Proposed PBGC reporting regulations threaten confidentiality of tax returns.

• Position: US Pension Benefit Guaranty Corporation - Tax Executives Institute IRS Administrative Affairs Committee

On November 30, 1995, Tax Executives Institute submitted the following comments to James J. Keightley, General Counsel of the Pension Benefit Guaranty Corporation, relating to the annual financial and actuarial reporting requirements imposed under section 4010 of the Employee Retirement Income Security Act of 1974 (ERISA). The comments were prepared under the aegis of the Institute's IRS Administrative Affairs Committee, whose chair is Robert L. Ashby of Northern Telecom Inc. David L. Klausman of Westinghouse Electric Corp., vice chair of TEI's Federal Tax Committee, materially participated in the development of the Institute's comments.

On behalf of Tax Executives Institute, Inc., I am writing to comment on a proposed regulation issued by the Pension Benefit Guaranty Corporation (PBGC), relating to the annual financial and actuarial reporting requirements imposed under section 4010 of the Employee Retirement Income Security Act of 1974 (ERISA). The proposed regulations were issued on July 6, 1995, under Title 29 of the Code of Federal Regulations, section 2628, and published in the FEDERAL REGISTER (60 Fed. Reg. 35308). Our comments focus on Prop. Reg. [subsections] 2628.7(e)(1)(iii) and (f), which we believe both impose an unnecessary paperwork burden on companies subject to the regulations and undermine the confidentiality accorded tax returns and return information under the Internal Revenue Code (IRC).

Background

Tax Executives Institute is a volunteer, professional association of approximately 5,000 accountants, lawyers, and other professionals who are responsible for managing the tax affairs of their companies. TEI members must contend daily with business pension and tax laws, including those affecting the taxation of companies and their pension plans, from planning, recordkeeping, and compliance perspectives. TEI represents a cross-section of the business community. We are dedicated to the development and effective implementation of sound tax policy, to promoting the uniform and equitable enforcement of the laws, and to reducing the cost and burden of administration and compliance to the benefit of taxpayers and the government alike.

The Institute is firmly committed to maintaining a tax system that works - both for taxpayers and the government. We believe the diversity and training of our members enable us to bring a balanced and practical perspective to your attention in respect of the need to safeguard the confidentiality of tax...