 

United States Code (Title 26). The 

proposed regulations, as well as these 

final regulations, do not govern data 

privacy or confidentiality requirements 

outside of Title 26. The Secretary of 

Commerce affirmed the application of 

13 U.S.C. 9 and 214 in her February 29, 

2024, request to the Secretary. 

Two other comments expressed 

concerns that the data sharing 

contemplated by the proposed 

regulations would weaken the 

confidentiality of personal tax data held 

by the IRS, encourage the inappropriate 

release of personal tax information, and 

increase the vulnerability of individual 

tax return information to data breaches, 

intrusion, data theft, and abuse. 

The Treasury Department and the IRS 

take taxpayer confidentiality seriously. 

Section 6103(a) prohibits the 

unauthorized disclosure of tax returns 

and return information by officers or 

employees of the United States, which 

includes officers or employees of the 

Treasury Department, the IRS, the 

Department of Commerce, and the 

Bureau. Unauthorized disclosure of 

returns and return information, if 

willful, is a felony. See section 7213 of 

the Code. Unauthorized disclosure may 

also be punishable through civil 

damages. See section 7431 of the Code. 

Pursuant to section 6103(p)(4), the IRS 

sets stringent privacy and security 

requirements for agencies receiving 

return information, including the 

Bureau. See § 301.6103(p)(4)–1. 

Proposed § 301.6103(j)(1)–1(d) did not 

propose to modify the requirements set 

forth in section 6103(p)(4) and, instead, 

noted their applicability, stating that if 

the IRS determines that the Bureau fails 

to satisfy those requirements, the IRS 

may take action to ensure that the 

requirements are satisfied, ‘‘including 

suspension of disclosures of return 

information’’ until the IRS determines 

that the requirements of section 

6103(p)(4) have been, or will be, 

satisfied. 

No comments were received regarding 

proposed § 301.6103(j)(1)–1(d), and 

accordingly, the final regulations adopt 

the proposed regulation in this respect 

without modification. The regulation 

ensures that disclosures of returns and 

return information are made consistent 

with the requirements set forth in the 

Code and regulations, and that the IRS 

may suspend any disclosures to the 

Bureau should either entity fail to 

satisfy the requirements under section 

6103(p)(4). 

D. Comments Expressing Concerns 

About the Impacts of the Use of Data for 

Certain Classes of Taxpayers 

One comment requesting that the 

proposed regulations be withdrawn 

expressed concerns that sharing 

additional tax data with the Bureau 

would result in unintended adverse 

consequences for immigrant 

communities. Specifically, the comment 

noted that additional data sharing could 

result in a ‘‘chilling effect’’ for 

immigrant taxpayers, suggesting that 

individuals may not file tax returns 

because they are concerned that their 

tax return data will be shared with 

immigration enforcement agencies. The 

comment also expressed a concern that 

the proposed regulations could result in 

the creation of a list of taxpayers who 

file returns using Individual Taxpayer 

Identification Numbers that could be 

used to target individuals presumed to 

be undocumented for immigration 

enforcement purposes. The comment 

noted that the IRS should continue to 

assure taxpayers that their data is secure 

and that they can safely file their taxes 

without being concerned that their 

information will be used for reasons 

beyond tax administration. 

As discussed previously in this 

Summary of Comments and Explanation 

of Revisions, return information that a 

taxpayer provides to the IRS may not be 

disclosed unless otherwise permitted by 

Title 26, and unauthorized disclosures 

of returns or return information may be 

subject to criminal and civil penalties. 

There is no provision in the United 

States Code that authorizes the 

disclosure or redisclosure of returns or 

return information for enforcement of 

immigration laws. Comments regarding 

other possible lawful disclosures of 

taxpayer information are outside the 

scope of these regulations because the 

proposed regulations relate to the 

disclosure of specified return 

information to the Bureau, as permitted 

by law, and not to any other agency, 

such as U.S. Immigration and Customs 

Enforcement or the U.S. Department of 

Homeland Security. 

Another comment requested that the 

proposed regulations be withdrawn 

because sharing such personal and 

entity tax data encourages a racial and/ 

or gender diversity impact analysis of 

tax policy decisions. The comment 

further stated that such a racial or 

gender diversity impact analysis is 

inappropriate where no discriminatory 

intent has been demonstrated and where 

tax provisions have been introduced by 

Congress based on independent 

considerations of tax policy without any 

design or purpose to create 

disproportionate racial or gender 

impact. The Treasury Department and 

the IRS do not adopt this comment. As 

previously described in this preamble, 

section 6103(j) states that the Secretary 

‘‘shall furnish’’ returns and return 

information, upon the request of the 

Secretary of Commerce, to the Bureau 

‘‘for the purpose of, but only to the 

extent necessary in, the structuring of 

censuses and national economic 

accounts and conducting related 

statistical activities authorized by law.’’ 

