[Federal Register Volume 59, Number 11 (Tuesday, January 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-1090]


[[Page Unknown]]

[Federal Register: January 18, 1994]


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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 70

[T.D. ATF-353; CRT-92-07]
RIN 1512-AB26

 

Delegation of Authority To Accept Checks and Waive Penalties

AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Treasury.

ACTION: Treasury decision, final rule.

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SUMMARY: Authority delegation. This Treasury decision expands the 
responsibilities of the ``Chief, Tax Processing Center'' by giving the 
chief the authority to accept checks and waive penalties. It also 
removes certain regulations dealing with tax collection activities 
under 27 CFR part 70 that have been determined to be outside of the 
authority of the Bureau of Alcohol, Tobacco and Firearms.

EFFECTIVE DATE: January 18, 1994.

FOR FURTHER INFORMATION CONTACT: Nancy Bryce, Tax Compliance Branch, 
Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts Avenue, NW., 
Washington, DC 20226, (202-927-8220).

SUPPLEMENTARY INFORMATION:

Background

    On July 1, 1972, the Bureau of Alcohol, Tobacco and Firearms (ATF) 
was established by Treasury Department Order No. 120-01 (formerly Order 
No. 221). This Order transferred from the Internal Revenue Service 
(IRS) to the newly-formed Bureau the functions, powers and duties 
relating to alcohol, tobacco, firearms and explosives laws. The Order 
specifically stated that ``all existing activities relating to the 
collection, processing, depositing, or accounting for taxes * * * shall 
continue to be performed by the Commissioner of Internal Revenue to the 
extent not now performed by the Alcohol, Tobacco and Firearms Division 
* * * until the Director shall otherwise provide with the approval of 
the Secretary.'' ATF assumed responsibility for the collection of taxes 
imposed by subtitle E of the Internal Revenue Code in July 1987, by 
means of Treasury Decision (T.D.) ATF-251, and adopted provisions in 27 
CFR part 70 similar to those found in 26 CFR part 301 which concerned 
the deposit and assessment of taxes. The remaining collection functions 
with respect to taxes administered by ATF were transferred by way of 
T.D. ATF-301, at which time ATF adopted regulations similar to those 
used by IRS relating to the examination, assessment, and collection 
functions. These provisions are also found in 27 CFR part 70. Under 
existing regulations, the regional directors (compliance) are 
authorized to accept checks and waive penalties associated with the 
collection of taxes administered by ATF. This final rule amends 27 CFR 
part 70 by vesting the authority to accept checks and waive penalties 
with the Chief, Tax Processing Center, in addition to the regional 
directors (compliance), in order to ease the burden on the regional 
directors (compliance), simplify the waiver process for taxpayers, and 
permit the more efficient functioning of ATF's tax collection 
activities.
    This final rule also removes the following regulations dealing with 
tax collection activities that have been determined to fall outside of 
ATF's authority: 27 CFR 70.166(a), 70.201, 70.211, 70.212 and 70.487.

Paperwork Reduction Act

    The provisions of the Paperwork Reduction Act of 1980, Public Law 
96-511, 44 U.S.C. chapter 35, and its implementing regulations, 5 CFR 
part 1320, do not apply to this final rule because no requirement to 
collect information is imposed.

Regulatory Flexibility Act

    The provisions of the Regulatory Flexibility Act relating to a 
final regulatory flexibility analysis (5 U.S.C. 604) are not applicable 
to this final rule because the agency was not required to publish a 
general notice of proposed rulemaking under 5 U.S.C. 553 or any other 
law. A copy of this final rule was submitted to the Chief Counsel for 
Advocacy of the Small Business Administration in accordance with 26 
U.S.C. 7805(f). No comments were received.

Executive Order 12866

    It has been determined that this rule is not a significant 
regulatory action, because (1) it will not have an annual effect on the 
economy of $100 million or more or adversely affect in a material way 
the economy, a sector of the economy, productivity, competition, jobs, 
the environment, public health or safety, or State, local or tribal 
governments or communities; (2) Create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) Materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) Raise novel legal or policy issues arising out of legal 
mandates, the Presidents priorities, or the principles set forth in 
Executive Order 12866.

Administrative Procedures Act

    Because this final rule is a rule of agency management that merely 
transfers the authority relating to the acceptance of checks and waiver 
of penalties, it is unnecessary to issue this Treasury decision with 
notice and public procedure thereon under 5 U.S.C. 553(a)(2) and (b)(B) 
or subject to the effective date limitation in 5 U.S.C. 553(d)(3).

Drafting Information

    The principal author of this document is Nancy M. Bryce, Tax 
Compliance Branch, Bureau of Alcohol, Tobacco and Firearms.

List of Subjects in 27 CFR Part 70

    Administrative practice and procedure, Alcohol and alcoholic 
beverages, Authority delegations, Claims, Excise taxes, Firearms and 
ammunition, Government employees, Law enforcement, Law enforcement 
officers, Penalties, Seizures and forfeitures, Surety bonds, Tobacco.

