Federal Register / Vol. 66, No. 8 / Thursday, January 11, 2001 / Rules and Regulations 2261

Example. (i) Taxpayer A, an individual,

mailed his 2001 Form 1040, ‘‘U.S. Individual

Income Tax Return,’’ on April 15, 2005,

claiming a refund of amounts paid through

withholding during 2001. The date of the

postmark on the envelope containing the

return and claim for refund is April 15, 2005.

The return and claim for refund are received

by the Internal Revenue Service (IRS) on

April 18, 2005. Amounts withheld in 2001

exceeded A’s tax liability for 2001 and are

treated as paid on April 15, 2002, pursuant

to section 6513.

(ii) Even though the date of the postmark

on the envelope is after the due date of the

return, the claim for refund and the late filed

return are treated as filed on the postmark

date for purposes of this paragraph (f).

Accordingly, the return will be treated as

filed on April 15, 2005. In addition, the claim

for refund will be treated as timely filed on

April 15, 2005. Further, the entire amount of

the refund attributable to withholding is

allowable as a refund under section

6511(b)(2)(A).

(g) Effective date—(1) In general.

Except as provided in paragraphs (g)(2)

and (3) of this section, the rules of this

section apply to any payment or

document mailed and delivered in

accordance with the requirements of

this section in an envelope bearing a

postmark dated after January 11, 2001.

(2) Claim for credit or refund on late

filed tax return. Paragraph (f) of this

section applies to any claim for credit or

refund on a late filed tax return

described in paragraph (f)(1) of this

section except for those claims for credit

or refund which (without regard to

paragraph (f) of this section) were barred

by the operation of section 6532(a) or

any other law or rule of law (including

res judicata) as of January 11, 2001.

(3) Electronically filed documents.

This section applies to any

electronically filed return, claim,

statement, or other document

transmitted to an electronic return

transmitter that is authorized to provide

an electronic postmark pursuant to

paragraph (d)(2) of this section after

January 11, 2001.

§ 301.7502–1T [Removed]

Par. 3. Section 301.7502–1T is

removed.

Par. 4. Section 301.7502–2 is added to

read as follows:

§ 301.7502–2 Timely mailing of deposits.

(a) General rule—(1) Two day rule.

Section 7502(e) provides that, if the

requirements of that section are met, a

deposit is deemed to be received on the

date the deposit was mailed even

though it is received after the date

prescribed for making the deposit. The

requirements of the section are met if

the person required to make the deposit

establishes that the date of mailing was

on or before the second day preceding

the date prescribed for making the

deposit. If the date of mailing was not

established to be on or before the second

day preceding the date prescribed for

making the deposit, the deposit will not

be considered timely received unless it

is actually received on or before the date

prescribed for making the deposit.

Section 7502(e) only applies to a deposit

mailed to the financial institution

authorized to receive that deposit. Thus,

section 7502(e) does not apply to any

remittance mailed to an internal

revenue service center.

(2) Deposits of $20,000 or more.

Paragraph (a)(1) of this section does not

apply with respect to any deposit of

$20,000 or more by any person required

to deposit any tax more than once a

month. Any such deposit must be made

by the due date for such deposit,

regardless of the method of delivery.

(b) Deposit defined. The term deposit,

as used in this section, means any

deposit of tax required to be made on or

before a prescribed date at an authorized

financial institution pursuant to

regulations prescribed under section

6302.

(c) Mailing requirements—(1) In

general. Section 7502(e) does not apply

unless the deposit is mailed in

accordance with the requirements of

paragraph (c)(2) of this section.

(2) Requirements. The date of mailing

must fall on or before the second day

preceding the prescribed date for

making a deposit (including any

extension of time granted for making the

deposit). For example, if a deposit is

due on or before January 15, the date of

mailing must fall on or before January

13. The deposit must be contained in an

envelope or other appropriate wrapper

approved for use in the mails by the

U.S. Postal Service, properly addressed

to the financial institution authorized to

receive the deposit. The deposit must be

deposited with sufficient postage

prepaid in the mail in the United States

within the meaning of § 301.7502–1 on

or before the second day preceding the

prescribed date for making a deposit.

