[Federal Register Volume 60, Number 124 (Wednesday, June 28, 1995)]
[Rules and Regulations]
[Pages 33665-33676]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-15950]




  Federal Register / Vol. 60, No. 124 / Wednesday, June 28, 1995 / 
Rules and Regulations  
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[[Page 33665]]

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Parts 19, 24, 25, 53, 70, 250, 270, 275 and 285

[T.D. ATF-365]
RIN 1512-AB39


Implementation of Public Law 103-465, Section 712, Time for 
Payment and Deposits of Certain Excise Taxes (No. 277)

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

ACTION: Temporary rule (Treasury decision).

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SUMMARY: This temporary rule implements section 712 of Public Law 103-
465, ``The Uruguay Round Agreements Act.'' The new law changed payment 
and deposit requirements for certain excise taxes. These regulations 
implement the law by incorporating the accelerated payment period for 
taxes or deposits due on distilled spirits, wine, beer, tobacco 
products and cigarette papers and tubes and firearms and ammunition for 
the period September 16-September 26 (or September 25, for non-
electronic fund transfer (EFT) taxpayers). Payment of taxes for this 
period is due on September 29 (or September 28, for non EFT taxpayers). 
This temporary rule also amends regulations in 27 CFR Part 53, relating 
to the requirements for making deposits of firearms and ammunition 
excise taxes, by simplifying existing deposit rules in order to 
maintain consistency with other manufacturers excise taxes administered 
by the Internal Revenue Service (IRS). Finally, the temporary rule adds 
provisions relating to records and variances and makes other technical 
amendments to the regulations in 27 CFR Part 53. In the Proposed Rules 
section of this Federal Register, ATF is also issuing a notice of 
proposed rulemaking inviting comments on the temporary rule for a 90-
day period following the publication of this temporary rule.

EFFECTIVE DATES: The temporary regulations are effective January 1, 
1995, except for section 53.159, which is effective July 1, 1995.

ADDRESSES: Send written comments to: Chief, Alcohol and Tobacco 
Programs Division, Bureau of Alcohol, Tobacco and Firearms, P.O. Box 
50221, Washington, DC 20091-0221.

FOR FURTHER INFORMATION CONTACT: Tamara Light, Alcohol and Tobacco 
Programs Division, 650 Massachusetts Avenue, NW, Washington, DC 20226 
(202) 927-8210.

SUPPLEMENTARY INFORMATION:

Background

    On December 8, 1994, P.L. 103-465 (108 Stat. 4809) was enacted, 
amending the law relating to the payment and deposit of certain excise 
taxes. Federal excise taxes are imposed on firearms and ammunition, 
alcoholic beverages, and tobacco products. For the majority of these 
taxpayers, excise taxes must be remitted to ATF on a semimonthly basis 
within a 9-14 day period after the end of the semimonthly period. In 
order to receive these taxes during the fiscal year to which they 
relate, rather than in the subsequent fiscal year, P.L. 103-465 
accelerates the due date for payment or deposit of such taxes for the 
second semimonthly period of September.

Alcohol and Tobacco Excise Taxes

    With certain exceptions, the taxes on distilled spirits, wine, 
beer, tobacco products, and cigarette papers and tubes, are paid on the 
basis of a semimonthly return. The semimonthly periods covered by the 
tax return are from the 1st day through the 15th day of each month and 
from the 16th day of each month to the last day of that month. The 
return must be filed and the taxpayment must be made no later than the 
14th day after the last day of each semimonthly period.
    The amendments to the regulations covering distilled spirits, wine, 
beer, tobacco products, and cigarette papers and tubes establish the 
accelerated period required by P.L. 103-465 by dividing the second 
semimonthly period in September into two payment periods, beginning 
from the 16th day through the 26th day, and from the 27th day through 
the 30th day. The return and taxpayment for the period September 16-26 
are due on or before September 29. The return and taxpayment for the 
period September 27-30 are due on or before October 14. The accelerated 
payment period does not apply to wine excise taxes that are remitted on 
an annual basis.

Safe Harbor Rule

    The amendments to the law specifically provide that, in the case of 
taxes on distilled spirits, wine, beer, tobacco products, and cigarette 
papers and tubes, the accelerated payment requirement will be met if 
the taxpayer pays not later than September 29 an amount equal to 11/
15th (73.3 percent) of the taxpayer's liability for the first 
semimonthly period in September. This ``safe harbor'' provision is 
implemented in the regulations at Secs. 19.523(c)(2), 24.271(c)(2), 
25.164a(b), 250.112(d), 270.164(b), 275.114(b)(3) and 285.25(g)(3).

Special Rule for Taxpayers Not Required to Remit Taxes by Electronic 
Fund Transfer

    The law provides special rules for taxpayers who are not required 
to remit taxes by electronic fund transfer for the calendar year. For 
those taxpayers, payment of taxes for the period September 16-September 
25 are due on or before September 28. The regulations implementing this 
requirement provide that the requirement to pay tax for this period is 
satisfied if the taxpayer pays an amount equal to \2/3\ (66.7 percent) 
of the taxpayer's liability for the first semimonthly period in 
September.

Last Day for Making Payment

    The amendments to the law revise, in part, the special rules for 
due dates falling on, Saturday, Sunday, or legal holidays as defined in 
26 U.S.C. 7503. The amendment relating to due dates falling on Sunday 
applies only to the accelerated return period in September. If the 
required due date for the accelerated payment period falls on a legal 
holiday or Saturday, taxpayment is due on the immediately preceding 
day, and as amended, if the required due date for the accelerated 
payment period falls on a Sunday, taxpayment is due on the following 
Monday. These amendments are reflected in the regulations at 
Secs. 19.523(c)(3), 24.271(c)(3), 25.164a(c), 70.306(a), 250.112(d), 
270.164(c), 275.114(b)(4), and 285.25(g)(4).

Firearms and Ammunition Excise Taxes

    Current regulations require taxpayers who incur more than $100 in 
tax liability for any calendar month (except the last month of the 
quarter) to make monthly deposits on ATF Form 5300.27, Federal Firearms 
and Ammunition Excise Tax Deposits. Monthly deposits are due by the 
last day of the month following the month in which the $100 liability 
was incurred.
    Taxpayers who incur more than $2,000 of tax liability for any 
calendar month in the preceding calendar quarter are required to make 
semimonthly deposits for the current calendar quarter on ATF Form 
5300.27. Deposits of tax for a semimonthly period generally must equal 
the amount of tax liability incurred during that semimonthly period. 
However, current regulations provide four exceptions to this rule. 
Taxpayers may use one of these exceptions in computing the amount of 
[[Page 33666]] tax required to be deposited. Each of the four 
exceptions requires the taxpayer to estimate and deposit an amount of 
tax based on certain percentages and requirements prescribed by the 
particular exception. Semimonthly deposits are due by the ninth day of 
the semimonthly period following the semimonthly period in which the 
tax was incurred.
    Further, semimonthly depositors must deposit any underpayment of 
tax for the first and second month of the quarter by the ninth day of 
the second month following the month in which the tax liability was 
incurred. Any underpayment of tax for the third month of the quarter 
which exceeds $100 must be deposited by the last day of the first month 
following the end of the quarter.

P.L. 103-465 Amendments to the Requirement for Making Deposits

    In the case of firearms and ammunition excise taxes required to be 
remitted on a semimonthly basis, P.L. 103-465 requires an accelerated 
payment for the period September 16-September 25. The due date for 
deposit of taxes incurred during this period is September 28. These 
dates apply because the firearms and ammunition excise taxes are not 
required to be made by electronic fund transfer. Taxes incurred for the 
remainder of the semimonthly period, September 26-30, are due on 
October 9. The amendments to the law enact a special rule where the due 
date of the deposit falls on Saturday or Sunday. If the required due 
date for the accelerated payment period falls on a Saturday, taxpayment 
is due on the preceding Friday. If the required due date for the 
accelerated payment period falls on a Sunday, taxpayment is due on the 
following Monday. For due dates falling on a legal holiday, the general 
rule under 26 U.S.C. 7503 continues to apply, and the deposit is due on 
the day succeeding the legal holiday.

Simplification of Deposit Rule

    This temporary rule modifies current regulations in 27 CFR Part 53 
which provide a number of different methods for determining whether a 
taxpayer has complied with the semimonthly deposit rules. This 
temporary rule reduces the number of those rules, thereby simplifying 
the deposit system. The rule also complies with the congressional 
mandate that ATF modify existing regulatory safe harbors to reflect the 
accelerated taxpayment period. The legislative history for P.L. 103-465 
states that both Congress and the Administration ``expected that the 
Treasury Department will modify existing safe harbors relating to 
excise deposits to reflect these changes.'' See, H.R. Rep. No. 103-826 
(I), 103rd Cong., 2nd Sess. 177 (1984), and ``The Uruguay Round 
Agreements Act Statement of Administrative Action,'' page 1056. This 
simplification of the deposit rules enables taxpayers to use clear and 
concise safe harbors in determining their deposits required for the 
accelerated period.
    The amendments to the regulations eliminate the current monthly and 
semimonthly deposit rules in order to have a single deposit rule apply 
to all persons required to make deposits of tax. The new regulation at 
Sec. 53.159 requires semimonthly deposits of tax from all persons 
required to file returns. ATF believes that by having one deposit rule 
apply to all persons, the system will be easier for taxpayers to 
understand and for ATF to administer.
    Generally, under this rule, the amount of tax deposited for a 
semimonthly period must equal the amount of tax liability incurred 
during that period. However, the regulations provide the following 
exceptions to this rule.

Special Rule for One-time or Occasional Filings

    A special rule is provided for one-time or occasional filings of 
returns. A person may file a one-time or occasional return reporting 
liability with respect to taxable transactions in a calendar quarter if 
the person reporting tax does not engage in any activity with respect 
to which tax is reportable on the return in the course of a trade or 
business.
    In addition, no deposit is required in the case of tax reported on 
a one-time or occasional filing. Instead, the tax reported on a one-
time or occasional filing is paid with the quarterly return.

