5598 Federal Register / Vol. 71, No. 22 / Thursday, February 2, 2006 / Rules and Regulations 

technical formatting requirements for 

electronic submissions. The 

requirements for becoming an EDGAR 

Filer and updating company data are set 

forth in the EDGAR Filer Manual, 

Volume I: ‘‘General Information,’’ 

Version 2 (February 2006). The 

requirements for filing on EDGAR are 

set forth in the EDGAR Filer Manual, 

Volume II: ‘‘EDGAR Filing,’’ Version 3 

(February 2006). Additional provisions 

applicable to Form N–SAR filers are set 

forth in the EDGAR Filer Manual, 

Volume III: ‘‘N–SAR Supplement,’’ 

Version 1 (September 2005). All of these 

provisions have been incorporated by 

reference into the Code of Federal 

Regulations, which action was approved 

by the Director of the Federal Register 

in accordance with 5 U.S.C. 552(a) and 

1 CFR part 51. You must comply with 

these requirements in order for 

documents to be timely received and 

accepted. You can obtain paper copies 

of the EDGAR Filer Manual from the 

following address: Public Reference 

Room, U.S. Securities and Exchange 

Commission, 100 F Street, NE., Room 

1580, Washington, DC 20549 or by 

calling Thomson Financial at (800) 638– 

8241. Electronic copies are available on 

the Commission’s Web site. The address 

for the Filer Manual is http:// 

www.sec.gov/info/edgar.shtml. You can 

also photocopy the document at the 

National Archives and Records 

Administration (NARA). For 

information on the availability of this 

material at NARA, call 202–741–6030, 

or go to: http://www.archives.gov/ 

federal_register/ 

code_of_federal_regulations/ 

ibr_locations.html. 

By the Commission. 

Dated: January 27, 2006. 

Nancy M. Morris, 

Secretary. 

[FR Doc. 06–945 Filed 2–1–06; 8:45 am] 

BILLING CODE 8010–01–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Parts 19, 24, 25, 26 and 70 

[T.D. TTB–41] 

RIN 1513–AB17 

Quarterly Excise Tax Filing for Small 

Alcohol Excise Taxpayers (2005R– 

441P) 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Temporary rule; Treasury 

decision. 

SUMMARY: This temporary rule 

implements the quarterly excise tax 

payment procedure for small alcohol 

excise taxpayers contained in section 

11127 of the Safe, Accountable, 

Flexible, Efficient Transportation Equity 

Act: A Legacy for Users, which 

amended section 5061 of the Internal 

Revenue Code of 1986. Before passage of 

this law, most Federal alcohol excise 

taxpayers paid the tax on a semimonthly 

basis. We are amending the applicable 

regulations on a temporary basis to 

incorporate the legislative change 

allowing quarterly payments. We also 

are soliciting comments from all 

interested parties on the 

implementation of this new procedure 

through a notice of proposed 

rulemaking published elsewhere in this 

issue of the Federal Register. 

DATES: Effective Date: This temporary 

rule is effective on January 1, 2006. 

FOR FURTHER INFORMATION CONTACT: For 

questions concerning quarterly filing 

procedures, contact James S. McCoy, 

National Revenue Center, Alcohol and 

Tobacco Tax and Trade Bureau (513– 

684–2120); for other questions 

concerning this document, contact 

Marjorie Ruhf, Regulations and Rulings 

Division, Alcohol and Tobacco Tax and 

Trade Bureau (202–927–8202 or 

marjorie.ruhf@ttb.gov). 

SUPPLEMENTARY INFORMATION: 

Background 

This temporary rule implements the 

statutory change contained in section 

11127 of the Safe, Accountable, 

Flexible, Efficient Transportation Equity 

Act: A Legacy for Users, Pub. L. 109–59, 

119 Stat. 1144 (‘‘the Act’’), signed by 

President Bush on August 10, 2005. 

Section 11127 of the Act amended 

section 5061(d) of the Internal Revenue 

Code of 1986 (IRC), 26 U.S.C. 5061(d), 

by redesignating paragraphs (4) and (5) 

as paragraphs (5) and (6), respectively, 

and by inserting a new paragraph (4) 

which allows certain Federal alcohol 

excise taxpayers to pay taxes quarterly, 

rather than on a semimonthly basis as 

provided in section 5061(d) before the 

amendment. This new provision applies 

to quarterly tax payment periods 

beginning on and after January 1, 2006. 

New paragraph (4) of section 5061(d) 

specifically references taxes imposed 

under subparts A, C, and D of part I of 

subchapter A of chapter 51 of the IRC 

and section 7652 of the IRC. The taxes 

imposed under subparts A, C, and D 

involve gallonage taxes on distilled 

spirits (26 U.S.C. 5001), wines (26 

U.S.C. 5041), and beer (26 U.S.C. 5051). 

These taxes apply to spirits, wines, and 

beer produced in or imported into the 

United States. The Alcohol and Tobacco 

Tax and Trade Bureau (TTB) collects 

these taxes from proprietors of domestic 

bonded premises pursuant to 

regulations contained in 27 CFR parts 

19, 24, and 25, and the Bureau of 

Customs and Border Protection (CBP) 

collects these taxes from importers of 

these products pursuant to regulations 

contained in title 19 of the CFR. Section 

7652 (26 U.S.C. 7652) imposes a tax on 

spirits, wines, and beer coming to the 

United States from Puerto Rico and the 

U.S. Virgin Islands. TTB collects these 

taxes from regulated premises in Puerto 

Rico under regulations in 27 CFR part 

26, and CBP collects these taxes 

pursuant to title 19 of the CFR when the 

products in question come to the United 

States from the U.S. Virgin Islands. Tax 

payments in connection with 

transactions that are subject to 

regulations administered by CBP are not 

dealt with in this document. 

The provisions of new paragraph (4) 

apply to ‘‘any taxpayer who reasonably 

expects to be liable for not more than 

$50,000 in taxes * * * for the calendar 

year and who was liable for not more 

than $50,000 in such taxes in the 

preceding calendar year.’’ In such a case 

the taxpayer must pay the tax no later 

than the 14th day after the last day of 

the calendar quarter during which the 

action giving rise to the tax (that is, 

withdrawal, removal, entry, and 

bringing in from Puerto Rico) occurs. 

The statute defines a ‘‘calendar quarter’’ 

as the three-month period ending on 

March 31, June 30, September 30, or 

December 31. 

