Federal Acquisition Regulation (FAR): NASA contractors, taxpayer identification numbers; reporting payment information to the Internal Revenue Service,

[Federal Register: January 11, 1999 (Volume 64, Number 6)]

[Rules and Regulations]

[Page 1528]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr11ja99-10]

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Part 1804

Revision to the NASA FAR Supplement Coverage on Information to the Internal Revenue Service

AGENCY: National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

SUMMARY: This is a final rule amending the NASA FAR Supplement (NFS) to provide guidance to NASA employees about furnishing to payment offices the taxpayer identification numbers of NASA contractors. The guidance will simplify NASA's efforts in meeting requirements for reporting payment information to the Internal Revenue Service.

EFFECTIVE DATE: January 11, 1999.

FOR FURTHER INFORMATION CONTACT: Dave Beck, NASA, Office of Procurement, Contract Management Division (Code HK), (202) 358-0482.

SUPPLEMENTARY INFORMATION:

Background

FAR 4.203 and subpart 4.9 have requirements for collecting. Taxpayer Identification Numbers (TIN's) and providing the TIN's to the payment office. Payment offices use the TIN's to meet requirements for reporting information to the IRS using IRS Form 1099. Payment offices can also use the TIN's to meet requirements under the Debt Collection Improvement Act of 1996 to collect and report on any delinquent amounts arising out of the contractor's relationship with the Government.

Payment offices use IRS Form 1099 to report to the IRS payments for services. Payments for merchandise are exempt from the reporting requirement. However under this final rule, each NASA installation, that has its own employer identification number, may elect to report to the IRS the payments for merchandise. This optional reporting eliminates the need for the NASA installation to distinguish payments for merchandise from payments for services. This reporting does not change a taxpayer's obligation to record the payments, regardless of type, as ``gross receipts and sales'' on tax forms.

This final rule makes one other change. Section 1804.203 is added to permit NASA installations to have their own procedures for distributing TIN's from the contracting office to the payment office, in place of using the last page of the contract as stated in FAR 4.203.

Impact

NASA certifies that this regulation will not have a significant economic impact on a substantial number of small business entities under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) because the rule does not change the obligation of small entities to report income on tax forms. This final rule does not impose any reporting or recordkeeping requirements subject to the Paperwork Reduction Act.

List of Subjects in 48 CFR Part 1804

Government procurement. Tom Luedtke, Acting Associate Administrator for Procurement.

Accordingly, 48 CFR Part 1804 is amended as follows:

  1. The authority citation for 48 CFR Part 1804 continues to read as follows:

    Authority: 42 U.S.C. 2473(c)(1).

    PART 1804--ADMINISTRATIVE MATTERS

    1804.203 [Added]

  2. Section 1804.203 is added to read as follows:

    1804.203 Taxpayer identification information.

    Instead of using the last page of the contract to provide the information listed in FAR 4.203, NASA installations may allow contracting officers to use a different distribution method, such as annotating the cover page of the payment office copy of the contract.

    Subpart 1804.9--[Added]

  3. Subpart 1804.9 is added to read as follows:

    Subpart 1804.9--Taxpayer Identification Number Information

    1804.904 Reporting payment information to the IRS.

    Each NASA installation, that has its own employer identification number, may elect to report to the IRS payments under purchase orders and contracts for merchandise and other exempt bills.

    [FR Doc. 99-438Filed1-8-99; 8:45 am]

    BILLING CODE 7510-01-P

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