These regulations provide for disclosure 

to the Bureau that is fully consistent 

with that statutory mandate. 


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E. Modification To Clarify ‘‘Taxpayer 

Identity Information’’ 

No comments were received regarding 

the definition of taxpayer identity 

information. Proposed § 301.6103(j)(1)– 

1(b)(1)(i)(A) is the first instance of 

where that term is used and includes 

the parenthetical ‘‘(as defined under 

section 6103(b)(6) of the Code).’’ Other 

references to taxpayer identity 

information in the proposed regulations 

lack that parenthetical descriptor. To 

provide consistency, the final 

regulations modify the proposed 

regulations to include that descriptor. 

See §§ 301.6103(j)(1)–1(b)(1)(ii)(A) 

(regarding taxpayer identity information 

of taxpayers engaged in a trade or 

business); 301.6103(j)(1)–1(b)(1)(ii)(P) 

(regarding taxpayer identity information 

of a parent corporation, shareholder, 

partner, and employer identity 

information); 301.6103(j)(1)– 

1(b)(1)(iii)(A) (regarding taxpayer 

identity information of a tax-exempt 

organization); 301.6103(j)(1)– 

1(b)(3)(i)(A)(1) (regarding taxpayer 

identity information reflected on returns 

of corporations); 301.6103(j)(1)– 

1(b)(3)(i)(B)(2) (regarding taxpayer 

identity information from Form SS–4, 

Application for Employer Identification 

Number). 

Special Analyses 

I. Regulatory Planning and Review 

Pursuant to the Memorandum of 

Agreement, Review of Treasury 

Regulations under Executive Order 

12866 (June 9, 2023), tax regulatory 

actions issued by the IRS are not subject 

to the requirements of section 6 of 

Executive Order 12866, as amended. 

Therefore, a regulatory impact 

assessment is not required. 

II. Regulatory Flexibility Act 

Because these regulations would not 

impose any requirements 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, the notice of 

proposed rulemaking was submitted to 

the Chief Counsel for the Office of 

Advocacy of the Small Business 

Administration for comment on its 

impact on small business. The Chief 

Counsel for the Office of Advocacy of 

the Small Business Administration did 

not provide any written comments. 

III. Unfunded Mandates Reform Act 

Section 202 of the Unfunded 

Mandates Reform Act of 1995 (UMRA) 

requires that agencies assess anticipated 

costs and benefits and take certain other 

actions before issuing a final rule that 

includes any Federal mandate that may 

result in expenditures in any one year 

by a State, local, or Tribal government, 

in the aggregate, or by the private sector, 

of $100 million in 1995 dollars, updated 

annually for inflation. In 2024, that 

threshold was $200 million. This rule 

does not include any Federal mandate 

that may result in expenditures by State, 

local, or Tribal governments, or by the 

private sector in excess of that 

threshold. 

IV. Executive Order 13132: Federalism 

Executive Order 13132 (Federalism) 

prohibits an agency from publishing any 

rule that has federalism implications if 

the rule either imposes substantial 

direct compliance costs on State and 

local governments, and is not required 

by statute, or preempts State law, unless 

the agency meets the consultation and 

funding requirements of section 6 of the 

Executive order. These regulations do 

not have federalism implications and do 

not impose substantial direct 

compliance costs on State and local 

governments or preempt State law 

within the meaning of the Executive 

order. 

V. Congressional Review Act 

Pursuant to the Congressional Review 

Act (5 U.S.C. 801 et seq.), the Office of 

Information and Regulatory Affairs 

designated this rule as not a major rule, 

as defined by 5 U.S.C. 804(2). 

Drafting Information 

The principal author of these 

regulations is Elizabeth Erickson of the 

Office of the Associate Chief Counsel 

(Procedure and Administration). 

However, other personnel from the 

Treasury Department and the IRS also 

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. 

Adoption of Amendments to the 

Regulations 

Accordingly, 26 CFR part 301 is 

amended as follows: 

PART 301—PROCEDURE AND 

ADMINISTRATION 

■ Paragraph 1. The authority citation 

for part 301 is amended by revising the 

entry for § 301.6103(j)(1)–1 and 

removing the entry for § 301.6103(j)(1)– 

1T to read in part as follows: 

Authority: 26 U.S.C. 7805. 

* * * * * 

Section 301.6103(j)(1)–1 also issued under 

26 U.S.C. 6103(j)(1) and 6103(q). 

* * * * * 

■ Par 2. Section 301.6103(j)(1)–1 is 

amended by adding a sentence to the 

end of paragraph (a) and revising 

paragraphs (b), (d), and (e) to read as 

follows: 

§ 301.6103 (j)(1)–1 Disclosures of return 

information reflected on returns to officers 

and employees of the Department of 

Commerce for certain statistical purposes 

and related activities. 

