This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

2373

Vol. 66, No. 8

Thursday, January 11, 2001

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG–116048–99]

RIN 1545–AX63

Stock Transfer Rules: Supplemental

Rules

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Withdrawal of notice of

proposed rulemaking.

SUMMARY: This document withdraws

proposed regulations relating to an

election available to certain taxpayers

under section 367(b). The withdrawal

corresponds to the upcoming expiration

of the availability of the election.

FOR FURTHER INFORMATION CONTACT:

Mark Harris at (202) 622–3860 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Background

On January 24, 2000, the IRS and

Treasury published in the Federal

Register proposed regulations (65 FR

3629) (the proposed regulations),

temporary regulations (65 FR 3586) (the

temporary regulations), and final

regulations (65 FR 3589) (the final

regulations) under section 367(b) of the

Internal Revenue Code. The proposed

and temporary regulations provide a

modified version of an election

contained in the proposed section

367(b) regulations issued on August 26,

1991 (1991 proposed regulations),

which was not adopted in the final

regulations. This election allows certain

taxpayers to recognize the gain (but not

the loss) realized in certain section

367(b) exchanges, rather than including

the all earnings and profits amount in

income. The preamble to the final

regulations explains the reasons for not

including the taxable exchange election

in the final regulations (65 FR 3589 at

3592).

The IRS and Treasury issued the

proposed and temporary regulations in

order to provide taxpayers with an

opportunity to comment on the decision

not to include the taxable exchange

election in the final regulations. Section

1.367(b)–3(b)(4)(ii) of the proposed and

temporary regulations provide that the

taxable exchange election is applicable

for transactions that occur between

February 23, 2000, and February 24,

2001. A public hearing was scheduled

for April 20, 2000, and written

comments were to be received by April

24, 2000. No one requested to speak at

the public hearing, and no comments

were submitted. In particular, the IRS

and Treasury have not received any

comments suggesting revisions to the

effective date articulated in § 1.367(b)–

3(b)(4)(ii). Accordingly, this document

withdraws § 1.367(b)–3(b)(4) of the

proposed regulations published in the

Federal Register on January 24, 2000

(65 FR 3629).

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and

recordkeeping requirements.

Withdrawal of Proposed Amendments

to the Regulations

Accordingly, under the authority of

26 U.S.C. 7805, proposed amendments

to 26 CFR part 1 relating to § 1.367(b)–

3(b)(4) published January 24, 2000 (65

FR 6329), are withdrawn.

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

[FR Doc. 01–492 Filed 1–10–01; 8:45 am]

BILLING CODE 4830–01–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG–103320–00 ]

RIN 1545–AX85

Disclosure of Returns and Return

Information to Designee of Taxpayer

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: In the Rules and Regulations

section of this issue of Federal Register,

the IRS is issuing a temporary regulation

relating to the disclosure of returns and

return information to the designee of a

taxpayer. The text of that temporary

regulation also serves as the text of this

regulation.

DATES: Written and electronic comments

and requests for a public hearing must

be received by April 11, 2001.

ADDRESSES: Send submissions to:

CC:M&SP:RU (REG–103320–00), room

5226, Internal Revenue Service, POB

7604, Ben Franklin Station, Washington,

DC 20044. Submissions may be hand

delivered Monday through Friday

between the hours of 8 a.m. and 5 p.m.

to: CC:M&SP:RU (REG–103320–00),

Courier’s Desk, Internal Revenue

Service, 1111 Constitution Avenue,

NW., Washington, DC. Alternatively,

taxpayers may submit comments

electronically via the Internet by

selecting the ‘‘Tax Regs’’ option on the

IRS Home Page, or by submitting

comments directly to the IRS Internet

site: http://www.irs.gov/prod/tax_regs/

comments/html.

FOR FURTHER INFORMATION CONTACT:

Joseph Conley (202) 622–4580 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Background

Section 6103(c), as amended by

section 1207 of the Taxpayer Bill of

Rights II, Public Law 104–168 (110 Stat.

1452), authorizes 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 or to any other person at the

taxpayer’s request to the extent

necessary to comply with a request for

information or assistance made by the

taxpayer to such other person.

Disclosure is permitted subject to such

requirements and conditions as may be

prescribed by regulations. With the

amendment in 1996, Congress

eliminated the longstanding

requirement that disclosures to

designees of the taxpayer must be

pursuant to the written request or

consent of the taxpayer. The purpose of

this amendment to section 6103(c) was

to assist the IRS in developing a

paperless tax administration system that

relies on, among other things, electronic

communication. H.R. Rep. No. 104–506,

at 49 (1996), reprinted in 1996

U.S.C.A.N. 1143, 1172.

On October 3, 1980, a final regulation

(TD 7723) relating to the disclosure of

tax returns and return information to a

2374 Federal Register / Vol. 66, No. 8 / Thursday, January 11, 2001 / Proposed Rules

person designated by the taxpayer in a

written request or consent was

published in the Federal Register (45

FR 65564). Since the publication of this

final regulation, the IRS has determined

that further guidance on written consent

requirements is necessary.

