81 FR 9766 - Disclosures of Return Information Reflected on Returns to Officers and Employees of the Department of Commerce for Certain Statistical Purposes and Related Activities

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 81, Issue 38 (February 26, 2016)

Page Range		9766-9768
FR Document		2016-04310

This document contains final regulations that authorize the disclosure of certain items of return information to the Bureau of the Census (Bureau) in conformance with section 6103(j)(1) of the Internal Revenue Code (Code). These regulations finalize temporary regulations that were made pursuant to a request from the Secretary of Commerce. These regulations require no action by taxpayers and have no effect on their tax liabilities. Thus, no taxpayers are likely to be affected by the disclosures authorized by this guidance.

Federal Register, Volume 81 Issue 38 (Friday, February 26, 2016)

[Federal Register Volume 81, Number 38 (Friday, February 26, 2016)]
[Rules and Regulations]
[Pages 9766-9768]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-04310]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 9754]
RIN 1545-BL59


Disclosures of Return Information Reflected on Returns to 
Officers and Employees of the Department of Commerce for Certain 
Statistical Purposes and Related Activities

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations and removal of temporary regulations.

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SUMMARY: This document contains final regulations that authorize the 
disclosure of certain items of return information to the Bureau of the 
Census (Bureau) in conformance with section 6103(j)(1) of the Internal 
Revenue Code (Code). These regulations finalize temporary regulations 
that were made pursuant to a request from the Secretary of Commerce. 
These regulations require no action by taxpayers and have no effect on 
their tax liabilities. Thus, no taxpayers are likely to be affected by 
the disclosures authorized by this guidance.

DATES: Effective Date: These regulations are effective on February 26, 
2016.
    Applicability Date: For dates of applicability, see Sec.  
301.6103(j)(1)-1(e).

FOR FURTHER INFORMATION CONTACT: William Rowe, (202) 317-5093 (not a 
toll-free number).

SUPPLEMENTARY INFORMATION: 

Background and Explanation of Provisions

    This document contains amendments to 26 CFR part 301. Section 
6103(j)(1)(A) authorizes the Secretary of Treasury to

[[Page 9767]]

furnish, upon written request by the Secretary of Commerce, such 
returns or return information as the Secretary of Treasury may 
prescribe by regulation to officers and employees of the Bureau for the 
purpose of, but only to the extent necessary in, the structuring of 
censuses and conducting related statistical activities authorized by 
law. Section 301.6103(j)(1)-1 of the existing regulations further 
defines such purposes by reference to 13 U.S.C. chapter 5 and provides 
an itemized description of the return information authorized to be 
disclosed for such purposes.
    By letter dated May 10, 2013, the Secretary of Commerce requested 
that additional items of return information be disclosed to the Bureau 
for purposes of structuring a census that costs less per housing unit 
and still maintains high quality results. A major cost in previous 
decennial censuses was the high number of follow-up, in-person attempts 
to collect information from housing units that did not return a 
completed census form. The Bureau intends to conduct research and 
testing for the next decennial census using administrative data from 
federal agencies, state agencies, and commercial vendors to determine 
whether the number of non-response follow-up visits can be reduced 
through the strategic reuse of this data. Specifically, the Bureau aims 
to achieve the following research initiatives: (1) Validating and 
enhancing the Master Address File; (2) Designing and assigning 
resources to carry out the next decennial census; (3) Un-duplicating 
public, private, and census lists; and (4) Imputing missing data. All 
administrative data from the above sources, including return 
information, will be integrated into the Bureau's data system that is 
used for the next decennial census and housing counts and will be done 
in a manner such that the source (for example, commercial vendor, IRS, 
or Social Security Administration) will not be associated with any data 
element in the final decennial person-level census records.
    On July 15, 2014, a temporary regulation (TD 9677) was published in 
the Federal Register (79 FR 41132). The text of the temporary 
regulations also serves as the text of proposed regulations set forth 
in a notice of proposed rulemaking (REG-120756-13) published in the 
Federal Register for the same day (79 FR 41152). No public hearing was 
requested or held. Two comments responding to the notice of proposed 
rulemaking were received. After consideration of these comments, the 
proposed regulations are adopted by this Treasury decision, and the 
corresponding temporary regulations are removed.
    The temporary regulations authorized disclosure of additional items 
of return information from the Form 1040, ``U.S. Individual Income Tax 
Return'', and disclosure of items from the Form 1098, ``Mortgage 
Interest Statement''. Specifically, Sec.  301.6103(j)(1)-1T of the 
temporary regulations authorizes the disclosure of the following 
additional items of return information from Forms 1040: (1) Electronic 
Filing System Indicator; (2) Return Processing Indicator; and (3) Paid 
Preparer Code. Section 301.6103(j)(1)-1T authorizes the disclosure of 
the following items of return information from Form 1098: (1) Payee/
Payer/Employee Taxpayer Identification Number; (2) Payee/Payer/Employee 
Name (First, Middle, Last, Suffix); (3) Street Address; (4) City; (5) 
State; (6) ZIP Code (9 digit); (7) Posting Cycle Week; (8) Posting 
Cycle Year; and (9) Document Code. These temporary regulations apply to 
disclosures to the Bureau of the Census made on or after July 15, 2014, 
and expire on or before July 14, 2017.
    Both comments opposed publication of the regulations and questioned 
the underlying authority for the IRS to disclose federal tax return 
information. Contrary to the views expressed in these comments, section 
6103(j)(1) specifically authorizes the IRS to disclose returns or 
return information to the Bureau of the Census for the purpose of, but 
only to the extent necessary in, the structuring of censuses and 
national economic accounts and conducting related statistical 
activities authorized by law. The final regulations under Sec.  
301.6103(j)(1)-1 are being issued under the authority of section 
6103(j)(1). Accordingly, the recommendation of both commentators that 
the regulations not be published has not been adopted.