(3) Registered and certified mail. The

provisions of § 301.7502–1(c)(2) apply

to a deposit sent by U.S. registered mail

or U.S. certified mail as if the deposit

were a payment, except that the date of

registration or the date of the postmark

on the sender’s receipt is considered the

date of mailing of such deposit.

(d) Delivery. Section 7502(e) does not

apply unless a deposit is actually

delivered by U.S. mail to the authorized

financial institution with which the

deposit is required to be made and is

accepted by that financial institution.

For rules relating to the acceptance of

deposits by authorized financial

institutions see 31 CFR 203.18. The fact

that a deposit is sent by U.S. registered

or U.S. certified mail does not constitute

prima facie evidence that the deposit

was delivered to the financial

institution authorized to receive the

deposit. Section 7502(e) does not apply

unless the deposit is delivered after the

date prescribed for making the deposit.

(e) Effective date. This section applies

to all deposits required to be made after

January 11, 2001.

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

Approved: December 21, 2000.

Jonathan Talisman,

Acting Assistant Secretary of the Treasury.

[FR Doc. 01–130 Filed 1–10–01; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 8935]

RIN 1545–AY59

Disclosure of Returns and Return

Information to Designee of Taxpayer

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Temporary regulation.

SUMMARY: This document contains a

temporary regulation relating to the

disclosure of returns and return

information to a designee of the

taxpayer. The temporary regulation

provides guidance to IRS employees

responsible for disclosing returns and

return information and to taxpayers who

wish to designate a person or persons to

whom returns and return information

may be disclosed. The portion of this

temporary regulation pertaining to

nonwritten requests or consents reflects

changes to the law made by the

Taxpayer Bill of Rights II, Public Law

104–168, section 1207, 110 Stat. 1473.

With respect to written requests or

consents, the temporary regulation

amends the existing regulation to

provide further guidance in certain

limited situations and to clarify existing

procedures. The text of the temporary

regulation also serves as the text of the

proposed regulation set forth in the

notice of proposed rulemaking on this

subject in the Proposed Rules section of

this issue of the Federal Register.

DATES: Effective Date: This regulation is

effective January 11, 2001.

Applicability Date: For dates of

applicability, see § 301.6103(c)–1T(g).

2262 Federal Register / Vol. 66, No. 8 / Thursday, January 11, 2001 / Rules and Regulations

FOR FURTHER INFORMATION CONTACT:

Joseph Conley, (202) 622–4580 (not a

toll-free number).

Background

Under section 6103(a), returns and

return information are confidential

unless disclosure is otherwise

authorized by the Internal Revenue

Code. 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. This document

contains a temporary regulation that

authorizes the disclosure of tax returns

and return information to a designee of

the taxpayer pursuant to a nonwritten

request or consent when the taxpayer

seeks the assistance of a third party in

resolving a tax matter.

This document also amends the

existing regulation to clarify the rules

applicable to written requests or

consents to disclosure. On October 3,

1980, a final regulation (TD 7723)

relating to the disclosure of tax returns

and return information to a person

designated by the taxpayer in a written

request or consent were published in

the Federal Register (45 FR 65564).

Since the publication of this final

regulation, the IRS and the Treasury

Department have determined that

further guidance on written consent

requirements is necessary.

Explanation of Provisions

Nonwritten consents

Under the existing regulation, if a

taxpayer wishes a third party to assist in

the resolution of a tax matter between

the taxpayer and the IRS, and the third

party is not otherwise authorized to

practice before the Internal Revenue

Service, a written section 6103(c)

request or consent must be executed by

the taxpayer.

The temporary regulation authorizes

the IRS to accept nonwritten requests or

consents authorizing the disclosure of

tax returns and return information to

third parties assisting taxpayers in

resolving tax related matters. Thus, for

example, the temporary regulation

clarifies that the taxpayer can orally

consent to disclosures by the IRS to a

person accompanying the taxpayer to

meetings or interviews with the IRS, or

participating in a telephone

conversation with the taxpayer. When

the taxpayer is present, either physically

or on the telephone, the taxpayer will be

able to knowingly and voluntarily

consent to the disclosure without the

need for further expressing that intent in

writing.

