SUBPART F-RULES, REGULATIONS, AND FORMS § 601.601 Rules and regulations. (a) Formulation. (1) Internal revenue rules or alcohol, tobacco, and firearms rules take various forms. The most important rules are issued as regulations and Treasury decisions, prescribed by the Commissioner or the Director, Bureau of Alcohol, Tobacco, and Firearms, as applicable, and approved by the Secretary or his delegate. Other rules may be issued over the signature of the Commissioner or the Director, as applicable, or the signature of any other official to whom authority has been delegated. The channeling of rules varies with the circumstances. Regulations and Treasury decisions, except those relating to alcohol, tobacco, and certain firearms, are prepared in the Office of the Chief Counsel. Alcohol, tobacco, explosives, and certain firearms regulations and Treasury decisions are prepared in the Office of the Regulations and Procedures Division and reviewed in the Office of the Chief Counsel, Bureau of Alcohol, Tobacco, and Firearms. After approval by the Commissioner or the Director, as applicable (and, in the case of regulations relating to narcotics and certain regulations relating to alcohol and tobacco taxes, the approval of the Commissioner of Narcotics or the Commissioner of Customs, as the case may be) regulations and Treasury decisions are forwarded to the Secretary or his delegate for further consideration and final approval. (2) Where required by 5 U.S.C. 553 and in such other instances as may be desirable, the Commissioner or the Director, as applicable, publishes in the FEDERAL REGISTER general notice of proposed rules (unless all persons subject thereto are named and either personally served or otherwise have actual notice thereof in accordance with law). This notice includes (i) a statement of the time, place, and nature of public rulemaking proceedings: (ii) reference to the authority under which the rule is proposed; and (iii) either the terms or substance of the proposed rule or a description of the subjects and issues involved. (3) (i) This subparagraph shall apply where the rules of this subparagraph are incorporated by reference in a notice of hearing with respect to a notice of proposed rule making. (ii) A person wishing to make oral comments at a public hearing to which this subparagraph applies shall file his written comments within the time prescribed by the notice of proposed rule making (including any extensions thereof) and submit the outline referred to in subdivision (iii) of this subparagraph within the time prescribed by the notice of hearing. In lieu of the readng of a prepared statement at the hearing, such person's oral comments shall ordinarily be limited to a discussion of matters relating to such written comments and to questions and answers in connection therewith. However, the oral comments shall not be merely a restatement of matters the person has submitted in writing. Persons making oral cominents should be prepared to answer questions not only on the topics listed in this outline but also in connection with the matters relating to his written comments. In order to be assured of the availability of copies of such written comments or outlines on or before the beginning of such hearing, any person who desires such copies should make such a request within the time prescribed in the notice of hearing and shall agree to pay reasonable costs for copying. Persons who make such a request after the time prescribed in the notice of hearing will be furnished copies as soon as they are available, but it may not be possible to furnish the copies on or before the beginning of the hearing. Except as provided in the preceding sentences, copies of written comments regarding the rules proposed shall not be made available at the hearing. (iii) A person who wishes to be assured of being heard shall submit, within the time prescribed in the notice of hearing, an outline of the topics he wishes to discuss, and the time he wishes to devote to each topic. An agenda will then be prepared containing the order of presentation of oral comments and the time allotted to such presentation. Ordinarily, a period of 10 minutes will be the time allotted to each person for making his oral comments. (iv) At the conclusion of the presentations of comments of persons listed in the agenda, to the extent time permits, other comments will be received. (v) In the case of unusual circumstances or for good cause shown, the application of rules contained in this subparagraph may be waived. (vi) To the extent resources permit, the public hearings to which this subparagraph appiles may be transcribed. (b) Comments on proposed rules—(1) In general. Interested persons are privileged to submit any data, views, or arguments in response to a notice of proposed rule making published pursuant to 5 U.S.C. 553. Further, procedures are provided in paragraph (d) (9) of § 601.702 for members of the public to inspect and to obtain copies of written comments submitted in response to such notices. Desig-nations of material as confidential or not to be disclosed, contained in such comments, will not be accepted. Thus, a person submitting written comments in