(a) * * * To the extent a particular 

form, schedule, or other document filed 

with the Internal Revenue Service is 

referenced in this section, such 

information shall continue to be 

disclosable pursuant to this section even 

if subsequently reported in a 

substantially similar format or on a 

substantially similar document filed 

with the Internal Revenue Service. 

(b) Disclosure of return information 

reflected on returns to officers and 

employees of the Bureau of the Census. 

(1) Officers or employees of the Internal 

Revenue Service will disclose the 

following return information reflected 

on returns to officers and employees of 

the Bureau of the Census for purposes 

of, but only to the extent necessary in, 

the structuring of censuses and national 

economic accounts and conducting 

related statistical activities authorized 

by law. 

(i) With respect to returns filed by 

individual taxpayers: 

(A) Taxpayer identity information (as 

defined in section 6103(b)(6) of the 

Internal Revenue Code (Code)), validity 

code with respect to the taxpayer 

identifying number (as described in 

section 6109 of the Code), and taxpayer 

identity information of spouse and 

dependents, if reported. 

(B) Filing status. 

(C) Number and classification of 

reported exemptions. 

(D) Wage and salary income. 

(E) Dividend income. 

(F) Interest income. 

(G) Gross rent and royalty income. 

(H) Total of— 

(1) Wages, salaries, tips, etc.; 

(2) Interest income; 

(3) Dividend income; 

(4) Alimony received; 

(5) Business income; 

(6) Pensions and annuities; 

(7) Income from rents, royalties, 

partnerships, estates, trusts, etc.; 

(8) Farm income; 

(9) Unemployment compensation; and 

(10) Total Social Security benefits. 

(I) Adjusted gross income. 

(J) Type of tax return filed. 

(K) Entity code. 


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(L) Code indicators for Form 1040, 

Form 1040 (Schedules A, C, D, E, F, and 

SE), and Form 8814. 

(M) Posting cycle date relative to 

filing. 

(N) Social Security benefits. 

(O) Earned income (as defined in 

section 32(c)(2) of the Code). 

(P) Number of Earned income crediteligible qualifying children. 

(Q) Electronic filing system indicator. 

(R) Return processing indicator. 

(S) Paid preparer code. 

(T) Dependent Social Security 

numbers. 

(U) Total income. 

(V) Ordinary dividends. 

(W) Taxable refunds, credits, or 

offsets of State and local income taxes. 

(X) Business income or (loss). 

(Y) Capital gain or (loss). 

(Z) Other gains or (losses). 

(AA) Individual Retirement 

Arrangement (IRA) distributions. 

(BB) Taxable amount of IRA 

distributions. 

(CC) Pensions and annuities. 

(DD) Taxable amount of pensions and 

annuities. 

(EE) Rental real estate, royalties, 

partnerships, S corporations, trusts, etc. 

(FF) Farm income or (loss). 

(GG) Earned income credit. 

(HH) Taxable amount of Social 

Security benefits. 

(II) Other income. 

(JJ) Itemized deductions. 

(KK) Taxable income. 

(LL) Tax. 

(MM) Credit for child and dependent 

care expenses. 

(NN) Education credits. 

(OO) Retirement savings contributions 

credit. 

(PP) Child tax credit. 

(QQ) Nontaxable combat pay election. 

(RR) Additional Child Tax Credit. 

(SS) American Opportunity Tax 

Credit. 

(TT) Medical and dental expenses. 

(UU) State and local income taxes. 

(VV) State and local general sales 

taxes. 

(WW) State and local personal 

property taxes. 

(XX) State and local real estate taxes. 

(YY) Other taxes (amount). 

(ZZ) Home mortgage interest and 

points. 

(AAA) Mortgage interest not on a 

Form 1098. 

(BBB) Points not on a Form 1098. 

(CCC) Investment interest. 

(DDD) Total gifts to charity, including 

carryover from prior year. 

(EEE) Casualty and theft losses. 

(FFF) Total itemized deductions. 

(GGG) Ordinary dividends. 

(HHH) Qualified dividends. 

(III) Tax-exempt interest. 

(JJJ) Unemployment compensation. 

(KKK) From Form 1098— 

(1) Borrower taxpayer identification 

number; 

(2) Mortgage interest; 

(3) Outstanding mortgage principal; 

(4) Refund of overpaid interest; 

(5) Mortgage insurance premiums; 

(6) Points paid on purchase of 

principal residence; 

(7) Payee/payer/employee taxpayer 

identification number; 

(8) Payee/payer/employee name (first, 

middle, last, suffix); 

(9) Street address; 

(10) City; 

(11) State; 

(12) Zip code (9 digit); 

(13) Posting cycle week; 

(14) Posting cycle year; and 

(15) Document code. 