New paragraph (4) also provides that 

the quarterly tax payment procedure 

does not apply to a taxpayer for any 

remaining portion of the calendar year 

following the date on which the 

aggregate amount of tax due from the 

taxpayer exceeds $50,000. If at any 

point during the year the taxpayer’s 

liability exceeds $50,000, any tax that 

has not been paid on that date becomes 

due on the 14th day after the last day 

of the semimonthly period in which that 

date falls. Thus, in effect, a taxpayer 

whose taxpayments exceed the $50,000 

limit during the calendar year is 

required to revert to the semimonthly 

payment procedure for the remainder of 

the year. 

Basic Interpretative Considerations 

Based on a careful reading of the 

statutory language, TTB has applied the 

following considerations in drafting the 

implementing regulatory changes set 

forth in this document. 


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Federal Register / Vol. 71, No. 22 / Thursday, February 2, 2006 / Rules and Regulations 5599 

1. We note that the longer deferral 

period allowed under new paragraph (4) 

will result in a larger unpaid tax 

liability, with a consequent impact on 

bonds as discussed below in this 

document. While we recognize that the 

intent of the statutory change is to ease 

the regulatory burden on small 

taxpayers, we also must acknowledge 

the need to protect the revenue by 

ensuring that unpaid taxes are covered 

by appropriate bond amounts. If a 

taxpayer otherwise eligible for the new 

quarterly payment procedure does not 

wish to adjust the penal sum of its bond, 

that taxpayer should be allowed to 

continue to make taxpayments and file 

returns on a semimonthly basis. 

Accordingly, we have decided to treat 

the quarterly payment procedure as 

optional rather than mandatory in the 

implementing regulations in order to 

provide flexibility to those taxpayers. 

Looking at section 5061 as a whole, and 

noting the placement of the 

semimonthly payment procedure in 

paragraph (d)(1) as a provision of 

general applicability, we believe this 

interpretation is permissible because it 

makes the semimonthly procedure 

available to any taxpayer eligible for 

deferred payment of taxes, even if the 

taxpayer is also eligible for the quarterly 

payment procedure. The Conference 

Report of the Committee of Conference 

on H.R. 3, Report 109–203 at page 1133, 

describes the statutory change as 

follows: ‘‘[D]omestic producers and 

importers of distilled spirits, wine, and 

beer with excise tax liability of $50,000 

or less attributable to such articles in the 

preceding calendar year may file returns 

and pay taxes within 14 days after the 

end of the calendar quarter instead of 

semi-monthly.’’ The use of the word 

‘‘may’’ indicates Congress viewed the 

continued use of the semimonthly 

procedure as an option. 

2. Based on the wording of new 

paragraph (4) and of redesignated 

paragraph (5) of section 5061(d), we 

believe that the ‘‘special rule for taxes 

due in September’’ properly applies 

only to semimonthly return periods and 

therefore does not apply to quarterly 

payments under new paragraph (4). 

Therefore we have changed the 

regulations referring to this payment to 

restrict its application to taxpayers who 

file semimonthly returns. 

3. New paragraph (4) extends the 

quarterly payment option to a taxpayer 

who reasonably expects to be liable for 

not more than $50,000 in alcohol excise 

taxes during the calendar year and who 

was liable for not more than $50,000 in 

the preceding calendar year. We 

understand ‘‘taxpayer’’ to mean an 

entity (including an individual, 

partnership or corporation) with a single 

taxpayer identification number. A single 

taxpayer may have multiple locations; if 

so, the combined liability of all 

locations and the same taxable 

commodity must be considered in 

determining eligibility for quarterly 

payments. 

4. Since the taxes imposed by 26 

U.S.C. 5001, 5041 and 5051 apply to 

commodities produced in or imported 

into the United States, a taxpayer who 

has both domestic operations and 

import transactions must combine the 

tax liability on the domestic operations 

and the imports to determine eligibility 

for the quarterly procedure. 

5. New paragraph (4) makes no 

mention of controlled groups. 

Accordingly, we believe it is 

appropriate to take into account only 

the taxpayer’s own liability in 

determining eligibility for quarterly 

payments, even if the taxpayer is 

considered to be a member of a 

controlled group for other purposes 

under the IRC. We also note that there 

may be some individual taxpayers who 

are eligible for the quarterly payment 

procedure but who are required to pay 

taxes by electronic fund transfer (EFT) 

because they are part of a controlled 

group that owes more than $5 million in 

distilled spirits, wine, or beer excise 

taxes per year. See 26 U.S.C. 5061(e). 

These individual taxpayers must 

transmit the quarterly payments via 

EFT. 

6. With regard to the requirement that 

a taxpayer ‘‘reasonably expect’’ to be 

liable for not more than $50,000 in a tax 

year, we believe it is appropriate to 

define ‘‘reasonably expect’’ in the 

implementing regulations to mean both 

that the taxpayer was not liable for more 

than $50,000 in taxes the previous year 

and that there are no other existing or 

anticipated circumstances (such as an 

increase in production capacity) that 

would cause the taxpayer’s liability to 

increase beyond that limit. 

7. If a taxpayer exceeds $50,000 in tax 

liability during a taxable year and 

therefore must revert to the 

semimonthly payment procedure, that 

taxpayer may resume quarterly 

payments only after a full calendar year 

has passed in which the taxpayer’s 

liability did not exceed $50,000. New 

taxpayers will be eligible to file 

quarterly returns in their first year of 

business simply if they reasonably 

expect to owe less than $50,000 in taxes 

during that calendar year. 

Effect on Bond Amounts 

The bond regulations that apply to 

domestic producers of distilled spirits 

and wine at 27 CFR 19.245 and 24.148, 

and the regulations covering deferral 

bonds for proprietors bringing distilled 

spirits, wine, and beer to the United 

States from Puerto Rico at 27 CFR 26.66 

(for distilled spirits), 26.67 (for wine) 

and 26.68 (for beer), require proprietors 

to calculate the penal sum of their 

deferral bonds to cover the unpaid tax 

that is chargeable against the bond at 

any one time. We do not believe that 

new paragraph (4) requires any changes 

to these regulatory provisions, the terms 

of which will clearly apply to taxpayers 

who use the quarterly payment 

procedure. We note, however, that it 

would be prudent for a taxpayer who 

uses the quarterly payment procedure to 

review the current deferral bond 

coverage, which in all likelihood is 

based on anticipated semimonthly taxes 

plus a 14-day deferral period. Such 

taxpayers may need to increase the 

deferral coverage for anticipated 

quarterly taxes because of the longer 

three-month plus 14-day deferral 

period. 

