[Federal Register: March 25, 2008 (Volume 73, Number 58)]
[Proposed Rules]
[Page 15687-15688]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25mr08-16]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 301
[REG-114942-07]
RIN 1545-BG73
Disclosure of Return Information in Connection With Written
Contracts Among the IRS, Whistleblowers, and Legal Representatives of
Whistleblowers
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations.
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SUMMARY: In the Rules and Regulations section of this issue of the
Federal Register, the IRS is issuing temporary regulations relating to
the disclosure of return information, pursuant to section 6103(n), to
whistleblowers and their legal representatives. The temporary
regulations describe the circumstances by which an officer or employee
of the Treasury Department may disclose return information to a
whistleblower and, if applicable, the legal representative of the
whistleblower, to the extent necessary in connection with a written
contract among the IRS, the whistleblower and, if applicable, the legal
representative of the whistleblower, for services relating to the
detection of violations of the internal revenue laws or related
statutes. The temporary regulations will affect officers and employees
of the Treasury Department who disclose return information to
whistleblowers, or their legal representatives, in connection with
written contracts among the IRS, whistleblowers and, if applicable,
their legal representatives, for services relating to the detection of
violations of the internal revenue laws or related statutes. The
temporary regulations will also affect any whistleblower, or legal
representative of a whistleblower, who receives return information in
connection with a written contract among the IRS, the whistleblower
and, if applicable, the legal representative of the whistleblower, for
services relating to the detection of violations of the internal
revenue laws or related statutes.
DATES: Written or electronic comments and requests for a public hearing
must be received by June 23, 2008.
ADDRESSES: Send submissions to CC:PA:LPD:PR (REG-114942-07), room 5203,
Internal Revenue Service, PO Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand-delivered Monday through
Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-
114942-07), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue, NW., Washington, DC, or sent electronically, via the Federal
eRulemaking Portal at http://www.regulations.gov (IRS-REG-114942-07).
FOR FURTHER INFORMATION CONTACT: Helene R. Newsome, 202-622-7950 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:
Background and Explanation of Provisions
Temporary regulations in the Rules and Regulations section of this
issue of the Federal Register amend the Procedure and Administration
Regulations (26 CFR part 301) under section 6103(n) relating to the
disclosure of return information in connection with written contracts
among the IRS, whistleblowers and, if applicable, their legal
representatives.
The Tax Relief and Health Care Act of 2006, Public Law 109-432 (120
Stat. 2958) (the Act), was enacted on December 20, 2006. Section 406 of
the Act amends section 7623, concerning the payment of awards to
whistleblowers, and establishes a Whistleblower Office within the IRS
that has responsibility for the administration of a whistleblower
program. The Whistleblower Office, in connection with administering a
whistleblower program, will analyze information provided by a
whistleblower, and either investigate the matter itself or assign it to
the appropriate IRS office for investigation. In analyzing information
provided by a whistleblower, or investigating a matter, the
Whistleblower Office may determine that it requires the assistance of
the whistleblower, or the legal representative of the whistleblower.
The legislative history of section 406 of the
[[Page 15688]]
Act states that ``[t]o the extent the disclosure of returns or return
information is required [for the whistleblower or his or her legal
representative] to render such assistance, the disclosure must be
pursuant to an IRS tax administration contract.'' Joint Committee of
Taxation, Technical Explanation of H.R. 6408, The ``Tax Relief and
Health Care Act of 2006,'' as Introduced in the House on December 7,
2006, at 89 (JCX-50-06), December 7, 2006. The legislative history
further states that ``[i]t is expected that such disclosures will be
infrequent and will be made only when the assigned task cannot be
properly or timely completed without the return information to be
disclosed.'' Id.
Under section 6103(a), returns and return information are
confidential unless the Internal Revenue Code (Code) authorizes
disclosure. Section 6103(n) is the authority by which returns and
return information may be disclosed pursuant to a tax administration
contract. Section 6103(n) authorizes, pursuant to regulations
prescribed by the Secretary, returns and return information to be
disclosed to any person, including any person described in section
7513(a), for purposes of tax administration, to the extent necessary in
connection with: (1) The processing, storage, transmission, and
reproduction of returns and return information; (2) the programming,
maintenance, repair, testing, and procurement of equipment; and (3) the
providing of other services. These proposed regulations describe the
circumstances, pursuant to section 6103(n), by which officers and
employees of the Treasury Department may disclose return information to
whistleblowers and, if applicable, their legal representatives, in
connection with written contracts for services relating to the
detection of violations of the internal revenue laws or related
statutes.
The text of the temporary regulations also serves as the text of
these proposed regulations. The preamble to the temporary regulations
explains these proposed 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 Code, these regulations have
been submitted to the Chief Counsel of the Small Business
Administration for comment on its impact on small businesses.
Comments and Request 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 request comments on the clarity of
the proposed rule and how it may 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 written comments. If a public hearing is scheduled,
notice of the date, time, and place of the hearing will be published in
the Federal Register.
Drafting Information
The principal author of these regulations is Helene R. Newsome,
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.
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(n)-2 also issued under 26 U.S.C. 6103(n); * * *
Par. 2. Section 301.6103(n)-2 is added to read as follows:
Sec. 301.6103(n)-2 Disclosure of return information in connection
with written contracts among the IRS, whistleblowers, and legal
representatives of whistleblowers.
[The text of this proposed section is the same as the text of Sec.
301.6103(n)-2T published elsewhere in this issue of the Federal
Register.]
Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
[FR Doc. E8-6040 Filed 3-24-08; 8:45 am]
BILLING CODE 4830-01-P