(LLL) From Form 1098–E—Student 

loan interest. 

(MMM) From Form 1098–T— 

(1) Payments received for qualified 

tuition and related expenses; 

(2) Scholarships or grants; 

(3) Check box indicating that the 

amount in box 1 or 2 includes amounts 

for an academic period beginning in the 

following year; 

(4) Check box indicating that student 

is at least a half-time student; and 

(5) Check box indicating that student 

is a graduate student. 

(NNN) From Form 5498— 

(1) IRA contributions (other than 

amounts in certain boxes); 

(2) Rollover contributions; 

(3) Roth IRA conversion amount; 

(4) Fair market value of account; 

(5) Checkboxes: IRA, Simplified 

Employee Pension (SEP), Savings 

Incentive Match Plan for Employees of 

Small Employers (SIMPLE), Roth IRA; 

(6) SEP contributions; and 

(7) SIMPLE contributions. 

(OOO) From Form SSA–1099/RRB– 

1099— 

(1) Net benefits; 

(2) Address; and 

(3) Trust fund description. 

(PPP) From Form 1099–G— 

Unemployment compensation. 

(QQQ) From Form 1099–K— 

(1) Filer name; 

(2) Filer address; 

(3) Filer taxpayer identification 

number; 

(4) Payee taxpayer identification 

number; 

(5) Payee name; 

(6) Payee address; 

(7) Gross payments; 

(8) Card not present transactions; 

(9) Merchant category code; 

(10) Number of payment transactions; 

and 

(11) Payments by month. 

(RRR) From Form 1099–MISC— 

Nonemployee compensation. 

(SSS) From Form 1099–NEC— 

Nonemployee compensation. 

(TTT) From Form 1099–Q— 

(1) Gross distribution; and 

(2) Plan type checkboxes. 

(UUU) From Form 1099–R/RRB– 

1099–R— 

(1) Gross distribution; 

(2) Distribution code(s); and 

(3) Plan type checkboxes. 

(VVV) From Form W–2— 

(1) Employee’s Social Security 

number; 

(2) Employer identification number; 

(3) Employer’s name, address, and Zip 

code; 

(4) Employee’s name and address; 

(5) Social Security tips; 

(6) Medicare wages and tips; 

(7) Box 12 codes and values; and 

(8) Statutory employee, retirement 

plan, and third-party sick pay 

checkboxes. 

(WWW) From Form 1040, Schedule 

D— 

(1) Net short-term capital gain/loss; 

and 

(2) Net long-term capital gain/loss. 

(XXX) From Form 1040, Schedule E— 

(1) Total rental real estate and royalty 

income or (loss); and 

(2) Total estate and trust income or 

(loss). 

(YYY) From Form 1040, Schedule F— 

(1) Gross income; 

(2) Total expenses; 

(3) Net farm profit (or loss); and 

(4) Gross income (accrual). 

(ii) With respect to taxpayers filing a 

return on behalf of a trade or business— 

(A) The taxpayer name directory and 

entity records consisting of taxpayer 

identity information (as defined in 

section 6103(b)(6) of the Code) with 

respect to taxpayers engaged in a trade 

or business. 

(B) The principal industrial activity 

code. 

(C) The filing requirement code. 

(D) The employment code. 

(E) The physical location. 

(F) Monthly corrections of, and 

additions to, the information described 

in paragraphs (b)(1)(ii)(A) through (E) of 

this section. 

(G) From Form SS–4, all information 

reflected on such form. 

(H) From an employment tax return— 

(1) Taxpayer identifying number of 

the employer; 

(2) Total compensation reported; 

(3) Master file tax account code 

(MFT); 

(4) Taxable period covered by such 

return; 

(5) Employer code; 


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(6) Document locator number; 

(7) Record code; 

(8) Total number of individuals 

employed in the taxable period covered 

by the return; 

(9) Total taxable wages paid for 

purposes of chapter 21 of the Code; 

(10) Total taxable tip income reported 

for purposes of chapter 21 of the Code; 

(11) If a business has closed or 

stopped paying wages; 

(12) Final date a business paid wages; 

and 

(13) If a business is a seasonal 

employer and does not have to file a 

return for every quarter of the year. 

(I) From Form 1040, Schedule C— 

(1) Purchases less cost of items 

withdrawn for personal use; 

(2) Materials and supplies; 

(3) Gross income; 

(4) Total expenses; and 

(5) Net profit or loss. 

