Disclosure of Return Information to the
Bureau of the Census

DEPARTMENT OF THE TREASURY
Internal Revenue Service 26 CFR Part 301 [TD 8908] RIN 1545-AV84

TITLE: Disclosure of Return Information to the Bureau of the Census

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations.

SUMMARY: This document contains final regulations relating to
additions to, and deletions from, the list of items of information
disclosed to the Bureau of the Census for use in certain statistical
programs. These regulations reflect agreement between the IRS and
the Bureau of the Census as to items of business tax information
needed to more effectively meet the Bureau of the Census' program
objectives with respect to existing economic programs.

DATES: Effective Date: These regulations are effective on November
30, 2000. Applicability Date: For the date of applicability, see
�301.6103(j)(1)-1(e).

FOR FURTHER INFORMATION CONTACT: Stuart Murray, (202) 622- 4570 (not
a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

On January 25, 1999, a temporary regulation (TD 8811) relating to.
disclosure of return information to the Bureau of the Census was
published in the Federal Register (64 FR 3631). A notice of proposed
rulemaking (REG-121806- 97) cross-referencing the temporary
regulations was published in the Federal Register for the same day
(64 FR 3669). No public hearing was requested or held. No written or
electronic comments responding to the notice of proposed rulemaking
were received. Accordingly, the proposed regulations are adopted as
revised by this Treasury decision, and the corresponding temporary
regulations are removed.

The regulations proposed by REG-121806-97 are adopted by this
Treasury decision without revision and are discussed below.

Explanation of Provisions

Under section 6103(j)(1) of the Internal Revenue Code, upon written
request from the Secretary of Commerce, the Secretary is to furnish
to the Bureau of the Census (Bureau) tax return information that is
prescribed by Treasury regulations for the purpose of but only to
the extent necessary in structuring censuses and national economic
accounts and conducting related statistical activities authorized by
law. Section 301.6103(j)(1)-1 of the regulations provides an
itemized description of the return information authorized to be
disclosed for this purpose. Periodically, the disclosure regulations
are amended to reflect the changing needs of the Bureau for data for
its statutorily authorized statistical activities.

The amendments adopted by this Treasury decision authorize IRS
personnel. to disclose additional items of return information that
have been requested by the Secretary of Commerce, and to delete
certain items of return information that are enumerated in the
regulations but that the Secretary of Commerce has indicated are no
longer needed.

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 the regulations do not impose a collection of information on
small entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6)
does not apply. Pursuant to section 7805(f) of the Internal Revenue
Code, the notice of proposed rulemaking preceding these regulations
was 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 Jamie Bernstein of the
Office of Associate Chief Counsel, Procedure & Administration
(Disclosure & Privacy Law Division). However, other personnel from
the IRS and Treasury Department participated in their 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 Regu ations

Accordingly, 26 CFR Part 301 is amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

Paragraph 1. The authority citation for part 301 is amended in part
by removing the entry for Section 301.6103(j)(1) - 1T and adding an
entry in numerical order to read as follows:

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

Section 301.6103(j)(1)-1 also issued under 26 U.S.C. 6103(j)(1);* *
* Par. 2. Section 301.6103(j)(1)-1 is amended by:

1. Revising paragraphs (b)(3) and (b)(6)(i)(A).

2. Adding paragraphs (b)(6)(iii) and (e). The revisions and addition
read as follows:

�301.6103(j)(1)-1 Disclosures of return information to officers and
employees of the Department of Commerce for certain statistical
purposes and related activities.

* * * * *

(b) * * *

(3) Officers or employees of the Internal Revenue Service will
disclose the following business related return information reflected
on the return of a taxpayer to officers and employees of the Bureau
of the Census for purposes of, but only. to the extent necessary in,
conducting and preparing, as authorized by chapter 5 of title 13,
United States Code, demographic and economic statistics programs,
censuses, and surveys. The "return of a taxpayer" includes, but is
not limited to, Form 941; Form 990 series; Form 1040 series and
Schedules C and SE; Form 1065 and all attending schedules and Form
8825; Form 1120 series and all attending schedules and Form 8825;
Form 851; Form 1096; and other business returns, schedules and forms
that the Internal Revenue Service may issue--

(i) Taxpayer identity information (as defined in section 6103(b)(6))
including parent corporation, shareholder, partner, and employer
identity information;

(ii) Gross income, profits, or receipts;

(iii) Returns and allowances;

(iv) Cost of labor, salaries, and wages;

(v) Total expenses or deductions;

(vi) Total assets;

(vii) Beginning- and end-of-year inventory;

(viii) Royalty income;

(ix) Interest income, including portfolio interest;

(x) Rental income, including gross rents;

(xi) Tax-exempt interest income;

(xii) Net gain from sales of business property;

(xiii) Other income;

(xiv) Total income;

(xv) Percentage of stock owned by each shareholder;

(xvi) Percentage of capital ownership of each partner;

(xvii) End-of-year code;

(xviii) Months actively operated;

(xix) Principal industrial activity code, including the business
description;

(xx) Total number of documents and the total amount reported on the
Form 1096 transmitting Forms 1099-MISC;

(xxi) Form 941 indicator and business address on Schedule C; and

(xxii) Consolidated return indicator.

* * * * *

(6)(i) * * *

(A) From the business master files of the Internal Revenue Service--

(1) Taxpayer identity information (as defined in section 6103(b)
(6)), including parent corporation identity information;

(2) Document code;

(3) District office code;

(4) Consolidated return and final return indicators;

(5) Principal industrial activity code;

(6) Partial year indicator;

(7) Annual accounting period;

(8) Gross receipts less returns and allowances; and

(9) Total assets.

* * * * *

(iii) Information from an employment tax return disclosed pursuant
to paragraphs (b)(2)(iii)(A), (B), (D), (I) and (J) of this section
may be used by officers and employees of the Bureau of the Census
for the purpose described in and subject to the limitations of this
paragraph (b)(6).

* * * * *

(e) Effective date. This section is applicable to the Bureau of the
Census on November 30, 2000.

�301.6103(j)(1)-1T [Removed ]

Par. 3. Section 301.6103(j)(1)-1T is removed.

Deputy Commissioner of the Internal Revenue
Robert E. Wenzel
Approved:
November 21, 2000 Acting Assistant Secretary of the Treasury
Jonathan Talisman

SEARCH:

You can search the entire Tax Professionals section, or all of Uncle Fed's Tax*Board. For a more focused search, put your search word(s) in quotes.

2000 Regulations Main | IRS Regulations Main | Home