[Federal Register Volume 62, Number 134 (Monday, July 14, 1997)]
[Rules and Regulations]
[Pages 37490-37494]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-18285]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1, 31, and 40
[TD 8723]
RIN 1545-AS79
Federal Tax Deposits by Electronic Funds Transfer
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final and temporary regulations.
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SUMMARY: This document contains final regulations relating to the
deposit of Federal taxes by electronic funds transfer (EFT). The
regulations provide rules regarding which taxpayers must make deposits
by EFT, the types of Federal taxes that must be deposited by EFT, and
when deposits by EFT must begin. The regulations affect taxpayers
required to make deposits of Federal taxes by EFT. The final
regulations reflect changes to the Internal Revenue Code of 1986 (Code)
made by the North American Free Trade Agreement Implementation Act and
the Small Business Job Protection Act of 1996.
DATES: The final regulations are effective July 14, 1997. For dates of
applicability of these regulations, see Sec. 31.6302-1(h)(2).
FOR FURTHER INFORMATION CONTACT: Vincent G. Surabian, 202-622-6232 (not
a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
Section 523 of the North American Free Trade Agreement
Implementation Act, Pub. L. 103-182, 107 Stat. 2057 (December 8, 1993),
amended section 6302 of the Code by enacting a new subsection (h)
requiring the Secretary of the Treasury to prescribe such regulations
as may be necessary for the development and implementation of an EFT
system to be used for the collection of depository taxes.
On July 11, 1994, the IRS published temporary regulations (TD 8553)
in the Federal Register (59 FR 35414) relating to the deposit of
Federal taxes by EFT. A notice of proposed rulemaking (IA-03-94) cross-
referencing the temporary regulations was also published in the Federal
Register for the same day (59 FR 35418). Subsequently, on March 21,
1996, additional temporary regulations (TD 8661) were published in the
Federal Register (61 FR 11548) as well as a notice of proposed
rulemaking (IA-03-94, 61 FR 11595) that both cross-referenced the
temporary regulations published that day and amended the notice of
proposed rulemaking published July 11, 1994. Many written comments were
received in response to these notices of proposed rulemaking. A public
hearing on the 1994 notice was held on October 3, 1994. There were no
requests for a public hearing on the 1996 notice and none was held.
Section 1809 of the Small Business Job Protection Act of 1996, Pub.
L. 104-188, 110 Stat. 1755 (August 20, 1996), delayed the date by which
certain taxpayers must begin EFT deposits.
After consideration of all comments, the regulations proposed by
IA-03-94 are adopted as revised by this Treasury decision, and the
corresponding temporary regulations are removed. The revisions are
discussed below.
Explanation of Provisions
Under the temporary regulations, the requirement to deposit by EFT
is based on the taxpayer's total deposits of certain taxes during
certain ``determination periods.'' If the taxpayer's deposits of the
taxes during a determination period exceed a prescribed dollar
threshold, the taxpayer must use EFT to make deposits on and after the
date prescribed in the temporary regulations.
Delay in January 1, 1997, Start-Up Date
The Small Business Job Protection Act of 1996 provides that
taxpayers first required by the temporary regulations to deposit by EFT
for return periods beginning on and after January 1, 1997, need not
begin to deposit by EFT until July 1, 1997. The final regulations
provide that these taxpayers must use EFT to make deposits that are due
on or after July 1, 1997, and relate to return periods beginning on or
after January 1, 1997. For example, a corporation to which this rule
applies, and which files its income tax returns on a calendar year
basis, must use EFT to make corporate and estimated income tax deposits
that are due on or after July 1, 1997. Thus, the corporation's
September 15, 1997,
[[Page 37491]]
and subsequent estimated tax payments must be made by EFT.
Penalty Relief
Under Notice 97-43, (1997-30 I.R.B.), the IRS announced that no
penalties for failure to deposit by EFT will be imposed through
December 31, 1997, on any taxpayer first required to deposit by EFT on
or after July 1, 1997. These taxpayers will remain liable for the
failure-to-deposit penalty (absent reasonable cause) under section 6656
if they fail to make a required deposit (using either EFT or paper
coupons) in a timely manner.