(J) From Form 1040 (Schedule SE)— 

(1) Taxpayer identifying number of 

self-employed individual; 

(2) Business activities subject to the 

tax imposed by chapter 21 of the Code; 

(3) Net earnings from farming; 

(4) Net earnings from nonfarming 

activities; 

(5) Total net earnings from selfemployment; 

(6) Taxable self-employment income 

for purposes of chapter 2 of the Code; 

(7) Net profit and loss; and 

(8) Church employee income. 

(K) Total Social Security taxable 

earnings. 

(L) Quarters of Social Security 

coverage. 

(M) From Form 940— 

(1) State of state unemployment tax; 

and 

(2) Total payments to all employees. 

(N) From Form 941— 

(1) Number of employees who 

received wages, tips, or other 

compensation for the pay period 

including: March 12 (Quarter 1), June 12 

(Quarter 2), September 12 (Quarter 3), or 

December 12 (Quarter 4); and 

(2) Wages, tips, and other 

compensation. 

(O) From Form 943— 

(1) Agricultural employees; and 

(2) Total wages subject to Social 

Security tax. 

(P) Taxpayer identity information (as 

defined in section 6103(b)(6) of the 

Code) including parent corporation, 

shareholder, partner, and employer 

identity information. 

(Q) Gross income, profits, or receipts. 

(R) Returns and allowances. 

(S) Cost of labor, salaries, and wages. 

(T) Total expenses or deductions, 

including totals of the following 

components thereof: 

(1) Repairs (and maintenance) 

expense; 

(2) Rents (or lease) expense; 

(3) Taxes and licenses expense; 

(4) Interest expense, including 

mortgage or other interest; 

(5) Depreciation expense; 

(6) Depletion expense; 

(7) Advertising expense; 

(8) Pension and profit-sharing plans 

(retirement plans) expense; 

(9) Employee benefit programs 

expense; 

(10) Utilities expense; 

(11) Supplies expense; 

(12) Contract labor expense; and 

(13) Management (and investment 

advisory) fees. 

(U) Total assets. 

(V) Beginning- and end-of-year 

inventory. 

(W) Royalty income. 

(X) Interest income, including 

portfolio interest. 

(Y) Rental income, including gross 

rents. 

(Z) Tax-exempt interest income. 

(AA) Net gain from sales of business 

property. 

(BB) Other income. 

(CC) Total income. 

(DD) Percentage of stock owned by 

each shareholder. 

(EE) Percentage of capital ownership 

of each partner. 

(FF) Principal industrial activity code, 

including the business description. 

(GG) Consolidated return indicator. 

(HH) Wages, tips, and other 

compensation. 

(II) Social Security wages. 

(JJ) Deferred wages. 

(KK) Social Security tip income. 

(LL) Total Social Security taxable 

earnings. 

(MM) From Form 1099–R—Gross 

distributions from employer-sponsored 

and individual retirement plans. 

(NN) From Form 3921— 

(1) Date option granted; 

(2) Date option exercised; 

(3) Exercise price paid per share; 

(4) Fair market value per share on 

exercise date; and 

(5) Number of shares transferred. 

(OO) From Form 6765 (when filed 

with corporation income tax returns)— 

(1) Indicator that total qualified 

research expenses is greater than zero, 

but less than $1 million; greater than or 

equal to $1 million, but less than $3 

million; or, greater than or equal to $3 

million; 

(2) Cycle posted; and 

(3) Research tax credit amount to be 

carried over to a business return, 

schedule, or form. 

(PP) Total number of documents 

reported on Form 1096 transmitting 

Forms 1099—MISC. 

(QQ) Total amount reported on Form 

1096 transmitting Forms 1099—MISC. 

(RR) From Form 1125—A, purchases. 

(SS) From Form 1041— 

(1) Interest income; 

(2) Total ordinary dividends; 

(3) Total income; 

(4) Charitable deduction; and 

(5) Taxable income. 

(TT) From Form 1041, Schedule K– 

1— 

(1) Beneficiary identifying number; 

(2) Beneficiary name; 

(3) Interest income; 

(4) Total ordinary dividends; 

(5) Net short-term capital gain; 

(6) Net long-term capital gain; 

(7) Other portfolio and non-business 

income; 

(8) Ordinary business income; 

(9) Net rental and real estate income; 

and 

(10) Other rental income. 

(UU) From Form 1120— 

(1) Cost of goods sold; 

(2) Compensation of officers; and 

(3) Salaries and wages (less 

employment credits). 

(VV) From Form 1120–REIT— 

(1) Compensation of officers; 

(2) Salaries and wages (less 

employment credits); 

(3) Total assets; 

(4) Principal Business Activity (PBA) 

code; and 

(5) Type of real estate investment trust 

(REIT). 

