[Federal Register Volume 59, Number 49 (Monday, March 14, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-5803]
[[Page Unknown]]
[Federal Register: March 14, 1994]
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DEPARTMENT OF THE TREASURY
Bureau of Alcohol, Tobacco and Firearms
[Notice No. 791 Ref: ATF O 1100.63F]
Delegation Order--Delegation or Authority to Accept or Reject
Offers in Compromise
1. Purpose. This order delegates the authority to accept or reject
certain offers in compromise of liabilities incurred under chapters 32,
51, 52, 53, and 78, Title 26 U.S.C., and liabilities incurred under the
Federal Alcohol Administration (FAA) Act.
2. Cancellation. ATF O 1100.63E, Delegation to the Associate
Director (Compliance Operations), Division Chiefs (Compliance),
Regional Directors (Compliance) and Chief, Tax Processing Center to
Accept or Reject Offers in Compromise, dated April 7, 1992, is
canceled.
3. General. a. The authority to accept or reject offers in
compromise of liabilities arising under chapters 32, 51, 52, and 53,
and sections 7652 and 7653 (chapter 78), Title 26 U.S.C., and the
provisions of the FAA Act is vested in the Director, Bureau of Alcohol,
Tobacco and Firearms, by Treasury Department Order No. 120-01 (formerly
Order No. 221), dated June 6, 1972; Treasury Department Order No. 120-
03, dated November 5, 1990; and 27 CFR 70.482 and 70.483.
b. The term tax liability used throughout this document includes
all principal, interest, additional amounts, addition to the tax, or
assessable penalties.
4. Discussion. This order authorizes regional directors
(compliance) and the Chief, Tax Processing Center, to take final action
on selected offers in compromise previously requiring action by the
division chiefs (compliance). This order also gives the Chief, Tax
Processing Center authority to resolve certain cases involving
permittees when these cases are in enforced collection status.
5. Delegations. Pursuant to the authority vested in the Director by
Treasury Department Orders No. 120-01 and 120-03, and subject to the
limitations contained in applicable regulations and procedures, there
is hereby delegated the following authority relating to the offers in
compromise of liabilities (other than forfeiture) arising under
chapters 32, 51, 52, 53, and 78, Title 26 U.S.C., and under the FAA
Act.
a. Associate Director and Deputy Associate Director (Compliance
Operations). (1) The Associate Director and Deputy Associate Director
(Compliance Operations) are authorized to accept or reject offers in
compromise of all liabilities arising from:
(a) Violations of chapters 32, 51, 52 and 53, Title 26 U.S.C.
(b) Violations of sections 7652 and 7653 (chapter 78), Title 26
U.S.C., insofar as those sections relate to commodities subject to tax
under chapters 32, 51, 52, and 53.
(c) Violations of the FAA Act.
(d) Cases which combine liabilities arising from violations of
chapter 51, Title 26 U.S.C. and the FAA Act.
(2) This delegation is limited to offers in compromise which do not
exceed $1,000,000.
b. Division Chiefs (Compliance). (1) Each division chief
(compliance) is authorized to accept or reject offers in compromise of
all liabilities arising from:
(a) Violations of chapters 32, 51, 52, and 53 and Secs. 7652 and
7653 (chapter 78), Title 26 U.S.C. as follows:
1 Cases in which the offer in compromise does not exceed $100,000
and the tax liability sought to be compromised does not exceed
$250,000.
2 Cases of late filed tax returns or late paid excise tax where the
penalties sought to be compromised do not exceed $500,000 and the offer
in compromise does not exceed $100,000.
(b) Violations of the FAA Act where cases include an offer in
compromise which does not exceed $100,000.
(c) Cases that combine liabilities arising under chapter 51, Title
26 U.S.C. and the FAA Act where the tax liability sought to be
compromised does not exceed $250,000 and the offer in compromise does
not exceed $100,000.
(2) The division chief (compliance) in whose area of responsibility
the majority of violations pertains will be the deciding official to
accept or reject offers which compromise the liabilities, including
those cases which are designated as national investigations/cases by
Bureau Headquarters.
c. Regional Directors (Compliance). (1) Each regional director
(compliance) is authorized to accept or reject offers in compromise of
tax liabilities and penalties arising from:
(a) Chapter 51, Title 26 U.S.C., as follows:
1 Illegal production of untaxpaid distilled spirits, wines, or
beer.
2 Failure to file returns of, or to pay, occupational taxes with
respect to distilled spirits, wines, or beer.
(b) Chapter 53, Title 26 U.S.C. (failure to pay firearms making,
transfer, and occupational taxes).