response to a notice of proposed rule making should not include therein material that he considers to be confidential or inappropriate for disclosure to the public. It will be presumed by the Internal Revenue Service that every written comment submitted to it in response to a notice of proposed rule making is in tended by the person submitting it to be subject in its entirety to public inspection and copying in accordance with the procedures of paragraph (d)(9) of § 601.702. The name of any person requesting a public hearing and hearing outlines described in paragraph (a)(3)(iii) of this section are not exempt from disclosure. (2) Effective date. This paragraph (b) applies only to comments submitted in response to notices of proposed rule making of the Internal Revenue Service published in the FEDERAL REGISTER after June 5, 1974. (c) Petition to change rules. Interested persons are privileged to petition for the issuance, amendment, or repeal of a rule. A petition for the issuance of a rule should identify the section or sections of law involved; and a petition for the amendment or repeal of a rule should set forth the section or sections of the regulations involved. The petition should also set forth the reasons for the requested action. Such petitions will be given careful consideration and the petitioner will be advised of the action taken thereon. Petitions should be addressed to the Commissioner of Internal Revenue, Attention: CC:LR:T, Washington, D.C., 20224. (d) Publication of rules and regulations-(1) General. All internal revenue regulations and Treasury decisions are published in the FEDERAL REGISTER and in the Code of Federal Regulations. See paragraph (a) of § 601.702. The Treasury decisions are also published in the weekly Internal Revenue Bulletin and the semiannual Cumulative Bulletin. The Internal Revenue Bulletin is the authoritative instrument of the Commissioner for the announcement of official rulings, decisions, opinions, and procedures, and for the publication of Treasury decisions, Executive orders, tax conventions, legislation, court decisions, and other items pertaining to internal revenue matters. It is the policy of the Internal Revenue Service to published in the bulletin all substantive and procedural rulings of importance or general interest, the publication of which is considered necessary to promote a uniform application of the laws administered by the Service. Procedures set forth in Revenue Procedures published in the bulletin which are of general applicability and which have continuing force and effect are incorporated as amendments to the Statement of Bulletin do not not have the force and effect of Treasury Department Regulations (including Treasury decisions), but are published to provide precedents to be used in the disposition of other cases, and may be cited and relied upon for that purpose. No unpublished ruling or decision will be relied on, used, or cited, by any officer or employee of the Service as a precedent in the disposition of other cases. (e) Taxpayers generally may rely upon Revenue Rulings published in the Bulletin in the determining the tax treatment of their own transactions and need not request specific rulings applying the principles of a published Revenue Ruling to the facts of their particular cases. However, since each Revenue Ruling represents the conclusion of the Service as to the application of the law to the entire state of facts involved, taxpayers, Service personnel, and others concerned are cautioned against reaching the same conclusion in other cases unless the facts and circumstances are substantially the same. They should consider the effect of subsequent legislation, regulations, court decisions, and revenue rulings. (f) Comments and suggestions from taxpayers or taxpayer groups on Revenue Rulings being prepared for publication in the Bulletin may be solicited, if justified by special circumstances. Conferences on Revenue Rulings being prepared for publication will not be granted except where the Service determines that such action is justified by special circumstances. (vi) Statements of procedures which affect the rights or duties of taxpayers or other members of the public under the Code and related statutes will be published in the Bulletin in the form of Revenue Procedures. Revenue Procedures usually reflect the contents of internal management documents, but, where appropriate, they are also published to announce practices and procedures for guidance of the public. It is Service practice to publish as much of the internal management document or communication as is necessary for an understanding of the procedure. Revenue Procedures may also be based on internal management documents which should be a matter of public knowledge even though not necessarily affecting the rights or duties of the public. When publication of the substance of a Revenue Procedure in the FEDERAL REGISTER is required pursuant to 5 U.S.C. 552, it will usually be accomplished by an amendment of the Statement of procedural Rules' (26 CFR Part 60). (vii) (a) The Assistant Commissioner (Technical) is responsible for administering the system for the publication of Revenue Rulings and