(WW) From Form 1120–S— 

(1) Cost of goods sold; and 

(2) Salaries and wages (less 

employment credits). 

(XX) From Form 1120–S, Schedule K– 

1— 

(1) Ordinary business income (loss); 

(2) Net rental real estate income; 

(3) Other net rental income; 

(4) Interest income; 

(5) Total ordinary dividends; 

(6) Royalties; 

(7) Net short-term capital gain; 

(8) Net long-term capital gain; 

(9) Other income (loss); and 

(10) Current year allocation 

percentage. 

(YY) From Form 1065— 

(1) Gross receipts or sales less returns 

and allowances; 

(2) Cost of goods sold; and 

(3) Ordinary dividends. 

(ZZ) From Form 1065, Schedule K– 

1— 

(1) Publicly-traded partnership 

indicator; 

(2) Partner’s share of nonrecourse, 

qualified nonrecourse, and recourse 

liabilities; 

(3) Ordinary business income; 

(4) Net rental real estate income; 

(5) Other net rental income; 


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(6) Total guaranteed payments; 

(7) Interest income; 

(8) Total ordinary dividends; 

(9) Dividend equivalents; 

(10) Royalties; 

(11) Net short-term capital gain; 

(12) Net long-term capital gain; and 

(13) Other income. 

(AAA) From Form 3800 Part II 

(Current Year General Business Credit 

from Form 6765). 

(BBB) From Form 3800, Part III, 

Increasing research activities (Form 

6765). 

(CCC) Dividends, including ordinary 

or qualified. 

(iii) With respect to returns filed on 

behalf of a tax-exempt organization— 

(A) Taxpayer identity information (as 

defined in section 6103(b)(6) of the 

Code). 

(B) Activity codes. 

(C) Filing requirement code. 

(D) Monthly corrections of, and 

additions to, the information described 

in paragraphs (b)(1)(iii)(A) through (C) 

of this section. 

(E) From Form 990, Salaries, other 

compensation, employee benefits. 

(F) From Form 990–PF— 

(1) Compensation of officers, 

directors, trustees, etc.; and 

(2) Pension plans, employee benefits. 

(G) From Form 990–EZ, Salaries, 

other compensation, employee benefits. 

(iv) With respect to taxpayers filing 

information returns relating to health 

insurance: 

(A) From Form 1095–A— 

(1) Marketplace information; 

(2) Policy issuer’s name; 

(3) Recipient’s name; 

(4) Recipient’s Social Security 

number; 

(5) Recipient’s spouse’s name; 

(6) Recipient’s spouse’s Social 

Security number; 

(7) Policy start date; 

(8) Policy termination date; 

(9) Covered individual Social Security 

number; 

(10) Coverage start date; 

(11) Coverage termination date; 

(12) Monthly enrollment premium; 

(13) Monthly second lowest cost 

silver plan premium; 

(14) Monthly advance payment of 

premium tax credit; 

(15) Annual premium; 

(16) Annual second lowest cost silver 

plan premium; and 

(17) Annual advance payment of 

premium tax credit. 

(B) From Form 1095–B— 

(1) Name; 

(2) Social Security number; 

(3) Date of birth; 

(4) Origin of health coverage; 

(5) Employer name; 

(6) Employer identification number of 

issuer or other coverage provider; 

(7) Employer address; 

(8) Employer identification number; 

(9) Name control validation; 

(10) Social Security number of 

covered individuals; 

(11) Date of birth of covered 

individuals; and 

(12) Coverage by month of covered 

individuals. 

(C) From Form 1095–C— 

(1) Name of employee; 

(2) Social Security number or other 

taxpayer identification number of 

employee; 

(3) Address of employee; 

(4) Name of employer; 

(5) Employer identification number; 

(6) Employer address; 

(7) Offer of coverage code; 

(8) Checkbox for employer provided 

self-insured coverage; 

(9) Employee required contribution, 

all 12 months; 

(10) Name control validation; 

(11) Social Security number or other 

taxpayer identification number of 

covered individuals; and 

(12) Coverage by month of covered 

individuals. 

(v) With respect to taxpayers filing 

information returns related to health 

savings accounts, from Form 5498–SA— 

(A) Taxpayer identification number; 

(B) Total contributions; 

(C) Fair market value of accounts; and 

(D) Account type checkboxes. 

(2) Subject to the requirements of 

paragraph (d) of this section and 

§ 301.6103(p)(2)(B)-1, officers or 

employees of the Social Security 

Administration to whom the following 

return information reflected on returns 

has been disclosed as provided by 

section 6103(l)(1)(A) or (l)(5) may 

disclose such information to officers 

and employees of the Bureau of the 

Census for necessary purposes 

described in paragraph (b)(1) of this 

section: 

(i) From Form SS–4, all information 

reflected on such form. 