(2) Each regional director (compliance) is authorized to accept or
reject offers in compromise of criminal liabilities of retail dealers
in alcoholic beverages arising from violations of the Internal Revenue
laws relating to alcoholic beverages, including the refilling or reuse
of liquor bottles.
(3) Each regional director (compliance) is authorized to accept or
reject offers in compromise of all liabilities arising from:
(a) Violations of chapters 32, 51, 52, and 53, and Secs. 7652 and
7653 (chapter 78), Title 26 U.S.C., not enumerated in paragraphs 5c(1)
and (2), as follows:
1 Cases in which the offer in compromise does not exceed $10,000
and the tax liability sought to be compromised does not exceed $20,000.
2 Cases of late filed tax returns or late paid excise tax where the
penalties sought to be compromised do not exceed $50,000 and the offer
in compromise does not exceed $10,000.
3 Cases that pertain to specially denatured alcohol (SDA) or
taxfree (TF) alcohol where the offer in compromise does not exceed
$10,000 and the tax liability sought to be compromised is based upon
either (a) use of SDA or TF alcohol for unauthorized purposes or (b)
activities to which no liability would normally attach if the proponent
completed required notification and/or approval procedures, but for
which the proponent failed to complete such procedures. This delegation
is limited to cases in which the misuse of SDA or TF alcohol or the
activities in question are:
a Not willful, and
b Not for beverage purposes, and
c Not for a purpose that poses a health risk to the public, and
d Not for any purpose that poses a jeopardy to the revenue.
(b) Violations of the FAA Act where cases include an offer in
compromise which does not exceed $10,000.
(c) Cases that combine liabilities arising under chapter 51, Title
26 U.S.C., and the FAA Act where the tax liability sought to be
compromised does not exceed $20,000 and the offer in compromise does
not exceed $10,000.
(4) Each regional director is authorized to accept or reject offers
in compromise arising from cases outlined in paragraph 5b provided the
following circumstances apply:
(a) The final action to be taken follows specific written case
resolution guidance previously furnished by the division chief
(compliance).
(b) The relevant circumstances of the case have not changed
subsequent to the guidance of the division chief (compliance).
(5) Offers Encompassing Violations in Multiple Regions. (a) The
regional director (compliance) in whose region the permittee or brewer
responsible for the majority of violations is located will be the
deciding official for offers involving violations or permittees in more
than one region. However, cases that include a previously issued order
to show cause will be resolved by the regional director who authorized
issuance of the order.
(b) Tax cases regarding members of controlled groups as defined in
26 U.S.C. 1563(a) will generally be resolved by the regional director
(compliance) in whose region the members are located. However, if
multiple liabilities for the same tax period(s) have occurred as a
result of preparation of late filed tax returns or late paid tax
handled by a central location, the penalties will be resolved by the
regional director (compliance) in whose region lies the central
location.
(c) This authority does not include:
1 Cases which are designated as national investigations/cases by
Bureau Headquarters, or
2 Cases where the total amount of such a liability exceeds the
levels delegated to regional director (compliance).
d. Chief, Tax Processing Center. The Chief, Tax Processing Center
is authorized to accept or reject offers in compromise of all tax
liabilities arising from violations of chapters 32, 51, 52, and 53, and
Secs. 7652 and 7653 (chapter 78), Title 26 U.S.C., in the following
situations:
(1) Floor stocks tax and special (occupational) tax cases in which
the offer in compromise does not exceed $5,000 and the tax liability
sought to be compromised does not exceed $10,000. This authority does
not include offers in compromise from alcohol and tobacco permittees
except for those permittee cases included in paragraph 5d(2). Decisions
regarding special (occupational) taxes imposed by 26 U.S.C. chapter 53
will be coordinated with the Chief, National Firearms Act Branch.
(2) Enforced Collection cases in which the offer in compromise does
not exceed $5,000 and the tax liability sought to be compromised does
not exceed $10,000. Cases in excess of these amounts will be referred
to Bureau Headquarters for evaluation.
(3) Floor stocks tax, special (occupational) tax, and enforced
collection cases which meet the criteria outlined in paragraph
5b(1)(a), provided the following circumstances apply:
(a) The final action to be taken follows specific written case
resolution guidance previously furnished by the division chief
(compliance).
(b) The relevant circumstances of the case have not changed
subsequent to the guidance of the division chief (compliance).
6. Redelegation. The authority delegated herein may not be
redelegated.
7. For Information Contact. Gary Malaskovitz, Tax Compliance
Branch, 650 Massachusetts Avenue, NW., Washington, DC 20226, (202) 927-
8220.
8. Effective Date. March 14, 1994.
Approved: March 7, 1994.
John W. Magaw,
Director.
[FR Doc. 94-5803 Filed 3-11-94; 8:45 am]
BILLING CODE 4810-31-U