Thus, the use of nonwritten consents

will enable the IRS to improve its

customer service in that, with the

assistance of their designees, taxpayers

will be able to resolve tax problems in

a more timely fashion, without the need

for burdensome paperwork.

Additionally, nonwritten requests or

consents will assist the IRS in moving

to a paperless environment by further

facilitating the use of electronic

communication systems.

As with written requests or consents,

before disclosing tax returns and return

information to a third party pursuant to

a taxpayer’s nonwritten request or

consent, the IRS will take reasonable

steps to confirm the identity of the

taxpayer and the designee. For example,

IRS personnel, pursuant to existing

procedures, verify that they are speaking

to the taxpayer prior to disclosing return

information to that taxpayer.

Nonwritten requests for or consents to

disclosure do not take the place of a

power of attorney authorizing a third

party to represent the taxpayer before

the IRS. Practice before the IRS remains

governed by the regulations at 26 CFR

601.501 et seq. and Treasury

Department Circular 230 (31 CFR part

10).

Acknowledgments of, and Notices

Regarding, Electronically Filed Returns

The temporary regulation also

provides parameters for the

development of consents for the

electronic filing program. The IRS

currently provides an acknowledgment

to an electronic return originator (ERO)

to indicate that it has received

information from the ERO in an

acceptable form, and that the taxpayer

identity information, as defined by

section 6103(b)(6), matches IRS records.

Alternatively, the IRS may notify the

ERO that it has rejected the ERO’s

electronic submission because the

taxpayer identity information does not

match IRS records or, for example,

because the taxpayer is not responsible

for the tax payment. The taxpayer may

also have authorized an electronic debit

to pay a tax debt, and the taxpayer may

want the IRS to send an

acknowledgment to the ERO that the

account has been properly debited, or to

disclose information to the taxpayer’s

financial institution to resolve a

problem with the electronic debit

transaction. To ensure that the IRS is

authorized to disclose tax returns and

return information to third parties in an

electronic system, the IRS must receive

a valid request for or consent to

disclosure pursuant to section 6103(c).

The current system requires the

taxpayer to execute a written consent on

Form 8453 to permit these disclosures.

The temporary regulation authorizes

an electronic consent to permit the

disclosures of the return information

described above and such other

information as the IRS determines is

necessary to the operation of the

electronic filing program. Such consent

must inform the taxpayer of the return

information that will be transmitted to

the ERO and other third parties as a

result of the electronic filing of the

taxpayer’s return or other information.

Combined FedState Filing Programs

The temporary regulation also reduces

the burden on taxpayers in combined

Federal-State (FedState) return filing

programs. If the taxpayer files a single

combined Federal and State tax return

with the IRS, the information contained

in such FedState return that is gathered

with respect to a taxpayer’s liability

under both Federal and State law,

including the taxpayer’s name, taxpayer

identification number, and adjusted

gross income, is return information

protected by section 6103. If the IRS

discloses such return information to the

State in satisfaction of the taxpayer’s

State filing obligations, the information

can be used by the State only for State

tax administration purposes under

section 6103(d). On the other hand, if a

State tax return is filed directly with the

State, information on the State return is

not subject to the restrictions of section

6103(d) and can be used for appropriate

non-tax purposes permitted under State

law.

In the current electronic FedState

filing program, to avoid these section

6103 restrictions, return preparers make

two separate electronic transmissions to

the IRS—one for the Federal return and

one for the State return. The common

items of data are sent twice, once in the

Federal Register / Vol. 66, No. 8 / Thursday, January 11, 2001 / Rules and Regulations 2263

Federal ‘‘packet’’ and once in the State

‘‘packet.’’ The items of information in

the State packet are not restricted by

section 6103 because they have not been

filed with the IRS with regard to Federal

tax liability.

Alternatively, in the FedState telefile

program, a consent has been developed

that permits the Internal Revenue

Service to disclose common data items

to the State tax agency. The information

received by the State pursuant to the

taxpayer’s request or consent is treated,

for purposes of section 6103, as if the

State had received the information

directly from the taxpayer, and therefore

the information can be used for

appropriate non-tax purposes under

State law.