De Minimis Exception to the Deposit Requirement

    The deposit requirement provided by these amendments to the 
regulations will not apply if the total tax liability for the quarter 
does not exceed $2,000. Instead, any tax incurred for the return period 
will be paid with the quarterly return.

Safe Harbor Rule

    A general safe harbor rule is provided so that taxpayers required 
to pay firearms and ammunition excise taxes are not required to 
determine their actual tax liability during each semimonthly period in 
a quarter. The safe harbor rule allows taxpayers to deposit an 
estimated amount of tax based on prior liability, delaying calculation 
of their actual liability until the quarterly return is due. The 
adoption of this general safe harbor rule facilitates the promulgation 
of the modified rule, discussed below, for the accelerated deposit 
period in September.
    The safe harbor rule applies to taxpayers who filed ATF Form 
5300.26, Firearms and Ammunition Excise Tax Return, reporting tax for 
the second calendar quarter preceding the current calendar quarter (the 
look-back quarter). Such persons are considered to have met the 
semimonthly deposit requirement for the current quarter if (1) the 
deposit for each semimonthly period in the current quarter is not less 
than \1/6\ of the total tax liability reported on Form 5300.26 for the 
look-back quarter, (2) each deposit is made on time, and (3) any 
underpayment for the current quarter is paid by the due date of the 
return on which the tax would ordinarily be reported. All three 
requirements must be satisfied in order for the safe harbor rule to 
apply.

Modification of Safe Harbor Rule Based on Look-back Quarter Liability 
for the Month of September

    Under P.L. 103-465, deposits for the period September 16-25 are due 
on September 28. The deposit for the remaining 5 days, September 26-30, 
is due on October 9, the 9th day of the semimonthly period following 
the semimonthly period for which the tax is reportable. A modified safe 
harbor rule applies to the third calendar quarter and is met where 
deposit of taxes for the periods September 16-25 and September 26-30 is 
not less than \1/12\ (8.3 percent) of the tax liability reported for 
the look-back quarter.

Modification of Safe Harbor Rule Based on Look-back Quarter Liability 
to Adjust for Tax Rate Increases

    Under the safe harbor rule, an increase in the rate of tax would 
generally not be reflected in deposits made by persons using the look-
back quarter until the second quarter after the quarter for which the 
increased rate is effective (although the increased rate would be 
reflected in catch-up payments for each quarter). Therefore, the safe 
harbor deposit amounts for the first and second quarters beginning on 
or after the effective date of a tax rate increase are required to be 
calculated as if the new tax rate had been in effect during the look-
back quarter. Thus, persons using the safe harbor rule in these 
quarters must deposit \1/6\ of the amount of liability for which they 
would have been liable in the look-back quarter had the higher rate 
applied at that time. This rule would ensure that the statutory 
effective date of tax rate [[Page 33667]] changes would be 
appropriately reflected in deposits.
    Look-back quarter liability is adjusted for determining safe harbor 
deposit amounts only where there is a change in the law increasing the 
rate of tax, and not when there is some other change that would have 
resulted in higher taxes in the look-back quarter.

First Time Filers

    In addition to the de minimis exception which applies to all 
taxpayers, a special rule is provided for first time filers (new return 
filers). First time filers do not have a look-back quarter because the 
filing of ATF F 5300.26, Federal Firearms and Ammunition Tax Return, 
other than for a one-time or occasional return under section 
53.151(a)(5), has not been required. Under this special rule, a person 
is considered to have met the semimonthly deposit requirement if the 
person's deposit for each semimonthly period in the current quarter is 
not less than 95 percent of the total tax liability incurred during the 
semimonthly period, each deposit is made on time, and any underpayment 
for the current quarter is paid by the due date of the return on which 
the tax would ordinarily be reported.

Technical and Clarifying Amendments

    The definition of ``person'' is being added to Sec. 53.11 in order 
to clarify what constitutes a person for purposes of Part 53.
    Section 53.22 is being amended by exempting one-time or occasional 
filers from the requirement of obtaining an employer identification 
number; instead they may use their social security number.
    Section 53.23 is being added to the regulations to advise taxpayers 
that upon approval by the Director, they may use an alternate method or 
procedure in lieu of a method or procedure specifically prescribed in 
this part.
    Section 53.24 is also being added to the regulations to impose the 
requirement to retain records for a period of three years.
    Section 53.142 is being amended to incorporate a statutory 
amendment to section 4222(c), pertaining to tax-free registrations.
    Section 53.152 paragraph (c) is being redesignated, as the subject 
matter is of an administrative nature and is more appropriately placed 
in a subpart governing administrative matters. As a result, 
Sec. 53.152(c) is being deleted from subpart L and now appears as 
Sec. 53.21(d) in subpart C.

Conforming Regulatory Changes to Secs. 53.151 and 53.158

    Language in Secs. 53.151 and 53.158 is being amended to maintain 
consistency with the new deposit rule.

Regulatory Flexibility Act

    It is hereby certified that this regulation will not have a 
significant economic impact on a substantial number of small entities 
or impose or otherwise cause an increase in the reporting, 
recordkeeping or other compliance burdens on a substantial number of 
small entities. Pursuant to section 7805(f) of the Internal Revenue 
Code, this regulation has been submitted to the Chief Counsel for 
Advocacy of the Small Business Administration for comment on its impact 
on small business.

Executive Order 12866

    It has been determined that this temporary rule is not a 
significant regulatory action as defined by Executive Order 12866, 
because the economic effects flow directly from the underlying statute 
and not from this temporary rule. Therefore, a regulatory assessment is 
not required.

Administrative Procedure Act

    Because this document merely implements the law and because 
immediate guidance is necessary to implement the provisions of the law, 
it is found to be impracticable to issue this Treasury decision with 
notice and public procedure under 5 U.S.C. 553(b), or subject to the 
effective date limitation in section 553(d).

Paperwork Reduction Act

    This regulation is being issued without prior notice and public 
procedure pursuant to the Administrative Procedure Act (5 U.S.C. 553). 
For this reason, the collections of information contained in this 
regulation have been reviewed and, pending receipt and evaluation of 
public comments, approved by the Office of Management and Budget (OMB) 
under control numbers 1512-0467 and 1512-0509. The estimated average 
annual burden associated with 1512-0467 is 0.7 hours per respondent or 
recordkeeper, the estimated average annual burden associated with 1512-
0497 is 0.25 hours per respondent or recordkeeper, and the estimated 
average annual burden associated with 1512-0509 is 0.21 hours per 
respondent or recordkeeper.
    For further information concerning the collection of information, 
and where to submit comments on the collections of information and the 
accuracy of the estimated burden, and suggestions for reducing this 
burden, refer to the preamble to the cross-referenced notice of 
proposed rulemaking published elsewhere in this issue of the Federal 
Register.

Drafting Information

    The principal author of this document is Tamara Light, Alcohol and 
Tobacco Programs Division, Bureau of Alcohol, Tobacco and Firearms.
List of Subjects

27 CFR Part 19

    Administrative practice and procedure, Alcohol and alcoholic 
beverages, Authority delegations, Claims, Chemicals, Customs duties and 
inspection, Electronic fund transfers, Excise taxes, Exports, Gasohol, 
Imports, Labeling, Liquors, Packaging and containers, Puerto Rico, 
Reporting and recordkeeping requirements, Security measures, Spices and 
flavoring, Surety bonds, Transportation, Virgin Islands, Warehouses, 
Wine.

27 CFR Part 24

    Administrative practice and procedure, Authority delegations, 
Claims, Electronic fund transfers, Excise taxes, Exports, Food 
additives, Fruit juices, Labeling, Liquors, Packaging and containers, 
Reporting and recordkeeping requirements, Research, Scientific 
equipment, Spices and flavoring, Surety bonds, Taxpaid wine bottling 
house, Transportation, Vinegar, Warehouses, Wine.

 27 CFR Part 25

    Administrative practice and procedure, Authority delegations, Beer, 
Claims, Electronic fund transfer, Excise taxes, labeling, Packaging and 
containers, Reporting and recordkeeping requirements, Research, Surety 
bonds, Transportation.

27 CFR Part 53

    Administrative practice and procedure, Arms and munitions, 
Authority delegations, Exports, Imports, Penalties, Reporting and 
recordkeeping requirements.

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.

27 CFR Part 250

    Alcohol and alcoholic beverages, Caribbean Basin initiative, 
Claims, [[Page 33668]] Customs duties and inspection, Electronic fund 
transfers, Excise taxes, Packaging and containers, Puerto Rico, 
Reporting and recordkeeping requirements, Surety bonds, Virgin Islands, 
Warehouses.

27 CFR Part 270

    Administrative practice and procedure, Authority delegations, 
Cigars and cigarettes, Claims, Electronic fund transfers, Excise taxes, 
Labeling, Packaging and containers, Penalties, Reporting requirements, 
Seizures and forfeitures, Surety bonds.

27 CFR Part 275

    Cigars and cigarettes, Claims, Customs duties and inspection, 
Electronic fund transfers, Excise taxes, Imports, Labeling, Packaging 
and containers, Puerto Rico, Reporting and recordkeeping requirements, 
Surety bonds, Tobacco, Virgin Islands, Warehouses.

27 CFR Part 285

    Administrative practice and procedure, Authority delegations, 
Cigarette papers and tubes, Claims, Excise taxes, Packaging and 
containers, Penalties, Seizures and forfeitures, Surety bonds, 
Reporting requirements.