Revenue Procedures in the Bulletin, including the standards for style and format. (b) In accordance with the standards set forth in subdivision (iv) of this subparagraph, each Assistant Commissioner is responsible for the preparation and appropriate referral for publication of Revenue Rulings reflecting interpretations of substantive tax law made by his office and communicated in writing to taxpayers or field offices. In this connection, the Chief Counsel is responsible for the referral to the appropriate Assistant Commissioner, for consideration for publication as Revenue Rulings, or interpretations of substantive tax law made by his Office. (c) In accordance with the standards set forth in subdivision (iv) of this subparagraph, each Assistant Commisioner and the Chief Counsel is responsible for determining whether procedures established by any office under his jurisdiction should be published as Revenue Procedures and for the initiation, content, and appropriate referral for publication of such Revenue Procedures. (3) All Bureau of Alcohol, Tobacco and Firearms regulations and Treasury decisions are published in the FEDERAL REGISTER and in the Code of Federal Regulations. The Treasury decisions are also published in the monthly Alcohol, Tobacco and Firearms Bulletin. The Alcohol, Tobacco and Firearms Bulletin is the authoritative instrument of the Director, Bureau of Alcohol, Tobacco and Firearms, for announcing official rulings and procedures of the Bureau and for publishing Treasury decisions, legislation, administrative matters, and other items of general interest. The Bulletin incorporates, into one publication, all matters of the Bureau which are of public record. It is the policy of the Bureau to publish in the Bulletin all substantive rulings necessary to promote a uniform application of all laws administered by the Bureau as well as all rulings that supersede, revoke, modify, or amend any of those previously published in the Bulletin (including those published prior to July 1, 1972, in the Internal Revenue Bulletin). Procedures relating solely to matters of internal management are not published; however, industry regulations appearing in internal management documents and statements of internal practices and procedures that affect the rights and duties of the public are published. Rulings and procedures reported in the Bulletin do not have the force and effect of Treasury Department Regulations, but they may be used as precedents. In applying published rulings and procedures, the effect of subsequent legislation, regulations, court decisions, rulings, and procedures must be considered. Concerned parties are cautioned against reaching the same conclusions in other cases unless the facts and circumstances are substantially the same. The Bulletin is published monthly and may be obtained from the Superintendent of Documents on a subscription basis. Bulletin contents of a permanent nature are consolidated each calendar year into cumulative issues, which are sold on a single-copy basis. (e) Foreign tax law. (1) The Service will accept the interpretation placed by a foreign tax convention country on its revenue laws which do not affect the tax convention. However, when such interpretation conflicts with a provision in the tax convention, reconsideration of that interpretation may be requested. (2) Conferences in the National Office of the Service will be granted to representatives of American firms doing business abroad and of American citizens residing abroad, in order to discuss with them foreign tax matters with respect to those countries with which we have tax treaties in effect. TELEGRAPHIC MESSAGE All Regional Commissioners Internal Revenue Service. May 23, 1974. All Service Center Directors Internal Revenue Service. (Priority) (MSARD and MSASC) reference Freedom of Information Act and Internal Revenue manual. We have underway a project to separate the manual into two parts-a larger portion which will be available to the public generally, not just to particular groups or organizations and a smaller portion containing information which is considered exempt from disclosure under the FOIA and will not be released. The above is an outgrowth of our on-going declassification program which has resulted in many segments of the manual being declassified. However, many of these declassified segments have not been reissued so that current issues bear the official use only notation. To ensure uniform standards and understanding, a listing of manual material which addresses can make available to the public follows: Part O. Segment All Part I, except IRM Handbooks 1218, 1279, and 1(18) 10 through 1(18) (10)0 series of handbooks. IRM Handbook 4810. All Part V, except IRM 5170 Hand- All Part VIII, except IRM 8(24)30 All Part IX, except IRM Handbooks All Part X, except IRM (10) 111 and All Part XII. Authority Not classified OUO. MT 1200-127, 11-5-73 and other chapter MT's subsequently issued. MT 4810-82, 8-2-73. This telegram, plus individual charter MT's previously issued. MT 8(23)00-12, 10-3-73 and other MT (10) 200-6, 11-12-73, and other Requests for manual and other material for which disclosure instructions have not been issued will continue to be promptly acknowledged and forwarded directly to disclosure staff, office of assistant commissioner (compliance), CP :D, as prescribed in Chapter (21) 00 of IRM 1272 and Section 4 of MS 1 (19) G–32, Amend. 