Under the existing regulation,

consents for FedState filing programs

must comply with current

§ 301.6103(c)–1(a). The existing

regulation requires, among other things,

a separate written consent document.

The IRS and the Treasury Department

believe a taxpayer’s voluntary

participation in an optional FedState

filing program that provides the

taxpayer with notice of the disclosures

to be made to the State as part of the

program constitutes a sufficient

knowing and voluntary consent to

permit disclosures to States in this

situation. To reduce the burden on

taxpayers and improve the efficiency of

tax administration, the temporary

regulation provides that by filing a

combined FedState return, the taxpayer

consents to the disclosure of the

common data items to the State tax

agency, and that the information will be

treated as if it had been received

directly by the State from the taxpayer.

As noted above, the temporary

regulation requires a notice of the

disclosures that are to be made in the

FedState filing program so that

taxpayers may choose to participate in

such programs with knowledge of such

disclosures.

Other Changes

The temporary regulation also

provides needed clarification in a

number of areas not specifically

addressed under the existing regulation.

The temporary regulation provides rules

for receipt of section 6103(c) consents

by entities other than the IRS. Certain

Treasury Department agencies, such as

the Financial Management Service,

perform Federal tax administration

functions and receive tax information

from the IRS. In addition, IRS

contractors receive tax information to

provide tax administration services

pursuant to section 6103(n). The

existing regulation provides only for

receipt of requests for or consents to

disclosure by the IRS. The temporary

regulation permits Federal government

agencies performing Federal tax

administration functions to receive

section 6103(c) consents and disclose

returns and return information in the

possession of such agency to the

taxpayer’s designee. For example, the

temporary regulation clarifies that the

Financial Management Service can

disclose return information related to

the offset of the taxpayer’s tax refund to

the designee of the taxpayer, such as in

response to a Congressional inquiry.

The temporary regulation also clarifies

that receipt of a request or consent by

an agent or contractor of the IRS is the

same as receipt by the IRS. However, an

agent or contractor of the IRS may make

disclosures with the taxpayer’s consent

only if such disclosures are specifically

authorized in the contract or otherwise

specifically authorized in writing by the

IRS. § 301.6103(n)–1(a).

The temporary regulation defines the

term separate written document to

conform to current IRS practice. The

temporary regulation also specifies the

Secretary of the Treasury’s authority to

provide for methods of signing requests

for or consents to disclosure. See

§ 301.6061–1(b).

The temporary regulation clarifies the

requirements for identifying the

designee to whom disclosure is to be

made when the disclosure occurs in a

public forum, such as a courtroom, a

congressional hearing, or in the media.

In these circumstances, it may not be

possible to designate specifically every

person to whom disclosure is to be

made. While identifying individual

designees in a public forum may not be

practical, a taxpayer can knowingly and

voluntarily authorize disclosure in a

public forum by specifically indicating

the circumstances surrounding the

public disclosure, including, for

example, a description of the place,

date, and time. The temporary

regulation also incorporates the

longstanding IRS practice that entities,

such as corporations and State and local

government agencies, are appropriate

designees.

The temporary regulation also affirms

longstanding practices of the IRS

regarding the authority to execute

consents. Generally, persons that may

receive returns pursuant to section

6103(e), paragraphs (1) through (5), may

execute disclosure consents under

section 6103(c). However, a one percent

shareholder of a corporation, who may

receive corporate returns pursuant to

section 6103(e)(1)(D)(iii), may not

execute disclosure consents because the

right of inspection is personal to the

shareholder, and such shareholder is

not permitted to redisclose such

information. See Internal Revenue Code

§§ 6103(a)(3), 7213(a)(5). The temporary

regulation also provides that if the

taxpayer is an entity, generally a person

with authority under State law to bind

the entity may execute a section 6103(c)

consent. Finally, the temporary

regulation provides that the holder of a

taxpayer’s power of attorney may not

execute a disclosure consent unless that

authority is specifically granted in the

power.

Special Analyses

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.

This temporary regulation provides

taxpayers with enhanced procedures to

resolve problems with the IRS. For this

reason, notice and public procedure and

a delayed effective date would be

contrary to the public interest pursuant

to 5 U.S.C. 553(b)(B) and 553(d),

respectively. Because this notice of

proposed rulemaking is required, the

provisions of the Regulatory Flexibility

Act (5 U.S.C. 601 et seq.) do not apply.

