64402 Federal Register / Vol. 60, No. 241 / Friday, December 15, 1995 / Proposed Rules

rulemaking has been submitted to the

Office of Management and Budget for

review in accordance with the

Paperwork Reduction Act of 1995 (44

U.S.C. 3507).

Comments on the collection of

information should be sent to the Office

of Management and Budget, Attn: Desk

Officer for the Department of Treasury,

Office of Information and Regulatory

Affairs, Washington, DC 20503, with

copies to the Internal Revenue Service,

Attn: IRS Reports Clearance Officer,

T:FP, Washington, DC 20224. Comments

on the collection of information should

be received by February 13, 1996.

An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless the collection of information

displays a valid control number.

The collection of information is in

§ 1.411(d)–6T which implements the

statutory requirement of section 204(h)

of ERISA that a plan administrator

provide notice to participants and

certain other parties if certain pension

plans are amended to provide for a

significant reduction in the rate of

future benefit accrual. This collection of

information is required to assure that

the rights of participants in plans

subject to section 204(h) of ERISA are

protected. The likely respondents are

small businesses. Responses to this

collection of information are required

under section 204(h) of ERISA in order

for certain amendments to qualified

plans to become effective.

These regulations do not involve any

issues of confidentiality.

Estimated total annual reporting

burden: 15,000 hours.

The estimated annual burden per

respondent varies from 1 hour to 40

hours, depending on individual

circumstances, with an estimated

average of 5 hours.

Estimated number of respondents:

3,000.

Estimated annual frequency of

responses: Once.

Background

Temporary regulations in the Rules

and Regulations portion of this issue of

the Federal Register amend the Income

Tax Regulations (26 CFR part 1)

(relating to section 411(d)). The text of

those temporary regulations also serves

as the text of these proposed

regulations. The preamble to the

temporary regulations explains the

temporary 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) 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, the notice of proposed rulemaking

will be submitted to the Chief Counsel

for Advocacy of the Small Business

Administration for comment on their

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 Betty J. Clary, Office

of the Associate Chief Counsel (Employee

Benefits and Exempt Organizations), IRS.

However, other personnel from the IRS and

Treasury Department participated in their

development.

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and

recordkeeping requirements.

Proposed Amendments to the

Regulations

Accordingly, 26 CFR part 1 is

proposed to be amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation

for part 1 continues to read, in part, as

follows:

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

Section 1.411(d)–6 also issued under

Reorganization Plan No. 4 of 1978, 29

U.S.C. 1001nt. * * *

Par. 2. Section 1.411(d)–6 is added to

read as follows:

§ 1.411(d)–6 Section 204(h) notice.

[The text of this proposed section is

the same as the text of § 1.411(d)–6T

published elsewhere in this issue of the

Federal Register.]

Margaret Milner Richardson,

Commissioner of Internal Revenue.

[FR Doc. 95–30415 Filed 12–12–95; 1:23 pm]

BILLING CODE 4830–01–U

26 CFR Part 301

[DL–01–95]

RIN 1545–AT48

Disclosure of Returns and Return

Information to Procure Property or

Services for Tax Administration

Purposes

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: These proposed regulations

relate to the disclosure of returns and

return information in connection with

the procurement of property and

services for tax administration purposes.

The amendments would authorize the

Department of Justice, including offices

of United States Attorneys, to make

such disclosures. Current disclosure

authority within the Department of

Justice rests only with the Tax Division.

The amendments also reflect a change to

the law made by the Omnibus Budget

Reconciliation Act of 1990 regarding the

type of services about which disclosures

may be made.

DATES: Comments and requests for a

public hearing must be received by

March 14, 1996.

ADDRESSES: Send submissions to:

CC:DOM:CORP:R (DL–01–95), 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:R (DL–01–95),

Courier’s Desk, Internal Revenue

Service, 1111 Constitution Avenue NW.,

Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Donald Squires, 202–622- 4570 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Background

Section 6103(n) of the Internal

Revenue Code (Code) authorizes the

disclosure of returns and return

information, pursuant to regulations

prescribed by the Secretary of the

Treasury, ‘‘to the extent necessary in

connection with the processing, storage,

transmission, and reproduction of such

returns and return information, the

programming, maintenance, repair,
Federal Register / Vol. 60, No. 241 / Friday, December 15, 1995 / Proposed Rules 64403

testing, and procurement of equipment,

and the providing of other services, for

purposes of tax administration.’’