4. This applies to all requests including those from requesters who may be subjects of collection, audit, intelligence or appellate activity or may be involved in a civil or criminal court action. DONALD C. ALEXANDER, [Reprint from Internal Revenue, Cumulative Bulletin, 1972-1 (Jan.-Jun.) Dept. of the Treasury--TRS] SECTION 6103.-PUBLICITY OF RETURNS AND DISCLOSURE OF INFORMATION AS TO PERSONS FILING INCOME TAX RETURNS 26 CFR 301.6103(a)-1: Inspection of returns by certain classes of persons and State and Federal Government estabilshments pursuant to Executive order. Inspection by certain classes of persons and State and Federal Government establishments of returns made in respect of certain taxes imposed by the Internal Revenue Code of 1954. E.O. 11650 By virtue of the authority vested in me by section 6103 (a) of the Internal Revenue Code of 1954, as amended (26 U.S.C. 6103 (a)), it is hereby ordered that returns made in respect of the taxes imposed by chapters 1, 2, 3, 5, 6, 11, 12, and 32, subchapters B and C of chapter 33, subchapter B of chapter 37, and chapter 41 of such Code shall be open to inspection by certain classes of persons and State and Federal Government establishments in accordance and upon compliance with the rules and regulations prescribed by the Secretary of the Treasury in Treasury decision 6543 [C.B. 1961-1, 671], relating to inspection and use of returns by such classes of persons and State and Federal Government establishments, approved by the President on January 17, 1981, the amendments thereto approved by the President on April 4, 1963 [T.D. 6646, C.B. 1963-1, 299], and March 18, 1965 [T.D. 6809, C.B. 1965-1, 531], and the amendment thereto approved by me this date [T.D. 7162, below]. RICHARD NIXON THE WHITE HOUSE, (Filed in the Office of the Federal Register on February 16, 1972, 2:58 p.m., and published in the issue of the Federal Register for February 19, 1972, 37 F.R. 7339) 26 CFR 301.6103 (a)-1: Inspection of returns by certain classes of persons and State and Federal Government establishments pursuant to Executive order. T.D. 7162 TITLE 26.-INTERNAL REVENUE.-CHAPTER I, SUBCHAPTER F, PART 301. PROCEDURE AND ADMINISTRATION Inspection of returns by certain classes of persons and State and Federal Government establishments. In order to clarify the definition of the term "return" under section 6103 of the Internal Revenue Code of 1954, the Regulations on Procedure and Administration (26 CFR Part 301) under such section are amended as follows: Section 301.6103(a)-1 is amended by revising subparagraph (3)(i) of paragraph (a). The amended provision reads as follows: § 301.6103 (a)-1 Inspection of returns by certain classes of persons and State and Federal Government establishments pursuant to Executive order. (a) In general. * * * (3) Terms used-(i) Return. For purposes of section 6103 (a), the term "return" includes (a) Information returns, schedules, lists, and other written statements filed by or on behalf of the taxpayer with the Internal Revenue Service which are designed to be supplemental to or become a part of the return, and (b) Other records, reports, information received orally or in writing, factual data, documents, papers, abstracts, memoranda, or evidence taken, or any portion thereof, relating to the items included under (a) of this subdivision. The items listed in (b) of this subdivision may be open to inspection in any case where inspection of the return is authorized by section 6103 (a) and these regulations only in the discretion of the Secretary or the Commissioner or the delegate of either. The above rules and procedures also apply to any reproductions or recordings by whatever means made of any such documents or portion thereof. A notice of acquisition filed under section 4917 is a return for purposes of section 6103. An application for exemption from income tax under section 501 (a) filed by an organization described in section 501 (c) or (d) in order to establish its exemption is not a return for purposes of section 6103. For provisions opening to public inspection exemption applications with respect to which a determination has been made that the organization is entitled to exemption from income tax under section 501 (a), see section 6104(a) and § 301.6104–1. * * * * * Because this Treasury decision constitutes a general statement of policy and establishes rules of departmental practice and procedure, it is found that it is unnecessary to issue this Treasury decision with notice and public procedure thereon under subsection (b) of section 553 of title 5 of the United States Code or subject to the effective date limitation of subsection (d) of that section. Approved: February 16, 1972. RICHARD NIXON, The White House. CHARLES E. WALKER Acting Secretary of the Treasury. (Filed in the Office of the Federal Register on February 18, 1972, 8:51 a.m., and published in the issue of the Federal Register for February 19, 1972, 37 F.R. 3746). 42-846-75--13 |