We note that the penal sum amount 

set by regulation at 27 CFR 25.93 for a 

brewer’s bond is 10 percent of the 

maximum amount of annual tax 

liability, with a minimum amount of 

$1,000. This 10 percent/minimum 

amount provides adequate bond 

coverage for small brewers who incur 

less than $50,000 of annual taxable 

liability each year and who file on a 

semimonthly basis. However, we also 

note that the average maximum tax 

liability per return period for small 

brewers who pay quarterly will be 

approximately 29 percent of their 

annual liability. Our calculation 

indicates that the average maximum 

liability for a quarter of the year plus the 

additional liability incurred during the 

14 day period provided for payment, 

equals between 2.5 and 3.0 times the 

amount of the bond coverage presently 

required. Thus we conclude that 

required bond coverage under § 25.93 is 

inadequate for small brewers who pay 

taxes quarterly. As a result, we are 

increasing the required bond coverage 

for small brewers who pay excise taxes 

quarterly to 29 percent of the maximum 

amount of annual tax liability. Further, 

such increased bonding liability will 

apply only to small brewers who pay 

excise taxes quarterly and not to other 

small brewers who continue to pay 

semimonthly. 

Effect on Reporting Requirements 

In general, proprietors of distilled 

spirits plants, bonded wine cellars, and 

breweries must file monthly reports of 

operations. Since proprietors who are 

small taxpayers may be filing quarterly 

tax returns, we considered whether 


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5600 Federal Register / Vol. 71, No. 22 / Thursday, February 2, 2006 / Rules and Regulations 

these proprietors should file quarterly 

reports of operations as well. 

The beer regulations at 27 CFR 

25.297(b) already allow brewers to file 

quarterly reports if they produce less 

than 10,000 barrels of beer during a 

calendar year. This level of activity 

represents a tax liability of $70,000 per 

year at the reduced rate of tax for small 

brewers, so brewers eligible to file 

quarterly returns under new paragraph 

(4) of section 5061(d) are already 

eligible to file quarterly reports under 

the existing rule. Therefore, we have not 

made any changes to the regulations 

regarding the brewers’ report of 

operations. 

The wine regulations at 27 CFR 

24.300(g)(2) already allow small 

proprietors to file an annual, rather than 

a monthly, report of operations if they 

are eligible to pay taxes on an annual 

basis and their total wine to be 

accounted for in a calendar month does 

not exceed 20,000 gallons. We believe it 

is appropriate to allow wine premises 

proprietors to file quarterly reports of 

operations if they are eligible to make 

quarterly tax payments. Accordingly, we 

have revised paragraph (g) of § 24.300 to 

give quarterly taxpayers the option of 

filing quarterly reports of operations. 

However, in this revised text we have 

set a maximum activity level of 60,000 

gallons of wine to be accounted for in 

a calendar quarter in order to ensure 

that proprietors with very large 

production or storage capacity who pay 

little or no tax will continue to file 

monthly reports of operations. We are 

also making a corresponding 

conforming change to 27 CFR 24.313, 

Inventory records. 

For distilled spirits plant proprietors, 

there are four operational report forms, 

and there is no provision in the TTB 

regulations specifying a reporting 

interval less frequent than monthly. We 

do not believe this document is the 

appropriate vehicle for making a change 

in the timing for reports of operations. 

Because of the short time available 

before this temporary rule takes effect, 

we will defer consideration of adoption 

of a quarterly report of operations for 

distilled spirits plant proprietors. 

Other Considerations 

The TTB regulations include 

provisions that allow TTB to require 

prepayment of taxes or to make a 

jeopardy assessment of taxes if we 

believe such action is necessary to 

protect the revenue. We have reviewed 

those prepayment and jeopardy 

assessment provisions and have 

determined that no changes to them are 

needed in order for them to apply to 

taxpayers who pay on a quarterly basis. 

We also considered whether to 

require the filing of a notice of intent by 

a taxpayer who chooses to make 

quarterly tax payments before the 

taxpayer begins the procedure. Since we 

can determine from records we already 

have that a taxpayer appears to be 

eligible for the quarterly payment 

procedure (in particular, that the 

taxpayer’s liability for the previous 

calendar year did not exceed $50,000), 

and because advance notice would serve 

no other useful purpose, we have 

decided not to require advance notice. 

Discussion of Regulatory Amendments 

In addition to the regulatory changes 

discussed above, we are including 

definitions of ‘‘reasonably expects’’ and 

‘‘taxpayer’’ in the amended provisions 

of parts 19, 24, 25, and 26. We are also 

adding a definition of ‘‘calendar quarter 

and quarterly’’ to the definitions section 

of parts 19, 24, and 26. The following 

additional points are noted regarding 

the regulatory amendments contained in 

this document: 

Part 19 

We are revising § 19.565 and 

amending §§ 19.522, 19.523, and 19.703 

in part to accommodate the quarterly 

return procedure. In addition to the 

removal of the word ‘‘semimonthly’’ 

from the existing text, the revision of 

§ 19.565 includes a reorganization of the 

text for editorial purposes. 

Part 24 

We are amending § 24.271, which 

prescribes the return periods available 

for proprietors who have deferral bonds, 

to accommodate the quarterly 

procedure. 

Since 1990, part 24 has included 

§ 24.273, which allows certain wine 

premises proprietors to file annual tax 

returns and pay taxes annually. Because 

the wine bond’s coverage is split 

between operations coverage and 

deferral coverage, we were not limited 

by the existing language of section 5061, 

which specified semimonthly return 

periods for removals under a bond for 

deferred payment of taxes. Thus, we 

were able administratively to allow an 

annual return period for small 

proprietors who had no bond for 

deferred payment of taxes and who 

owed less than $1,000 per calendar year 

in taxes. New paragraph (4) of section 

5061(d) does not affect the right of 

eligible proprietors to continue to pay 

taxes on an annual basis under this 

regulation. However, we are revising 

§ 24.273 to show that it is an exception 

to both semimonthly and quarterly 

return filing, and we are reorganizing 

the section for clarity. 

Part 25 

We are amending § 25.93 to change 

the bond penal sum for quarterly 

taxpayers, as discussed above. We are 

also amending §§ 25.164 and 25.164a, 

which cover tax return filing rules for 

brewers, to reflect the adoption of the 

quarterly return procedure. Finally, we 

are amending § 25.166 by replacing the 

reference to ‘‘semimonthly’’ returns. 

Part 26 

We are amending § 26.112, which 

concerns returns for taxes imposed 

under section 7652, to incorporate the 

quarterly taxpayment procedure. 

Part 70 

We are amending paragraph (a) of 

§ 70.412, which summarizes alcohol tax 

return filing procedural rules, to include 

a reference to quarterly returns. 

Temporary Rule 

Based on the January 1, 2006, 

effective date of the statutory change to 

section 11127, TTB believes that proper 

administration and enforcement of those 

requirements necessitates the immediate 

adoption of implementing regulations as 

a temporary rule pursuant to 5 U.S.C. 

