[Federal Register Volume 60, Number 90 (Wednesday, May 10, 1995)]
[Proposed Rules]
[Pages 24811-24813]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-11404]



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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[IA-007-95]
RIN 1545-AT21


Authority of the Secretary of Agriculture to Share Employer 
Identification Numbers Collected From Retail Food Stores and Wholesale 
Food Concerns

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document contains proposed regulations relating to the 
authority of the Secretary of Agriculture to share employer 
identification numbers collected from retail food stores and wholesale 
food concerns with other agencies or instrumentalities of the United 
States. These proposed regulations reflect changes to the law made by 
section 316(b) of the Social Security Independence and Program 
Improvements Act of 1994 and affect retail food stores and wholesale 
food concerns.

DATES: Written comments and requests for a public hearing must be 
received by June 9, 1995.

ADDRESSES: Send submissions to: CC:DOM:CORP:T:R (IA-007-95), room 5228, 
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington, 
DC 20044. In the alternative, submissions may be hand delivered between 
the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:T:R (IA-007-95), 
Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW, 
Washington, DC.

FOR FURTHER INFORMATION CONTACT: Robert J. Basso (202) 622-6232 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    This document contains proposed amendments to the Procedure and 
[[Page 24812]] Administration Regulations (26 CFR part 301) under 
section 6109(f) of the Internal Revenue Code of 1986, relating to 
access to employer identification numbers by the Secretary of 
Agriculture for purposes of the Food Stamp Act of 1977. Section 6109(f) 
was amended by section 316(b) of the Social Security Independence and 
Program Improvements Act of 1994 (Act), Public Law 103-296. These 
proposed regulations provide guidance on the changes made by the Act.

Explanation of Provisions

    Section 301.6109-2 currently permits the Secretary of Agriculture 
to require each applicant retail food store or wholesale food concern 
to furnish its employer identification number in connection with the 
administration of section 9 of the Food Stamp Act of 1977, Public Law 
95-113, relating to the determination of the qualifications of 
applicant retail food stores and wholesale food concerns under the Food 
Stamp Act. These proposed regulations supplement the current regulation 
by permitting the Secretary of Agriculture to share the information 
with any other agency or instrumentality of the United States that 
otherwise has access to employer identification numbers. The Secretary 
of Agriculture may share the information to the extent that the 
Secretary of Agriculture determines such sharing would assist in 
verifying and matching the information against information maintained 
by the other agency or instrumentality. The other agency or 
instrumentality may use the information shared by the Secretary of 
Agriculture only for the purpose of effective administration and 
enforcement of the Food Stamp Act of 1977 or for the purpose of 
investigation of violations of other Federal laws or enforcement of 
such laws.
    Section 301.6109-2 currently restricts the type of individuals who 
have access to the employer identification numbers maintained by the 
Secretary of Agriculture, contains rules on the confidentiality and 
disclosure of employer identification numbers, and provides sanctions 
for unauthorized, willful disclosure of these numbers. The proposed 
regulations set forth similar rules for employer identification numbers 
that are shared with Federal agencies or instrumentalities other than 
the Department of Agriculture.

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 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 Regulatory 
Flexibility Analysis is not required. 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 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 may be scheduled if requested in writing by a person that 
timely submits written 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 Robert J. Basso, Office of the 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, 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 continues to read 
in part as follows:

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

    Par. 2. Section 301.6109-2 is amended by revising paragraphs (c) 
through (g) and adding paragraph (h).
    The addition and revisions read as follows:


Sec. 301.6109-2  Authority of the Secretary of Agriculture to collect 
employer identification numbers for purposes of the Food Stamp Act of 
1977.

