[Federal Register Volume 70, Number 164 (Thursday, August 25, 2005)]
[Rules and Regulations]
[Pages 49869-49870]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-16612]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 40 and 49

[TD 9221]
RIN 1545-BB75


Collected Excise Taxes; Duties of Collector

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Final regulations and removal of temporary regulations.

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SUMMARY: This document contains final regulations relating to the 
reporting obligations of persons that receive payments for air 
transportation or communications services subject to excise tax when 
persons liable for tax refuse to pay the tax. The final regulations 
affect persons that receive payments subject to tax and persons liable 
for those taxes.

DATES: Effective Date: These regulations are effective August 25, 2005.
    Applicability Date: For dates of applicability, see Sec. Sec.  
40.6302(c)-3(g) and 49.4291-1.

FOR FURTHER INFORMATION CONTACT: Taylor Cortright, (202) 622-3130 (not 
a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

    This document amends the Excise Tax Procedural Regulations (26 CFR 
part 40) and the Facilities and Services Excise Tax Regulations (26 CFR 
part 49). On August 10, 2004, a temporary regulation (TD 9149, 60 FR 
48393) was published in the Federal Register. A notice of proposed 
rulemaking (REG-163909-02, 69 FR 48432) cross-referencing the temporary 
regulations was published in the Federal Register on the same day. A 
written comment was received and no public hearing was requested or 
held. After considering the comment, the proposed regulations are 
adopted by this Treasury decision with clarifying changes. The 
corresponding temporary regulations are removed.

Special Analyses

    It has been determined that these regulations are 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 these regulations do 
not impose a collection of information on small entities, the 
Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. 
Pursuant to section 7805(f) of the Internal Revenue Code, the notice of 
proposed rulemaking preceding these final regulations was submitted to 
the Chief Counsel for Advocacy of the Small Business Administration for 
comment on their impact on small business.

Drafting Information

    The principal author of these regulations is Taylor Cortright of 
the 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.

26 CFR Part 49

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

Adoption of Amendments to the Regulations

0
Accordingly, 26 CFR parts 40 and 49 are amended as follows:

PART 40--EXCISE TAX PROCEDURAL REGULATIONS

0
Paragraph 1. The authority citation for part 40 is amended by removing 
the entry for Sec.  40.6302(c)-3T to read, in part, as follows:

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


0
Par. 2. Section 40.6302(c)-3 is amended as follows:
0
1. Paragraph (b)(2)(ii) is revised.
0
2. Paragraph (g) is amended by removing the language ``October 1, 
2001'' and adding the language ``October 1, 2001, except that paragraph 
(b)(2)(ii)(B) of this section is applicable October 1, 2004'' in its 
place.
    The revision reads as follows:

[[Page 49870]]

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

* * * * *
    (b) * * *
    (2) * * *
    (ii) Separate account. The account required under paragraph 
(b)(2)(i)(A) of this section (the separate account)--
    (A) Must reflect for each month all items of tax that are included 
in amounts billed or tickets sold to customers during the month;
    (B) May not reflect an item of adjustment for any month during a 
quarter if the adjustment results from a refusal to pay or inability to 
collect the tax and the uncollected tax has not been reported under 
Sec.  49.4291-1 of this chapter on or before the due date of the return 
for that quarter; and
    (C) Must reflect for each month items of adjustment (including bad 
debts and errors) relating to the tax for prior months within the 
period of limitations on credits or refunds.
* * * * *


Sec.  40.6302(c)-3T  [Removed]

0
Par. 3. Section 40.6302(c)-3T is removed.

PART 49--FACILITIES AND SERVICES EXCISE TAXES

0
Par. 4. The authority citation for part 49 continues to read, in part, 
as follows:

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


0
Par. 5. Section 49.4291-1 is amended as follows:
0
1. The fourth sentence is revised.
0
2. The fifth sentence is amended by removing the language ``this 
information'' and adding the language ``this report'' in its place.
0
3. A new sentence is added at the end of the paragraph.
0
4. Paragraphs (a) and (b) are added.
    The revisions and addition read as follows:


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

    * * * Applicable October 1, 2004, this report must be made on or 
before the report due date. * * * For purposes of this section, the 
report due date is--
    (a) In the case of a person using the alternative method of making 
deposits described in Sec.  40.6302(c)-3 of this chapter, the due date 
of the return on which the item of adjustment relating to the 
uncollected tax would be reflected if items of adjustment were 
determined without regard to the limitation in Sec.  40.6302(c)-3 of 
this chapter; and
    (b) In any other case, the due date of the return on which the tax 
would have been reported but for the refusal to pay or inability to 
collect.


Sec.  49.4291-1T  [Removed]

0
Par. 6. Section 49.4291-1T is removed.

Mark E. Matthews,
Deputy Commissioner for Services and Enforcement.
    Approved: July 20, 2005.
Eric Solomon,
Acting Deputy Secretary of the Treasury (Tax Policy).
[FR Doc. 05-16612 Filed 8-24-05; 8:45 am]
BILLING CODE 4830-01-P