Federal Register / Vol. 66, No. 250 / Monday, December 31, 2001 / Rules and Regulations 67687

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8974]

RIN 1545–BA48

Amendment to Section 6050I CrossReferencing Section 5331 of Title 31

Relating to Reporting of Certain

Currency Transactions by Nonfinancial

Trades or Businesses Under the Bank

Secrecy Act

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final regulations.

SUMMARY: This document contains final

amendments to the Income Tax

Regulations under section 6050I of the

Internal Revenue Code which requires

persons to report information about

financial transactions to the IRS, and

section 5331 of title 31 which requires

persons to report similar information

about certain transactions to the

Financial Crimes Enforcement Network.

These regulations provide that this

information shall be reported on the

same form as prescribed by the

Secretary.

DATES: Effective Date: These regulations

are effective December 31, 2001.

FOR FURTHER INFORMATION CONTACT:

Concerning the regulations, contact

Tiffany P. Smith at (202) 622–4910 (not

a toll-free number).

SUPPLEMENTARY INFORMATION:

Background and Explanation of

Provisions

This document amends the Income

Tax Regulations (26 CFR part 1) under

section 6050I of the Internal Revenue

Code (Code). These final regulations

address the related reporting

requirements of section 6050I of the

Code and section 5331 of title 31.

The Bank Secrecy Act, Titles I and II

of Public Law 91–508 (84 Stat. 1116) as

amended, codified at 12 U.S.C. 1829b,

12 U.S.C. 1951–1959, and 31 U.S.C.

5311, et seq., authorizes the Secretary of

the Treasury, inter alia, to issue

regulations requiring financial

institutions to keep records and file

reports that are determined to have a

high degree of usefulness in criminal,

tax, and regulatory matters, and to

implement counter-money laundering

programs and compliance procedures.

Regulations implementing Title II of the

Bank Secrecy Act (codified at 31 U.S.C.

5311, et seq.), appear at 31 CFR part

103.

Section 365 of the Uniting and

Strengthening America by Providing

Appropriate Tools Required to Intercept

and Obstruct Terrorism Act of 2001 (the

USA PATRIOT Act), Public Law 107–56

(115 Stat. 272) amended the Bank

Secrecy Act by adding section 5331.

Under 31 U.S.C. 5331, any person who

is engaged in a trade or business and

who, in the course of such trade or

business, receives more than $10,000 in

coins or currency in one transaction (or

two or more related transactions), is

required to file a report with respect to

such transaction (or related

transactions) with the Treasury

Department. Reporting under section

5331 does not apply to amounts

received in a transaction reported under

31 U.S.C. 5313 and the accompanying

regulations.

The reporting requirement under

section 5331 of title 31 is analogous to

the reporting requirement administered

by the IRS, under section 6050I of title

26, United States Code, and 26 CFR

1.6050I–1. Inasmuch as section 6050I of

title 26 requires persons to report

information about financial transactions

to the IRS, and section 5331 of title 31

requires persons to report similar

information about certain transactions

to the Financial Crimes Enforcement

Network, these final regulations provide

that this information shall be reported

on the same form as prescribed by the

Secretary.

Effective Date of Regulations

These regulations are effective as of

the date of publication in the Federal

Register.

Special Analyses

Because this regulation merely

advises taxpayers that information

reported under section 6050I is, with

one exception, also reported under 31

U.S.C. 5331, and imposes no

requirement on any person, notice and

public procedure are unnecessary

pursuant to 5 U.S.C. 553(b)(B). For this

reason, a delayed effective date is not

required pursuant to 5 U.S.C. 553(d)(3)

It has been determined that this final

regulation is not a significant regulatory

action as defined in Executive Order

12866. Therefore, a regulatory

assessment is not required. Because no

notice of proposed rulemaking is

required, the provisions of the

Regulatory Flexibility Act (5 U.S.C.

chapter 6) do not apply. Pursuant to

section 7805(f) of the Code, this final

regulation was submitted to the Chief

Counsel for Advocacy of the Small

Business Administration for comment

on its impact on small business.

Drafting Information

The principal author of these final

regulations is Tiffany P. Smith, Office of

the Associate Chief Counsel (Procedure

and Administration), Administrative

Provisions and Judicial Practice

Division.

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and

recordkeeping requirements.

Final Amendments to the Regulations

Accordingly, 26 CFR part 1 is

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 * * *

Par. 2. Section 1.6050I–0 is amended

by revising the entry for § 1.6050I(a)(1)

and adding entries to the table for

§ 1.6050I–1(a)(1)(i) and (a)(1)(ii) to read

as follows:

§ 1.6050I–0 Table of contents.

* * * * *

§ 1.6050I–1 Returns relating to cash in

excess of $10,000 received in a trade or

business.

(a) * * *

(1) Reportable transaction.

(i) In general.

(ii) Certain financial transactions.

* * * * *

Par. 3. Section 1.6050I–1 is amended

by:

1. Redesignating paragraph (a)(1) as

paragraph (a)(1)(i).

2. Adding a new paragraph heading

for (a)(1).

3. Adding paragraph (a)(1)(ii).

The additions read as follows:

§ 1.6050I–1 Returns relating to cash in

excess of $10,000 received in a trade or

business.

(a) Reporting requirement—(1)

Reportable transaction—(i) In general.

***

(ii) Certain financial transactions.

Section 6050I of title 26 of the United

States Code requires persons to report

information about financial transactions

to the Internal Revenue Service, and

section 5331 of title 31 of the United

States Code requires persons to report

similar information about certain

transactions to the Financial Crimes

Enforcement Network. This information

shall be reported on the same form as

prescribed by the Secretary.

* * * * *

67688 Federal Register / Vol. 66, No. 250 / Monday, December 31, 2001 / Rules and Regulations

Approved: December 20, 2001.

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

Mark Weinberger,

Assistant Secretary of the Treasury.

[FR Doc. 01–31848 Filed 12–28–01; 8:45 am]

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