Furnishing Identifying Number of
Income Tax Return Preparer

DEPARTMENT OF THE TREASURY
Internal Revenue Service 26 CFR Part 1 [TD 8835] RIN 1545-AX27

TITLE: Furnishing Identifying Number of Income Tax Return Preparer

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Temporary and final regulations.

SUMMARY: This document contains temporary and final regulations that
allow income tax return preparers to elect an alternative to their
social security number (SSN) for purposes of identifying themselves
on returns they prepare. The regulations are needed to implement
changes made to the applicable law by the Internal Revenue Service
Restructuring and Reform Act of 1998. The regulations affect
individual preparers who elect to identify themselves using a number
other than their SSN. The text of the temporary regulations also
serves as the text of the proposed regulations set forth in the
notice of proposed rulemaking on this subject in the Proposed Rules
section in this issue of the Federal Register.

DATES: Effective Date: These regulations are effective August 12,
1999.

Applicability Date: For dates of applicability of these regulations,
see ��1.6109-2(d) and 1.6109-2T(d).

FOR FURTHER INFORMATION CONTACT: Andrew J. Keyso, (202) 622-4910
(not a toll-free call).

SUPPLEMENTARY INFORMATION:

Background

Section 6109(a)(4) of the Internal Revenue Code provides that any
return or claim for refund prepared by an income tax return preparer
must bear the identifying number of the preparer as required by
regulations prescribed by the Secretary. Prior to its amendment by
the Internal Revenue Service Restructuring and Reform Act of 1998
(Public Law 105-206, 112 Stat. 685 (RRA '98)), section 6109(a)
provided that the identifying number of an individual preparer was
that preparer's social security number (SSN).

Section 3710 of RRA '98 amended section 6109(a) by removing the
requirement that an individual preparer's identifying number be the
preparer's SSN. Instead, the Secretary may prescribe alternatives to
the SSN for purposes of identifying individual preparers.

Explanation of Provisions

On December 21, 1998, the IRS published Notice 98-63, 1998- 51 IRB
15, to inform preparers of the IRS's intention to develop a system
of alternative identifying numbers. This document contains
amendments to the Income Tax Regulations (26 CFR part 1) to allow
individual preparers to either use their SSN or elect an alternative
identifying number for purposes of identifying themselves on returns
they prepare. The IRS will develop a form on which preparers may
apply for an alternative identifying number.

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) of the Administrative Procedure Act
(5 U.S.C. chapter 5) does not apply to these regulations, and
because these regulations do not impose a collection of information
on small entities, the Regulatory Flexibility Act (5 U.S.C. chapter
6) does not apply. For the applicability of the Regulatory
Flexibility Act (5 U.S.C. chapter 6) refer to the Special Analyses
section of the preamble of the cross-reference notice of proposed
rulemaking published in the Proposed Rules section in this issue of
the Federal Register.

Pursuant to section 7805(f) of the Internal Revenue Code, these
regulations will be submitted to the Chief Counsel for Advocacy of
the Small Business Administration for comment on their impact on
small business.

Drafting Information

The principal author of these regulations is Andrew J.

Keyso, Office of Assistant Chief Counsel (Income Tax & Accounting).
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.

Adoption of 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 1.6109-2 is amended by:

1. Revising the first sentence of paragraph (a) introductory text;

2. Adding paragraph (d).

The revision and addition read as follows:

�1.6109-2 Furnishing identifying number of income tax return
preparer.

(a) Furnishing identifying number. For returns or claims for refund
filed prior to January 1, 2000, each return of tax under subtitle A
of the Internal Revenue Code or claim for refund of tax under
subtitle A of the Internal Revenue Code prepared by one or more
income tax return preparers must bear the identifying number of the
preparer required by �1.6695-1(b) to sign the return or claim for
refund. * * *

* * * * *

(d) Effective date. Paragraph (a) of this section and this paragraph
(d) apply to returns or claims for refund filed prior to January 1,
2000. For returns or claims for refund filed after December 31,
1999, see �1.6109-2T(a).

Par. 3. Section 1.6109-2T is added to read as follows:

�1.6109-2T Furnishing identifying number of income tax return
preparer (temporary).

(a) Furnishing identifying number. (1) Each return of tax, or claim
for refund of tax, under subtitle A of the Internal Revenue Code
prepared by one or more income tax return preparers must include the
identifying number of the preparer required by �1.6695-1(b) to sign
the return or claim for refund. In addition, if there is a
partnership or employment arrangement between two or more preparers,
the identifying number of the partnership or employer must also
appear on the return or claim for refund. For the definition of the
term income tax return preparer (or preparer) see section 7701(a)
(36) and �301.7701-15 of this chapter.

(2) The identifying number of a preparer who is an individual (not
described in paragraph (a)(3) of this section) is that individual's
social security account number, or such alternative number as may be
prescribed by the Internal Revenue Service in forms, instructions,
or other appropriate guidance.

(3) The identifying number of a preparer (whether an individual,
corporation, or partnership) who employs or engages one or more
persons to prepare the return or claim for refund (other than for
the preparer) is that preparer's employer identification number.

(b) and (c) [Reserved]. For further guidance, see �1.6109- 2(b) and
(c).

(d) Effective date. Paragraph (a) of this section and this paragraph
(d) apply to returns or claims for refund filed after December 31,
1999. For returns or claims for refund filed prior to January 1,
2000, see �1.6109-2(a).

Robert E. Wenzel
Deputy Commissioner of Internal Revenue
Approved: August 3, 1999
Donald C. Lubick
Assistant Secretary of the Treasury

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