Disclosure of Return Information to the
Bureau of the Census

DEPARTMENT OF THE TREASURY
Internal Revenue Service 26 CFR Part 301 [REG-121109-00] RIN 1545-
AY52

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

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to
temporary regulations.

SUMMARY: In the Rules and Regulations section of this issue of
Federal Register , the IRS is issuing temporary regulations relating
to additions to the list of items of information disclosed to the
Bureau of the Census for use in the Longitudinal Employer-Household
Dynamics (LEHD) project and the Survey of Income and Program
Participation (SIPP) project. These regulations provide guidance to
IRS and Social Security Administration (SSA) personnel responsible
for disclosing the information. The text of those temporary
regulations also serves as the text of these proposed regulations.

DATES: Written and electronic comments and requests for a public
hearing must be received by May 14, 2001.

ADDRESSES: Send submissions to: CC:M&SP:RU (REG-121109-00), room
5226, Internal Revenue Service, POB 7604, Ben Franklin Station,
Washington, DC 20044. In the alternative, submissions may be hand-
delivered between the hours of 8 a.m. and 5 p.m. to CC:M&SP:RU
(REG-121109-00), Courier's Desk, Internal Revenue Service, 1111
Constitution Avenue, NW., Washington, DC or sent electronically, via
the IRS Internet site at:
http://www.irs.ustreas.gov/tax_regs/reglist.html.

FOR FURTHER INFORMATION CONTACT: Stuart Murray, (202) 622-4580 (not
a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

Under section 6103(j)(1), 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 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. Section 301.6103(j)(1)-1(b)(5) of the regulations
provides a list of information provided to the Social Security
Administration (SSA) pursuant to Internal Revenue Code section
6103(l)(1)(A) or (5) that officers or employees of SSA may disclose
to the Bureau. Periodically, the disclosure regulations are amended
to reflect the changing needs of the Bureau for data for its
statutorily authorized statistical activities.

This document contains proposed amendments to the regulations
authorizing IRS and SSA personnel to disclose additional items of
return information that have been requested by the Secretary of
Commerce for specified purposes related to the LEHD and SIPP
projects.

The text of the temporary regulations also serves as the text of
these proposed regulations. The preamble to the temporary
regulations explains the regulations.

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, 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, this notice of proposed rulemaking 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 and written comments
(a signed original and eight (8) copies) that are submitted timely
to the IRS. The IRS and Treasury Department specifically request
comments on the clarity of the proposed regulation and how they can
be made easier to understand. All comments will be available for
public inspection and copying. A public hearing may be scheduled if
requested in writing by a person that 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 Jamie G. Bernstein,
Office of the Associate Chief Counsel, Procedure & Administration
(Disclosure & Privacy Law Division), Internal Revenue Service.
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.

Proposed Amendments to the Regulations Accordingly, 26 CFR Part 301
is proposed to be amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

Paragraph 1. The authority citation for part 301 is amended by
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. Adding paragraphs (b)(2)(v) and (vi).

2. Adding paragraphs (b)(3)(xxiii), (xxiv), (xxv), (xxvi), (xxvii)
and (xxviii).

3. Adding paragraphs (b)(5)(iii), (iv), and (v).

4. Revising paragraph (e).

The additions and revision read as follows:

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

* * * * *

(b)* * *

(2)(v) and (vi)[The text of proposed paragraphs (b)(2)(v) and (vi)
is the same as the text of '301.6103(j)(1)-1T(b)(2)(v) and (vi)
published elsewhere in this issue of the Federal Register ].

(3)[The text of proposed paragraphs (b)(3)(xxiii), (xxiv), (xxv),
(xxvi), (xxvii) and (xxviii) is the same as the text of '301.6103(j)
(1)-1T(b)(3)(xxiii), (xxiv), (xxv), (xxvi), (xxvii) and (xxviii)
published elsewhere in this issue of the Federal Register ].

* * * * *

(5)(iii), (iv), and (v) [The text of proposed paragraphs (b)(5)
(iii), (iv), and (v) is the same as the text of '301.6103(j)
(1)-1T(b)(5)(iii), (iv), and (v) published elsewhere in this issue
of the Federal Register ].

* * * * *

(e) [The text of proposed paragraph (e) is the same as the text of
§301.6103(j)(1)-1T(e) published elsewhere in this issue of the
Federal Register ].

Robert E. Wenzel
Deputy Commissioner of the Internal Revenue

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