Source: https://www.irs.gov/irb/2004-08_IRB/ar12.html
Timestamp: 2017-07-27 14:53:03
Document Index: 3936269

Matched Legal Cases: ['ART 301', 'art 301', 'art 301', 'art 301', 'ART 301', '§301', '§301']

Internal Revenue Bulletin - February 23, 2004 - T.D. 9111 Skip Navigation
Internal Revenue Bulletin: 2004-8 February 23, 2004 T.D. 9111 Definition of Agent for Certain Purposes Table of Contents
Background Special Analyses Adoption of Amendments to the Regulations PART 301 — PROCEDURE AND ADMINISTRATION
Drafting Information DEPARTMENT OF THE TREASURY Internal Revenue Service 26 CFR Part 301 AGENCY:
This document contains final regulations relating to the definition of agent for certain purposes. The final regulations
clarify that the term agent in certain provisions of section 6103 of the Internal Revenue Code (Code) includes contractors.
Background This document contains amendments to 26 CFR part 301 under section 6103(l) and (m) of the Code. On February 1, 2002, the
Federal Register published a notice of proposed rulemaking (REG-120135-01, 2002-1 C.B. 552 [67 FR 4938]) regarding the definition of agent
for certain purposes. No public comments or requests for hearing were received. The Treasury decision adopts the regulations
Generally, returns and return information are confidential under section 6103 of the Code unless a specific statutory exception
applies. In cases of non-tax-related disclosures, returns and return information generally may be disclosed only to officers
and employees of Federal, state, and local government agencies, and not to contractors or agents of such agencies. In certain
limited circumstances, however, Congress has permitted disclosures to “agents” of these agencies. See section 6103(l)(6)(B),
(l)(12), (m)(2), (m)(4), (m)(5), (m)(7). This document contains final regulations that clarify that the term agent in section 6103(l) and (m) includes contractors. Clarification that the term agent includes contractors is necessary for the purpose of bringing certain statutory grants of disclosure authority into alignment
with the reality of many agencies’ operations. Agencies generally procure the services of third parties under public contracting
laws, which do not necessarily incorporate common law concepts of agent. This clarification is also consistent with Congressional intent. For example, the Senate Finance Committee, in amending
section 6103(m)(2), stated, “[a]gents are those who are engaged directly in performing or assisting in collection functions
for the federal government, presumably, private collection agencies who have contracted with the government to collect claims
... .” S. Rep. No. 97-378, at 15 (1982).
This clarification does not provide any new disclosure authority, nor does it authorize the disclosure of return information
to contractors that Congress has not previously specifically authorized in the Code. With regard to protection of taxpayer
data, agents/contractors are subject to safeguard requirements, redisclosure prohibitions, and civil and criminal penalties
for unauthorized disclosures. Accordingly, the regulations do not have an impact on taxpayer privacy. 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. It also has been determined that section 553(b) and (d) 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 Code, the notice of
proposed rulemaking preceding these regulations was submitted to the Chief Counsel of the Small Business Administration for
Adoption of Amendments to the Regulations Accordingly, 26 CFR part 301 is amended as follows: PART 301 — PROCEDURE AND ADMINISTRATION
Authority: 26 U.S.C. 7805 * * * Section 301.6103(l)-1 also issued under 26 U.S.C. 6103(q).
Section 301.6103(m)-1 also issued under 26 U.S.C. 6103(q). * * * Par. 2. Section 301.6103(l)-1 is added to read as follows:
§301.6103(l)-1 Disclosure of returns and return information for purposes other than tax administration. (a) Definition. For purposes of applying the provisions of section 6103(l) of the Internal Revenue Code, the term agent includes a contractor.
(b) Effective date. This section is applicable January 6, 2004. Par. 3. Section 301.6103(m)-1 is added to read as follows:
§301.6103(m)-1 Disclosure of taxpayer identity information. (a) Definition. For purposes of applying the provisions of section 6103(m) of the Internal Revenue Code, the term agent includes a contractor.
(b) Effective date. This section is applicable January 6, 2004. Mark E. Matthews, Deputy Commissioner forServices and Enforcement. Approved December 16, 2003.
Pamela F. Olson, Assistant Secretary of the Treasury (Tax Policy). Note
for January 6, 2004, 69 F.R. 506)
Drafting Information The principal author of these regulations is Helene R. Newsome, Office of the Associate Chief Counsel (Procedure & Administration),
Disclosure & Privacy Law Division. * * * * *