Regs To Implement Telefile Voice Signature Test

 [4830-01]

 ACTION: Temporary regulations.

 SUMMARY: This document contains temporary regulations providing that an individual Federal income tax return completed as part of the TeleFile Voice Signature test will be treated as a return that is signed, authenticated, verified, and filed by the taxpayer as required by the Internal Revenue Code. The temporary regulations affect those taxpayers who are eligible to, and elect to, file their individual income tax returns for the 1992 calendar year by telephone under the test. The temporary regulations are needed to implement the test. The text of the temporary regulations set forth in this document also serves as the text of the proposed regulations for the notice of proposed rulemaking on this subject in the Proposed Rules section of this issue of the Federal Register.

 EFFECTIVE DATE: These regulations are effective January 14, 1993.

 FOR FURTHER INFORMATION CONTACT: Celia Gabrysh (202)622-4960 (not a toll-free call).

SUPPLEMENTARY INFORMATION:

PAPERWORK REDUCTION ACT

This regulation is being issued without prior notice and public procedure pursuant to the Administrative Procedure Act (5 U.S.C. 553). For this reason, the collection of information requirement contained in this regulation has been reviewed and, pending receipt and evaluation of public comments, approved by the Office of Management and Budget (OMB) under control number 1545-1348. The estimated burden per respondent varies from 5 minutes to 9 minutes, depending upon individual circumstances, with an average of 7 minutes.

 These estimates are an approximation of the average time expected to be necessary for a collection of information. They are based on such information as is available to the Internal Revenue Service. Individual respondents may require greater or less time, depending on their particular circumstances.

 For further information concerning this collection of information, and where to submit comments on this collection of information, the accuracy of the estimated burden, and suggestions for reducing this burden, please refer to the preamble to the cross-reference notice of proposed rulemaking published in the Proposed Rules section of this issue of the Federal Register.

BACKGROUND The Internal Revenue Service is actively engaged in efforts to broaden the base of the existing Electronic Filing program and to reduce the filing burden of taxpayers. Among these efforts is the TeleFile Voice Signature test. The purpose of the test is to explore the technical feasibility, public acceptance, vulnerability, and other benefits and costs of giving certain taxpayers the option of filing their individual income tax returns by telephone.

 The Internal Revenue Service will notify certain individuals who live in the Cincinnati District Office geographic area that they may be eligible to participate in the TeleFile Voice Signature test. Taxpayers eligible to participate in this test (which is limited to one filing season) are individuals who (1) are eligible to file Form 1040EZ, Income Tax Return for Single Filers With No Dependents, (2) reside within the geographic boundaries of the Cincinnati District Office, and (3) will file their 1992 income tax returns from the same address from which they filed their 1991 income tax returns.

 Under sections 6012, 6061, and 6065 of the Internal Revenue Code, each individual with gross income in excess of a specified amount must file an annual income tax return that (i) is signed in accordance with prescribed forms and instructions and, (ii) except as otherwise provided by the Service, contains (or is verified by) a written declaration that the return is made under penalties of perjury.

 This document amends the Income Tax Regulations (26 CFR part 1) by adding temporary regulations sections 1.6012-7T, 1.6061-2T and 1.6065-2T, which provide rules to facilitate the implementation of the TeleFile Voice Signature test. Generally, the temporary regulations provide that a taxpayer's individual income tax return will be treated as having been properly filed if the taxpayer is eligible to participate in the TeleFile Voice Signature test and, pursuant to the instructions from the TeleFile system interactive voice computer, provides the requested information and the voice signature during the telephonic filing session.

EXPLANATION OF PROVISIONS

 A participating taxpayer will be treated as having filed an individual income tax return at the time the TeleFile Voice Signature system computer states to the taxpayer that the filing is completed. The taxpayer's voice signature will be treated as a signing and verification of the individual Federal income tax return by the taxpayer. By providing a voice signature during the telephonic filing session, the taxpayer will be treated as having made the income tax return under penalties of perjury.

SPECIAL ANALYSES

 It has been determined that these temporary rules are not major rules as defined in Executive Order 12291. Therefore, a Regulatory Impact Analysis is not required. It has also been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) and the Regulatory Flexibility Act (5 U.S.C. chapter 6) do not apply to these regulations, and therefore, a final Regulatory Flexibility Analysis is not required. Pursuant to section 7805(f) of the Internal Revenue Code, the notice of proposed rulemaking for the regulations will be submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on the regulations' impact on small business.

NEED FOR TEMPORARY REGULATIONS

 There is need for immediate guidance with respect to the provisions contained in this Treasury decision. For this reason, it is found impracticable to issue this Treasury decision with prior notice as required by section 553(b) of title 5 of the United States Code.