553(b)(A) and (B), and 5 U.S.C. 

553(d)(1), (2), and (3). TTB believes that 

such implementing action ensures that 

affected industry members will have 

timely knowledge of the regulatory 

requirements that will enable them to 

obtain the benefits of the statutory 

change. 

Public Participation 

To submit comments on these 

regulations, please refer to the notice of 

proposed rulemaking on this subject 

published in the Proposed Rules section 

of this issue of the Federal Register. 

Regulatory Flexibility Act 

Because no notice of proposed 

rulemaking is required for temporary 

rules, the provisions of the Regulatory 

Flexibility Act (5 U.S.C. 601 et seq.) do 

not apply. Pursuant to section 7805(f) of 

the Internal Revenue Code, we will 

submit this temporary rule to the Chief 

Counsel for Advocacy of the Small 

Business Administration for comment 

on the impact of the temporary 

regulations. 

Executive Order 12866 

It has been determined that this 

temporary rule is not a significant 

regulatory action as defined in E.O. 

12866. Therefore, a regulatory 

assessment is not necessary. 


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Federal Register / Vol. 71, No. 22 / Thursday, February 2, 2006 / Rules and Regulations 5601 

Paperwork Reduction Act 

Under the Paperwork Reduction Act 

of 1995, no persons are required to 

respond to a collection of information 

unless it displays a valid Office of 

Management and Budget (OMB) control 

number. The collections of information 

contained in the regulations amended 

by this temporary rule have been 

previously reviewed and approved by 

OMB in accordance with the Paperwork 

Reduction Act of 1995 under control 

numbers 1513–0053, 1513–0083, and 

1513–0090. There is no new collection 

of information imposed by this Treasury 

decision. There is a decrease in the 

reporting or recordkeeping burden 

resulting from the change from 

semimonthly to quarterly tax return 

periods for certain small taxpayers. 

Inapplicability of Prior Notice and 

Comment and Delayed Effective Date 

Procedures 

It has been determined that prior 

notice and comment procedures are not 

required pursuant to 5 U.S.C. 553(b)(A), 

and a delayed effective date is not 

required pursuant to 5 U.S.C. 553(d)(2). 

Drafting Information 

Charles N. Bacon, Daniel J. Hiland, 

Ramona Hupp, and Marjorie D. Ruhf of 

the Regulations and Rulings Division, 

Alcohol and Tobacco Tax and Trade 

Bureau, drafted this document. 

List of Subjects 

27 CFR Part 19 

Administrative practice and 

procedure, Alcohol and alcoholic 

beverages, Authority delegations 

(Government agencies), Caribbean Basin 

Initiative, Chemicals, Claims, Customs 

duties and inspection, Electronic funds 

transfers, Excise taxes, Exports, Gasohol, 

Imports, Labeling, Liquors, Packaging 

and containers, Puerto Rico, Reporting 

and recordkeeping requirements, 

Research, Security measures, Spices and 

flavorings, Stills, Surety bonds, 

transportation, Vinegar, Virgin Islands, 

Warehouses, Wine. 

27 CFR Part 24 

Administrative practice and 

procedure, Claims, Electronic fund 

transfers, Excise taxes, Exports, Food 

additives, Fruit juices, Labeling, 

Liquors, Packaging and containers, 

Reporting and recordkeeping 

requirements, Research, Scientific 

equipment, Spices and flavoring, Surety 

bonds, Vinegar, Warehouses, Wine. 

27 CFR Part 25 

Administrative practice and 

procedure, Beer, Claims, Electronic 

funds transfers, Excise taxes, Exports, 

Labeling, Packaging and containers, 

Reporting and recordkeeping 

requirements, Research, Surety bonds. 

27 CFR Part 26 

Administrative practice and 

procedure, Alcohol and alcoholic 

beverages, Caribbean Basin Initiative, 

Claims, Customs duties and inspection, 

Electronic funds transfers, Excise taxes, 

Packaging and containers, Puerto Rico, 

Reporting and recordkeeping 

requirements, Surety bonds, Virgin 

Islands, Warehouses. 

27 CFR Part 70 

Administrative practice and 

procedure, Claims, Excise taxes, 

Freedom of information, Law 

enforcement, Penalties, Reporting and 

recordkeeping requirements, Surety 

bonds. 

Amendments to the Regulations 

For the reasons discussed in the 

preamble, TTB amends 27 CFR parts 19, 

24, 25, 26 and 70 as follows: 

PART 19—DISTILLED SPIRITS 

PLANTS 

■ 1. The authority citation for part 19 

continues to read as follows: 

Authority: 19 U.S.C. 81c, 1311; 26 U.S.C. 

5001, 5002, 5004–5006, 5008, 5010, 5041, 

5061, 5062, 5066, 5081, 5101, 5111–5113, 

5142, 5143, 5146, 5148, 5171–5173, 5175, 

5176, 5178–5181, 5201–5204, 5206, 5207, 

5211–5215, 5221–5223, 5231, 5232, 5235, 

5236, 5241–5243, 5271, 5273, 5301, 5311– 

5313, 5362, 5370, 5373, 5501–5505, 5551– 

5555, 5559, 5561, 5562, 5601, 5612, 5682, 

6001, 6065, 6109, 6302, 6311, 6676, 6806, 

7011, 7510, 7805; 31 U.S.C. 9301, 9303, 9304, 

9306. 

■ 2. Section 19.11 is amended by adding 

in appropriate alphabetical order a 

definition of ‘‘calendar quarter and 

quarterly’’ to read as follows: 

§ 19.11 Meaning of terms. 

* * * * * 

Calendar quarter and quarterly. These 

terms refer to the three-month period 

ending on March 31, June 30, September 

30, or December 31. 

* * * * * 

■ 3. Section 19.522 is amending by 

revising paragraph (a) to read as follows: 

§ 19.522 Taxes to be collected by returns. 

(a)(1) Deferred payment of taxes. The 

tax on spirits to be withdrawn from 

bond for deferred payment of tax shall 

be paid pursuant to a return on Form 

5000.24, Excise Tax Return. The return, 

Form 5000.24, shall be executed and 

filed for each return period 

notwithstanding that no tax is due for 

payment for such period. The proprietor 

of each bonded premises shall include, 

for payment, on his return on Form 

5000.24, the full amount of distilled 

spirits tax determined in respect of all 

spirits released for withdrawal from the 

bonded premises on determination of 

tax during the period covered by the 

return (except spirits on which tax has 

been prepaid). 

(2) Return periods—(i) Definitions. 

