94-1090. Delegation of Authority To Accept Checks and Waive Penalties  

  • [Federal Register Volume 59, Number 11 (Tuesday, January 18, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-1090]
    
    
    [[Page Unknown]]
    
    [Federal Register: January 18, 1994]
    
    
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    DEPARTMENT OF THE TREASURY
    
    Bureau of Alcohol, Tobacco and Firearms
    
    27 CFR Part 70
    
    [T.D. ATF-353; CRT-92-07]
    RIN 1512-AB26
    
     
    
    Delegation of Authority To Accept Checks and Waive Penalties
    
    AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Treasury.
    
    ACTION: Treasury decision, final rule.
    
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    SUMMARY: Authority delegation. This Treasury decision expands the 
    responsibilities of the ``Chief, Tax Processing Center'' by giving the 
    chief the authority to accept checks and waive penalties. It also 
    removes certain regulations dealing with tax collection activities 
    under 27 CFR part 70 that have been determined to be outside of the 
    authority of the Bureau of Alcohol, Tobacco and Firearms.
    
    EFFECTIVE DATE: January 18, 1994.
    
    FOR FURTHER INFORMATION CONTACT: Nancy Bryce, Tax Compliance Branch, 
    Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts Avenue, NW., 
    Washington, DC 20226, (202-927-8220).
    
    SUPPLEMENTARY INFORMATION:
    
    Background
    
        On July 1, 1972, the Bureau of Alcohol, Tobacco and Firearms (ATF) 
    was established by Treasury Department Order No. 120-01 (formerly Order 
    No. 221). This Order transferred from the Internal Revenue Service 
    (IRS) to the newly-formed Bureau the functions, powers and duties 
    relating to alcohol, tobacco, firearms and explosives laws. The Order 
    specifically stated that ``all existing activities relating to the 
    collection, processing, depositing, or accounting for taxes * * * shall 
    continue to be performed by the Commissioner of Internal Revenue to the 
    extent not now performed by the Alcohol, Tobacco and Firearms Division 
    * * * until the Director shall otherwise provide with the approval of 
    the Secretary.'' ATF assumed responsibility for the collection of taxes 
    imposed by subtitle E of the Internal Revenue Code in July 1987, by 
    means of Treasury Decision (T.D.) ATF-251, and adopted provisions in 27 
    CFR part 70 similar to those found in 26 CFR part 301 which concerned 
    the deposit and assessment of taxes. The remaining collection functions 
    with respect to taxes administered by ATF were transferred by way of 
    T.D. ATF-301, at which time ATF adopted regulations similar to those 
    used by IRS relating to the examination, assessment, and collection 
    functions. These provisions are also found in 27 CFR part 70. Under 
    existing regulations, the regional directors (compliance) are 
    authorized to accept checks and waive penalties associated with the 
    collection of taxes administered by ATF. This final rule amends 27 CFR 
    part 70 by vesting the authority to accept checks and waive penalties 
    with the Chief, Tax Processing Center, in addition to the regional 
    directors (compliance), in order to ease the burden on the regional 
    directors (compliance), simplify the waiver process for taxpayers, and 
    permit the more efficient functioning of ATF's tax collection 
    activities.
        This final rule also removes the following regulations dealing with 
    tax collection activities that have been determined to fall outside of 
    ATF's authority: 27 CFR 70.166(a), 70.201, 70.211, 70.212 and 70.487.
    
    Paperwork Reduction Act
    
        The provisions of the Paperwork Reduction Act of 1980, Public Law 
    96-511, 44 U.S.C. chapter 35, and its implementing regulations, 5 CFR 
    part 1320, do not apply to this final rule because no requirement to 
    collect information is imposed.
    
    Regulatory Flexibility Act
    
        The provisions of the Regulatory Flexibility Act relating to a 
    final regulatory flexibility analysis (5 U.S.C. 604) are not applicable 
    to this final rule because the agency was not required to publish a 
    general notice of proposed rulemaking under 5 U.S.C. 553 or any other 
    law. A copy of this final rule was submitted to the Chief Counsel for 
    Advocacy of the Small Business Administration in accordance with 26 
    U.S.C. 7805(f). No comments were received.
    
    Executive Order 12866
    
        It has been determined that this rule is not a significant 
    regulatory action, because (1) it will not have an annual effect on the 
    economy of $100 million or more or adversely affect in a material way 
    the economy, a sector of the economy, productivity, competition, jobs, 
    the environment, public health or safety, or State, local or tribal 
    governments or communities; (2) Create a serious inconsistency or 
    otherwise interfere with an action taken or planned by another agency; 
    (3) Materially alter the budgetary impact of entitlements, grants, user 
    fees, or loan programs or the rights and obligations of recipients 
    thereof; or (4) Raise novel legal or policy issues arising out of legal 
    mandates, the Presidents priorities, or the principles set forth in 
    Executive Order 12866.
    
    Administrative Procedures Act
    
        Because this final rule is a rule of agency management that merely 
    transfers the authority relating to the acceptance of checks and waiver 
    of penalties, it is unnecessary to issue this Treasury decision with 
    notice and public procedure thereon under 5 U.S.C. 553(a)(2) and (b)(B) 
    or subject to the effective date limitation in 5 U.S.C. 553(d)(3).
    
    Drafting Information
    
        The principal author of this document is Nancy M. Bryce, Tax 
    Compliance Branch, Bureau of Alcohol, Tobacco and Firearms.
    
    List of Subjects in 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.
    
    Authority and Issuance
    
        Title 27, Code of Federal Regulations is amended as follows:
    
    PART 70--PROCEDURE AND ADMINISTRATION
    
        Paragraph 1. The authority citation for 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, 5367, 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.
    
