Rev. Rul. 61-29

The Internal Revenue Service has been asked whether the inspection of returns covering the Federal admissions tax by state or local tax authorities is prohibited by S.T. 459, C.B. VI-2, 302 (1927).

S.T. 459, which was issued under the Revenue Act of 1926, states that admissions tax returns are not to be open to inspection by anyone other than officials of the United States Government requiring information afforded thereby for use in the discharge of their official duties.

Section 601.702(a) of the Statement of Procedural Rules which were promulgated under the Internal Revenue Code of 1954, C.B. 1955-2, 921, at 994, sets forth certain procedures regarding the publication and public inspection of Federal tax returns and other matters of official record in the Internal Revenue Service. None of these procedures relate to returns covering the admissions tax.

However, section 601.702(d) of the Statement of Procedural Rules provides as follows:

REQUESTS.-(1) Requests for information in connection with matters of official record in which the procedure for inspection is not set out in rules referred to in the preceding paragraphs of this section should be submitted to the Commissioner of Internal Revenue, Washington 25, D.C. The request should clearly state the information desired and must set forth the interest of the applicant in the subject matter and purpose for which the information is desired. If the applicant is an agent or attorney acting for another he will attach to the application evidence of his authority to act for his principal. If such evidence is satisfactory, such agent or attorney will be given access to any record to which his principal would be given access. The determination as to whether the information requested is available for disclosure in any particular case will be made by the Commissioner of Internal Revenue or such other officer authorized under the provisions of law referred to in paragraph (a) or this section.

Accordingly, it is held that any requests by state or local tax authorities for the inspection of returns covering the Federal admissions tax should be submitted to the Commissioner of Internal Revenue, Washington 25, D.C., in accordance with the above provisions.

S.T. 459, C.B. VI-2, 302 (1927), is hereby revoked.