For purposes of this section, the 

following terms have the meanings 

indicated: 

Reasonably expects. When used with 

reference to a taxpayer, reasonably 

expects means the taxpayer was not 

liable for more than $50,000 in taxes the 

previous year and there is no other 

existing or anticipated circumstance 

known to the taxpayer (such as an 

increase in production capacity) that 

would cause the taxpayer’s liability to 

increase beyond that limit. 

Taxpayer. A taxpayer is a person who 

is liable for excise tax imposed with 

respect to distilled spirits by 26 U.S.C. 

5001 and 7652 under the same 

Employer Identification Number as 

defined in 26 CFR 301.7701–12. 

(ii) Semimonthly return period. 

Except in the case of a taxpayer who 

qualifies for, and chooses to use, 

quarterly return periods as provided in 

paragraph (b)(3) of this section, all 

taxpayers must use semimonthly return 

periods for deferred payment of tax. The 

semimonthly return periods shall run 

from the 1st day through the 15th day 

of each month, and from the 16th day 

through the last day of each month, 

except as otherwise provided in 

§ 19.523(c). 

(iii) Quarterly return period. Effective 

January 1, 2006, a taxpayer who 

reasonably expects to be liable for not 

more than $50,000 in taxes with respect 

to distilled spirits imposed by 26 U.S.C. 

5001 and 7652 for the current calendar 

year, and who was liable for not more 

than $50,000 in such taxes in the 

preceding calendar year, may choose to 

use a quarterly return period. In such a 

case the last day for payment of tax and 

filing of the return will be the 14th day 

after the last day of the calendar quarter. 

However, the taxpayer may not use the 

quarterly return period procedure for 

any portion of the calendar year 

following the first date on which the 

aggregate amount of tax due from the 

taxpayer during the calendar year 

exceeds $50,000, and any tax which has 

not been paid on that date will be due 

on the 14th day after the last day of the 

semimonthly period in which that date 

occurs. 

* * * * * 


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■ 4. In § 19.523, the first sentence of 

paragraph (a) is amended by removing 

the word ‘‘Where’’ and adding, in its 

place, the words ‘‘Except when payment 

is pursuant to a quarterly return as 

provided in paragraph (d) of this 

section, where’’ and a new paragraph (d) 

is added to read as follows: 

§ 19.523 Time for filing returns. 

* * * * * 

(d) Payment pursuant to quarterly 

return. Where the proprietor of bonded 

premises has withdrawn spirits from 

such premises on determination and 

before payment of tax, and the 

proprietor uses quarterly return periods 

as provided in § 19.522(b)(3), the 

proprietor shall file a quarterly tax 

return covering such spirits on Form 

5000.24, and remittance, as required by 

§ 19.525, not later than the 14th day 

after the last day of the quarterly return 

period. If the due date falls on a 

Saturday, Sunday, or legal holiday, the 

return and remittance shall be due on 

the immediately preceding day which is 

not a Saturday, Sunday, or legal 

holiday. 

■ 5. Section 19.565 is revised to read as 

follows: 

§ 19.565 Shortages of bottled distilled 

spirits. 

(a) Determination of shortage. 

Unexplained shortages shall be 

determined by comparing the spirits 

recorded to be on hand with the results 

of the quantitative determination of the 

spirits found to be on hand by actual 

count during the physical inventory 

required by § 19.402. When the recorded 

quantity is greater than the quantity 

determined by the physical inventory, 

the difference is an unexplained 

shortage. The records shall be adjusted 

to reflect the physical inventory. 

(b) Payment of tax on shortage. An 

unexplained shortage of bottled distilled 

spirits shall be taxpaid: 

(1) Immediately on a prepayment 

return on Form 5000.24, or 

(2) On the return on Form 5000.24 for 

the return period during which the 

shortage was ascertained. 

(Sec. 201, Pub. L. 85–859, 72 Stat. 1323, as 

amended (26 U.S.C. 5008)) 

■ 6. In § 19.703, paragraph (a) is 

amended by removing the words 

‘‘semimonthly tax return’’ and adding, 

in their place, the words ‘‘next deferred 

payment of tax’’. 

PART 24—WINE 

■ 7. The authority citation for part 24 

continues to read as follows: 

Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001, 

5008, 5041, 5042, 5044, 5061, 5062, 5081, 

5111–5113, 5121, 5122, 5142, 5143, 5148, 

5173, 5206, 5214, 5215, 5351, 5353, 5354, 

5356, 5357, 5361, 5362, 5364–5373, 5381– 

5388, 5391, 5392, 5511, 5551, 5552, 5661, 

5662, 5684, 6065, 6091, 6109, 6301, 6302, 

6311, 6651, 6676, 7011, 7302, 7342, 7502, 

7503, 7606, 7805, 7851; 31 U.S.C. 9301, 9303, 

9304, 9306. 

■ 8. Section 24.10 is amended by adding 

in appropriate alphabetical order a 

definition of ‘‘calendar quarter and 

quarterly’’ to read as follows: 

§ 24.10 Meaning of terms. 

* * * * * 

Calendar quarter and quarterly. These 

terms refer to the three-month period 

ending on March 31, June 30, September 

30, or December 31. 

* * * * * 

■ 9. Section 24.271 is amended by 

revising the section heading and 

paragraphs (a) and (b) and the heading 

of paragraph (c), and by adding 

headings to paragraphs (c)(1) and 

(c)(1)(i), to read as follows: 

§ 24.271 Payment of tax by return with 

remittance. 

(a) General. The tax on wine is paid 

by an Excise Tax Return, Form 5000.24, 

which is filed with remittance (check, 

cash, or money order) for the full 

amount of tax due. Prepayments of tax 

on wine during the period covered by 

the return are shown separately on the 

Excise Tax Return form. If no tax is due 

for the return period, the filing of a 

return is not required. 

(b) Return periods and due dates. (1) 

Return periods. (i) Definitions. For 

purposes of this section, the following 

terms have the meanings indicated: 

Reasonably expects. When used with 

reference to a taxpayer, reasonably 

expects means the taxpayer was not 

liable for more than $50,000 in taxes the 

previous year and there is no other 

existing or anticipated circumstance 

known to the taxpayer (such as an 

increase in production capacity) that 

would cause the taxpayer’s liability to 

increase beyond that limit. 

Taxpayer. A taxpayer is a person who 

is liable for excise tax imposed with 

respect to wine by 26 U.S.C. 5041 and 

7652 under the same Employer 

Identification Number as defined in 26 

CFR 301.7701–12. 

(ii) Semimonthly return period. 