Threshold for January 1, 1999 Mandate
The temporary regulations provide that if a taxpayer's employment
tax deposits during 1997 exceed $20,000, or, if no employment taxes are
deposited, the other taxes deposited in 1997 exceed $20,000, the
taxpayer must begin depositing by EFT for return periods beginning on
and after January 1, 1999. Based on information available in 1994, the
IRS and Treasury Department concluded that the $20,000 threshold was
necessary to assure that 94% of employment taxes and 94% of other
depository taxes would be collected by EFT in fiscal year 1999 and
subsequent years as required by section 6302(h). Based on information
currently available, the IRS and Treasury Department have concluded
that the statutory requirement for 1999 and subsequent years will be
satisfied without the need to reduce the threshold below $50,000.
Accordingly, the final regulations raise the threshold for the January
1, 1997 through December 31, 1997 determination period from $20,000 to
$50,000.
Technical Correction--First Required Deposit
The final regulations revise the special rule requiring taxpayers
with no employment tax deposits to use EFT if their deposits of other
taxes exceed a specified threshold. As revised, the requirement to
deposit by EFT ``applies to all depository taxes due with respect to
deposit obligations incurred for return periods beginning on and after
the applicable effective date.'' The words ``for return periods
beginning'' were inadvertently omitted in the temporary regulations.
Miscellaneous
The definition of time deemed deposited has been revised solely for
purposes of clarity.
Certain obsolete provisions in the temporary regulations relating
to agreements entered into by the Commissioner with third party bulk
data processors for the period prior to January 1, 1995, have been
deleted.
Public Comment
Some commentators asked if the IRS intends to notify each affected
taxpayer of the EFT requirement before the date on which the taxpayer
must begin depositing by EFT. The IRS mailed several advance notices to
each taxpayer that became subject to the EFT requirement in 1997, and
plans to provide similar notices to taxpayers required to begin
depositing by EFT in 1998.
Other commentators stated that it would be easier for taxpayers to
determine whether they are subject to the rules if the thresholds were
based on deposit liabilities incurred during the calendar year rather
than deposits made during the calendar year. Although the specific
suggestion was not adopted, the IRS is addressing the underlying
concern in other ways. The IRS will make the threshold determination
for affected taxpayers and, as indicated above, notify those taxpayers,
in advance, of their obligation to begin depositing by EFT.
Some commentators suggested that the final regulations should
clarify whether tax payments made with returns by check, money order,
etc. are taken into account in threshold determinations. Payments
submitted with a return are not ``deposits'' and are, therefore, not
taken into account in determining if a threshold has been exceeded for
EFT purposes.
Other commentators stated that the determination period for EFT
should be the same as the lookback period used in determining a
taxpayer's deposit status (semi-weekly or monthly) for employment tax
deposit purposes. This suggestion was not adopted because the lookback
periods for determining a taxpayer's deposit status with respect to
employment tax vary depending upon the type of employment tax being
deposited (for example, Form 943 and 945 depositors have a calendar
year lookback period whereas Form 941 depositors do not).
Several commentators suggested employers need a safe harbor more
generous than the current 98 percent rule because deposits by EFT must
be initiated earlier than current paper coupon deposits. The IRS and
Treasury Department do not believe it is necessary to change the safe
harbor. EFT depositors may use the Same Day Payment option (Electronic
Tax Application (ETA)) and, when using this option, are not required to
initiate deposits any earlier than paper coupon depositors. Thus, EFT
depositors will have as much time as they have always had to determine
the amount they are required to deposit.
One commentator indicated that following the ACH Holiday Schedule
will cause problems for $100,000 next-day depositors. The IRS and
Treasury Department believe that the availability of ETA will alleviate
any problems caused by the ACH Holiday Schedule.
Another commentator noted that many securities firms that have
next-day deposits will be unable to comply with the EFT deposit
requirement because of the nature of the securities business. The
commentator recommends either exempting nonpayroll related income tax
deposits from the EFT deposit requirement or allowing the use of
Fedwire on a regular basis. Since ETA includes Fedwire value transfers,
Fedwire non-value transfers, and Direct Access transactions, and is
available for taxpayers to use on a regular basis, securities firms
should be able to comply with the next-day deposit rule.
Another commentator suggested that a deposit by EFT should be
considered timely if initiated with the Automated Clearing House (ACH)
in a timely and correct manner and that the taxpayer should not be
responsible for possible ACH breakdowns. Rev. Rul. 94-46 (1994-2 C.B.
278), has been published to address this situation. The revenue ruling
provides guidance on establishing reasonable cause for abatement of the
failure-to-deposit penalty in certain situations involving deposits by
EFT.