Special Analyses

    Certain IRS regulations, including this one, are exempt from the 
requirements of Executive Order 12866, as supplemented and reaffirmed 
by Executive Order 13563. Therefore, a regulatory assessment is not 
required. It has also been determined that section 553(b) of the 
Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to 
these regulations. In addition, 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. Accordingly, a regulatory 
flexibility analysis is not required under the Regulatory Flexibility 
Act (5 U.S.C. chapter 6). Pursuant to section 7805(f) of the Internal 
Revenue Code, the Notice of Proposed Rulemaking preceding this 
regulation was submitted to the Chief Counsel for Advocacy of the Small 
Business Administration for comment on its impact on small businesses.

Drafting Information

    The principal author of these final regulations is William Rowe, 
Office of the Associate Chief Counsel (Procedure & Administration).

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

0
Paragraph 1. The authority citation for part 301 continues to read in 
part as follows:

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


0
Par. 2. Section 301.6103(j)(1)-1 is amended by adding paragraphs 
(b)(1)(xviii) through (xx) and (b)(7) and revising paragraph (e) to 
read as follows:


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

* * * * *
    (b) * * *
    (1) * * *
    (xviii) Electronic Filing System Indicator.
    (xix) Return Processing Indicator.
    (xx) Paid Preparer Code.
* * * * *
    (7) Officers or employees of the Internal Revenue Service will 
disclose the following return information reflected on Form 1098 
``Mortgage Interest Statement'' 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 statistics programs, censuses, and 
surveys--
    (i) Payee/Payer/Employee Taxpayer Identification Number;
    (ii) Payee/Payer/Employee Name (First, Middle, Last, Suffix);
    (iii) Street Address;
    (iv) City;
    (v) State;

[[Page 9768]]

    (vi) ZIP Code (9 digit);
    (vii) Posting Cycle Week;
    (viii) Posting Cycle Year; and
    (ix) Document Code.
* * * * *
    (e) Effective/applicability date. Paragraphs (b)(1)(xviii) through 
(xx) and (b)(7) of this section apply to disclosures to the Bureau of 
the Census made on or after July 15, 2014. For rules that apply to 
disclosures to the Bureau of the Census before that date, see 26 CFR 
301.6103(j)(1)-1 (revised as of April 1, 2014).