Pursuant to section 7805(f) of the

Internal Revenue Code, this temporary

regulation will be 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 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 as

follows:

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

2264 Federal Register / Vol. 66, No. 8 / Thursday, January 11, 2001 / Rules and Regulations

Section 301.6103(c)–1 also issued under 26

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

§ 301.6103(c)–1 [Removed]

Par. 2. Section 301.6103(c)–1 is

removed.

Par. 3. Section 301.6103(c)–1T is

added to read as follows:

§ 301.6103(c)–1T Disclosure of returns and

return information to designee of taxpayer.

(a) Overview. Subject to such

requirements and conditions as the

Secretary of the Treasury may prescribe

by regulation, section 6103(c) of the

Internal Revenue Code authorizes the

Internal Revenue Service to disclose a

taxpayer’s return or return information

to such person or persons as the

taxpayer may designate in a request for

or consent to such disclosure, or to any

other person at the taxpayer’s request to

the extent necessary to comply with the

taxpayer’s request to such other person

for information or assistance. This

regulation contains the requirements

that must be met before, and the

conditions under which, the Internal

Revenue Service may make such

disclosures. Paragraph (b) of this section

provides the requirements that are

generally applicable to designate a third

party to receive the taxpayer’s returns

and return information. Paragraph (c) of

this section provides requirements

under which the Internal Revenue

Service may disclose information in

connection with a taxpayer’s written or

nonwritten request for a third party to

provide information or assistance with

regard to a tax matter, for example, a

Congressional inquiry. Paragraph (d) of

this section provides the parameters for

disclosure consents connected with

electronic return filing programs and

combined Federal State filing. Finally,

paragraph (e) provides definitions and

general rules related to requests for or

consents to disclosure.

(b) Disclosure of returns and return

information to person or persons

designated in a written request or

consent—(1) General requirements.

Pursuant to section 6103(c) of the

Internal Revenue Code, the Internal

Revenue Service (or an agent or

contractor of the Internal Revenue

Service) may disclose a taxpayer’s

return or return information to such

person or persons as the taxpayer may

designate in a request for or consent to

such disclosure. A request for or

consent to disclosure under this

paragraph (b) must be in the form of a

separate written document pertaining

solely to the authorized disclosure. (For

the meaning of separate written

document, see paragraph (e)(1) of this

section.) The separate written document

must be signed (see paragraph (e)(2) of

this section) and dated by the taxpayer

who filed the return or to whom the

return information relates. The taxpayer

must also indicate in the written

document—

(i) The taxpayer’s taxpayer identity

information described in section

6103(b)(6);

(ii) The identity of the person or

persons to whom the disclosure is to be

made;

(iii) The type of return (or specified

portion of the return) or return

information (and the particular data)

that is to be disclosed; and

(iv) The taxable year or years covered

by the return or return information.

(2) Requirement that request or

consent be received within sixty days of

when signed and dated. The disclosure

of a return or return information

authorized by a written request for or

written consent to the disclosure shall

not be made unless the request or

consent is received by the Internal

Revenue Service (or an agent or

contractor of the Internal Revenue

Service) within 60 days following the

date upon which the request or consent

was signed and dated by the taxpayer.

(c) Disclosure of returns and return

information to designee of taxpayer to

comply with a taxpayer’s request for

information or assistance. Where a

taxpayer makes a written or nonwritten

request, directly to another person or to

the Internal Revenue Service, that such

other person (for example, a member of

Congress, friend, or relative of the

taxpayer) provide information or

assistance relating to the taxpayer’s

return or to a transaction or other

contact between the taxpayer and the

Internal Revenue Service, the Internal

Revenue Service (or an agent or

contractor of the Internal Revenue

Service or a Federal government agency

performing a Federal tax administration

function) may disclose returns or return

information to such other person under

the circumstances set forth in

paragraphs (c) (1) through (3) of this

section.