* * * * *
    (c) Sharing of information--(1) Sharing permitted with certain 
United States agencies and instrumentalities. The Secretary of 
Agriculture may share the information contained in the list described 
in paragraph (b) of this section with any other agency or 
instrumentality of the United States that otherwise has access to 
employer identification numbers, but only to the extent the Secretary 
of Agriculture determines sharing such information will assist in 
verifying and matching that information against information maintained 
by the other agency or instrumentality.
    (2) Restrictions on the use of shared information. The information 
shared by the Secretary of Agriculture pursuant to this section may be 
used by any other agency or instrumentality of the United States only 
for the purpose of effective administration and enforcement of the Food 
Stamp Act of 1977 or for the purpose of investigation of violations of 
other Federal laws or enforcement of those laws.
    (d) Safeguards--(1) Restrictions on access to employer 
identification numbers by individuals--(i) Numbers maintained by the 
Secretary of Agriculture. The individuals who are permitted access to 
employer identification numbers obtained pursuant to paragraph (a) of 
this section and maintained by the Secretary of Agriculture are 
officers and employees of the United States whose duties or 
responsibilities require access to such employer identification numbers 
for the purpose of effective administration or enforcement of the Food 
Stamp Act of 1977 or for the purpose of sharing the information in 
accordance with paragraph (c) of this section.
    (ii) Numbers maintained by any other agency or instrumentality. The 
individuals who are permitted access to employer identification numbers 
obtained pursuant to paragraph (c) of this section and maintained by 
any agency or instrumentality of the United States other than the 
Department of Agriculture are officers and employees of the United 
States whose duties or responsibilities require access to such employer 
identification numbers for the purpose of effective administration and 
enforcement of the Food Stamp Act of 1977 or for the purpose of 
investigation of violations of other Federal laws or enforcement of 
those laws.
    (2) Other safeguards. The Secretary of Agriculture, and the head of 
any other agency or instrumentality referred to in paragraph (c) of 
this section, must provide for any additional safeguards that the 
Secretary of the Treasury determines to be necessary or appropriate to 
protect the confidentiality of the employer identification numbers. The 
Secretary of Agriculture, and the head of any other 
[[Page 24813]] agency or instrumentality referred to in paragraph (c) 
of this section, may also provide for any additional safeguards to 
protect the confidentiality of employer identification numbers, 
provided these safeguards are consistent with safeguards determined by 
the Secretary of the Treasury to be necessary or appropriate.
    (e) Confidentiality and disclosure of employer identification 
numbers. Employer identification numbers obtained pursuant to paragraph 
(a) or paragraph (c) of this section are confidential. No officer or 
employee of the United States who has or had access to any such 
employer identification number may disclose that number in any manner 
to an individual not described in paragraph (d) of this section. For 
purposes of this paragraph (e), officer or employee includes a former 
officer or employee.
    (f) Sanctions--(1) Unauthorized, willful disclosure of employer 
identification numbers. Sections 7213(a) (1), (2), and (3) apply with 
respect to the unauthorized, willful disclosure to any person of 
employer identification numbers that are maintained pursuant to this 
section by the Secretary of Agriculture, or any other agency or 
instrumentality with which information is shared pursuant to paragraph 
(c) of this section, in the same manner and to the same extent as 
sections 7213(a) (1), (2), and (3) apply with respect to unauthorized 
disclosures of returns and return information described in those 
sections.
    (2) Willful solicitation of employer identification numbers. 
Section 7213(a)(4) applies with respect to the willful offer of any 
item of material value in exchange for any employer identification 
number maintained pursuant to this section by the Secretary of 
Agriculture, or any other agency or instrumentality with which 
information is shared pursuant to paragraph (c) of this section, in the 
same manner and to the same extent as section 7213(a)(4) applies with 
respect to offers (in exchange for any return or return information) 
described in that section.
    (g) Delegation. All references in this section to the Secretary of 
Agriculture are references to the Secretary of Agriculture or his or 
her delegate.
    (h) Effective date. Except as provided in the following sentence, 
this section is effective on February 1, 1992. Any provisions relating 
to the sharing of information by the Secretary of Agriculture with any 
other agency or instrumentality of the United States are effective on 
August 15, 1994.
Margaret Milner Richardson,
Commissioner of Internal Revenue.
[FR Doc. 95-11404 Filed 5-9-95; 8:45 am]
BILLING CODE 4830-01-U