A commentator suggested that the regulations should allow taxpayers
to make deposits by EFT from any institution that has the ability to
make ACH credit or debit transfers and should not require the taxpayers
to open accounts with a Treasury Financial Agent. A taxpayer is not
required to open an account with a Treasury Financial Agent. The ACH
debit and ACH credit options allow a taxpayer to make a deposit from
any of the many institutions that have the ability to make ACH credit
or debit transfers.
One commentator suggested that a $500 minimum threshold should be
provided for EFT deposits. This change would unduly complicate
administration of the rules and has not been adopted.
Some of the issues raised in comments on the notice of proposed
rulemaking published on July 11, 1994, were addressed in changes made
to the temporary regulations by TD 8661. These issues were discussed in
the preamble to TD 8661 and will not be addressed again here. In
addition,
[[Page 37492]]
several other comments that were outside the scope of this regulations
project have not been addressed here.
Special Analyses
It has been determined that this Treasury decision is not a
significant regulatory action as defined in EO 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 notices of
proposed rulemaking preceding the regulations were issued prior to
March 29, 1996, a Regulatory Flexibility Analysis is not required.
Pursuant to section 7805(f) of the Internal Revenue Code, the two
notices of proposed rulemaking preceding these regulations were
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 Vincent G. Surabian,
Office of the Assistant Chief Counsel (Income Tax & Accounting).
However, other personnel from the IRS and Treasury Department
participated in their development.
List of Subjects
26 CFR Part 1
Income taxes, Reporting and recordkeeping requirements.
26 CFR Part 31
Employment taxes, Income taxes, Penalties, Pensions, Railroad
retirement, Reporting and recordkeeping requirements, Social Security,
Unemployment compensation.
26 CFR Part 40
Excise taxes, Reporting and recordkeeping requirements.
Amendments to the Regulations
Accordingly, 26 CFR parts 1, 31, and 40 are amended as follows:
PART 1--INCOME TAXES
Paragraph 1. The authority citation for part 1 is amended by
removing the citations for ``Section 1.6302-1(a)'', and ``Sections
1.6302-1T, 1.6302-2T and 1.6302-3T'', and ``Section 1.6302-4T'' and
adding entries in numerical order to read as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.6302-1 also issued under 26 U.S.C. 6302(c) and (h).
Section 1.6302-2 also issued under 26 U.S.C. 6302(h).
Section 1.6302-3 also issued under 26 U.S.C. 6302(h).
Section 1.6302-4 also issued under 26 U.S.C. 6302(a) and (c). *
* *
Par. 2. Section 1.6302-1 is amended as follows:
1. The heading for paragraph (b) is revised.
2. The text of paragraph (b) is redesignated as paragraph (b)(1)
and a heading for (b)(1) is added.
3. Paragraph (b)(2) is added.
4. The OMB parenthetical at the end of the section is removed.
The revised and added provisions read as follows:
Sec. 1.6302-1 Use of Government depositaries in connection with
corporation income and estimated income taxes and certain taxes of tax-
exempt organizations.
* * * * *
(b) Manner of deposit--(1) Deposit by Federal tax deposit coupon. *
* *
(b)(2) Deposits by electronic funds transfer. For the requirement
to deposit corporation income and estimated income taxes and certain
taxes of tax-exempt organizations by electronic funds transfer, see
Sec. 31.6302-1(h) of this chapter. A taxpayer not required to deposit
by electronic funds transfer pursuant to Sec. 31.6302-1(h) of this
chapter remains subject to the rules of paragraph (b)(1) of this
section.
Sec. 1.6302-1T [Removed]
Par. 3. Section 1.6302-1T is removed.
Par. 4. Section 1.6302-2 is amended as follows:
1. The heading for paragraph (b) is revised.
2. Paragraph (c) is redesignated as paragraph (b)(6).
3. A new paragraph (c) is added.
4. The OMB parenthetical at the end of the section is removed.
The revised and added provisions read as follows:
Sec. 1.6302-2 Use of Government depositaries for payment of tax
withheld on nonresident aliens and foreign corporations.
* * * * *
(b) Deposits by Federal tax deposit coupon. * * *
(c) Deposits by electronic funds transfer. For the requirement to
deposit taxes withheld on nonresident aliens and foreign corporations
by electronic funds transfer, see Sec. 31.6302-1(h) of this chapter. A
taxpayer not required to deposit by electronic funds transfer pursuant
to Sec. 31.6302-1(h) of this chapter remains subject to the rules of
paragraph (b) of this section.