(1) Written request for information or

assistance. (i) The taxpayer’s request for

information or assistance may be in the

form of a letter or other written

document, which must be signed (see

paragraph (e)(2) of this section) and

dated by the taxpayer. The taxpayer

must also indicate in the written

request—

(A) The taxpayer’s taxpayer identity

information described in section

6103(b)(6);

(B) The identity of the person or

persons to whom disclosure is to be

made; and

(C) Sufficient facts underlying the

request for information or assistance to

enable the Internal Revenue Service to

determine the nature and extent of the

information or assistance requested and

the returns or return information to be

disclosed in order to comply with the

taxpayer’s request.

(ii) A person who receives a copy of

a taxpayer’s written request for

information or assistance but who is not

the addressee of the request, such as a

member of Congress who is provided

with a courtesy copy of a taxpayer’s

letter to another member of Congress or

to the Internal Revenue Service, cannot

receive returns or return information

under paragraph (c)(1) of this section.

(2) Nonwritten request or consent. (i)

A request for information or assistance

may also be nonwritten. Disclosure of

returns and return information to a

designee pursuant to a taxpayer’s

nonwritten request will be made only

after the Internal Revenue Service has—

(A) Obtained from the taxpayer

sufficient facts underlying the request

for information or assistance to enable

the Internal Revenue Service to

determine the nature and extent of the

information or assistance requested and

the return or return information to be

disclosed in order to comply with the

taxpayer’s request;

(B) Confirmed the identity of the

taxpayer and the designee; and

(C) Confirmed the date, the nature,

and the extent of the information or

assistance requested.

(ii) Examples of disclosures pursuant

to nonwritten requests for information

or assistance under this paragraph (c)(2)

include, but are not limited to,

disclosures to a friend, relative, or other

person whom the taxpayer brings to an

interview or meeting with Internal

Revenue Service officials, or disclosures

to a person whom the taxpayer wishes

to involve in a telephone conversation

with Internal Revenue Service officials.

(3) Rules applicable to written and

nonwritten requests for information or

assistance. A return or return

information will be disclosed to the

taxpayer’s designee as provided by this

paragraph only to the extent considered

necessary by the Internal Revenue

Service to comply with the taxpayer’s

request or consent. Such disclosures

shall not be made unless the request or

consent is received by the Internal

Revenue Service, its agent or contractor,

or a Federal government agency

performing a Federal tax administration

function in connection with a request

for advice or assistance relating to such

function. This paragraph (c) does not

apply to disclosures to a taxpayer’s

representative in connection with

Federal Register / Vol. 66, No. 8 / Thursday, January 11, 2001 / Rules and Regulations 2265

practice before the Internal Revenue

Service (as defined in Treasury

Department Circular No. 230). For

disclosures in these cases, see section

6103(e)(6) and §§ 601.501 through

601.508 of this chapter.

(d) Acknowledgments of electronically

filed returns and other documents;

combined filing programs with State tax

agencies—(1) Acknowledgment of, and

notices regarding, electronically filed

returns and other documents. When a

taxpayer files returns or other

documents or information with the

Internal Revenue Service electronically,

the taxpayer may consent to the

disclosure of return information to the

transmitter or other third party, such as

the taxpayer’s financial institution,

necessary to acknowledge that the

electronic transmission was received

and either accepted or rejected by the

Internal Revenue Service, the reason for

any rejection, and such other

information as the Internal Revenue

Service determines is necessary to the

operation of the electronic filing

program. The consent must inform the

taxpayer of the return information that

will be transmitted and to whom

disclosure will be made. The

requirements of paragraphs (b) and (c) of

this section do not apply to a consent

under this paragraph (d)(1).

(2) Combined return filing programs

with State tax agencies. (i) A taxpayer’s

participation in a combined return filing

program between the Internal Revenue

Service and a State agency, body, or

commission (State agency) described in

section 6103(d)(1) constitutes a consent

to the disclosure by the Internal

Revenue Service, to the State agency, of

taxpayer identity information, signature,

and items of common data contained on

such return. For purposes of this

paragraph, common data means

information reflected on the Federal

return required by State law to be

attached to or included on the State

return. Instructions accompanying the

forms or published procedures involved

in such program must indicate that by

participating in the program, the

taxpayer is consenting to the Internal

Revenue Service’s disclosure to the

State agency of the taxpayer identity

information, signature, and items of

common data, and that such

information will be treated by the State

agency as if it had been directly filed

with the State agency. Such instructions

or procedures must also describe any

verification that takes place before the

taxpayer identity information, signature

and common data is transmitted by the

Internal Revenue Service to the State

agency.