Except in the case of a taxpayer who 

qualifies for, and chooses to use, the 

annual return period as provided in 

§ 24.273 or the quarterly return period 

as provided in paragraph (b)(1)(iii) of 

this section, all taxpayers who have 

filed a bond for deferred payment of 

taxes must use semimonthly return 

periods. The semimonthly return 

periods shall run from the 1st day 

through the 15th day of each month, 

and from the 16th day through the last 

day of each month, except as otherwise 

provided in paragraph (c) of this 

section. 

(iii) Quarterly return period. Effective 

January 1, 2006, a taxpayer who has 

filed a bond for deferred payment of 

taxes, who reasonably expects to be 

liable for not more than $50,000 in taxes 

with respect to wine imposed by 26 

U.S.C. 5041 and 7652 for the current 

calendar year, and who was liable for 

not more than $50,000 in such taxes in 

the preceding calendar year, may choose 

to use a quarterly return period. In such 

a case the last day for payment of tax 

and filing the return will be the 14th 

day after the last day of the calendar 

quarter. However, the taxpayer may not 

use the quarterly return period 

procedure for any portion of the 

calendar year following the first date on 

which the aggregate amount of tax due 

from the taxpayer during the calendar 

year exceeds $50,000, and any tax 

which has not been paid on that date 

will be due on the 14th day after the last 

day of the semimonthly period in which 

that date occurs. 

(2) Semimonthly and quarterly tax 

return due dates. The taxpayer shall file 

the semimonthly or quarterly return, 

with remittance, for each return period 

not later than the 14th day after the last 

day of the return period. If the due date 

falls on a Saturday, Sunday, or legal 

holiday, the return and remittance shall 

be due on the immediately preceding 

day which is not a Saturday, Sunday, or 

legal holiday, except as otherwise 

provided in paragraph (c)(3) of this 

section. 

(c) Special September rule for taxes 

due by semimonthly return. (1) Division 

of second semimonthly period. (i) 

General. * * * 

* * * * * 

■ 10. Section 24.273 is revised to read 

as follows: 

§ 24.273 Exception to filing semimonthly 

or quarterly tax returns. 

(a) Eligibility for annual filing. A 

proprietor may file the Excise Tax 

Return, Form 5000.24, and remittance, 

within 30 days after the end of the 

calendar year instead of semimonthly or 

quarterly as provided in § 24.271, if the 

proprietor has not given a bond for 

deferred payment of wine excise tax and 

if the proprietor: 

(1) Paid wine excise taxes in an 

amount less than $1,000 during the 

previous calendar year, or 

(2) Is the proprietor of a newly 

established bonded wine premises and 

expects to pay less than $1,000 in wine 


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Federal Register / Vol. 71, No. 22 / Thursday, February 2, 2006 / Rules and Regulations 5603 

excise taxes before the end of the 

calendar year. 

(b) Loss of eligibility for annual filing. 

(1) If before the close of the current 

calendar year the wine excise tax owed 

will exceed the amount of the coverage 

under the proprietor’s operations bond 

for wine removed from bonded wine 

premises on which tax has been 

determined but not paid, the proprietor 

will file an Excise Tax Return with the 

total remittance on the date the wine 

excise tax owed will exceed such 

amount and file an aggregate Excise Tax 

Return within 30 days after the close of 

the calendar year showing the total wine 

tax liability for such calendar year. If 

before the close of the current calendar 

year the wine excise tax liability 

(including any amounts paid or owed) 

equals $1,000 or more, the proprietor 

will commence semimonthly or 

quarterly filing of the wine Excise Tax 

Returns and making of payments as 

required by § 24.271. 

(2) If there is a jeopardy to the 

revenue, the appropriate TTB officer 

may deny the exceptions to filing tax 

returns provided in this section at any 

time. 

(c) Other rules apply. A proprietor 

who files under this section is subject to 

the failure to pay or file provisions of 

§ 24.274. 

■ 11. Section 24.300 is amended by 

revising paragraph (g) to read as follows: 

§ 24.300 General. 

* * * * * 

(g) F 5120.17, Report of Bonded Wine 

Premises Operations. A proprietor who 

conducts bonded wine premises 

operations must complete and submit a 

F 5120.17 in accordance with the 

instructions on the form. 

(1) Monthly report. The proprietor 

must submit F 5120.17 on a monthly 

basis, except as otherwise provided in 

paragraph (g)(2) or (g)(3) of this section. 

(2) Quarterly or annual report. (i) 

General. A proprietor may file a 

completed F 5120.17 on a quarterly or 

annual basis if the proprietor meets the 

criteria in paragraph (g)(2)(ii) or 

(g)(2)(iii) of this section. To begin the 

quarterly or annual filing of a report of 

bonded wine premises operations, a 

proprietor must state the intent to do so 

in the ‘‘Remarks’’ section when filing 

the prior month’s F 5120.17. A 

proprietor who is commencing 

operations during a calendar year and 

expects to meet these criteria may use 

a letter notice to the appropriate TTB 

officer and file F 5120.17 quarterly or 

annually for the remaining portion of 

the calendar year. If a proprietor 

becomes ineligible for quarterly or 

annual filing by exceeding the 

applicable tax liability or activity limit, 

the proprietor must file F 5120.17 for 

that month and for all subsequent 

months of the calendar year. If there is 

a jeopardy to the revenue, the 

appropriate TTB officer may at any time 

require any proprietor otherwise eligible 

for quarterly or annual filing of a report 

of bonded wine premises operations to 

file such report monthly. 

(ii) Eligibility for quarterly report 

filing. In order to be eligible to file F 

5120.17 on a quarterly basis, the 

proprietor must be filing quarterly tax 

returns under § 24.271, and the 

proprietor must not expect the sum of 

the bulk and bottled wine to be 

accounted for in all tax classes to exceed 

60,000 gallons for any one quarter 

during the calendar year when adding 

up the bulk and bottled wine on hand 

at the beginning of the month, bulk 

wine produced by fermentation, 

sweetening, blending, amelioration or 

addition of wine spirits, bulk wine 

bottled, bulk and bottled wine received 

in bond, taxpaid wine returned to bond, 

bottled wine dumped to bulk, inventory 

gains, and any activity written in the 

untitled lines of the report form which 

increases the amount of wine to be 

accounted for. 

(iii) Eligibility for annual report filing. 

In order to be eligible to file F 5120.17 

on an annual basis, the proprietor must 

be filing annual tax returns under 

§ 24.273, and the proprietor must not 

expect the sum of the bulk and bottled 

wine to be accounted for in all tax 

classes to exceed 20,000 gallons for any 

one month during the calendar year 

when adding up the bulk and bottled 

wine on hand at the beginning of the 

month, bulk wine produced by 

fermentation, sweetening, blending, 

amelioration or addition of wine spirits, 

bulk wine bottled, bulk and bottled 

wine received in bond, taxpaid wine 

returned to bond, bottled wine dumped 

to bulk, inventory gains, and any 

activity written in the untitled lines of 

the report form which increases the 

amount of wine to be accounted for. 