Sec.  301.6103(j)(1)-1T  [Removed]

0
Par. 3. Section 301.6103(j)(1)-1T is removed.

John Dalrymple,
Deputy Commissioner for Services and Enforcement.
    Approved: January 22, 2016.
Mark J. Mazur,
Assistant Secretary of the Treasury.
[FR Doc. 2016-04310 Filed 2-24-16; 4:15 pm]
BILLING CODE 4830-01-P

9766 Federal Register / Vol. 81, No. 38 / Friday, February 26, 2016 / Rules and Regulations

Regulatory Analyses the Paperwork Reduction Act of 1995, PART 1301—REGISTRATION OF
44 U.S.C. 3501–3521. MANUFACTURERS, DISTRIBUTORS,
Executive Orders 12866 and 13563
Unfunded Mandates Reform Act of 1995 AND DISPENSERS OF CONTROLLED
This final rule has been drafted and SUBSTANCES
reviewed in accordance with Executive In accordance with the Unfunded
Order 12866, ‘‘Regulatory Planning and Mandates Reform Act (UMRA) of 1995 ■ 1. The authority citation for 21 CFR
Review’’ section 1(b), Principles of (2 U.S.C. 1501 et seq.), the DEA has part 1301 continues to read as follows:
Regulation, and in accordance with determined and certifies pursuant to Authority: 21 U.S.C. 821, 822, 823, 824,
Executive Order 13563, ‘‘Improving UMRA that this action would not result 831, 871(b), 875, 877, 886a, 951, 952, 953,
Regulation and Regulatory Review’’ in any Federal mandate that may result 956, 957, 958, 965.
section 1(b) General Principles of ‘‘in the expenditure by State, local, and § 1301.29 [Removed and Reserved]
Regulation. tribal governments, in the aggregate, or
The Department of Justice has by the private sector, of $100 million or ■ 2. Remove and reserve § 1301.29.
determined that this rule is not a more (adjusted for inflation) in any one Dated: February 23, 2016.
‘‘significant regulatory action’’ under year . . . .’’ Therefore, neither a Small Louis J. Milione,
Executive Order 12866, section 3(f), Government Agency Plan nor any other Deputy Assistant Administrator.
Regulatory Planning and Review, and action is required under the provisions [FR Doc. 2016–04224 Filed 2–25–16; 8:45 am]
accordingly this rule has not been of UMRA of 1995. BILLING CODE 4410–09–P
reviewed by the Office of Management
Congressional Review Act
and Budget.
Executive Order 12988 This rule is not a major rule as DEPARTMENT OF THE TREASURY
defined by the Congressional Review
This regulation meets the applicable Act (CRA) (5 U.S.C. 804). This rule will Internal Revenue Service
standards set forth in sections 3(a) and not result in an annual effect on the
3(b)(2) of Executive Order 12988 Civil economy of $100,000,000 or more, a 26 CFR Part 301
Justice Reform to eliminate drafting major increase in costs or prices, or have
errors and ambiguity, minimize [TD 9754]
significant adverse effects on
litigation, provide a clear legal standard competition, employment, investment, RIN 1545–BL59
for affected conduct, and promote productivity, innovation, or the ability
simplification and burden reduction. of U.S.-based companies to compete Disclosures of Return Information
with foreign-based companies in Reflected on Returns to Officers and
Executive Order 13132
domestic and export markets. However, Employees of the Department of
This rulemaking does not have pursuant to the CRA, the DEA has Commerce for Certain Statistical
federalism implications warranting the submitted a copy of this final rule to Purposes and Related Activities
application of Executive Order 13132. both Houses of Congress and to the
The proposed rule does not have AGENCY: Internal Revenue Service (IRS),
Comptroller General. Treasury.
substantial direct effects on the States,
on the relationship between the national Administrative Procedure Act ACTION: Final regulations and removal of
government and the States, or the temporary regulations.
The APA requires the publication of
distribution of power and a substantive rule to be made not less SUMMARY: This document contains final
responsibilities among the various than 30 days before its effective date. 5 regulations that authorize the disclosure
levels of government. U.S.C. 553(d). However, one exception of certain items of return information to
Executive Order 13175 is ‘‘as otherwise provided by the agency the Bureau of the Census (Bureau) in
for good cause found and published conformance with section 6103(j)(1) of
This rule does not have tribal with the rule.’’ Because the DEA the Internal Revenue Code (Code).
implications warranting the application removed [123I]ioflupane from the These regulations finalize temporary
of Executive Order 13175. It does not schedules of controlled substances as of regulations that were made pursuant to
have substantial direct effects on one or September 11, 2015, [80 FR 22919], a request from the Secretary of
more Indian tribes, on the relationship there is no longer any need for a Commerce. These regulations require no
between the Federal Government and registration exemption for persons action by taxpayers and have no effect
Indian tribes, or on the distribution of administering DaTscan, and the DEA is on their tax liabilities. Thus, no
power and responsibilities between the hereby removing the IFR through this taxpayers are likely to be affected by the
Federal Government and Indian tribes. final rule. The broader decontrol action disclosures authorized by this guidance.
Regulatory Flexibility Act has superseded it. Therefore, it is DATES: Effective Date: These regulations
unnecessary to delay the effective date are effective on February 26, 2016.
The Regulatory Flexibility Act (RFA) of this final rule by 30 days, and this
(5 U.S.C. 601–612) applies to rules that Applicability Date: For dates of
rule shall take effect immediately upon applicability, see § 301.6103(j)(1)–1(e).
are subject to notice and comment publication.
under section 553(b) of the APA. As FOR FURTHER INFORMATION CONTACT:
explained above and in the interim final List of Subjects in 21 CFR Part 1301 William Rowe, (202) 317–5093 (not a
rule, the DEA determined that there was toll-free number).
mstockstill on DSK4VPTVN1PROD with RULES