* * * * *
Sec. 1.6302-2T [Removed]
Par. 5. Section 1.6302-2T is removed.
Par. 6. In Sec. 1.6302-3, paragraph (c) is revised to read as
follows:
Sec. 1.6302-3 Use of Government depositaries in connection with
estimated taxes of certain trusts.
* * * * *
(c) Cross-references. For further guidance and instructions for
certain banks and financial institutions acting as fiduciaries with
respect to taxable trusts, see Rev. Proc. 89-49 (1989-2 C.B. 615), (see
Sec. 601.601(d)(2) of this chapter) or any successor revenue procedure.
For the requirement to deposit estimated tax payments of taxable trusts
by electronic funds transfer, see Sec. 31.6302-1(h) of this chapter.
Sec. 1.6302-3T [Removed]
Par. 7. Section 1.6302-3T is removed.
Par. 8. Section 1.6302-4 is added to read as follows:
Sec. 1.6302-4 Use of financial institutions in connection with
individual income taxes.
Voluntary payments by electronic funds transfer. An individual may
voluntarily remit by electronic funds transfer all payments of tax
imposed by subtitle A of the Code, including any payments of estimated
tax. Such payments must be made in accordance with procedures to be
prescribed by the Commissioner.
Sec. 1.6302-4T [Removed]
Par. 9. Section 1.6302-4T is removed.
PART 31--EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE
Par. 10. The authority citation for Part 31 is amended by removing
the entries for ``Section 31.6302-1T'', and ``Section 31.6302(c)-3T''
and revising the entry for ``Sections 31.6302-1 through 31.6302-3'' and
by adding an entry for ``Section 31.6302(c)-3'' to read as follows:
Authority: 26 U.S.C. 7805 * * *
Sections 31.6302-1 through 31.6302-3 also issued under 26 U.S.C.
6302(a), (c), and (h). * * *
Section 31.6302(c)-3 also issued under 26 U.S.C. 6302(h).
Par. 11. In Sec. 31.0-1, paragraph (a) is amended by adding a
sentence at the end of the paragraph to read as follows:
Sec. 31.0-1 Introduction.
(a) * * * The regulations in this part also provide rules relating
to the deposit of other taxes by electronic funds transfer.
* * * * *
Par. 12. In Sec. 31.0-3, paragraph (f) is amended by adding a
sentence at the end of the paragraph to read as follows:
[[Page 37493]]
Sec. 31.0-3 Scope of regulations.
* * * * *
(f) * * * Subpart G of this part also provides rules relating to
the deposit of other taxes by electronic funds transfer.
Par. 13. In Sec. 31.6302-1, paragraph (h) is redesignated as
paragraph (i), and new paragraph (h) is added to read as follows:
Sec. 31.6302-1 Federal tax deposit rules for withheld income taxes and
taxes under the Federal Insurance Contributions Act (FICA) attributable
to payments made after December 31, 1992.
* * * * *
(h) Time and manner of deposit--deposits required to be made by
electronic funds transfer--(1) In general. Section 6302(h) requires the
Secretary to prescribe such regulations as may be necessary for the
development and implementation of an electronic funds transfer system
to be used for the collection of the depository taxes as described in
paragraph (h)(3) of this section. Section 6302(h)(2) provides a phase-
in schedule that sets forth escalating minimum percentages of those
depository taxes to be deposited by electronic funds transfer. This
paragraph (h) prescribes the rules necessary for implementing an
electronic funds transfer system for collection of depository taxes and
for effecting an orderly and expeditious phase-in of that system.
(2) Threshold amounts, determination periods, and effective dates.
(i)(A) Taxpayers whose aggregate deposits of the taxes imposed by
Chapters 21 (Federal Insurance Contributions Act), 22 (Railroad
Retirement Tax Act), and 24 (Collection of Income Tax at Source on
Wages) of the Internal Revenue Code during a 12-month determination
period exceed the applicable threshold amount are required to deposit
all depository taxes described in paragraph (h)(3) of this section by
electronic funds transfer (as defined in paragraph (h)(4) of this
section) unless exempted under paragraph (h)(5) of this section. If the
applicable effective date is January 1, 1995, or January 1, 1996, the
requirement to deposit by electronic funds transfer applies to all
deposits required to be made on or after the applicable effective date.
