Internal Revenue Bulletin:  2008-29 

July 21, 2008 

INCOME TAX


T.D. 9409 T.D. 9409

Final, temporary, and proposed regulations under section 7216 of the Code update the rules regarding disclosures of tax return information by tax return preparers, providing an exception allowing a U.S. tax return preparer to obtain consent from a taxpayer to disclose a taxpayer's social security number (SSN) to a non-U.S. tax return preparer when the U.S. preparer makes the disclosure through the use of an “adequate data protection safeguard,” the non-U.S. preparer receives the SSN via an “adequate data protection safeguard,” and the U.S. preparer verifies the maintenance of the adequate data protection safeguards in the request for the taxpayer's consent. The regulations also provide clarification that the general SSN masking rule and the exception thereto apply only to consents related to returns in the Form 1040 series, and clarification regarding U.S. preparers on temporary travel status. The regulations are applicable to disclosures of tax return information occurring on or after January 1, 2009. A public hearing on the proposed regulations is scheduled for October 6, 2008.

REG-121698-08 REG-121698-08

Final, temporary, and proposed regulations under section 7216 of the Code update the rules regarding disclosures of tax return information by tax return preparers, providing an exception allowing a U.S. tax return preparer to obtain consent from a taxpayer to disclose a taxpayer's social security number (SSN) to a non-U.S. tax return preparer when the U.S. preparer makes the disclosure through the use of an “adequate data protection safeguard,” the non-U.S. preparer receives the SSN via an “adequate data protection safeguard,” and the U.S. preparer verifies the maintenance of the adequate data protection safeguards in the request for the taxpayer's consent. The regulations also provide clarification that the general SSN masking rule and the exception thereto apply only to consents related to returns in the Form 1040 series, and clarification regarding U.S. preparers on temporary travel status. The regulations are applicable to disclosures of tax return information occurring on or after January 1, 2009. A public hearing on the proposed regulations is scheduled for October 6, 2008.

Notice 2008-59 Notice 2008-59

This notice provides guidance on questions and answers regarding Health Savings Accounts (HSAs) that have not previously been addressed in published guidance. Notices 2004-2, 2004-50, and 2007-22 amplified.

Rev. Proc. 2008-35 Rev. Proc. 2008-35

This procedure modifies and supersedes Rev. Proc. 2008-12, 2008-5 I.R.B. 368, which provided guidance to tax return preparers regarding the format and content of consents to use and consents to disclose tax return information with respect to taxpayers filing a return in the Form 1040 series (e.g., Form 1040NR, Form 1040A, or Form 1040EZ) under regulations section 301.7216-3, and also provided specific requirements for electronic signatures when a taxpayer executes an electronic consent to the use or disclosure of the taxpayer's tax return information. This procedure modifies Rev. Proc. 2008-12 to include the description of an “adequate data security safeguard,” provide mandatory consent language for use in a consent when an unmasked or unredacted SSN is to be disclosed outside the U.S., add an example of valid consent in the context of SSN disclosure outside of the U.S., and provide other minor clarifications. Rev. Proc. 2008-12 modified and superseded.

Rev. Proc. 2008-37 Rev. Proc. 2008-37

This procedure provides issuers with the terms and procedures for requesting, pursuant to regulations section 1.148-3(i), a recovery of overpayments of arbitrage rebate, penalty in lieu of rebate, and yield reduction paid to the United States under section 148 of the Code. The procedure also establishes a deadline of no later than two years after the final computation date with respect to an issue for the filing of these requests and provides a transitional period of two years from the publication of this procedure for requests relating to issues for which the final computation date has already occurred. Finally, this procedure clarifies that similar requests for overpayments for bond issues governed by the temporary regulations published in the Federal Register on May 18, 1992, will be treated in the same manner as requests for recovery of overpayments made under section 1.148-3(i). Rev. Proc. 92-83 obsoleted.


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