Proposed Rule2025-16866
Disclosure of Returns and Return Information in Connection With Written Contracts or Agreements for the Acquisition of Property or Services for Tax Administration Purposes; Withdrawal
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
September 3, 2025
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
This document withdraws a notice of proposed rulemaking that has been determined to be unnecessary. The notice of proposed rulemaking proposed to authorize the Department of State (State Department) to disclose returns and return information to its contractors who assist the State Department in carrying out certain responsibilities related to revoking or denying a passport of any individual certified to have a seriously delinquent tax debt.
Full Text
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<title>Federal Register, Volume 90 Issue 168 (Wednesday, September 3, 2025)</title>
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[Federal Register Volume 90, Number 168 (Wednesday, September 3, 2025)]
[Proposed Rules]
[Pages 42551-42552]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-16866]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 301
[REG-129260-16]
RIN 1545-BN96
Disclosure of Returns and Return Information in Connection With
Written Contracts or Agreements for the Acquisition of Property or
Services for Tax Administration Purposes; Withdrawal
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Withdrawal of notice of proposed rulemaking.
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SUMMARY: This document withdraws a notice of proposed rulemaking that
has been determined to be unnecessary. The notice of proposed
rulemaking proposed to authorize the Department of State (State
Department) to disclose returns and return information to its
contractors who assist the State Department in carrying out certain
responsibilities related to revoking or denying a passport of any
individual certified to have a seriously delinquent tax debt.
DATES: The notice of proposed rulemaking that was published in the
Federal Register on March 13, 2018, is withdrawn as of September 3,
2025.
FOR FURTHER INFORMATION CONTACT: Alexander Wu of the Office of
Associate Chief Counsel (Procedure and Administration), (202) 317-6845
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
Section 7345 of the Internal Revenue Code (Code), which was added
to the Code by section 32101(a) of the Fixing America's Surface
Transportation (FAST) Act, Public Law 114-94, 129 Stat. 1312 (2015),
requires the IRS to notify the State Department about any tax debt of
an individual that the IRS certifies as seriously delinquent. Section
32101(e) of the FAST Act requires the State Department to deny such
individual a passport (or the renewal of a passport) if the IRS
notifies the State Department that the individual has been certified as
having a seriously delinquent tax debt. Section 32101(e) of the FAST
Act also permits the State Department to revoke a passport previously
issued to such person. The State Department procures services from
outside contractors in connection with carrying out its
responsibilities under the FAST Act.
Under section 6103(a) of the Code, returns and return information
are confidential unless the Code otherwise authorizes disclosure.
Section 6103(n) authorizes, pursuant to regulations prescribed by the
Secretary of the Treasury or the Secretary's delegate (Secretary), the
disclosure of returns and return information to any person for purposes
of tax administration to the extent necessary in connection with, among
other things, a written contract for services. Section 6103(b)(4)
defines the term ``tax administration'' to include ``the
administration, management, conduct, direction, and supervision of the
execution and application of the internal revenue laws or related
statutes.'' Because implementation of the FAST Act relates to the
administration, management, conduct, direction, and supervision of the
execution and application of the internal revenue laws and related
statutes, disclosure of return information for the purpose of carrying
out responsibilities under the FAST Act is a tax administration
purpose.
On March 13, 2018, the Department of the Treasury (Treasury
Department) and the IRS published a notice of proposed rulemaking in
the Federal Register (83 FR 10811) containing proposed regulations that
would add the State Department to the list of agencies in Sec.
301.6103(n)-1(a)(1) whose officers and employees may disclose returns
and return information to any person or to an officer or employee of
such person for tax administration purposes to the extent necessary in
connection with a written contract for the acquisition of property or
services. The proposed regulations would authorize the State Department
to disclose returns and return information to its contractors providing
services in connection with the revocation or denial of passports
pursuant to the requirements of the FAST Act and section 7345.
The proposed regulations are unnecessary because the State
Department is already authorized under Sec. 301.6103(n)-1(a)(2)(ii) to
disclose returns and return information to its contractors providing
services in connection with the revocation or denial of passports
pursuant to the FAST Act and section 7345, so long as the IRS
authorizes the disclosure in writing and the disclosure conforms to the
other provisions of Sec. 301.6103(n)-1. Under Sec. 301.6103(n)-
1(a)(2)(ii), if an officer or employee of the Treasury Department has
disclosed returns or return information to the State Department for
purposes of the provision of services in furtherance of tax
administration, then the State
[[Page 42552]]
Department may further disclose the returns or return information, when
authorized in writing by the IRS, to the extent necessary to carry out
the tax administration purpose. Under Sec. 301.6103(n)-1(a)(2)(ii),
such further disclosures may include disclosures to an agent or
subcontractor of the person, or officer or employee of the agent or
subcontractor.
List of Subjects in 26 CFR Part 301
Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income
taxes, Penalties, Reporting and recordkeeping requirements.
Withdrawal of Notice of Proposed Rulemaking
Under the authority of 26 U.S.C. 7805, the notice of proposed
rulemaking (REG-129260-16) published in the Federal Register on March
13, 2018 (83 FR 10811) is withdrawn.
Edward T. Killen,
Acting Chief Tax Compliance Officer.
[FR Doc. 2025-16866 Filed 9-2-25; 8:45 am]
BILLING CODE 4830-01-P
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</html>Indexed from Federal Register on September 3, 2025.
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