(ii) No disclosures may be made

under this paragraph (d)(2) unless there

are provisions of State law protecting

the confidentiality of such items of

common data.

(e) Definitions and rules applicable to

this section—(1) Separate written

document. (i) For the purposes of

paragraph (b) of this section, separate

written document means—

(A) One side of a standard (81⁄2′′ by

11′′ or larger) sheet of paper, which may

be included as part of a larger

document;

(B) Text appearing on a single

computer screen containing all the

elements described in paragraph (b)(1)

of this section, which can be signed (see

paragraph (e)(2) of this section) and

dated by the taxpayer, and which can be

reproduced, if necessary; or

(C) A consent on the record in an

administrative or judicial proceeding, or

a transcript of such proceeding

recording such consent, containing the

information required under paragraph

(b)(1) of this section.

(ii) A provision included in a

taxpayer’s application for a loan or other

benefit authorizing the grantor of the

loan or other benefit to obtain any

financial information, including returns

or return information, from any source

as the grantor may request for purposes

of verifying information supplied on the

application, does not meet the

requirements of paragraph (b)(1) of this

section because the provision is not a

separate written document relating

solely to the disclosure of returns and

return information. In addition, the

provision does not contain the other

information specified in paragraph

(b)(1) of this section.

(2) Method of signing. A request for or

consent to disclosure may be signed by

any method of signing the Secretary of

the Treasury has prescribed pursuant to

§ 301.6061–1(b) in forms, instructions,

or other appropriate guidance.

(3) Permissible designees and public

forums. Permissible designees under

this section include individuals; trusts;

estates; corporations; partnerships;

Federal, State, local and foreign

government agencies or subunits of such

agencies; or the general public. When

disclosures are to be made in a public

forum, such as in a courtroom or

congressional hearing, the request for or

consent to disclosure must describe the

circumstances surrounding the public

disclosure, e.g., congressional hearing,

judicial proceeding, media, and the date

or dates of the disclosure.

(4) Authority to execute a request for

or consent to disclosure. Any person

who may obtain returns under section

6103(e)(1) through (5), except section

6103(e)(1)(D)(iii), may execute a request

for or consent to disclose a return or

return information to third parties. For

taxpayers that are legal entities, such as

corporations and municipal bond

issuers, any officer of the entity with

authority under applicable State law to

legally bind the entity may execute a

request for or consent to disclosure. A

person described in section 6103(e)(6) (a

taxpayer’s representative or individual

holding a power of attorney) may not

execute a request for or consent to

disclosure unless the designation of

representation or power of attorney

specifically delegates such authority. A

designee pursuant to this section does

not have authority to execute a request

for or consent to disclosure permitting

the Internal Revenue Service to disclose

returns or return information to another

person.

(5) No disclosure of return

information if impairment. A disclosure

of return information shall not be made

under this section if the Internal

Revenue Service determines that the

disclosure would seriously impair

Federal tax administration (as defined

in section 6103(b)(4) of the Internal

Revenue Code).

(f) Effective date. This section is

applicable on January 11, 2001 through

January 12, 2004.

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

Approved: December 29, 2000.

Jonathan Talisman

Assistant Secretary of the Treasury.

[FR Doc. 01–485 Filed 1–10–01; 8:45 am]

BILLING CODE 4830–01–P

DEPARTMENT OF LABOR

Occupational Safety and Health

Administration

29 CFR Part 1956

RIN 1218–AB98

Notice of Initial Approval

Determination; New Jersey Public

Employee Only State Plan

AGENCY: Occupational Safety and Health

Administration, Department of Labor

(OSHA).

ACTION: Final Rule: Initial State Plan

Approval; New Jersey Public Employee

Only State Plan.

SUMMARY: The New Jersey Public

Employee Only State plan, a State

occupational safety and health plan

applicable only to public sector

employees (employees of the State and

its political subdivisions), is approved