Authority and Issuance

    27 CFR Parts 19, 24, 25, 53, 70, 250, 270, 275, and 285 are amended 
as follows:

PART 19--DISTILLED SPIRITS PLANTS

    Paragraph 1. The authority citation for 27 CFR Part 19 is revised 
to read as follows:

    Authority: 19 U.S.C. 81c, 1311; 26 U.S.C. 5001, 5002, 5004-5006, 
5008, 5010, 5041, 5061, 5062, 5066, 5081, 5101, 5111-5113, 5142, 
5143, 5146, 5171-5173, 5175, 5176, 5178-5181, 5201-5204, 5206, 5207, 
5211-5215, 5221-5223, 5231, 5232, 5235, 5236, 5241-5243, 5271, 5273, 
5301, 5311-5313, 5362, 5370, 5373, 5501-5505, 5551-5555, 5559, 5561, 
5562, 5601, 5612, 5682, 6001, 6065, 6109, 6302, 6311, 6676, 6806, 
7011, 7510, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.

    Par. 2. Section 19.522 is amended by revising the second sentence 
of paragraph (a) to read as follows:


Sec. 19.522  Taxes to be collected by returns.

    (a) Deferred taxes. * * * Except as provided in section 19.523(c), 
the periods to be covered by semimonthly returns on Form 5000.24 shall 
run from the 1st day through the 15th day of each month, and from the 
16th day through the last day of each month. * * *
* * * * *
    Par. 3. Section 19.523 is amended by revising paragraph (a) and by 
adding new paragraph (c) to read as follows:


Sec. 19.523  Time for filing returns.

    (a) Payment pursuant to semimonthly return. Where the proprietor of 
bonded premises has withdrawn spirits from such premises on 
determination and before payment of tax, the proprietor shall file a 
semimonthly tax return covering such spirits on Form 5000.24, and 
remittance, as required by Sec. 19.524 or Sec. 19.525, not later than 
the 14th day after the last day of the return period, except as 
provided by paragraph (c) of this section. If the due date falls on a 
Saturday, Sunday, or legal holiday, the return and remittance shall be 
due on the immediately preceding day which is not a Saturday, Sunday, 
or legal holiday, except as provided by paragraph (c)(3) of this 
section.
* * * * *
    (c) Special rule for taxes due for the month of September 
(effective after December 31, 1994). (1)(i) Except as provided in 
paragraph (c)(1)(ii) of this section, the second semimonthly period for 
the month of September shall be divided into two payment periods, from 
the 16th day through the 26th day, and from the 27th day through the 
30th day. The proprietor shall file a return on Form 5000.24, and make 
remittance, for the period September 16-26, no later than September 29. 
The proprietor shall file a return on Form 5000.24, and make 
remittance, for the period September 27-30, no later than October 14.
    (ii) Taxpayment not by electronic fund transfer. In the case of 
taxes not required to be remitted by electronic fund transfer as 
prescribed by Sec. 19.524, the second semimonthly period of September 
shall be divided into two payment periods, from the 16th day through 
the 25th day, and the 26th day through the 30th day. The proprietor 
shall file a return on Form 5000.24, and make remittance, for the 
period September 16-25, no later than September 28. The proprietor 
shall file a return on Form 5000.24, and make remittance, for the 
period September 26-30, no later than October 14.
    (2) Amount of payment: Safe harbor rule. (i) Taxpayers are 
considered to have met the requirements of paragraph (c)(1)(i) of this 
section, if the amount paid no later than September 29 is not less than 
\11/15\ (73.3 percent) of the tax liability incurred for the 
semimonthly period beginning on September 1 and ending on September 15, 
and if any underpayment of tax is paid by October 14.
    (ii) Taxpayers are considered to have met the requirements of 
paragraph (c)(1)(ii) of this section, if the amount paid no later than 
September 28 is not less than 2/3rds (66.7 percent) of the tax 
liability incurred for the semimonthly period beginning on September 1 
and ending on September 15, and if any underpayment of tax is paid by 
October 14.
    (3) Last day for payment. If the required taxpayment due date for 
the periods September 16-25 or September 16-26 as applicable, falls on 
a Saturday or legal holiday, the return and remittance shall be due on 
the immediately preceding day. If the required due date falls on a 
Sunday, the return and remittance shall be due on the immediately 
following day.
    (4) Example. Payment of tax for the month of September. (i) Facts. 
X, a distilled spirits plant proprietor required to pay taxes by 
electronic fund transfer, incurred tax liability in the amount of 
$30,000 for the first semimonthly period of September. For the period 
September 16-26, X incurred tax liability in the amount of $45,000, and 
for the period September 27-30, X incurred tax liability in the amount 
of $2,000.
    (ii) Payment requirement. X's payment of tax in the amount of 
$30,000 for the first semimonthly period of September is due no later 
than September 29 (Sec. 19.522(a)). X's payment of tax for the period 
September 16-26 is also due no later than September 29 
(Sec. 19.523(c)(1)(i)). X may use the safe harbor rule to determine the 
amount of payment due for the period of September 16-26 
(Sec. 19.523(c)(2)). Under the safe harbor rule, X's payment of tax 
must equal $21,990.00, 11/15ths of the tax liability incurred during 
the first semimonthly period of September. Additionally, X's payment of 
tax in the amount of $2,000 for the period September 27-30 must be paid 
no later than October 14 (Sec. 19.523(c)(1)(i)). X must also pay the 
underpayment of tax, $23,010.00, for the period September 16-26, no 
later than October 14 (Sec. 19.523(c)(2)).

PART 24--WINE

    Par. 4. The authority citation for 27 CFR Part 24 continues to read 
as follows:

    Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001, 5008, 5041, 5042, 
5044, 5061, 5062, 5081, 5111-5113, 5121, 5122, 5142, 5143, 5173, 
5206, 5214, 5215, 5351, 5353, 5354, 5356, 5357, 5361, 5362, 5364-
5373, 5381-5388, 5391, 5392, 5511, 5551, 5552, 5661, 5662, 5684, 
6065, 6091, 6109, 6301, 6302, 6311, 6651, 6676, 7011, 7302, 7342, 
7502, 7503, 7606, 7805, 7851; 31 U.S.C. 9301, 9303, 9304, 9306.

    [[Page 33669]] Par. 5. Section 24.271 is amended by revising 
paragraph (b) and by adding paragraph (c) to read as follows:


Sec. 24.271  Payment of tax by check, cash or money order.

    (a) * * *
    (b) Return periods. Except as provided for in paragraph (c) of this 
section and Sec. 24.273, or where there is no tax due, return periods 
are from the 1st day of each month through the 15th day of that month 
and from the 16th day of each month through the last day of that month. 
The proprietor shall file returns with remittances, for each return 
period not later than the 14th day after the last day of the return 
period. If the due date falls on a Saturday, Sunday, or legal holiday, 
the return and remittance shall be due on the immediately preceding day 
which is not a Saturday, Sunday, or legal holiday, except as provided 
by Sec. 24.271(c)(3).
    (c) Special rule for taxes due for the month of September 
(effective after December 31, 1994). (1)(i) Except as provided in 
paragraph (c)(1)(ii) of this section, the second semimonthly period for 
the month of September shall be divided into two payment periods, from 
the 16th day through the 26th day, and from the 27th day through the 
30th day. The proprietor shall file a return on Form 5000.24, and make 
remittance, for the period September 16-26, no later than September 29. 
The proprietor shall file a return on Form 5000.24, and make 
remittance, for the period September 27-30, no later than October 14.
    (ii) Taxpayment not by electronic fund transfer. In the case of 
taxes not required to be remitted by electronic fund transfer as 
prescribed by Sec. 24.272, the second semimonthly period of September 
shall be divided into two payment periods, from the 16th day through 
the 25th day, and the 26th day through the 30th day. The proprietor 
shall file a return on Form 5000.24, and make remittance, for the 
period September 16-25, no later than September 28. The proprietor 
shall file a return on Form 5000.24, and make remittance, for the 
period September 26-30, no later than October 14.
    (2) Amount of payment: Safe harbor rule. (i) Taxpayers are 
considered to have met the requirements of paragraph (c)(1)(i) of this 
section, if the amount paid no later than September 29 is not less than 
11/15 (73.3 percent) of the tax liability incurred for the semimonthly 
period beginning on September 1 and ending on September 15, and if any 
underpayment of tax is paid by October 14.
    (ii) Taxpayers are considered to have met the requirements of 
paragraph (c)(1)(ii) of this section, if the amount paid no later than 
September 28 is not less than 2/3rds (66.7 percent) of the tax 
liability incurred for the semimonthly period beginning on September 1 
and ending on September 15, and if any underpayment of tax is paid by 
October 14.
    (3) Last day for payment. If the required due date for taxpayment 
for the periods September 16-25 or September 16-26 as applicable, falls 
on a Saturday or legal holiday, the return and remittance shall be due 
on the immediately preceding day. If the required due date falls on a 
Sunday, the return and remittance shall be due on the immediately 
following day.
    (4) Example. Payment of tax for the month of September. (i) Facts. 
X, a proprietor required to pay taxes by electronic fund transfer, 
incurred tax liability in the amount of $30,000 for the first 
semimonthly period of September. For the period September 16-26, X 
incurred tax liability in the amount of $45,000, and for the period 
September 27-30, X incurred tax liability in the amount of $2,000.
    (ii) Payment requirement. X's payment of tax in the amount of 
$30,000 for the first semimonthly period of September is due no later 
than September 29 (Sec. 24.271(b)). X's payment of tax for the period 
September 16-26 is also due no later than September 29 
(Sec. 24.271(c)(1)(i)). X may use the safe harbor rule to determine the 
amount of payment due for the period of September 16-26 
(Sec. 24.271(c)(2)). Under the safe harbor rule, X's payment of tax 
must equal $21,990.00, 11/15ths of the tax liability incurred during 
the first semimonthly period of September. Additionally, X's payment of 
tax in the amount of $2,000 for the period September 27-30 must be paid 
no later than October 14 (Sec. 24.271(c)(1)(i)). X must also pay the 
underpayment of tax, $23,010.00, for the period September 16-26, no 
later than October 14 (Sec. 24.271(c)(2)).