(3) No reportable activity. A 

proprietor who files a monthly F 

5120.17 and does not expect an 

inventory change or any reportable 

operations to be conducted in a 

subsequent month or months may attach 

to the filed F 5120.17 a statement that, 

until a change in the inventory or a 

reportable operation occurs, a F 5120.17 

will not be filed. 

§ 24.313 [Amended] 

■ 12. Section 24.313 is amended by 

removing the words ‘‘monthly reports’’ 

in the first sentence and adding, in their 

place, the words ‘‘monthly or quarterly 

reports’’ and by adding a new sentence 

following the second sentence, to read 

as follows: ‘‘However, proprietors who 

file quarterly reports must select an 

annual inventory period that begins on 

the first day of a calendar quarter.’’ 

PART 25—BEER 

■ 13. The authority citation for part 25 

continues to read as follows: 

Authority: 19 U.S.C. 81c; 26 U.S.C. 5002, 

5051–5054, 5056, 5061, 5091, 5111, 5113, 

5142, 5143, 5146, 5148, 5222, 5401–5403, 

5411–5417, 5551, 5552, 5555, 5556, 5671, 

5673, 5684, 6011, 6061, 6065, 6091, 6109, 

6151, 6301, 6302, 6311, 6313, 6402, 6651, 

6656, 6676, 6806, 7011, 7342, 7606, 7805; 31 

U.S.C. 9301, 9303–9308. 

■ 14. Section 25.93 is amended by 

revising paragraph (a) to read as follows: 

§ 25.93 Penal sum of bond. 

(a)(1) Brewers filing semimonthly tax 

returns. For brewers filing tax returns 

and remitting taxes semimonthly under 

§ 25.164(c)(2), the penal sum of the 

brewers bond must be equal to 10 

percent of the maximum amount of tax 

calculated at the rates prescribed by law 

which the brewer will become liable to 

pay during a calendar year during the 

period of the bond on beer: 

(i) Removed for transfer to the 

brewery from other breweries owned by 

the same brewer; 

(ii) Removed without payment of tax 

for export or for use as supplies on 

vessels and aircraft; 

(iii) Removed without payment of tax 

for use in research, development, or 

testing; and 

(iv) Removed for consumption or sale. 

(2) Brewers filing quarterly tax 

returns. For brewers filing tax returns 

and remitting taxes quarterly under 

§ 25.164(c)(3), the penal sum of the 

brewers bond must be equal to 29 

percent of the maximum amount of tax 

calculated at the rates prescribed by law 

which the brewer will become liable to 

pay during a calendar year during the 

period of the bond on beer: 

(i) Removed for transfer to the 

brewery from other breweries owned by 

the same brewer; 

(ii) Removed without payment of tax 

for export or for use as supplies on 

vessels and aircraft; 

(iii) Removed without payment of tax 

for use in research, development, or 

testing; and 

(iv) Removed for consumption or sale. 

* * * * * 

■ 15. In § 25.164: 

■ a. The section heading is revised; 

■ b. The first and second sentences of 

paragraph (a) are amended by removing 

the word ‘‘semimonthly’’; 


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5604 Federal Register / Vol. 71, No. 22 / Thursday, February 2, 2006 / Rules and Regulations 

■ c. Paragraphs (c) and (d) are revised; 

■ d. The first sentence of paragraph 

(e)(1) is amended by adding the words 

‘‘or quarterly’’ after ‘‘semimonthly’’; and 

■ e. Paragraph (e)(2) is amended by 

adding the words ‘‘or quarterly’’ after 

‘‘semimonthly’’ wherever it appears. 

The revisions read as follows: 

§ 25.164 Quarterly and semimonthly 

returns. 

* * * * * 

(c) Return periods. 

(1) Definitions. For purposes of this 

section, the following terms have the 

meanings indicated: 

Reasonably expects. When used with 

reference to a taxpayer, reasonably 

expects means the taxpayer was not 

liable for more than $50,000 in taxes the 

previous year and there is no other 

existing or anticipated circumstance 

known to the taxpayer (such as an 

increase in production capacity) that 

would cause the taxpayer’s liability to 

increase beyond that limit. 

Taxpayer. A taxpayer is a person who 

is liable for excise tax imposed with 

respect to beer by 26 U.S.C. 5051 and 

7652 under the same Employer 

Identification Number as defined in 26 

CFR 301.7701–12. 

(2) Semimonthly return period. Except 

in the case of a taxpayer who qualifies 

for, and chooses to use, quarterly return 

periods as provided in paragraph (c)(3) 

of this section, all taxpayers must use 

semimonthly return periods for deferred 

payment of tax. The semimonthly return 

periods shall run from the brewer’s 

business day beginning on the first day 

of each month through the brewer’s 

business day beginning on the 15th day 

of that month, and from the brewer’s 

business day beginning on the 16th day 

of the month through the brewer’s 

business day beginning on the last day 

of the month, except as otherwise 

provided in § 25.164a. 

(3) Quarterly return period. Effective 

January 1, 2006, a taxpayer who 

reasonably expects to be liable for not 

more than $50,000 in taxes with respect 

to beer imposed by 26 U.S.C. 5051 and 

7652 for the current calendar year, and 

who was liable for not more than 

$50,000 in such taxes in the preceding 

calendar year, may choose to use a 

quarterly return period. In such a case 

the last day for payment of tax and filing 

of the return will be the 14th day after 

the last day of the calendar quarter. 

However, the taxpayer may not use the 

quarterly return period procedure for 

any portion of the calendar year 

following the first date on which the 

aggregate amount of tax due from the 

taxpayer during the calendar year 

exceeds $50,000, and any tax which has 

not been paid on that date will be due 

on the 14th day after the last day of the 

semimonthly period in which that date 

occurs. 

(d) Time for filing returns and paying 

tax. Except as otherwise provided in 

§ 25.164a for semimonthly tax returns, 

the brewer shall file the tax return, Form 

5000.24, for each return period, and 

make remittance as required by this 

section, not later than the 14th day after 

the last day of the return period. If the 

due date falls on a Saturday, Sunday, or 

legal holiday, the return and remittance 

shall be due on the immediately 

preceding day which is not a Saturday, 

Sunday, or legal holiday, except as 

otherwise provided in § 25.164a(c). 

* * * * * 

■ 16. Section 25.164a is amended by 

revising the section heading and 

paragraph (a)(1) to read as follows: 

§ 25.164a Special September rule for taxes 

due by semimonthly return. 