If the applicable effective date is July 1, 1997, the requirement to
deposit by electronic funds transfer applies to all deposits required
to be made on or after July 1, 1997 with respect to deposit obligations
incurred for return periods beginning on or after January 1, 1997. If
the applicable effective date is January 1, 1998, or thereafter, the
requirement to deposit by electronic funds transfer applies to all
deposits required to be made with respect to deposit obligations
incurred for return periods beginning on or after the applicable
effective date. In general, each applicable effective date has one 12-
month determination period. However, for the applicable effective date
January 1, 1996, there are two determination periods. If the applicable
threshold amount is exceeded in either of those determination periods,
the taxpayer becomes subject to the requirement to deposit by
electronic funds transfer, effective January 1, 1996. The threshold
amounts, determination periods and applicable effective dates for
purposes of this paragraph (h)(2)(i)(A) are as follows:
----------------------------------------------------------------------------------------------------------------
Applicable effective
Threshold amount Determination period date
----------------------------------------------------------------------------------------------------------------
$78 million..................... 1-1-93 to 12-31-93................................... Jan. 1, 1995.
$47 million..................... 1-1-93 to 12-31-93................................... Jan. 1, 1996.
$47 million..................... 1-1-94 to 12-31-94................................... Jan. 1, 1996.
$50 thousand.................... 1-1-95 to 12-31-95................................... July 1, 1997.
$50 thousand.................... 1-1-96 to 12-31-96................................... Jan. 1, 1998.
$50 thousand.................... 1-1-97 to 12-31-97................................... Jan. 1, 1999.
----------------------------------------------------------------------------------------------------------------
(B) Unless exempted under paragraph (h)(5) of this section, a
taxpayer that does not deposit any of the taxes imposed by chapters 21,
22, and 24 during the applicable determination periods set forth in
paragraph (h)(2)(i)(A) of this section, but that does make deposits of
other depository taxes (as described in paragraph (h)(3) of this
section), is nevertheless subject to the requirement to deposit by
electronic funds transfer if the taxpayer's aggregate deposits of all
depository taxes exceed the threshold amount set forth in this
paragraph (h)(2)(i)(B) during an applicable 12-month determination
period. This requirement to deposit by electronic funds transfer
applies to all depository taxes due with respect to deposit obligations
incurred for return periods beginning on or after the applicable
effective date. The threshold amount, determination periods, and
applicable effective dates for purposes of this paragraph (h)(2)(i)(B)
are as follows:
----------------------------------------------------------------------------------------------------------------
Applicable effective
Threshold amount Determination period date
----------------------------------------------------------------------------------------------------------------
$50 thousand.................... 1-1-95 to 12-31-95................................... Jan. 1, 1998.
$50 thousand.................... 1-1-96 to 12-31-96................................... Jan. 1, 1998.
$50 thousand.................... 1-1-97 to 12-31-97................................... Jan. 1, 1999.
----------------------------------------------------------------------------------------------------------------
(ii) Once a taxpayer is required to deposit by electronic funds
transfer pursuant to this paragraph (h)(2), the taxpayer must continue
to deposit by electronic funds transfer. Until such time as a taxpayer
is required by this section to deposit by electronic funds transfer,
the taxpayer may voluntarily make deposits by electronic funds
transfer, but remains subject to the rules of paragraph (i) of this
section, pertaining to deposits by Federal tax deposit (FTD) coupon, in
making deposits other than by electronic funds transfer.
(3) Taxes required to be deposited by electronic funds transfer.
The requirement to deposit by electronic funds transfer under paragraph
(h)(2) of this section applies to all the taxes required to be
deposited under Secs. 1.6302-1, 1.6302-2, and 1.6302-3 of this chapter;
Secs. 31.6302-1, 31.6302-2, 31.6302-3, 31.6302-4, and 31.6302(c)-3; and
Sec. 40.6302(c)-1 of this chapter.
(4) Definitions--(i) Electronic funds transfer. An electronic funds
transfer is any transfer of depository taxes made in accordance with
Revenue Procedure 97-33, (1997-30 I.R.B.), (see Sec. 601.601(d)(2)
[[Page 37494]]
of this chapter), or in accordance with procedures subsequently
prescribed by the Commissioner.
(ii) Taxpayer. For purposes of this section, a taxpayer is any
person required to deposit federal taxes, including not only
individuals, but also any trust, estate, partnership, association,
company or corporation.
(5) Exemptions. If any categories of taxpayers are to be exempted
from the requirement to deposit by electronic funds transfer, the
Commissioner will identify those taxpayers by guidance published in the
Internal Revenue Bulletin. (See Sec. 601.601(d)(2)(ii)(b) of this
chapter.)