PART 25--BEER

    Par. 6. The authority citation for 27 CFR Part 25 continues to read 
as follows:

    Authority: 19 U.S.C. 81(c); 26 U.S.C. 5002, 5051-5054, 5056, 
5061, 5091, 5111, 5113, 5142, 5143, 5146, 5222, 5401-5403, 5411-
5417, 5551, 5552, 5555, 5556, 5671, 5673, 5684, 6011, 6061, 6065, 
6091, 6109, 6151, 6301, 6302, 6311, 6313, 6402, 6651, 6656, 6676, 
6806, 7011, 7342, 7606, 7805; 31 U.S.C. 9301, 9303-9308.

    Par. 7. Section 25.163 is amended by revising the first sentences 
as follows:
Sec. 25.163  Method of tax payment.

    A brewer shall pay the tax on beer by return on Form 5000.24, as 
provided in Secs. 25.164, 25.164a, 25.173, and 25.175. * * *
    Par. 8. Section 25.164 is amended by revising paragraphs (c) and 
(d) to read as follows:


Sec. 25.164  Semimonthly return

* * * * *
    (c) Return periods. Except as provided in Sec. 25.164a, return 
periods run from the brewer's business day beginning on the first day 
of each month through the brewer's business day beginning on the 15th 
day of that month, and from the brewer's business day beginning on the 
16th day of the month through the brewer's business day beginning on 
the last day of the month.
    (d) Time for filing returns and paying tax. Except as provided in 
Sec. 25.164a the brewer shall file the semimonthly tax return, Form 
5000.24, for each return period, and make remittance as required by 
this section, not later than the 14th day after the last day of the 
return period. If the due date falls on a Saturday, Sunday, or legal 
holiday, the return and remittance shall be due on the immediately 
preceding day which is not a Saturday, Sunday, or legal holiday, except 
as provided by Sec. 25.164a(c).
* * * * *
    Par. 9. Section 25.164a is added to read as follows:


Sec. 25.164a  Special Rule for taxes due for the month of September 
(effective after December 31, 1994).

    (a)(1) Except as provided in paragraph (a)(2) of this section, the 
second semimonthly period for the month of September shall be divided 
into two payment periods, from the 16th day through the 26th day, and 
from the 27th day through the 30th day. The brewer shall file a return 
on Form 5000.24, and make remittance, for the period September 16-26, 
no later than September 29. The brewer shall file a return on Form 
5000.24, and make remittance, for the period September 27-30, no later 
than October 14.
    (2) Taxpayment not by electronic fund transfer. In the case of 
taxes not required to be remitted by electronic fund transfer as 
prescribed by Sec. 25.165, the second semimonthly period of September 
shall be divided into two payment periods, from the 16th day through 
the 25th day, and the 26th day through the 30th day. The brewer shall 
file a return on Form 5000.24, and make remittance, for the period 
September 16-25, no later than September 28. The brewer shall file a 
return on Form [[Page 33670]] 5000.24, and make remittance, for the 
period September 26-30, no later than October 14.
    (b) Amount of payment: Safe harbor rule. (1) Taxpayers are 
considered to have met the requirements of paragraph (a)(1) of this 
section, if the amount paid no later than September 29 is not less than 
\11/15\ (73.3 percent) of the tax liability incurred for the 
semimonthly period beginning on September 1 and ending on September 15, 
and if any underpayment of tax is paid by October 14.
    (2) Taxpayers are considered to have met the requirements of 
paragraph (a)(2) of this section, if the amount paid no later than 
September 28 is not less than \2/3\rds (66.7 percent) of the tax 
liability incurred for the semimonthly period beginning on September 1 
and ending on September 15, and if any underpayment of tax is paid by 
October 14.
    (c) Last day for payment. If the required due date for taxpayment 
for the periods September 16-25 or September 16-26 as applicable, falls 
on a Saturday or legal holiday, the return and remittance shall be due 
on the immediately preceding day. If the required due date falls on a 
Sunday, the return and remittance shall be due on the immediately 
following day.
    (d) Example. Payment of tax for the month of September. (1) Facts. 
X, a brewer required to pay taxes by electronic fund transfer, incurred 
tax liability in the amount of $30,000 for the first semimonthly period 
of September. For the period September 16-26, X incurred tax liability 
in the amount of $45,000, and for the period September 27-30, X 
incurred tax liability in the amount of $2,000.
    (2) Payment requirement. X's payment of tax in the amount of 
$30,000 for the first semimonthly period of September is due no later 
than September 29 (Sec. 25.164(d)). X's payment of tax for the period 
September 16-26 is also due no later than September 29 
(Sec. 25.164a(a)(1)). X may use the safe harbor rule to determine the 
amount of payment due for the period of September 16-26 
(Sec. 25.164a(b)). Under the safe harbor rule, X's payment of tax must 
equal $21,990.00, \11/15\ths of the tax liability incurred during the 
first semimonthly period of September. Additionally, X's payment of tax 
in the amount of $2,000 for the period September 27-30 must be paid no 
later than October 14 (Sec. 25.164a(a)(1)). X must also pay the 
underpayment of tax, $23,010.00, for the period September 16-26, no 
later than October 14 (Sec. 25.164a(b)).

PART 53--MANUFACTURERS EXCISE TAXES--FIREARMS AND AMMUNITION

    Par. 10. The authority citation for 27 CFR Part 53 is revised to 
read as follows:

    Authority: 26 U.S.C. 4181, 4182, 4216-4219, 4221-4223, 4225, 
6001, 6011, 6020, 6021, 6061, 6071, 6081, 6091, 6101-6104, 6109, 
6151, 6155, 6161, 6301-6303, 6311, 6402, 6404, 6416, 7502.


    Par. 11. Section 53.11 is amended by adding the definition of the 
term ``Person'' to read as follows:


Sec. 53.11  Meaning of terms.

* * * * *
    Person. An individual, trust, estate, partnership, association, 
company, or corporation. When used in connection with penalties, 
seizures, and forfeitures, the term includes an officer or employee of 
a corporation, or a member or employee of a partnership, who as an 
officer, employee or member, is under a duty to perform the act in 
respect of which the violation occurs.
* * * * *


Secs. 53.22 and 53.152  [Amended]

    Par. 12. Section 52.152(c) is redesignated as section 53.21(d).
    Par. 13. Section 53.22 is amended by revising the first sentence of 
paragraph (a)(1) and by adding paragraph (a)(3) to read as follows:


Sec. 53.22  Employer identification number.

    (a) * * *
    (1) Except for one-time or occasional filers, every person who 
makes a sale or use of an article with respect to which a tax is 
imposed by section 4181 of the Code, and who has not earlier been 
assigned an employer identification number or has not applied for one, 
shall make an application on Form SS-4 for an employer identification 
number.
* * * * *
    (3) One-time or occasional filers. A person who files a return 
under the provisions of section 53.151(a)(5) is not required to make 
application for an employer identification number. Such persons may use 
their social security number on any return, statement or other document 
submitted to ATF by that person in lieu of an employer identification 
number.
* * * * *
    Par. 14. Sections 53.23 and 53.24 are added to read as follows:
Sec. 53.23  Alternate methods or procedures.

    (a) A taxpayer, on specific approval by the Director as provided in 
this section, may use an alternate method or procedure in lieu of a 
method or procedure specifically prescribed in this part. The Director 
may approve an alternate method or procedure, subject to stated 
conditions, when--
    (1) Good cause has been shown for the use of the alternate method 
or procedure;
    (2) The alternate method or procedure is within the purpose of, and 
consistent with the effect intended by, the specifically prescribed 
method or procedure, and affords equivalent security to the revenue; 
and
    (3) The alternate method or procedure will not be contrary to any 
provision of law and will not result in an increase in cost to the 
Government or hinder the effective administration of this part. No 
alternate method or procedure relating to the assessment, payment, or 
collection of tax shall be authorized under this paragraph.
    (b) Where the taxpayer desires to employ an alternate method or 
procedure, a written application to do so shall be submitted to the 
regional director for transmittal to the Director. The application 
shall specifically describe the proposed alternate method or procedure 
and shall set forth the reasons therefor. Alternate methods or 
procedures shall not be employed until the application has been 
approved by the Director. The taxpayer shall, during the period of 
authorization of an alternate method or procedure, comply with the 
terms of the approved application. Authorization for any alternate 
method or procedure may be withdrawn whenever, in the judgment of the 
Director, the revenue is jeopardized or the effective administration of 
this part is hindered by the continuation of such authorization.


Sec. 53.24  Records.