(ii) From Form 1040 (Schedule SE)— 

(A) Taxpayer identifying number of 

self-employed individual; 

(B) Business activities subject to the 

tax imposed by chapter 21 of the Code; 

(C) Net earnings from farming; 

(D) Net earnings from nonfarming 

activities; 

(E) Total net earnings from selfemployment; and 

(F) Taxable self-employment income 

for purposes of chapter 2 of the Code. 

(iii) From Form W–2, and related 

forms and schedules— 

(A) Social Security number; 

(B) Employer identification number; 

(C) Wages, tips, and other 

compensation; 

(D) Social Security wages; and 

(E) Deferred wages. 

(iv) Total Social Security taxable 

earnings. 

(v) Quarters of Social Security 

coverage. 

(3)(i) Officers or employees of the 

Internal Revenue Service will disclose 

the following return information (but 

not including return information 

described in section 6103(o)(2)) 

reflected on returns of corporations with 

respect to the tax imposed by chapter 1 

of the Code to officers and employees of 

the Bureau of the Census for purposes 

of, but only to the extent necessary in, 

developing and preparing, as authorized 

by law, the Quarterly Financial Report: 

(A) From the business master files of 

the Internal Revenue Service— 

(1) Taxpayer identity information (as 

defined in section 6103(b)(6) of the 

Code), including parent corporation 

identity information; 

(2) Document code; 

(3) Consolidated return and final 

return indicators; 

(4) Principal industrial activity code; 

(5) Partial year indicator; 

(6) Annual accounting period; 

(7) Gross receipts less returns and 

allowances; and 

(8) Total assets. 

(B) From Form SS–4— 

(1) Month and year in which such 

form was executed; 

(2) Taxpayer identity information (as 

defined in section 6103(b)(6) of the 

Code); and 

(3) Principal industrial activity, 

geographic, firm size, and reason for 

application codes. 

(C) From Form 1120–REIT— 

(1) Type of REIT; and 

(2) Gross rents from real property. 

(D) From Form 1120F, corporation’s 

method of accounting. 

(E) From Form 1096, total amount 

reported. 

(ii) Subject to the requirements of 

paragraph (d) of this section and 

§ 301.6103(p)(2)(B)–1, officers or 

employees of the Social Security 

Administration to whom return 

information reflected on returns of 

corporations described in paragraph 

(b)(3)(i)(B) of this section has been 

disclosed as provided by section 

6103(l)(1)(A) or (l)(5) may disclose such 

information to officers and employees of 

the Bureau of the Census for a purpose 

described in paragraph (b)(3)(i) of this 

section. 

(iii) Return information reflected on 

employment tax returns disclosed 

pursuant to paragraphs (b)(1)(ii)(H)(1), 

(2), (4), (9), or (10) of this section may 


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Federal Register / Vol. 89, No. 228 / Tuesday, November 26, 2024 / Rules and Regulations 93179 

be used by officers and employees of the 

Bureau of the Census for the purpose 

described in and subject to the 

limitations of paragraph (b)(3)(i) of this 

section. 

* * * * * 

(d) Procedures and restrictions. (1) 

Disclosure of return information 

reflected on returns by officers or 

employees of the Internal Revenue 

Service or the Social Security 

Administration as provided by 

paragraphs (b) and (c) of this section 

will be made only upon written request 

to the Commissioner of Internal 

Revenue by the Secretary of Commerce 

describing— 

(i) The particular return information 

reflected on returns to be disclosed; 

(ii) The taxable period or date to 

which such return information reflected 

on returns relates; and 

(iii) The particular purpose for which 

the return information reflected on 

returns is to be used, and designating by 

name and title the officers and 

employees of the Bureau of the Census 

or the Bureau of Economic Analysis to 

whom such disclosure is authorized. 

(2) No officer or employee of the 

Bureau of the Census or the Bureau of 

Economic Analysis to whom return 

information reflected on returns is 

disclosed pursuant to the provisions of 

paragraph (b) or (c) of this section may 

disclose such information to any person, 

other than, pursuant to section 

6103(e)(1), the taxpayer to whom such 

return information reflected on returns 

relates or other officers or employees of 

such bureau whose duties or 

responsibilities require such disclosure 

for a purpose described in paragraph (b) 

or (c) of this section, except in a form 

that cannot be associated with, or 

otherwise identify, directly or 

indirectly, a particular taxpayer. If the 

Internal Revenue Service determines 

that the Bureau of the Census or the 

Bureau of Economic Analysis, or any 

officer or employee thereof, has failed 

to, or does not, satisfy the requirements 

of section 6103(p)(4) of the Code or 

regulations in this part or published 

procedures (see § 601.601(d)(2) of this 

chapter), the Internal Revenue Service 

may take such actions as are deemed 

necessary to ensure that such 

requirements are or will be satisfied, 

including suspension of disclosures of 

return information reflected on returns 

otherwise authorized by section 

6103(j)(1) and paragraph (b) or (c) of this 

section, until the Internal Revenue 

Service determines that such 

requirements have been or will be 

satisfied. 

