[Federal Register Volume 67, Number 79 (Wednesday, April 24, 2002)]
[Proposed Rules]
[Pages 20072-20074]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-9820]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 301
[REG-107184-00]
RIN 1545-AY04
Guidance Necessary To Facilitate Electronic Tax Administration
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations.
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SUMMARY: The IRS is proposing regulations designed to eliminate
regulatory impediments to the electronic filing of the Form 1040,
``U.S. Individual Income Tax Return.'' The text of the temporary
regulations published in the Rules and Regulations section of this
issue of the Federal Register also serves as the text of these proposed
regulations. These regulations generally affect taxpayers who file Form
1040 electronically and who are required to file any of the following
forms: Form 56, ``Notice Concerning Fiduciary Relationship''; Form
2120,
[[Page 20073]]
``Multiple Support Declaration''; Form 2439, ``Notice to Shareholder of
Undistributed Long-Term Capital Gains''; Form 3468, ``Investment
Credit''; and Form T (Timber), ``Forest Activities Schedules.''
DATES: Written or electronically generated comments and requests for a
public hearing must be received by July 23, 2002.
ADDRESSES: Send submissions to: CC:ITA:RU (REG-107184-00), room 5226,
Internal Revenue Service, POB 7604, Ben Franklin Station, Washington,
DC 20044. Submissions may be hand delivered between the hours of 8 a.m.
and 5 p.m. to: CC:ITA:RU (REG-107184-00), Courier's Desk, Internal
Revenue Service, 1111 Constitution Ave., NW., Washington, DC.
Alternatively, taxpayers may submit comments electronically directly to
the IRS internet site at www.irs.gov/regs.
FOR FURTHER INFORMATION CONTACT: Concerning the regulations, James C.
Gibbons, (202) 622-4910; concerning submissions of comments and/or
requests for a hearing, LaNita Van Dyke, (202) 622-7180 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collections of information contained in this notice of proposed
rulemaking have been submitted to the Office of Management and Budget
for review in accordance with the Paperwork Reduction Act of 1995 (44
U.S.C. 3507(d)). Comments on the collections of information should be
sent to the Office of Management and Budget, Attn: Desk Officer for the
Department of the Treasury, Office of Information and Regulatory
Affairs, Washington, DC 20503, with copies to the Internal Revenue
Service, Attn: IRS Reports Clearance Officer, W:CAR:MP:FP:S,
Washington, DC 20224. Comments on the collections of information should
be received by June 24, 2002. Comments are specifically requested
concerning:
Whether the proposed collections of information are necessary for
the proper performance of the functions of the Internal Revenue
Service, including whether the information will have practical utility;
The accuracy of the estimated burden associated with the proposed
collection of information (see below);
How the quality, utility, and clarity of the information to be
collected may be enhanced;
How the burden of complying with the proposed collections of
information may be minimized, including through the application of
automated collection techniques or other forms of information
technology; and
Estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of service to provide information.
The collections of information in this proposed regulation are in
Secs. 1.48-12T(d)(7), 1.152-3T(c), 1.611-3T(h), 1.852-9T(c), and
301.6903-1T(b). The proposed regulations require taxpayers to retain
their tax records for as long as the contents may become material in
the administration of any internal revenue law. This information is
required for substantiation purposes. This information will be used to
verify the information provided by the taxpayer. The likely respondents
are individuals.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a valid
control number assigned by the Office of Management and Budget.
Books or records relating to a collection of information must be
retained as long as their contents may become material in the
administration of any internal revenue law. Generally, tax returns and
tax return information are confidential, as required by 26 U.S.C. 6103.
The burden imposed in Secs. 1.48-12T(d)(7), 1.152-3T(c), 1.611-3T(h),
1.852-9T(c), and 301.6903-1T(b) will be reflected in Form 3468, Form
2120, Form T (Timber), Form 2439 and Form 56 respectively.
Background
Temporary regulations in the Rules and Regulation section of this
issue of the Federal Register contain amendments to the Income Tax
Regulations (26 CFR part 1) and the Procedure and Administration
Regulations (26 CFR part 301) designed to eliminate regulatory
impediments to the electronic filing of the Form 1040. The text of
those regulations also serves as the text of these proposed
regulations. The preamble to the temporary regulations explains the
temporary regulations and these proposed regulations. Generally, the
regulations will be effective for taxable years beginning after
December 31, 2001. Taxpayers may, however, rely on these proposed
regulations to the extent that the impediments were removed in forms
filed for taxable years beginning after December 31, 2000.