(6) Separation of deposits. A deposit for one return period must be
made separately from a deposit for another return period.
(7) Payment of balance due. If the aggregate amount of taxes
reportable on the applicable tax return for the return period exceeds
the total amount deposited by the taxpayer with regard to the return
period, then the balance due must be remitted in accordance with the
applicable form and instructions.
(8) Time deemed deposited. A deposit of taxes by electronic funds
transfer will be deemed made when the amount is withdrawn from the
taxpayer's account, provided the U.S. Government is the payee and the
amount is not returned or reversed.
(9) Time deemed paid. In general, an amount deposited under this
paragraph (h) will be considered to be a payment of tax on the last day
prescribed for filing the applicable return for the return period
(determined without regard to any extension of time for filing the
return) or, if later, at the time deemed deposited under paragraph
(h)(8) of this section. In the case of the taxes imposed by chapters 21
and 24 of the Internal Revenue Code, solely for purposes of section
6511 and the regulations thereunder (relating to the period of
limitation on credit or refund), if an amount is deposited prior to
April 15th of the calendar year immediately succeeding the calendar
year that includes the period for which the amount was deposited, the
amount will be considered paid on April 15th.
* * * * *
Sec. 31.6302-1T [Removed]
Par. 14. Section 31.6302-1T is removed.
Par. 15. Section 31.6302(c)-3 is amended as follows:
1. The heading for paragraph (b) is revised.
2. Paragraph (c) is revised.
3. Paragraph (d) is added.
The revised and added provisions read as follows:
Sec. 31.6302(c)-3 Use of Government depositaries in connection with
tax under the Federal Unemployment Tax Act.
* * * * *
(b) Manner of deposit--deposits required to be made by Federal tax
deposit (FTD) coupon. * * *
(c) Manner of deposit--deposits required to be made by electronic
funds transfer. For the requirement to deposit tax under the Federal
Unemployment Tax Act by electronic funds transfer, see Sec. 31.6302-
1(h). A taxpayer not required to deposit by electronic funds transfer
pursuant to Sec. 31.6302-1(h) remains subject to the rules of paragraph
(b) of this section.
(d) Effective date. The provisions of paragraphs (a) and (b) of
this section apply with respect to calendar quarters beginning after
December 31, 1969. The provisions of paragraph (c) of this section
apply with respect to calendar quarters beginning on or after January
1, 1995.
Sec. 31.6302(c)-3T [Removed]
Par. 16. Section 31.6302(c)-3T is removed.
PART 40--EXCISE TAX PROCEDURAL REGULATIONS
Par. 17. The authority citation for part 40 is amended by revising
the entry for ``Sections 40.6302(c)-1, 40.6302(c)-2, 40.6302(c)-3, and
40.6302(c)-4'' and removing the entry for ``Section 40.6302(c)-1T'' to
read as follows:
Authority: 26 U.S.C. 7805 * * *
Section 40.6302(c)-1 also issued under 26 U.S.C. 6302(a) and
(h).
Sections 40.6302(c)-2, 40.6302(c)-3, and 40.6302(c)-4 also
issued under 26 U.S.C. 6302(a).
Par. 18. Section 40.6302(c)-1 is amended as follows:
1. The text of paragraph (d) is redesignated paragraph (d)(1) and a
paragraph heading is added for (d)(1).
2. Paragraph (d)(2) is added.
The added provisions read as follows:
Sec. 40.6302(c)-1 Use of Government depositaries.
* * * * *
(d) Remittance of deposits--(1) Deposits by Federal tax deposit
coupon. * * *
(2) Deposits by electronic funds transfer. For the requirement to
deposit excise taxes by electronic funds transfer, see Sec. 31.6302-
1(h) of this chapter. A taxpayer not required to deposit by electronic
funds transfer pursuant to Sec. 31.6302-1(h) of this chapter remains
subject to the rules of this paragraph (d).
* * * * *
Sec. 40.6302(c)-1T [Removed]
Par. 19. Section 40.6302(c)-1T is removed.
Dated: June 27, 1997.
Michael P. Dolan,
Acting Commissioner of Internal Revenue.
Donald C. Lubick,
Acting Assistant Secretary of the Treasury.
[FR Doc. 97-18285 Filed 7-11-97; 8:45 am]
BILLING CODE 4830-02-U
