[Federal Register Volume 59, Number 11 (Tuesday, January 18, 1994)]
[Unknown Section]
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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