    (a) In general--(1) Form of records. The records required by the 
regulations in this part shall be kept accurately, but no particular 
form is required for keeping the records. Such forms and systems of 
accounting shall be used as will enable an ATF officer to ascertain 
whether liability for tax is incurred and, if so, the amount thereof.
    (2) [Reserved]
    (b) Copies of returns, schedules, and statements. Every person who 
is required, by the regulations in this part or by instructions 
applicable to any form prescribed thereunder, to keep any copy of any 
return, schedule, statement, or other document, shall keep such copy as 
a part of the records.
    (c) Records of claimants. Any person who, pursuant to the 
regulations in this part, claims a refund, credit, or abatement, shall 
keep a complete and [[Page 33671]] detailed record with respect to the 
tax, interest, addition to the tax, additional amount, or assessable 
penalty to which the claim relates. Such record shall include any 
records required of the claimant by paragraph (b) of this section and 
Subpart L of this part.
    (d) Place and period for keeping records. (1) All records required 
by this part shall be prepared and kept by the person required to keep 
them, at one or more convenient and safe locations accessible to ATF 
officers, and shall at all times be immediately available for 
inspection by such officers.
    (2) Except as otherwise provided in this subparagraph, every person 
required by the regulations in this part to keep records in respect of 
a tax shall maintain such records for at least three years after the 
due date of such tax for the return period to which the records relate, 
or the date such tax is paid, whichever is later. The records of 
claimants required by paragraph (c) of this section shall be maintained 
for a period of at least three years after the date the claim is filed.
    (e) Reproduction of original records. (1) General books of account, 
such as cash books, journals, voucher registers, ledgers, etc., shall 
be maintained and preserved in their original form. However, 
reproductions of supporting records of details, such as invoices, 
vouchers, production reports, sales records, certificates, proofs of 
exportation, etc., may be kept in lieu of the original records. Any 
process may be used which accurately and timely reproduces the original 
record, and which forms a durable medium for reproducing and preserving 
the original record.
    (2) Copies of records treated as original records. Whenever records 
are reproduced under this section, the reproduced records shall be 
preserved in conveniently accessible files, and provisions shall be 
made for examining, viewing, and using the reproduced records the same 
as if they were the original record. Such reproduced records shall be 
treated and considered for all purposes as though they were the 
original record. All provisions of law and regulations applicable to 
the original record are applicable to the reproduced record.
    Par. 15. Section 53.142 is amended by revising the section heading, 
the introductory text of paragraph (a), and paragraphs (a)(4) and (b) 
to read as follows:


Sec. 53.142  Denial, revocation or suspension of registration.

    (a) The regional director is authorized to deny, revoke or 
temporarily suspend, upon written notice, the registration of any 
person and the right of such person to sell or purchase articles tax 
free under section 4221 of the Code in any case in which he finds that:
* * * * *
    (4) Such denial, revocation, or suspension is necessary to protect 
the revenue; or
* * * * *
    (b) The denial, revocation, or suspension of registration is in 
addition to any other penalty that may apply under the law for any act 
or failure to act.
    Par. 16. Section 53.151 is amended by revising the last sentence of 
paragraph (a)(2), by adding a new paragraph (a)(5), and by revising 
paragraph (b)(1) to read as follows:


Sec. 53.151  Returns.

    (a) In general. * * *
    (2) Return periods after September 30, 1992. * * * Except as 
provided in paragraph (a)(5) of this section, every person required to 
make a return on ATF Form 5300.26 who does not incur any firearms and 
ammunition excise tax liability for the entire calendar year and who 
has not filed a final return in accordance with Sec. 53.152 shall file 
an annual return on ATF Form 5300.26.
* * * * *
    (5) Special rule for one-time or occasional filings for return 
periods on or after July 1, 1995. One-time or occasional filers are not 
required to file quarterly or annual returns pursuant to paragraph 
(a)(2) of this section if the person reporting tax does not engage in 
any activity with respect to which tax is reportable on the return in 
the course of a trade or business. Such persons shall file and pay tax 
for periods only when liability is incurred. See Sec. 53.159(b)(2), 
providing that a deposit of taxes is not required for a one-time or 
occasional filing.
    (b) Monthly and semimonthly returns.--(1) Requirement. If the 
regional director determines that any taxpayer who is required to 
deposit taxes under the provision of Secs. 53.157 or 53.159 has failed 
to make deposits of those taxes, the taxpayer shall be required, if so 
notified in writing by the regional director, to file a monthly or 
semimonthly return on ATF Form 5300.26. Every person so notified by the 
regional director shall file a return for the calendar month or 
semimonthly period in which the notice is received and for each 
calendar month or semimonthly period thereafter until the person has 
filed a final return in accordance with Sec. 53.152 or is required to 
file returns on the basis of a different return period pursuant to 
notification as provided in paragraph (b)(2) of this section.
* * * * *
    Par. 17. Section 53.157 is amended by revising the section heading 
and by adding a note preceding paragraph (a) to read as follows:


Sec. 53.157  Deposit requirement for deposits made for calendar 
quarters prior to July 1, 1995.

    Note: For deposit requirement for deposits made for calendar 
quarters beginning on or after July 1, 1995, see Sec. 53.159.
* * * * *
    Par. 18. Section 53.158 is amended by revising the second sentences 
of paragraphs (b)(2) and (b)(3) to read as follows:


Sec. 53.158  Payment of tax by electronic fund transfer.

    (b) Requirements. * * *
    (2) * * * The request will be made to the financial institution 
early enough for the transfer of funds to be made to the Treasury 
Account no later than the close of business on the last day for making 
the deposit or filing the return as prescribed in Secs. 53.157 or 
53.159, and 53.153. * * *
    (3) * * * Taxpayers electing to discontinue making remittances by 
EFT shall remit the tax with the next deposit or return as prescribed 
in Secs. 53.157 or 53.159, and 53.151 for remittances not made by EFT 
and notify the regional director by attaching a written notification to 
the tax deposit form or return stating that remittance of firearms and 
ammunition excise taxes will no longer be made by EFT.
* * * * *
    Par. 19. Section 53.159 is added to read as follows:


Sec. 53.159  Deposit requirement for deposits made for calendar 
quarters beginning on or after July 1, 1995.

    (a) Definitions--
    (1) Definition of tax liability. For purposes of this section, the 
term ``tax liability'' means the total tax liability for the specified 
period plus or minus any allowable adjustments made in accordance with 
the instructions applicable to the form on which the return is made.
    (2) Semimonthly period. Except as provided in paragraph (c)(4)(ii) 
of this section, the term ``semimonthly period'' means the first 15 
days of a calendar month or the remaining portion of a calendar month 
following the 15th day of that month.
    (b) In general--(1) Semimonthly deposits. Except as provided in 
paragraphs (b)(2), (c)(2), and (j) of this [[Page 33672]] section, any 
person required to file a quarterly excise tax return on ATF Form 
5300.26 must make a deposit of tax for each semimonthly period as 
prescribed in paragraph (c) of this section.
    (2) One-time or occasional filings. No deposit is required in the 
case of any taxes reportable on a one-time or occasional filing (as 
defined in Sec. 53.151(a)(5)).
    (c) Amount of deposit--(1) In general. Except as provided in 
paragraphs (c)(2), (c)(3) and (c)(6) of this section, the deposit of 
tax for each semimonthly period must be equal to the amount of tax 
liability incurred during that semimonthly period. Except as provided 
in paragraph (c)(3) of this section, no deposit is required for any 
semimonthly period in which no tax liability is incurred.
    (2) De minimis exception. Except as provided in paragraph (c)(3) of 
this section, any person who has a tax liability for the current 
calendar quarter of $2,000 or less is not required to make deposits for 
that quarter. However, semimonthly deposits of tax are required 
beginning with the semimonthly period in which unpaid tax liability 
exceeds $2,000 and for every semimonthly period thereafter in which tax 
liability is incurred. The first deposit for the current quarter shall 
be equal to the unpaid tax liability; thereafter, deposits shall be 
equal to the amount of tax liability incurred during that semimonthly 
period.
    (3) Amount of deposit; safe harbor rule based on look-back quarter 
liability; In general. Except as provided in paragraph (c)(6) of this 
section, any person who made a return of tax on ATF Form 5300.26 
reporting taxes for the second preceding calendar quarter (the ``look-
back quarter''), or who did not file a return for the look-back quarter 
because of the provisions of Sec. 53.151(a)(2), is considered to have 
complied with the requirement for deposit of taxes for the current 
calendar quarter if--
    (i) The deposit of taxes for each semimonthly period in the current 
calendar quarter is an amount equal to not less than 1/6 (16.67 
percent) of the total tax liability incurred for the look-back quarter;
    (ii) Each deposit is made on time; and
    (iii) The amount of any underpayment of taxes for the current 
calendar quarter is paid by the due date of the return.
    (4) Modification for third calendar quarter. The safe harbor rule 
in paragraph (c)(3) of this section does not apply for the third 
calendar quarter unless--
    (i) the deposit of taxes for the semimonthly period July 1-
September 15 meets the requirements of paragraph (c)(3) of this 
section; and
    (ii) each deposit of taxes for the periods September 16-25 and 
September 26-30 is not less than 1/12th (8.34 percent) of the total tax 
liability incurred for the look-back quarter.
    (5) Modification for tax rate increase. (i) Application. The safe 
harbor rule as prescribed in paragraph (c)(3) is modified for the first 
and second calendar quarters beginning on or after the effective date 
of an increase in the rate of any tax prescribed by 26 U.S.C. 4181 to 
which this part 53 applies.
    (ii) Modification. The amount of deposit for calendar quarters 
referred to in paragraph (c)(3) of this section must be adjusted so 
that the deposit of taxes for each semimonthly period in the calendar 
quarter is not less than 1/6 (16.67 percent) of the tax liability the 
person would have had with respect to the tax for the look-back quarter 
if the increased rate of tax had been in effect for that look-back 
quarter.
    (6) First time filers. Any person who did not file a return of tax 
on ATF Form 5300.26 for the first and second preceding calendar 
quarters because they were not engaged in any activity with respect to 
which tax is reportable on the return in the course of a trade or 
business, is considered to have complied with the requirement for 
deposit of taxes for the current calendar quarter if--
    (i) The deposit of taxes for each semimonthly period in the 
calendar quarter is not less than 95 percent of the tax liability 
incurred with respect to those taxes during the semimonthly period;
    (ii) Each deposit is made on time; and
    (iii) The amount of any underpayment of taxes for the current 
calendar quarter is paid by the due date of the return.
    (d) Failure to comply with deposit requirements. (1) If a person 
fails to make deposits as required under this part, the regional 
director may withdraw the person's right to use the safe harbor rule 
provided by paragraph (c)(3) of this section.
    (2) Cross reference. The regional director may also require a 
taxpayer who fails to make deposits of tax to file a monthly or 
semimonthly return, see Sec. 53.151(b)(1).
    (e) Time for making deposit. Except for deposits for the period 
September 16-25, each deposit required to be made by this section shall 
be made not later than the 9th day of the semimonthly period following 
the close of the period for which it is made. The deposit for the 
period September 16-25 shall be made not later than September 28. The 
deposit for the period September 26-30, is due not later than October 
9.
    (f) Last day for filing. (1) Except as provided by paragraph (f)(2) 
of this section, if the due date of the deposit falls on a Saturday, 
Sunday, or legal holiday, the deposit and remittance shall be due on 
the next succeeding day which is not a Saturday, Sunday, or legal 
holiday. For purposes of this section, ``legal holiday'' is defined by 
section 7503 of the Code and 27 CFR 70.306(b) of this chapter.
    (2) If the required due date of the deposit for the period 
September 16-25 falls on a Saturday, the deposit and remittance shall 
be due on the preceding day. If such required due date falls on a 
Sunday, the return and remittance shall be due on the following day.
    (g) Forms and procedures. Each remittance of amounts required to be 
deposited shall be accompanied by ATF Form 5300.27, Federal Firearms 
and Ammunition Excise Tax Deposit form, or ATF Form 5300.26, Federal 
Firearms and Ammunition Excise Tax Return, which shall be prepared in 
accordance with the applicable instructions. Taxpayers electing to 
remit deposits by EFT pursuant to Sec. 53.158 shall prepare and submit 
ATF Form 5300.26 or ATF Form 5300.27 in accordance with the 
instructions contained in ATF Procedure 92-1, Publication 5000.11. The 
timeliness of the deposit will be determined by the date it is received 
by the lockbox financial institution, or the ATF officer designated on 
the form accompanying the deposit, or the Treasury Account, when made 
by EFT. In order for deposits of less than $20,000 made by U.S. Mail to 
be considered received timely, the date of mailing must be on or before 
the second day preceding the due date of the deposit as evidenced by 
the official postmark of the U.S. Postal Service stamped on the cover 
in which the deposit was mailed. When the postmark on the cover is 
illegible, the burden of proving when the postmark was made will be on 
the taxpayer. When the taxpayer sends the deposit by registered mail or 
by certified mail, the date of registry or the date of the postmark on 
the sender's receipt of certified mail, as the case may be, shall be 
treated as the date of delivery of the deposit. Any deposit of $20,000 
or more must be received by the last day prescribed for making such 
deposit, regardless of when mailed. Amounts deposited pursuant to this 
paragraph shall be considered to be paid on the last day prescribed for 
filing the return in respect of the tax (determined without regard to 
any extension of time for filing the returns), [[Page 33673]] or at the 
time deposited, whichever is later.
    (h) Number of remittances. A person required by this section to 
make deposits shall make one deposit for a semimonthly period.
    (i) Procurement of prescribed forms. Copies of the Federal Firearms 
and Ammunition Excise Tax Deposit form will be furnished, so far as 
possible, to persons required to make deposits under this section. Such 
a person will not be excused from making a deposit however, by the fact 
that no form has been furnished. A person not supplied with the form is 
required to obtain the form in ample time to make the required deposits 
within the time prescribed. Copies of the Federal Firearms and 
Ammunition Excise Tax Deposit form may be obtained by request from the 
ATF Distribution Center, P.O. Box 5950, Springfield, Virginia 22153-
5950.
    (j) Taxpayers required to file monthly or semimonthly returns. This 
section does not apply to taxes for:
    (1) Any month or semimonthly period in which the taxpayer receives 
notice from the regional director pursuant to section 53.151(b) to file 
ATF Form 5300.26; or
    (2) Any subsequent month or semimonthly period for which a return 
on ATF Form 5300.26 is required.
    (3) Taxpayers required to file monthly returns shall make 
semimonthly deposits of 100 percent of the liability incurred during 
each semimonthly period by the 9th day of the month following the last 
day of the semimonthly period. Taxpayers required to file semimonthly 
returns shall pay any tax due for the semimonthly period with each 
return. (k) Examples.

