SERVICE ANNOUNCES ELIMINATION OF CHARGE FOR TRANSCRIPT OF INDIVIDUAL INCOME TAX ACCOUNT INFORMATION.

Rev. Proc. 87-21

SECTION 1. PURPOSE

The purpose of this revenue procedure is to eliminate the charges imposed for a request for a transcript of individual income tax account information. In so doing, it further modifies Rev. Proc. 66-3, 1966-1 C.B. 601, as previously modified by Rev. Proc. 84-71, 1984-2 C.B. 735, and Rev. Proc. 85-56, 1985-2 C.B. 739.

SEC. 2. BACKGROUND

01 Rev. Proc. 66-3 sets forth procedures to be followed by District Directors of the Internal Revenue Service in permitting inspection of federal tax returns and related documents filed under the Internal Revenue Code, and in furnishing copies of such returns and documents. Section 15 of Rev. Proc. 66-3 is entitled "Charges for Copies of Returns and Related Documents."

02 Rev. Proc. 84-71 modified Rev. Proc. 66-3 by substituting a new section 15, effective October 1, 1983. Section 15, as modified by Rev. Proc. 84-71, imposed a $5.00 charge for each request for a copy of a return or other related document (other than Employee Plans and Exempt Organization returns), a $2.50 charge for each request for a transcript of individual income tax account information, and a $1.00 charge for the first page and $.10 for each subsequent page for copies of Employee Plans and Exempt Organizations tax returns and related documents. A charge of $2.50 for each Form 1040A and 1040EZ verification was also imposed by Rev. Proc. 84-71.

03 Rev. Proc. 85-56 further modified section 15 of Rev. Proc. 66-3 to decrease the charge for each request for a copy of a return or related document (other than Employee Plans and Exempt Organization returns) to $4.25 and to decrease the charge for each request for a transcript of individual income tax account information to $2.25. The charge of $1.00 for the first page of copies of Employee Plans and Exempt Organizations tax returns and related documents remained the same, but the charge for subsequent pages was decreased to $.15. The charge for Form 1040A or 1040EZ verification was eliminated.

SEC. 3. PROCEDURES

01 The charge for each request for a transcript of individual income tax account information is eliminated. Taxpayers seeking transcripts of account information should contact their local Internal Revenue Service office, which will supply the transcripts free of charge. Form 4506, Request for Copy of Tax Form, should be used only to request a copy of a return or related document (other than Employee Plans and Exempt Organizations returns).

02 The revised section 15 shall read as follows:

SEC. 15. CHARGES FOR COPIES OF RETURNS AND RELATED DOCUMENTS

Charges for furnishing copies of returns and related documents will be as follows:

01 A charge of $4.25 will be made for each request for a copy of a return or other related document (other than Employee Plans and Exempt Organizations returns). Payments will be submitted in advance using Internal Revenue Service Form 4506, Request for Copy of Tax Form.

02 A charge of $1.00 for the first page and $.15 for each subsequent page will be made for copies of Employee Plans and Exempt Organizations tax returns and related documents. Payments will be submitted subsequent to receipt of Form 2860, Document Transmittal and Bill.

SEC. 4. EFFECTIVE DATE

This revenue procedure is effective January 1, 1987.

SEC. 5. EFFECT ON OTHER REVENUE PROCEDURES

Effective January 1, 1987, Rev. Proc. 66-3 is further modified, and Rev. Proc. 84-71 and Rev. Proc. 85-56 are declared obsolete.