Vol. 59 No.  11 Tuesday, January 18, 1994  p 2521 (Rule)               11/265   
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.


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. 

 70.61, 70.77, 70.96, and 70.97   [Amended]

   Par. 2.  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  70.74(b) is revised to read 
as follows: 

 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: 

 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: 

 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. 

 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



The Contents entry for this article reads as follows:

Organization, functions, and authority delegations:
  Chief, Tax Processing Center, 2521