Special Analyses
It has been determined that this notice of proposed rulemaking 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. It is hereby
certified that the collection of information in these regulations will
not have a significant economic impact on a substantial number of small
entities. This certification is based upon the fact that the persons
responsible for recordkeeping are principally individuals, and the
burden is not significant as described earlier in the preamble.
Therefore, a Regulatory Flexibility Analysis under the Regulatory
Flexibility Act (5 U.S.C. chapter 6) is not required. Pursuant to
section 7508(f) of the Internal Revenue Code, this notice will be
submitted to the Chief Counsel for Advocacy of the Small Business
Administration for comment on its impact on small business.
Comments and Requests for a Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any electronic or written comments (a
signed original and eight (8) copies of written comments) that are
submitted timely (in the manner described in the ADDRESSES caption) to
the IRS. The IRS and Treasury request comments on the clarity of the
proposed rules and how they may be made easier to understand. All
comments will be available for public inspection and copying. A public
hearing may be scheduled if requested by any person who timely submits
comments. If a public hearing is scheduled, notice of the date, time,
and place for the hearing will be published in the Federal Register.
Drafting Information
The principal author of these regulations is Sara Paige Shepherd,
Office of Associate Chief Counsel (Procedure and Administration),
Administrative Provisions and Judicial Practice Division. However,
other personnel from the IRS and the Treasury Department participated
in the development of the regulations.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
26 CFR Part 301
Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income
taxes, Penalties, Reporting and recordkeeping requirements.
[[Page 20074]]
Adoption of Amendments to the Regulations
Accordingly, 26 CFR parts 1 and 301 are amended as follows:
PART 1--INCOME TAXES
1. The authority citation for part 1 continues to read as follows:
Authority: 26 U.S.C. 7805 * * *
2. Section 1.48-12, paragraph (d)(7)(iii) is revised to read as
follows:
Sec. 1.48-12 Qualified rehabilitated building; expenditures incurred
after December 31, 1981.
* * * * *
(d) * * *
(7) * * *
(iii) [The text of proposed paragraph (d)(7)(iii) is the same as
the text of Sec. 1.48-12T(d)(7)(iii) published elsewhere in this issue
of the Federal Register].
3. In Sec. 1.152-3, paragraph (c) is revised to read as follows:
Sec. 1.152-3 Multiple support agreements.
* * * * *
(c) [The text of proposed paragraph (c) is the same as the text of
Sec. 1.152-3T(c) published elsewhere in this issue of the Federal
Register].
* * * * *
4. Section 1.611-3, paragraph (h) is revised to read as follows:
Sec. 1.611-3 Rules applicable to timber.
* * * * *
(h) [The text of proposed paragraph (h) is the same as the text of
Sec. 1.611-3T(h) published elsewhere in this issue of the Federal
Register].
5. In Sec. 1.852-9, paragraph (c)(1) is revised to read as follows:
Sec. 1.852-9 Special procedural requirements applicable to designation
under section 852(b)(3)(D).
* * * * *
(c)(1) [The text of proposed paragraph (c)(1) is the same as the
text of Sec. 1.852-9T(c)(1) published elsewhere in this issue of the
Federal Register].
* * * * *
PART 301--PROCEDURE AND ADMINISTRATION
6. The authority citation for part 301 continues to read in part as
follows:
Authority: 26 U.S.C. 7805 * * *
7. Section 301.6011-1 is revised to read as follows:
Sec. 301.6011-1 General Requirement of return, statement or list.
[The text of proposed section is the same as the text of
Sec. 301.6011-1T published elsewhere in this issue of the Federal
Register].
8. Section 301.6903-1(b) is added to read as follows:
Sec. 301.6903-1 Notice of fiduciary.
* * * * *
(b) [The text of proposed paragraph (b) is the same as the text of
Sec. 301.6903-1T(b) published elsewhere in this issue of the Federal
Register].
* * * * *
Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
[FR Doc. 02-9820 Filed 4-23-02; 8:45 am]
BILLING CODE 4830-01-P