This document contains a proposed

regulation that authorizes the disclosure

of tax returns and return information to

a designee of the taxpayer pursuant to

nonwritten requests or consents

authorizing the disclosures. Such

proposed regulation also amends the

existing regulation to clarify the rules

applicable to written requests or

consents to disclosure.

The text of the temporary regulation

published in this issue of the Federal

Register serves as the text of this

proposed regulation. The preamble to

the temporary regulation explains the

regulation.

Special Analysis

It has been determined that this

Treasury decision is not a significant

regulatory action as defined in

Executive Order 12866. Therefore, a

regulatory assessment is not required. It

is hereby certified that this proposed

regulation will not impose a significant

economic impact on a substantial

number of small entities. The regulation

is intended to reduce the burden on

taxpayers and to facilitate the

development of a paperless tax

administration system. The prior

regulation required that a taxpayer

provide a written request or consent

before the IRS could disclose the

taxpayer’s return information to a

designee of the taxpayer; this regulation

permits such a disclosure, under certain

specified circumstances, pursuant to the

taxpayer’s nonwritten request or

consent. The regulation also provides

parameters for the development of

consents for the electronic filing

program, and it reduces the burden on

taxpayers in combined Federal-State

return filing programs by facilitating the

electronic filing of a Federal-State return

by means of a single electronic

transmission.

Pursuant to section 7805(f) of the

Internal Revenue Code, this notice of

proposed rulemaking will be submitted

to the Chief Counsel of Small Business

Administration for comment on its

impact on small businesses.

Comments and Requests for a Public

Hearing

Before the proposed regulation is

adopted as a final regulation,

consideration will be given to any

electronic and written comments (a

signed original and eight (8) copies) that

are submitted timely to the IRS. The IRS

and Treasury Department specifically

request comments on consents or

notices authorizing disclosures in an

electronic environment. Additionally,

the IRS and Treasury Department

specifically request comments on the

clarity of the proposed regulation and

how it can be made easier to

understand. 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 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 this regulation

is Jamie Bernstein, Office of the

Associate Chief Counsel, Procedure and

Administration (Disclosure & Privacy

Law Division). However, other

personnel from the IRS and Treasury

Department participated in its

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 adding an

entry in numerical order to read in part

as follows:

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

Section 301.6103(c)–1 also issued

under 26 U.S.C. 6103(c). * * *

Par. 2. Section 301.6103(c)–1 is added

to read as follows:

§ 301.6103(c)–1 Disclosure of returns and

return information to designee of taxpayer.

[The text of this proposed section is

the same as the text of § 301.6103(c)–1T

published elsewhere in this issue of the

Federal Register.]

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

[FR Doc. 01–486 Filed 1–10–01; 8:45 am]

BILLING CODE 4830–01–P

DEPARTMENT OF THE INTERIOR

Office of Surface Mining Reclamation

and Enforcement

30 CFR Part 914

[SPATS No. IN–151–FOR]

Indiana Regulatory Program

AGENCY: Office of Surface Mining

Reclamation and Enforcement, Interior.

ACTION: Proposed rule; public comment

period and opportunity for public

hearing.

SUMMARY: The Office of Surface Mining

Reclamation and Enforcement (OSM) is

opening the public comment period for

a previously submitted proposed

amendment to the Indiana regulatory

program (Indiana program) under the

Surface Mining Control and

Reclamation Act of 1977 (SMCRA).

Indiana proposes the addition of a

statute concerning post mining land use

changes as nonsignificant permit

revisions. The amendment is intended

to revise the Indiana program to

improve operational efficiency. This

document gives the times and locations

that the Indiana program and proposed

amendment to that program are

available for your inspection, the

comment period during which you may

submit written comments on the

amendment, and the procedures that we

will follow for the public hearing, if one

is requested.

DATES: We will accept written

comments until 4:00 p.m., e.s.t.,

February 12, 2001. If requested, we will

hold a public hearing on the

amendment on February 5, 2001. We

will accept requests to speak at the

hearing until 4:00 p.m., e.s.t. on January

26, 2001.

ADDRESSES: You should mail or hand

deliver written comments and requests

to speak at the hearing to Andrew R.

Gilmore, Director, Indianapolis Field

Office, at the address listed below.

You may review copies of the Indiana

program, the amendment, a listing of

any scheduled public hearings, and all

written comments received in response

to this document at the addresses listed

below during normal business hours,

Monday through Friday, excluding

holidays. You may receive one free copy

of the amendment by contacting OSM’s

Indianapolis Field Office.

Andrew R. Gilmore, Director,

Indianapolis Field Office, Office of

Surface Mining Reclamation and

Enforcement, Minton-Capehart

Federal Building, 575 North

Pennsylvania Street, Room 301,