[Federal Register Volume 69, Number 153 (Tuesday, August 10, 2004)]
[Proposed Rules]
[Pages 48432-48433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-18161]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 40 and 49

[REG-163909-02]
RIN 1545-BB75


Collected Excise Taxes; Duties of Collector

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

-----------------------------------------------------------------------

SUMMARY: In this issue of the Federal Register, the IRS is issuing 
temporary regulations relating to the obligations of persons that 
receive payments for air transportation or communications services 
subject to excise tax when persons liable for the tax refuse to pay the 
tax. The text of those temporary regulations also serves as the text of 
these proposed regulations. These proposed regulations affect persons 
liable for those taxes and persons that receive payments subject to 
tax.

DATES: Written and electronic comments and requests for a public 
hearing must be received by November 8, 2004.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-163909-02), room 
5203, Internal Revenue Service, POB 7604 Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand delivered Monday through 
Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-
163909-02), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue, NW., Washington, DC. Alternatively, taxpayers may submit 
comments electronically via the IRS Internet site at www.irs.gov/regs, 
or via the Federal eRulemaking Portal at www.regulations.gov (indicate 
IRS and REG-163909-02).

FOR FURTHER INFORMATION CONTACT: Concerning submissions, the 
Publication and Regulations Unit, (202) 622-7180; concerning the 
regulations, Taylor Cortright, (202) 622-3130 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    These proposed regulations relate to the obligations of persons 
that receive payments for air transportation or communications services 
subject to excise tax when persons liable for the tax refuse to pay the 
tax. These proposed regulations would amend the Excise Tax Procedural 
Regulations (26 CFR part 40) and the Facilities and Services Excise Tax 
Regulations (26 CFR part 49). The text of temporary regulations 
published in this issue of the Federal Register also serves as the text 
of these proposed regulations. The preamble to the temporary 
regulations explains the temporary regulations.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in Executive Order 
12866. Therefore, a regulatory assessment is not required. It also has 
been determined that section 553(b) of the Administrative Procedure Act 
(5 U.S.C. chapter 5) does not apply to these regulations, and because 
the notice of proposed rulemaking does not impose a collection of 
information on small entities, the provisions of the Regulatory 
Flexibility Act (5 U.S.C. chapter 6) do not apply. Pursuant to section 
7805(f) of the Code, this notice of proposed rulemaking will be 
submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on its impact on small business.

Comments and Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written comments (a signed original 
and eight (8) copies) or electronic comments that are submitted timely 
to the IRS. The IRS and Treasury Department specifically request 
comments on the clarity of the proposed regulations and how they may be 
made easier to understand. All comments will be available for public 
inspection and copying. A public hearing may be scheduled if requested 
in writing by any person that timely submits written comments. If a 
public hearing is scheduled, notice of the date, time, and place for 
the hearing will be published in the Federal Register.

Drafting Information

    The principal author of these regulations is Patrick S. Kirwan, 
Office of Associate Chief Counsel (Passthroughs and Special 
Industries). However, other personnel from the IRS and Treasury 
Department participated in their development.

List of Subjects

26 CFR Part 40

    Excise taxes, Reporting and recordkeeping requirements.

[[Page 48433]]

26 CFR Part 49

    Excise taxes, Reporting and recordkeeping requirements, Telephone, 
Transportation.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR parts 40 and 49 are proposed to be amended as 
follows:

PART 40--EXCISE TAX PROCEDURAL REGULATIONS

    Paragraph 1. The authority citation for part 40 continues to read, 
in part, as follows:

    Authority: 26 U.S.C. 7805 * * *

    Par. 2. Section 40.6302(c)-3 is amended by revising paragraph 
(b)(2)(ii)(B) to read as follows:


Sec.  40.6302(c)-3  Special rules for use of Government depositaries 
under chapter 33.

* * * * *
    (b) * * *
    (2) * * *
    (ii) * * *
    (B) [The text of this proposed paragraph is the same as the text of 
Sec.  40.6302(c)-3T(b)(2)(ii)(B) published elsewhere in this issue of 
the Federal Register].
* * * * *

PART 49--FACILITIES AND SERVICES EXCISE TAXES

    Par. 3. The authority citation for part 49 continues to read in 
part as follows:

    Authority: 26 U.S.C. 7805 * * *

    Par. 4. Section 49.4291-1 is amended by revising the fourth 
sentence to read as follows:


Sec.  49.4291-1  Persons receiving payment must collect tax.

    * * * [The text of this proposed sentence is the same as the text 
of Sec.  49.4291-1T published elsewhere in this issue of the Federal 
Register]. * * *

    Approved: June 21, 2004.
Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
[FR Doc. 04-18161 Filed 8-9-04; 8:45 am]
BILLING CODE 4830-01-P