    
    Secs. 70.61, 70.77, 70.96, and 70.97  [Amended]
    
        Par. 2. Secs. 70.61, 70.77, 70.96, 70.97. In Part 70 remove the 
    words ``regional director(s) (compliance)'' and replace it with 
    ``regional director(s) (compliance) or the Chief, Tax Processing 
    Center'' in the following places:
        (a) Section 70.61(a)(1)(i), (a)(1)(i)(D), (a)(3);
        (b) Section 70.77(b)(1), (b)(2);
        (c) Section 70.96(a)(1)(iv), (a)(2), (a)(3);
        (d) Section 70.97(c)(2).
        Par. 3. The first sentence of Sec. 70.74(b) is revised to read as 
    follows:
    
    
    Sec. 70.74  Request for prompt assessment.
    
    * * * * *
        (b) The executor, administrator, or other fiduciary representing 
    the estate of the decedent, or the corporation, or the fiduciary 
    representing the dissolved corporation, as the case may be, shall, 
    after the return in question has been filed, file the request for 
    prompt assessment in writing with the regional director (compliance) of 
    the region in which the taxpayer is located or with the Chief, Tax 
    Processing Center. * * *
    * * * * *
        Par. 4. Section 70.96 is amended by revising the first sentence of 
    paragraph (a)(1), the first sentence of paragraph (a)(2), the first 
    sentence of paragraph (a)(3) and the second and fourth sentences of 
    paragraph (c) to read as follows:
    
    
    Sec. 70.96  Failure to file tax return or to pay tax.
    
        (a) Addition to the tax. (1) Failure to file tax return. In the 
    case of failure to file a return required under authority of:
        (i) Title 26 U.S.C. 61, relating to returns and records;
        (ii) Title 26 U.S.C. 51, relating to distilled spirits, wines and 
    beer;
        (iii) Title 26 U.S.C. 52, relating to tobacco products, and 
    cigarette papers and tubes; or
        (iv) Title 26 U.S.C. 53, relating to machine guns, destructive 
    devices, and certain other firearms; and the regulations thereunder, on 
    or before the date prescribed for filing (determined with regard to any 
    extension of time for such filing), there shall be added to the tax 
    required to be shown on the return the amount specified below unless 
    the failure to file the return within the prescribed time is shown to 
    the satisfaction of the regional director (compliance) or Chief, Tax 
    Processing Center to be due to reasonable cause and not to willful 
    neglect. * * *
        (a)(2) Failure to pay tax shown on return. In case of failure to 
    pay the amount shown as tax on any return required to be filed after 
    December 31, 1969 (without regard to any extension of time for filing 
    thereof), specified in paragraph (a)(1) of this section, on or before 
    the date prescribed for payment of such tax (determined with regard to 
    any extension of time for payment), there shall be added to the tax 
    shown on the return the amount specified below unless the failure to 
    pay the tax within the prescribed time is shown to the satisfaction of 
    the regional director (compliance) or the Chief, Tax Processing Center 
    to be due to reasonable cause and not to willful neglect. * * *
        (a)(3) Failure to pay tax not shown on return. In case of failure 
    to pay any amount in respect of any tax required to be shown on a 
    return specified in paragraph (a)(1) of this section, which is not so 
    shown (including an assessment made pursuant to 26 U.S.C. 6213(b)) 
    within 10 days from the date of the notice and demand therefor, there 
    shall be added to the amount shown in the notice and demand the amount 
    specified below unless the failure to pay the tax within the prescribed 
    time is shown to the satisfaction of the regional director (compliance) 
    or the Chief, Tax Processing Center to be due to reasonable cause and 
    not to willful neglect. * * *
    * * * * *
        (c) * * * Such statement should be filed with the regional director 
    (compliance) of the region in which the taxpayer is located or with the 
    Chief, Tax Processing Center. * * * If the regional director 
    (compliance) or Chief, Tax Processing Center determines that the 
    delinquency was due to a reasonable cause and not to willful neglect, 
    the addition to the tax will not be assessed. * * *
    * * * * *
        Par. 5. Section 70.98(b) is amended by revising the second and 
    third sentences to read as follows:
    
    
    Sec. 70.98  Penalty for underpayment of deposits.
    
    * * * * *
        (b) * * * The statement must be filed with the regional director 
    (compliance) of the region in which the taxpayer is located or with the 
    Chief, Tax Processing Center. If the regional director (compliance) or 
    the Chief, Tax Processing Center determines that the underpayment was 
    due to reasonable cause and not due to willful neglect, the penalty 
    will not be imposed.
    
    
    Secs. 70.99, 70.166, 70.201, 70.211, 70.212, and 70.487  [Removed]
    
        Par. 6. Section 70.99 is removed.
        Par. 7. Section 70.166 is removed.
        Par. 8. Section 70.201 is removed.
        Par. 9. Section 70.211 is removed.
        Par. 10. Section 70.212 is removed.
        Par. 11. Section 70.487 is removed.
    
        Signed: December 3, 1993.
    Daniel R. Black,
    Acting Director.
        Approved: December 27, 1993.
    John P. Simpson,
    Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement).
    [FR Doc. 94-1090 Filed 1-14-94; 8:45 am]
    BILLING CODE 4810-31-U
    
    
    

Document Information

Published:
01/18/1994
Department:
Alcohol, Tobacco, Firearms, and Explosives Bureau
Entry Type:
Uncategorized Document
Action:
Treasury decision, final rule.
Document Number:
94-1090
Dates:
January 18, 1994.
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: January 18, 1994, T.D. ATF-353, CRT-92-07
RINs:
1512-AB26: New Wine Treating Materials and Processes
RIN Links:
https://www.federalregister.gov/regulations/1512-AB26/new-wine-treating-materials-and-processes
CFR: (3)
27 CFR 70.74
27 CFR 70.96
27 CFR 70.98