Administrative practice and
good cause to exempt the IFR from SUPPLEMENTARY INFORMATION:
procedure, Drug traffic control,
notice and comment. Consequently, the
Controlled substances, Drug abuse, Background and Explanation of
RFA does not apply to this final rule.
Reporting and recordkeeping Provisions
Paperwork Reduction Act of 1995 requirements.
This document contains amendments
This rule does not involve a collection Accordingly, 21 CFR part 1301 is to 26 CFR part 301. Section 6103(j)(1)(A)
of information within the meaning of amended as follows: authorizes the Secretary of Treasury to

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9768 Federal Register / Vol. 81, No. 38 / Friday, February 26, 2016 / Rules and Regulations

(vi) ZIP Code (9 digit); relating to national security information 13526 and these regulations are not
(vii) Posting Cycle Week; in accordance with Executive Order intended to and do not create any right
(viii) Posting Cycle Year; and 13526 and directives issued thereunder or benefit, substantive or procedural,
(ix) Document Code. by the Information Security Oversight enforceable at law by a party against the
* * * * * Office (ISOO). The purpose of this rule United States, its agencies, officers,
(e) Effective/applicability date. is to assist in implementing specific employees, or agents, or any other
Paragraphs (b)(1)(xviii) through (xx) and sections of Executive Order 13526 person.
(b)(7) of this section apply to disclosures concerning the Mandatory
Declassification Review (MDR). This is § 1704.2 Definitions.
to the Bureau of the Census made on or
after July 15, 2014. For rules that apply being issued as a direct final rule For purposes of this part:
without prior notice of proposed Control means the authority of the
to disclosures to the Bureau of the
rulemaking as allowed by the agency that originates information, or its
Census before that date, see 26 CFR
Administrative Procedure Act, 5 U.S.C. successor in function, to regulate access
301.6103(j)(1)–1 (revised as of April 1,
553(b)(3)(A) for rules of agency to the information. (32 CFR 2001.92)
2014).
procedure and interpretation. Day means U.S. Federal Government
§ 301.6103(j)(1)–1T [Removed] working day, which excludes Saturdays,
Regulatory Impact Sundays, and federal holidays. Three (3)
■ Par. 3. Section 301.6103(j)(1)–1T is
This rule is not a significant days may be added to any time limit
removed.
regulatory action for the purposes of imposed on a requester by this part if
John Dalrymple, Executive Order 12866. This rule is not responding by U.S. domestic mail; ten
Deputy Commissioner for Services and a major rule as defined in 5 U.S.C. (10) days may be added if responding by
Enforcement. Chapter 8, Congressional Review of international mail.
Approved: January 22, 2016. Agency Rulemaking. As required by the D/IMD means the Director of the
Mark J. Mazur, Regulatory Flexibility Act, we certify Information Management Division and
Assistant Secretary of the Treasury. that this rule will not have a significant the leader of any successor organization,
impact on a substantial number of small who serves as the ODNI’s manager of
[FR Doc. 2016–04310 Filed 2–24–16; 4:15 pm]
entities because it applies only to the information review and release
BILLING CODE 4830–01–P
Federal agencies. program.
Federal Agency means any Executive
List of Subjects in 32 CFR Part 1704 Agency, as defined in 5 U.S.C. 105; any
OFFICE OF THE DIRECTOR OF Declassification, Information, Military department, as defined in 5
NATIONAL INTELLIGENCE Intelligence, National security U.S.C. 102; and any other entity within
information. the executive branch that comes into the
32 CFR Part 1704
possession of classified information.
■ For the reasons set forth in the
Mandatory Declassification Review Information means any knowledge
preamble, ODNI adds 32 CFR part 1704
Program that can be communicated or
to read as follows:
documentary material, regardless of its