    Example 1. One-time filing or occasional filing. (1) Facts. On 
October 18, 1995, A, an individual who lives in the United States 
purchases a custom made rifle outside the United States and imports 
it into the United States. A uses the rifle on October 20, 1995. A 
is liable for the firearms excise tax imposed by sections 4181 and 
4218(a). Since A does not regularly sell rifles in arm's length 
transactions, a constructive sale price of $20,000 is determined 
(Sec. 53.115(b)). The amount of A's tax liability is $2200, 11 
percent of the constructive sale price of the rifle. The liability 
is incurred during the fourth calendar quarter of 1995, the quarter 
during which the rifle is used (Sec. 53.111(d)). A did not import 
the rifle in the course of its trade or business and does not engage 
in any activities with respect to which tax is reportable on ATF 
Form 5300.26 in the course of a trade or business.
    (2) Filing requirement. A must file a return on Form 5300.26 
(Sec. 53.151(a)) for the fourth calendar quarter of 1995 reporting 
A's $2200 firearms excise tax liability. The Form 5300.26 is due by 
January 31, 1996, the last day of the first month following the 
calendar quarter (Sec. 53.153(a)). Because A did not import the 
firearm in the course of its trade or business and does not engage 
in any activities with respect to which tax is reportable in the 
course of a trade or business, the return is a one-time filing or 
occasional filing.
    (3) Payment requirement. Because A's Form 5300.26 is a one-time 
filing, A is not required to make deposits of tax 
(Sec. 53.159(b)(2)). Instead, A pays the $2200 of tax with the 
return.
    Example 2. Deposit requirement; based on look-back quarter 
liability. (1) Facts. B is a manufacturer of firearms. B sells 75 
pistols which have a taxable sale price of $500 each during the 
second calendar quarter of 1996. B sold 50 of the pistols in the 
first semimonthly period of May, 1996, and the other 25 pistols in 
the second semimonthly period of April, 1996. B did not incur tax 
liability in any other semimonthly period in the second quarter. The 
amount of B's tax liability for the second calendar quarter is 
$3,750, 10 percent of the taxable sale price of the pistols. B filed 
Form 5300.26 for the second preceding calendar quarter, the look-
back quarter, on January 31, 1996 reporting tax liability in the 
amount of $2,700.
    (2) Deposit requirement. B is required to make deposits of tax 
for each semimonthly period in the calendar quarter because B has 
incurred more than $2,000 in liability for the current quarter. B 
may use the safe harbor rule based on look-back quarter liability to 
determine the amount of the required deposits (Sec. 53.159(c)(3)). 
Under this safe harbor rule, B's deposit for each semimonthly period 
must equal at least $450.00, 1/6 (16.67 percent) of the tax 
liability incurred for the look-back quarter. B's deposit must be 
timely and B must pay the amount of any underpayment by the due date 
of the return. Accordingly, B meets the deposit requirement if B 
makes the following deposits:

------------------------------------------------------------------------
                                                               Amount of
      Semimonthly period                Deposit due by          deposit 
------------------------------------------------------------------------
April 1-15....................  April 24, 1996...............    $450.00
April 16-31...................  May 9, 1996..................     450.00
May 1-15......................  May 24, 1996.................     450.00
May 16-30.....................  June 10, 1996................     450.00
June 1-15.....................  June 24, 1996................     450.00
June 16-30....................  July 9, 1996.................     450.00
------------------------------------------------------------------------

    The deposit due on June 10, 1996, would ordinarily be due on 
June 9, 1996. However, because June 9, 1996 is a Sunday, under 
section 7503, B has an additional day to make the required deposit.
    (3) Filing requirement. B must file a return on Form 5300.26 for 
the second calendar quarter of 1996 reporting B's $3750 tax 
liability (Sec. 53.151(a)). The form 5300.26 is due by July 31, 
1996, the last day of the first month following the calendar quarter 
(Sec. 53.153(a)). B must also pay $1050.00, the underpayment amount 
by which the total tax liability for the second calendar quarter 
exceeds the total tax liability for the look-back quarter, by the 
due date of the return.
    Example 3. Deposit amount; no liability in look-back quarter. 
(1) Facts. C, a manufacturer of ammunition, filed returns for the 
first, second and third quarters of 1995 reporting C's tax 
liability. During the fourth quarter of 1995, C did not make any 
taxable sales of shells or cartridges, thereby incurring no tax 
liability for that return period. C did not file Form 5300.26 for 
the fourth calendar quarter since no tax liability was incurred 
(Sec. 53.151(a)(2)). C made taxable sales in the second quarter of 
1996 amounting to $25,500.00, incurring a tax liability of $2805.
    (2) Deposit requirement. Ordinarily, C would be required to make 
deposits of tax for each semimonthly period in the calendar quarter 
because C's total liability for the current calendar quarter exceeds 
$2,000. However, since C incurred a tax liability of $0 in the 
second preceding calendar quarter (the look-back quarter) 
(Sec. 53.159(c)(3)), under the safe harbor rule, C is not required 
to make deposits of tax.
    (3) Filing requirement. C is required to file a return on Form 
5300.26 reporting C's $2805 ammunition excise tax liability. The 
form 5300.26 is due by July 31, 1996.
    (4) Payment requirement. C must pay the $2805 tax with the 
return.
    Example 4. Deposit requirement; First time Filer. (1) Facts. D, 
a manufacturer of firearms, began business on 2/16/96. D sold 300 
shotguns which had a taxable sales price of $210 each during the 
first quarter of 1996. D sold 70 shotguns in the second semimonthly 
period of February, 1996, 130 shotguns in the first semimonthly 
period of March, 1996 and 100 shotguns in the second semimonthly 
period of March, 1996. The amount of D's tax liability for the first 
quarter of 1996 is $6,930, 11 percent of the taxable sale price of 
the shotguns.
    (2) Deposit requirement. D is required to make a deposit of tax 
when D's tax liability exceeds $2,000 (Sec. 53.159(c)(2)). 
Therefore, D must make a deposit of tax beginning with the first 
semimonthly period in March, the semimonthly period in which D's 
unpaid tax liability exceeded $2,000. Because D, a first time filer, 
does not have an established look-back quarter, D's deposit of tax 
must be at least 95 percent of the incurred tax liability. D is 
required to make deposits of at least 95 percent of incurred tax 
liability for every semimonthly period in the quarter thereafter. 
D's deposits must be timely and any underpayment of tax must be paid 
by the due date of the return. Accordingly, D meets the deposit 
requirement if D makes the following deposits:

------------------------------------------------------------------------
                                                               Amount of
      Semimonthly period                Deposit due by          deposit 
------------------------------------------------------------------------
Feb. 16-29....................  March 11, 1996...............         $0
March 1-15....................  March 25, 1996...............      4,389
March 16-31...................  April 9, 1996................   2,194.50
------------------------------------------------------------------------

    The deposits due on March 11, 1996, and March 25, 1996, would 
ordinarily be due on March 9, 1996, and March 24, 1996, 
respectively. However, because March 9, 1996, is a Saturday, and 
March 24, 1996, is a Sunday, under section 7503, D has until March 
11, 1996, to make the deposit due on March 9, 1996, and until March 
25, 1996, to make the deposit due on March 24, 1996. [[Page 33674]] 
    (3) Filing requirement. D must file a return on Form 5300.26 for 
the first calendar quarter of 1996 reporting D's $6,930 tax 
liability (Sec. 53.151(a)). The form 5300.26 is due by April 30, 
1996, the last day of the first month following the calendar quarter 
(Sec. 53.153(a)). D must also pay $346.50, the amount by which the 
tax liability for the quarter was underpaid, by the due date of the 
return.
    Example 5. Deposit amount; third calendar quarter. (1) Facts. E, 
a manufacturer of firearms, is a semimonthly depositor who makes 
deposits of tax using the safe harbor rule based on the look-back 
quarter to determine the amount of tax required to be deposited for 
the third calendar quarter of 1995. E incurred a tax liability 
amounting to $38,000 for the third quarter. E filed Form 5300.26 for 
the second preceding calendar quarter, the look-back quarter on May 
1, 1995, reporting tax liability in the amount of $30,000.
    (2) Deposit requirement. Because E has incurred more than $2,000 
in liability and has chosen to make deposits of tax based on the 
look-back quarter, E is required to make deposits of tax equal to 
$5,000, 1/6 (16.67 percent) of the tax liability incurred in the 
look-back quarter, for each semimonthly period in the calendar 
quarter. However, because of the special rule which modifies the 
safe harbor rule for deposits of tax for the month of September 
(Sec. 53.159(c)(4)), E must make deposits equal to $2500.00 each, 1/
12th (8.34 percent) of the tax liability incurred in the look-back 
quarter for the periods September 16-25 and September 26-30. E's 
deposits must be timely and E must pay the amount of any 
underpayment by the due date of the return. Accordingly, E meets the 
deposit requirement if E makes the following deposits:

------------------------------------------------------------------------
                                                               Amount of
      Semimonthly period                Deposit due by          deposit 
------------------------------------------------------------------------
July 1-15.....................  July 24, 1995................   $5000.00
July 16-31....................  August 9, 1995...............    5000.00
Aug. 1-15.....................  August 24, 1995..............    5000.00
Aug. 16-31....................  Sept. 11, 1995...............    5000.00
Sept. 1-15....................  Sept. 25, 1995...............    5000.00
Sept. 16-25...................  Sept. 28, 1995...............    2500.00
Sept. 26-30...................  October 9, 1995..............    2500.00
------------------------------------------------------------------------

    The deposits due on September 11, 1995, and September 25, 1995, 
would ordinarily be due on September 9, 1995, and September 24, 
1995, respectively. However, because September 9, 1995, is a 
Saturday, and September 24, 1995, is a Sunday, under section 7503, D 
has until September 11, 1995, to make the deposit due on September 
9, 1995, and until September 25, 1995, to make the deposit due on 
September 24, 1995.
    (3) Filing requirement. E must file a return on Form 5300.26 for 
the third calendar quarter of 1995 reporting E's $38,000 tax 
liability (Sec. 53.153(a)). E must also pay $8,000, the underpayment 
amount by which the total tax liability for the third calendar 
quarter exceeds the total tax liability for the look-back quarter, 
by the due date of the return.

PART 70--PROCEDURE AND ADMINISTRATION

    Par. 20. The authority citation for 27 CFR 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, 5376, 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.

    Par. 21. Section 70.306 paragraph (a) is amended by revising the 
last sentence to read as follows:
Sec. 70.306  Time for performance of acts other than payment of tax or 
filing of any return where last day falls on Saturday, Sunday or legal 
holiday.

    (a) * * * For rules concerning the payment of any tax or filing of 
any return required under the authority of 26 U.S.C. subtitle E 
relating to alcohol, tobacco and certain other excise taxes, see 26 
U.S.C. Secs. 5061 and 6302 and the regulations covering the specific 
commodity.
* * * * *

PART 250--LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN 
ISLANDS

    Par. 22. The authority citation for 27 CFR Part 250 continues to 
read as follows:

    Authority: 19 U.S.C. 81c: 26 U.S.C. 5001, 5007, 5008, 5010, 
5041, 5051, 5061, 5081, 5111, 5112, 5114, 5121, 5122, 5124, 5131-
5134, 5141, 5146, 5207, 5232, 5271, 5276, 5301, 5314, 5555, 6001, 
6301, 6302, 6804, 7101, 7102, 7651, 7652, 7805: 27 U.S.C. 203, 205: 
31 U.S.C. 9301, 9303, 9304, 9306.

    Par. 23. Section 250.112 is amended by revising paragraphs (b) and 
(d) and the last sentence of (c)(1) to read as follows:


Sec. 250.112  Returns for semimonthly periods.

* * * * *
    (b) Periods. Except as provided for in paragraph (d) of this 
section, the periods to be covered by returns on ATF Form 5000.24 shall 
be semimonthly; such periods to run from the 1st day through the 15th 
day of each month and from the 16th day through the last day of each 
month.
    (c) * * *
    (1) * * * If the due date falls on a Saturday, Sunday, or legal 
holiday, the return and remittance shall be due on the immediately 
preceding day which is not a Saturday, Sunday, or legal holiday, except 
as provided by paragraph (d) of this section.
* * * * *
    (d) Special rule for taxes due for the month of September 
(effective after December 31, 1994). (1) The second semimonthly period 
for the month of September shall be divided into two payment periods, 
from the 16th day through the 26th day, and from the 27th day through 
the 30th day. The taxpayer shall file a return on Form 5000.24, and 
make remittance, for the period September 16-26, no later than 
September 29. The taxpayer shall file a return on Form 5000.24, and 
make remittance, for the period September 27-30, no later than October 
14.
    (2) Taxpayment not by electronic fund transfer. In the case of 
taxes not required to be remitted by electronic fund transfer as 
prescribed by Sec. 250.112a, the second semimonthly period of September 
shall be divided into two payment periods, from the 16th day through 
the 25th day, and the 26th day through the 30th day. The taxpayer shall 
file a return on Form 5000.24, and make remittance, for the period 
September 16-25, no later than September 28. The taxpayer shall file a 
return on Form 5000.24, and make remittance, for the period September 
26-30, no later than October 14.
    (3) Amount of payment: Safe harbor rule. (i) Taxpayers are 
considered to have met the requirements of paragraph (d)(1) of this 
section, if the amount paid no later than September 29 is not less than 
11/15 (73.3 percent) of the tax liability incurred for the semimonthly 
period beginning on September 1 and ending on September 15, and if any 
underpayment of tax is paid by October 14.
    (ii) Taxpayers are considered to have met the requirements of 
paragraph (d)(2) of this section, if the amount paid no later than 
September 28 is not less than 2/3rds (66.7 percent) of the tax 
liability incurred for the semimonthly period beginning on September 1 
and ending on September 15, and if any underpayment of tax is paid by 
October 14.
    (4) Last day for payment. If the required due date for taxpayment 
for the periods September 16-25 or September 16-26 as applicable, falls 
on a Saturday or legal holiday, the return and remittance shall be due 
on the immediately preceding day. If the required due date falls on a 
Sunday, the [[Page 33675]] return and remittance shall be due on the 
immediately following day.
* * * * *

PART 270--MANUFACTURER OF TOBACCO PRODUCTS
    Par. 24. The authority citation for 27 CFR Part 270 continues to 
read as follows:

    Authority: 26 U.S.C. 5142, 5143, 5146, 5701, 5703-5705, 5711-
5713, 5721-5723, 5731, 5741, 5751, 5753, 5761-5763, 6061, 6065, 
6109, 6151, 6301, 6302, 6311, 6313, 6402, 6404, 6423, 6676, 6806, 
7011, 7212, 7325, 7342, 7502, 7503, 7606, 7805; 31 U.S.C. 9301, 
9303, 9304, 9306.

    Par. 25. Section 270.163 is revised to read as follows: 
Sec. 270.163 Semimonthly tax return periods.
    Except as provided in section 270.164, the periods to be covered by 
semimonthly tax returns shall be from the 1st day of each month through 
the 15th day of that month and from the 16th day of each month through 
the last day of that month.
    Par. 26. Section 270.164 is added to read as follows:


Sec. 270.164  Special rule for taxes due for the month of September 
(effective after December 31, 1994).