(3) All projects using returns or return 

information disclosed to the Bureau of 

Census under this section must be 

approved by the Internal Revenue 

Service Director of Statistics of Income, 

the Director’s successor, or the 

Director’s delegate, prior to the release 

of such information. 

(4) In its sole discretion, the Internal 

Revenue Service may authorize the use 

of the Bureau of Census’s disclosure 

review processes prior to any public 

disclosure by the Bureau of Census of a 

project using information provided 

pursuant to this section. Any Bureau of 

Census disclosure review process 

authorized under this paragraph (d)(4) 

must ensure that all releases meet or 

exceed all requirements set by the 

Internal Revenue Service for protecting 

the confidentiality of returns and return 

information. Additionally, in its sole 

discretion, the Internal Revenue Service 

Statistics of Income Disclosure Review 

Board may review a Bureau of Census 

project using information provided 

pursuant to this section prior to 

disclosure of that project to the public 

to ensure that any proposed releases 

meet or exceed all requirements set by 

the Internal Revenue Service for 

protecting the confidentiality of returns 

and return information. This review 

requirement may be imposed at any 

stage of the project. 

(e) Applicability date. This section 

applies to disclosures of return 

information made on or after November 

26, 2024. 

Heather C. Maloy, 

Acting Deputy Commissioner. 

Approved: November 6, 2024. 

Aviva R. Aron-Dine, 

Deputy Assistant Secretary of the Treasury 

(Tax Policy). 

[FR Doc. 2024–27072 Filed 11–25–24; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Office of Investment Security 

31 CFR Parts 800 and 802 

[Docket ID TREAS–DO–2024–0006] 

RIN 1505–AC85 

Penalty Provisions, Provision of 

Information, Negotiation of Mitigation 

Agreements, and Other Procedures 

Pertaining to Certain Investments in 

the United States by Foreign Persons 

and Certain Transactions by Foreign 

Persons Involving Real Estate in the 

United States 

AGENCY: Office of Investment Security, 

Department of the Treasury. 

ACTION: Final rule. 

SUMMARY: This final rule revises certain 

provisions of the regulations of the 

Committee on Foreign Investment in the 

United States (CFIUS) pertaining to 

penalties for violations of statutory or 

regulatory provisions or agreements, 

conditions, or orders issued pursuant 

thereto; negotiation of mitigation 

agreements; requests for information by 

CFIUS; and certain other procedures. 

DATES: This final rule is effective on 

December 26, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Meena R. Sharma, Director, Office of 

Investment Security Policy and 

International Relations at U.S. 

Department of the Treasury, 1500 

Pennsylvania Avenue NW, Washington, 

DC 20220; telephone: (202) 622–3425; 

email: CFIUS.Regulations@treasury.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The regulations at parts 800 and 802 

to title 31 of the Code of Federal 

Regulations (parts 800 and 802, 

respectively) implement the provisions 

of section 721 of the Defense Production 

Act of 1950 (DPA), as amended, which 

is codified at 50 U.S.C. 4565 (section 

721) and which establishes the 

authorities of the Committee on Foreign 

Investment in the United States (CFIUS 

or the Committee). Section 721 

authorizes the President or his designee 

(i.e., CFIUS) to review mergers, 

acquisitions, and takeovers by or with 

any foreign person that could result in 

foreign control of any U.S. business, 

certain noncontrolling investments by 

foreign persons in a subset of U.S. 

businesses, as well as certain real estate 

transactions involving foreign persons. 

When in the course of its review CFIUS 

identifies a national security risk that 

arises as a result of a transaction within 

its jurisdiction (referred to in the 

regulations as a ‘‘covered transaction’’ 

or ‘‘covered real estate transaction’’ as 

appropriate), it is authorized to 

negotiate and enter into agreements 

with the transaction parties or impose 

conditions on the transaction parties, 

including through the issuance of 

orders, to mitigate the risk. CFIUS is 

further authorized to enforce those 

agreements, conditions, and orders, 

including through assessing a penalty. 

On April 15, 2024, the U.S. 

Department of the Treasury (Treasury 

Department) published in the Federal 

Register a notice of proposed 

rulemaking (proposed rule) (89 FR 

26107) that proposed amendments to 

certain provisions of parts 800 and 802. 

Specifically, the proposed rule included 

amendments that would: (1) expand the 

categories of information that CFIUS 


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