AGENCY: Office of the Director of PART 1704—MANDATORY physical form that is owned by,
National Intelligence. DECLASSIFICATION REVIEW produced by or for, or under the control
ACTION: Direct final rule with request for PROGRAM of the U.S. Government; it does not
comments. include information originated by the
Sec. incumbent President, White House
SUMMARY: The Office of the Director of 1704.1 Authority and purpose. Staff, appointed committees,
National Intelligence (ODNI) is 1704.2 Definitions. commissions or boards, or any entities
publishing this direct final rule 1704.3 Contact information. within the Executive Office that solely
pursuant to Executive Order 13526, 1704.4 Suggestions or comments.
1704.5 Guidance.
advise and assist the incumbent
relating to classified national security 1704.6 Exceptions. President.
information. It provides procedures for 1704.7 Requirements. Interested party means any official in
members of the public to request from 1704.8 Fees. the executive, military, congressional, or
ODNI a Mandatory Declassification 1704.9 Determination by originator or judicial branches of government, or U.S.
Review (MDR) of information classified interested party. Government contractor who, in the sole
under the provisions of Executive Order 1704.10 Appeals. discretion of the ODNI, has a subject
13526 or predecessor orders such that Authority: 50 U.S.C. 3001; E.O. 13526, 75 matter or other interest in the
the agency may retrieve it with FR 707, 3 CFR, 2009 Comp, p. 298. documents or information at issue.
reasonable effort. This rule also informs NARA means the National Archives
requesters where to send requests for an § 1704.1 Authority and purpose. and Records Administration.
MDR. (a) Authority. This part is issued ODNI means the Office of the Director
DATES: This rule is effective April 26, under the authority of 32 CFR 2001.33; of National Intelligence.
2016 without further action, unless Section 3.5 of Executive Order 13526 (or Order means Executive Order 13526,
adverse comment is received by March successor Orders); the National Security ‘‘Classified National Security
28, 2016. If adverse comment is Act of 1947, as amended (50 U.S.C. 3001 Information’’ (December 29, 2009) or
received, ODNI will publish a timely et seq.). successor Orders.
mstockstill on DSK4VPTVN1PROD with RULES

withdrawal of the rule in the Federal (b) Purpose. This part prescribes Originating element means the
Register. procedures, subject to limitations set element that created the information at
forth below, for requesters to request a issue.
FOR FURTHER INFORMATION CONTACT: mandatory declassification review of Presidential libraries means the
Jennifer L. Hudson, 703–874–8085. information classified under Executive libraries or collection authorities
SUPPLEMENTARY INFORMATION: It is the Order 13526 or predecessor or successor established under the Presidential
policy of the ODNI to act in matters orders. Section 3.5 of Executive Order Libraries Act (44 U.S.C. 2112) and

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Document Created: 2018-02-02 14:36:48
Document Modified: 2018-02-02 14:36:48

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Rules and Regulations
Action		Final regulations and removal of temporary regulations.
Dates		Effective Date: These regulations are effective on February 26, 2016.
Contact		William Rowe, (202) 317-5093 (not a toll-free number).
FR Citation		81 FR 9766
RIN Number		1545-BL59
CFR Associated		Employment Taxes; Estate Taxes; Excise Taxes; Gift Taxes; Income Taxes; Penalties and Reporting and Recordkeeping Requirements

81 FR 9766 - Disclosures of Return Information Reflected on Returns to Officers and Employees of the Department of Commerce for Certain Statistical Purposes and Related Activities

DEPARTMENT OF THE TREASURYInternal Revenue Service

Federal Register Volume 81, Issue 38 (February 26, 2016)

DEPARTMENT OF THE TREASURY
Internal Revenue Service