DRAFTING INFORMATION

 The principal author of these temporary regulations is Celia Gabrysh of the Office of Assistant Chief Counsel (Income Tax & Accounting), Internal Revenue Service. However, personnel from other offices of the Internal Revenue Service and Treasury Department participated in their development.

LIST OF SUBJECTS

26 CFR 1.6001-1 through 1.6109-2

 Income taxes, Reporting and recordkeeping requirements.

26 CFR Part 602

 Reporting and recordkeeping requirements.

Treasury Decision 8468

AMENDMENTS TO THE REGULATIONS

Accordingly, 26 CFR parts 1 and 602 are amended as follows:

PART 1 -- INCOME TAX; TAXABLE YEARS BEGINNING AFTER DECEMBER 31, 1953

Paragraph 1. The authority citation for part 1 is amended in part by adding the following citations to read as follows:

Authority: 26 U.S.C. 7805 * * * Section 1.6012-7T also issued under 26 U.S.C. 6012. * * * Section 1.6061-2T also issued under 26 U.S.C. 6061. * * * Section 1.6065-2T also issued under 26 U.S.C. 6065. * * *

Par. 2. Sections 1.6012-7T, 1.6061-2T and 1.6065-2T are added to read as follows:

SECTION 1.6012-7T TELEPHONE RETURN FILING USING VOICE SIGNATURE (TEMPORARY).

(a) IN GENERAL. For all purposes of the Internal Revenue Code, a return completed by an eligible taxpayer under the TeleFile Voice Signature test in accordance with the instructions provided over the telephone is an individual income tax return filed at the time the TeleFile system interactive voice computer states to the taxpayer that the filing is completed. For provisions relating to the signing and verification of the TeleFile Voice Signature test returns made under this section, see sections 1.6061-2T and 1.6065-2T, respectively.

(b) MANNER OF FILING RETURN BY TELEPHONE. An eligible taxpayer who chooses to participate in the TeleFile Voice Signature test must dial from a touch-tone telephone the telephone number provided by the Internal Revenue Service. When an eligible taxpayer dials this telephone number, the TeleFile system interactive voice computer will give the taxpayer filing instructions. The taxpayer must provide all the information and a voice signature at the time and in the manner required by those instructions.

(c) ELIGIBLE TAXPAYER DEFINED. An eligible taxpayer is an individual who lives in the Cincinnati District Office geographic area, who is eligible to file Form 1040EZ, and whose current name and address appears on the mailing label attached to the taxpayer's tax package for 1992.

(d) ADDRESS TO WHICH REFUNDS ARE SENT. If a taxpayer who files a TeleFile return is entitled to a refund, the taxpayer's refund will be sent to the address on the mailing label attached to the taxpayer's tax package for 1992.

(e) EFFECTIVE DATES. This section is effective for returns filed by eligible taxpayers in the TeleFile Voice Signature test after January 13, 1993, and before April 16, 1993. No returns can be filed through the TeleFile Voice Signature test after April 15, 1993.

SECTION 1.6061-2T SIGNING OF RETURNS BY VOICE SIGNATURE (TEMPORARY).

(a) IN GENERAL. An eligible taxpayer who makes an income tax return under section 1.6012-7T in the TeleFile Voice Signature test is treated, for all purposes of the Internal Revenue Code, as having signed that return by providing the voice signature at the time and in the manner required by the instructions that are provided over the telephone by the TeleFile system interactive voice computer. For provisions relating to the verification of the TeleFile returns made under section 1.6012-7T, see section 1.6065-2T.

(b) EFFECTIVE DATES. This section is effective for returns filed by eligible taxpayers in the TeleFile Voice Signature test after q January 13, 1993, and before April 16, 1993.

SECTION 1.6065-2T VERIFICATION OF RETURNS BY VOICE SIGNATURE (TEMPORARY).

(a) IN GENERAL. An eligible taxpayer who makes an income tax return under section 1.6012-7T in the TeleFile Voice Signature test, by providing the voice signature at the time and in the manner required by the instructions that are provided over the telephone by the TeleFile system interactive voice computer, is treated for all purposes of the Internal Revenue Code as having affirmed that the return is made under penalties of perjury and as having verified the return.

(b) EFFECTIVE DATES. This section is effective for returns filed by eligible taxpayers in the TeleFile Voice Signature test after January 13, 1993, and before April 16, 1993.

PART 602 -- OMB CONTROL NUMBERS UNDER THE PAPERWORK REDUCTION ACT

Par. 3. The authority citation for part 602 continues to read as follows:

Authority: 26 U.S.C. 7805.

Par. 4. Section 602.101(c) is amended by adding the following entries in the table:

SECTION 602.101 OMB CONTROL NUMBERS.

* * * * *

(c) * * *

 CFR part or section where                              Current OMB