    (a)(1) Except as provided in paragraph (a)(2) of this section, the 
second semimonthly period for the month of September shall be divided 
into two payment periods, from the 16th day through the 26th day, and 
from the 27th day through the 30th day. The manufacturer shall file a 
return on Form 5000.24, and make remittance, for the period September 
16-26, no later than September 29. The manufacturer shall file a return 
on Form 5000.24, and make remittance, for the period September 27-30, 
no later than October 14.
    (2) Taxpayment not by electronic fund transfer. In the case of 
taxes not required to be remitted by electronic fund transfer as 
prescribed by Sec. 270.165a, the second semimonthly period of September 
shall be divided into two payment periods, from the 16th day through 
the 25th day, and the 26th day through the 30th day. The manufacturer 
shall file a return on Form 5000.24, and make remittance, for the 
period September 16-25, no later than September 28. The manufacturer 
shall file a return on Form 5000.24, and make remittance, for the 
period September 26-30, no later than October 14.
    (b) Amount of payment: Safe harbor rule. (1) Taxpayers are 
considered to have met the requirements of paragraph (a)(1) of this 
section, if the amount paid no later than September 29 is not less than 
11/15 (73.3 percent) of the tax liability incurred for the semimonthly 
period beginning on September 1 and ending on September 15, and if any 
underpayment of tax is paid by October 14.
    (2) Taxpayers are considered to have met the requirements of 
paragraph (a)(2) of this section, if the amount paid no later than 
September 28 is not less than 2/3rds (66.7 percent) of the tax 
liability incurred for the semimonthly period beginning on September 1 
and ending on September 15, and if any underpayment of tax is paid by 
October 14.
    (c) Last day for payment. If the required due date for taxpayment 
for the periods September 16-25 or September 16-26 as applicable, falls 
on a Saturday or legal holiday, the return and remittance shall be due 
on the immediately preceding day. If the required due date falls on a 
Sunday, the return and remittance shall be due on the immediately 
following day.
    (d) Example. Payment of tax for the month of September.
    (1) Facts. X, a manufacturer of tobacco products required to pay 
taxes by electronic fund transfer, incurred tax liability in the amount 
of $30,000 for the first semimonthly period of September. For the 
period September 16-26, X incurred tax liability in the amount of 
$45,000, and for the period September 27-30, X incurred tax liability 
in the amount of $2,000.
    (2) Payment requirement. X's payment of tax in the amount of 
$30,000 for the first semimonthly period of September is due no later 
than September 29 (Sec. 270.165(a)). X's payment of tax for the period 
September 16-26 is also due no later than September 29 
(Sec. 270.164(a)(1)). X may use the safe harbor rule to determine the 
amount of payment due for the period of September 16-26 
(Sec. 270.164(b)). Under the safe harbor rule, X's payment of tax must 
equal $21,990.00, 11/15ths of the tax liability incurred during the 
first semimonthly period of September. Additionally, X's payment of tax 
in the amount of $2,000 for the period September 27-30 must be paid no 
later than October 14 (Sec. 270.164(a)(1)). X must also pay the 
underpayment of tax, $23,010.00, for the period September 16-26, no 
later than October 14 (Sec. 270.164(b)).
    Par. 27. Section 270.165 is amended by revising paragraph (a), 
removing paragraph (b) and redesignating existing paragraph (c) as 
paragraph (b) to read as follows:


Sec. 270.165  Times for filing semimonthly return.

    (a) General. Except as provided by Sec. 270.164, and paragraph (b) 
of this section, semimonthly returns on Form 5000.24 shall be filed, 
for each return period, not later than the 14th day after the last day 
of the return period. If the due date falls on a Saturday, Sunday, or 
legal holiday, the return and remittance shall be due on the 
immediately preceding day which is not a Saturday, Sunday, or legal 
holiday, except as provided by Sec. 270.164(c).
* * * * *

PART 275--IMPORTATION OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND 
TUBES

    Par. 28. The authority citation for 27 CFR Part 275 continues to 
read as follows:

    Authority: 26 U.S.C. 5701, 5703, 5704, 5705, 5708, 5722, 5723, 
5741, 5761, 5762, 5763, 6301, 6302, 6313, 6404, 7101, 7212, 7342, 
7606, 7652, 7805; 31 U.S.C. 9301, 9303, 9304, 9306.

    Par. 29. Section 275.113 is revised to read as follows:


Sec. 275.113  Return periods.

    Except as provided by Sec. 275.114, the periods to be covered in 
the semimonthly tax returns shall be from the 1st day through the 15th 
day of each month, and from the 16th day through the last day of each 
month.
    Par. 30. Section 275.114 is amended by revising paragraphs (b) and 
(d) to read as follows:
Sec. 275.114  Time for filing.

* * * * *
    (b) Special rule for taxes due for the month of September 
(effective after December 31, 1994). (1) The second semimonthly period 
for the month of September shall be divided into two payment periods, 
from the 16th day through the 26th day, and from the 27th day through 
the 30th day. The bonded manufacturer shall file a return on Form 
5000.24, and make remittance, for the period September 16-26, no later 
than September 29. The bonded manufacturer shall file a return on Form 
5000.24, and make remittance, for the period September 27-30, no later 
than October 14.
    (2) Taxpayment not by electronic fund transfer. In the case of 
taxes not required to be remitted by electronic fund transfer as 
prescribed by Sec. 275.115a, the second semimonthly period of September 
shall be divided into two payment periods, from the 16th day through 
the 25th day, and the 26th day through the 30th day. The bonded 
[[Page 33676]] manufacturer shall file a return on Form 5000.24, and 
make remittance, for the period September 16-25, no later than 
September 28. The bonded manufacturer shall file a return on Form 
5000.24, and make remittance, for the period September 26-30, no later 
than October 14.
    (3) Amount of payment: Safe harbor rule. (i) Taxpayers are 
considered to have met the requirements of paragraph (b)(1) of this 
section, if the amount paid no later than September 29 is not less than 
11/15 (73.3 percent) of the tax liability incurred for the semimonthly 
period beginning on September 1 and ending on September 15, and if any 
underpayment of tax is paid by October 14.
    (ii) Taxpayers are considered to have met the requirements of 
paragraph (b)(2) of this section, if the amount paid no later than 
September 28 is not less than 2/3rds (66.7 percent) of the tax 
liability incurred for the semimonthly period beginning on September 1 
and ending on September 15, and if any underpayment of tax is paid by 
October 14.
    (4) Last day for payment. If the required due date for taxpayment 
for the periods September 16-25 or September 16-26 as applicable, falls 
on a Saturday or legal holiday, the return and remittance shall be due 
on the immediately preceding day. If the required due date falls on a 
Sunday, the return and remittance shall be due on the immediately 
following day.
* * * * *
    (d) Weekends and holidays. Except as provided in paragraph (b)(4) 
of this section, if the due date falls on a Saturday, Sunday, or legal 
holiday, the return and remittance shall be due on the immediately 
preceding day which is not a Saturday, Sunday, or legal holiday.

PART 285--MANUFACTURER OF CIGARETTE PAPERS AND TUBES

    Par. 31. The authority citation for 27 CFR Part 285 continues to 
read as follows:

    Authority: 26 U.S.C. 5142, 5143, 5146, 5701, 5703-5705, 5711, 
5721-5723, 5731, 5741, 5751, 5753, 5761-5763, 6061, 6065, 6109, 
6302, 6402, 6404, 6676, 6806, 7011, 7212, 7325, 7342, 7606, 7805; 31 
U.S.C. 9301, 9303, 9304, 9306.

    Par. 32. Section 285.25 is amended by revising paragraph (c), the 
first sentence of paragraph (f) and adding paragraph (g) to read as 
follows:


Sec. 285.25  Return of manufacturer.

* * * * *
    (c) Semimonthly return periods. Except as provided by paragraph (g) 
of this section, semimonthly return periods shall run from the 1st day 
of the month through the 15th day of the month, and from the 16th day 
of the month through the last day of the month.
* * * * *
    (f) Time for filing. Except as provided by paragraph (g) of this 
section, for each semimonthly return period, the return shall be filed 
not later than the 14th day after the last day of the return period. * 
* *
    (g) Special rule for taxes due for the month of September 
(effective after December 31, 1994). (1) Except as provided in 
paragraph (g)(2) of this section, the second semimonthly period for the 
month of September shall be divided into two payment periods, from the 
16th day through the 26th day, and from the 27th day through the 30th 
day. The manufacturer shall file a return on Form 5000.24, and make 
remittance, for the period September 16-26, no later than September 29. 
The manufacturer shall file a return on Form 5000.24, and make 
remittance, for the period September 27-30, no later than October 14.
    (2) Taxpayment not by electronic fund transfer. In the case of 
taxes not required to be remitted by electronic fund transfer as 
prescribed by Sec. 285.27, the second semimonthly period of September 
shall be divided into two payment periods, from the 16th day through 
the 25th day, and the 26th day through the 30th day. The manufacturer 
shall file a return on Form 5000.24, and remittance, for the period 
September 16-25, no later than September 28. The manufacturer shall 
file a return on Form 5000.24, and make remittance, for the period 
September 26-30, no later than October 14.
    (3) Amount of payment: Safe harbor rule. (i) Taxpayers are 
considered to have met the requirements of paragraph (g)(1) of this 
section, if the amount paid no later than September 29 is not less than 
11/15 (73.3 percent) of the tax liability incurred for the semimonthly 
period beginning on September 1 and ending on September 15th, and if 
any underpayment of tax is paid by October 14th.
    (ii) Taxpayers are considered to have met the requirements of 
paragraph (g)(2) of this section, if the amount paid no later than 
September 28 is not less than 2/3rds (66.7 percent) of the tax 
liability incurred for the semimonthly period beginning on September 1 
and ending on September 15, and if any underpayment of tax is paid by 
October 14.
    (4) Last day for payment. If the required due date for taxpayment 
for the periods September 16-25 or September 16-26 as applicable, falls 
on a Saturday, the return and remittance shall be due on the 
immediately preceding day. If the required due date falls on a Sunday, 
the return and remittance shall be due on the immediately following 
day.

    Signed: June 6, 1995.
Daniel R. Black,
Acting Director.
    Approved: June 19, 1995.
John P. Simpson,
Deputy Assistant Secretary, (Regulatory, Tariff and Trade Enforcement).
[FR Doc. 95-15950 Filed 6-26-95; 10:47 am]
BILLING CODE 4810-31-U