Existing regulations promulgated

under this section prescribe the persons

who may make such disclosures, the

situations under which such disclosures

may be made and the notification and

safeguarding procedures to be followed

when such disclosures are made.

Among the persons who may make such

disclosures are officers and employees

of the Tax Division of the Department of

Justice. The amendments would

authorize such disclosures by the

Department of Justice (not solely the

Tax Division) to third parties who

provide services for tax administration

purposes under the conditions and

restrictions of the regulations. The

amendments would provide that, for the

purpose of this section, the ‘‘Department

of Justice’’ includes offices of United

States Attorneys.

The amendments would also conform

the regulation to the language of section

6103(n), which was amended by the

Omnibus Budget Reconciliation Act of

1990 to clarify that the disclosures

authorized by this section included

those in connection with ‘‘the providing

of other services’’ (i.e., services other

than those related to the mechanical

processing of returns and return

information).

Explanation of Provisions

As currently written, 26 CFR

301.6103(n)–1 authorizes the Tax

Division of the Department of Justice,

among other entities and individuals, to

make disclosures of returns and return

information pursuant to section 6103(n)

of the Internal Revenue Code. This

authority allows the Tax Division to

disclose tax information incident to its

contracts to private parties for, among

other purposes, automated litigation

support services.

The Department of Justice has

indicated its intention to establish an

expanded automated tracking system for

all monetary judgments in favor of the

United States, which will be operated

by a private company under contract

with the Department. Although the

majority of tax cases are handled by the

Tax Division, there are several United

States Attorneys’ offices that also have

litigation responsibility in the civil tax

area. In addition, the Tax Division refers

some judgments in tax cases to the

United States Attorneys for collection.

Existing regulations arguably would not

permit these offices, which are

technically not part of the Tax Division,

to disclose tax information incident to

their inclusion of tax judgments in the

automated tracking system.

The proposed amendment would

authorize the Department of Justice,

including offices of United States

Attorneys, to make disclosures to

procure property and services for tax

administration purposes. Any such

disclosures will be made under the

same conditions and restrictions already

set forth in the existing regulations. By

definition, any office within the

Department of Justice without tax

administration duties will not have

occasion or authority pursuant to these

regulations to make such disclosures.

The proposed amendment would also

authorize disclosures in connection

with ‘‘the providing of other services,’’

i.e., services not related to the strict

mechanical processing or manipulation

of tax returns or return information.

This would conform the regulations to

the language of the statute, as amended

by the Omnibus Budget Reconciliation

Act of 1990 (Pub. L. 101–508, 104 Stat.

1388–353).

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 that are submitted

timely (preferably a signed original and

eight copies) to the IRS. All comments

will be available for public inspection

and copying. A public hearing may be

scheduled if requested in writing by any

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

proposed regulations is Donald Squires,

Office of the Assistant Chief Counsel

(Disclosure Litigation), IRS. However,

other personnel from the IRS,

Department of Justice 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 * * *

Para. 2. Section 301.6103(n)–1 is

amended as follows:

1. The first sentence of paragraph (a)

introductory text is amended by

removing the language ‘‘Tax Division,’’.

2. Paragraph (a)(2) is amended by

removing the language ‘‘or to’’.

3. Paragraph (a)(2) is further amended

by adding the language ‘‘or the

providing of other services,’’

immediately following the text ‘‘other

property,’’.

4. The concluding text following

paragraph (a)(2) is amended by

removing the language ‘‘Tax Division,’’.

5. The second sentence of paragraph

(d) introductory text is amended by

removing the language ‘‘Tax Division,’’.

6. Paragraph (d)(2) is amended by

removing the language ‘‘Tax Division,’’.

7. Paragraph (e)(1) is amended by

removing the language ‘‘, and’’ at the

end of the paragraph and adding a

semicolon in its place.

8. Paragraph (e)(2) is amended by

removing the period at the end of the

paragraph and adding ‘‘; and’’ in its

place.

9. Paragraph (e)(3) is added.

10. The authority citation

immediately following § 301.6103(n) is

removed.

The addition reads as follows:

§ 301.6103(n)–1 Disclosure of returns and

return information in connection with

procurement of property and services for

tax administration purposes.

* * * * *

(e) * * *

(3) The term Department of Justice

includes offices of the United States

Attorneys.

Margaret Milner Richardson,

Commissioner of Internal Revenue.

[FR Doc. 95–30505 Filed 12–14–95; 8:45 am]

BILLING CODE 4830–01–U