Authority and Issuance

    Title 27, Code of Federal Regulations is amended as follows:

PART 70--PROCEDURE AND ADMINISTRATION

    Paragraph 1. The authority citation for part 70 continues to read 
as follows:

    Authority: 5 U.S.C. 301 and 552; 26 U.S.C. 4181, 4182, 5146, 
5203, 5207, 5275, 5367, 5415, 5504, 5555, 5684(a), 5741, 5761(b), 
6020, 6021, 6064, 6102, 6155, 6159, 6201, 6203, 6204, 6301, 6303, 
6311, 6313, 6314, 6321, 6323, 6325, 6326, 6331-6343, 6401-6404, 
6407, 6416, 6423, 6501-6503, 6511, 6513, 6514, 6532, 6601, 6602, 
6611, 6621, 6622, 6651, 6653, 6656, 6657, 6658, 6665, 6671, 6672, 
6701, 6723, 6801, 6862, 6863, 6901, 7011, 7101, 7102, 7121, 7122, 
7207, 7209, 7214, 7304, 7401, 7403, 7406, 7423, 7424, 7425, 7426, 
7429, 7430, 7432, 7502, 7503, 7505, 7506, 7513, 7601-7606, 7608-
7610, 7622, 7623, 7653, 7805.


Secs. 70.61, 70.77, 70.96, and 70.97  [Amended]

    Par. 2. Secs. 70.61, 70.77, 70.96, 70.97. In Part 70 remove the 
words ``regional director(s) (compliance)'' and replace it with 
``regional director(s) (compliance) or the Chief, Tax Processing 
Center'' in the following places:
    (a) Section 70.61(a)(1)(i), (a)(1)(i)(D), (a)(3);
    (b) Section 70.77(b)(1), (b)(2);
    (c) Section 70.96(a)(1)(iv), (a)(2), (a)(3);
    (d) Section 70.97(c)(2).
    Par. 3. The first sentence of Sec. 70.74(b) is revised to read as 
follows:


Sec. 70.74  Request for prompt assessment.

* * * * *
    (b) The executor, administrator, or other fiduciary representing 
the estate of the decedent, or the corporation, or the fiduciary 
representing the dissolved corporation, as the case may be, shall, 
after the return in question has been filed, file the request for 
prompt assessment in writing with the regional director (compliance) of 
the region in which the taxpayer is located or with the Chief, Tax 
Processing Center. * * *
* * * * *
    Par. 4. Section 70.96 is amended by revising the first sentence of 
paragraph (a)(1), the first sentence of paragraph (a)(2), the first 
sentence of paragraph (a)(3) and the second and fourth sentences of 
paragraph (c) to read as follows:


Sec. 70.96  Failure to file tax return or to pay tax.

    (a) Addition to the tax. (1) Failure to file tax return. In the 
case of failure to file a return required under authority of:
    (i) Title 26 U.S.C. 61, relating to returns and records;
    (ii) Title 26 U.S.C. 51, relating to distilled spirits, wines and 
beer;
    (iii) Title 26 U.S.C. 52, relating to tobacco products, and 
cigarette papers and tubes; or
    (iv) Title 26 U.S.C. 53, relating to machine guns, destructive 
devices, and certain other firearms; and the regulations thereunder, on 
or before the date prescribed for filing (determined with regard to any 
extension of time for such filing), there shall be added to the tax 
required to be shown on the return the amount specified below unless 
the failure to file the return within the prescribed time is shown to 
the satisfaction of the regional director (compliance) or Chief, Tax 
Processing Center to be due to reasonable cause and not to willful 
neglect. * * *
    (a)(2) Failure to pay tax shown on return. In case of failure to 
pay the amount shown as tax on any return required to be filed after 
December 31, 1969 (without regard to any extension of time for filing 
thereof), specified in paragraph (a)(1) of this section, on or before 
the date prescribed for payment of such tax (determined with regard to 
any extension of time for payment), there shall be added to the tax 
shown on the return the amount specified below unless the failure to 
pay the tax within the prescribed time is shown to the satisfaction of 
the regional director (compliance) or the Chief, Tax Processing Center 
to be due to reasonable cause and not to willful neglect. * * *
    (a)(3) Failure to pay tax not shown on return. In case of failure 
to pay any amount in respect of any tax required to be shown on a 
return specified in paragraph (a)(1) of this section, which is not so 
shown (including an assessment made pursuant to 26 U.S.C. 6213(b)) 
within 10 days from the date of the notice and demand therefor, there 
shall be added to the amount shown in the notice and demand the amount 
specified below unless the failure to pay the tax within the prescribed 
time is shown to the satisfaction of the regional director (compliance) 
or the Chief, Tax Processing Center to be due to reasonable cause and 
not to willful neglect. * * *
* * * * *
    (c) * * * Such statement should be filed with the regional director 
(compliance) of the region in which the taxpayer is located or with the 
Chief, Tax Processing Center. * * * If the regional director 
(compliance) or Chief, Tax Processing Center determines that the 
delinquency was due to a reasonable cause and not to willful neglect, 
the addition to the tax will not be assessed. * * *
* * * * *
    Par. 5. Section 70.98(b) is amended by revising the second and 
third sentences to read as follows:


Sec. 70.98  Penalty for underpayment of deposits.

* * * * *
    (b) * * * The statement must be filed with the regional director 
(compliance) of the region in which the taxpayer is located or with the 
Chief, Tax Processing Center. If the regional director (compliance) or 
the Chief, Tax Processing Center determines that the underpayment was 
due to reasonable cause and not due to willful neglect, the penalty 
will not be imposed.


Secs. 70.99, 70.166, 70.201, 70.211, 70.212, and 70.487  [Removed]

    Par. 6. Section 70.99 is removed.
    Par. 7. Section 70.166 is removed.
    Par. 8. Section 70.201 is removed.
    Par. 9. Section 70.211 is removed.
    Par. 10. Section 70.212 is removed.
    Par. 11. Section 70.487 is removed.

    Signed: December 3, 1993.
Daniel R. Black,
Acting Director.
    Approved: December 27, 1993.
John P. Simpson,
Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).
[FR Doc. 94-1090 Filed 1-14-94; 8:45 am]
BILLING CODE 4810-31-U