(a) Division of second semimonthly 

period. (1) General. Except as otherwise 

provided in paragraph (a)(2) of this 

section, the second semimonthly period 

for the month of September shall be 

divided into two payment periods, from 

the 16th day through the 26th day, and 

from the 27th day through the 30th day. 

The brewer shall file a return, Form 

5000.24, and make remittance, for the 

period September 16–26, no later than 

September 29. The brewer shall file a 

return on Form 5000.24, and make 

remittance, for the period September 

27–30, no later than October 14. 

* * * * * 

■ 17. In § 25.166, the first sentence of 

paragraph (a) is amended by removing 

the words ‘‘semimonthly return’’ and 

adding, in their place, the words ‘‘return 

for deferred payment of tax’’. 

PART 26—LIQUORS AND ARTICLES 

FROM PUERTO RICO AND THE VIRGIN 

ISLANDS 

■ 18. The authority citation for part 26 

continues to read as follows: 

Authority: 19 U.S.C. 81c; 26 U.S.C. 5001, 

5007, 5008, 5010, 5041, 5051, 5061, 5081, 

5111, 5112, 5114, 5121, 5122, 5124, 5131– 

5134, 5141, 5146, 5148, 5207, 5232, 5271, 

5276, 5301, 5314, 5555, 6001, 6301, 6302, 

6804, 7101, 7102, 7651, 7652, 7805; 27 U.S.C. 

203, 205; 31 U.S.C. 9301, 9303, 9304, 9306. 

■ 19. Section 26.11 is amended by 

adding in appropriate alphabetical order 

a definition of ‘‘calendar quarter and 

quarterly’’ to read as follows: 

§ 26.11 Meaning of terms. 

* * * * * 

Calendar quarter and quarterly. These 

terms refer to the three-month period 

ending on March 31, June 30, September 

30, or December 31. 

* * * * * 

■ 20. Section 26.112 is amended by 

revising the section heading and 

paragraph (b) and the heading of 

paragraph (d), and by adding a heading 

to paragraph (d)(1) to read as follows: 

§ 26.112 Returns for deferred payment of 

tax. 

* * * * * 

(b) Return periods. (1) Definitions. For 

purposes of this section, the following 

terms have the meanings indicated: 

Reasonably expects. When used with 

reference to a taxpayer, reasonably 

expects means the taxpayer was not 

liable for more than $50,000 in taxes the 

previous year and there is no other 

existing or anticipated circumstance 

known to the taxpayer (such as an 

increase in production capacity) that 

would cause the taxpayer’s liability to 

increase beyond that limit. 

Taxpayer. A taxpayer is a person who 

is liable for excise tax under 26 U.S.C. 

7652 under the same Employer 

Identification Number as defined in 26 

CFR 301.7701–12. 

(2) Semimonthly return period. Except 

in the case of a taxpayer who qualifies 

for, and chooses to use, quarterly return 

periods as provided in paragraph (b)(3) 

of this section, all taxpayers must use 

semimonthly return periods for deferred 

payment of tax. The semimonthly return 

periods shall run from the 1st day 

through the 15th day of each month, 

and from the 16th day through the last 

day of each month, except as otherwise 

provided in paragraph (e) of this 

section. 

(3) Quarterly return period. Effective 

January 1, 2006, a taxpayer who 

reasonably expects to be liable for not 

more than $50,000 in taxes imposed by 

26 U.S.C. 7652 for the current calendar 

year, and who was liable for not more 

than $50,000 in such taxes in the 

preceding calendar year, may choose to 

use a quarterly return period. In such a 

case the last day for payment of tax and 

filing the return will be the 14th day 

after the last day of the calendar quarter. 

However, the taxpayer may not use the 

quarterly return period procedure for 

any portion of the calendar year 

following the first date on which the 

aggregate amount of tax due from the 

taxpayer during the calendar year 

exceeds $50,000, and any tax which has 

not been paid on that date will be due 

on the 14th day after the last day of 

semimonthly period in which that date 

occurs. 

* * * * * 


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Federal Register / Vol. 71, No. 22 / Thursday, February 2, 2006 / Rules and Regulations 5605 

(d) Special September rule for taxes 

due by semimonthly return. (1) General. 

* * * 

* * * * * 

PART 70—PROCEDURE AND 

ADMINISTRATION 

■ 21. 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), 

5802, 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, 6656–6658, 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. 

■ 22. In § 70.412, the second sentence of 

paragraph (a) is revised to read as 

follows: 

§ 70.412 Excise taxes. 

(a) Collection. * * * If the person 

responsible for paying the taxes has 

filed a proper bond to defer payment, 

such person may be eligible to file 

semimonthly or quarterly returns, with 

proper remittances, to cover the taxes 

incurred on distilled spirits, wines, and 

beer during the semimonthly or 

quarterly period. * * * 

* * * * * 

Signed: December 13, 2005. 

John J. Manfreda, 

Administrator. 

Approved: December 23, 2005. 

Timothy E. Skud, 

Deputy Assistant Secretary (Tax, Trade, and 

Tariff Policy). 

[FR Doc. 06–981 Filed 2–1–06; 8:45 am] 

BILLING CODE 4810–31–P 

DEPARTMENT OF TRANSPORTATION 

Saint Lawrence Seaway Development 

Corporation 

33 CFR Part 401 

[Docket No. SLSDC 2005–23248] 

RIN 2135–AA22 

Seaway Regulations and Rules: 

Periodic Update, Various Categories 

AGENCY: Saint Lawrence Seaway 

Development Corporation, DOT. 

ACTION: Final rule. 

SUMMARY: The Saint Lawrence Seaway 

Development Corporation (SLSDC) and 

the St. Lawrence Seaway Management 

Corporation (SLSMC) of Canada, under 

international agreement, jointly publish 

and presently administer the St. 

Lawrence Seaway Regulations and 

Rules (Practices and Procedures in 

Canada) in their respective jurisdictions. 

Under agreement with the SLSMC, the 

SLSDC is amending the joint regulations 

by updating the Seaway Regulations and 

Rules in various categories. The changes 

update the following sections of the 

Regulation and Rules: Condition of 

Vessels; Preclearance and Security for 

Tolls; Seaway Navigation; Toll 

Assessment and Payment; and 

Information and Reports. These 

amendments are necessary to take 

account of updated procedures and/or 

technology and enhance the safety of 

transits through the Seaway. Several of 

the amendments are merely editorial or 

for clarification of existing 

requirements. 

DATES: This rule is effective March 6, 

2006. 

ADDRESSES: You may submit comments 

[identified by DOT DMS Docket Number 

SLSDC 2005-23248] by any of the 

following methods: 

• Web Site: http://dms.dot.gov. 

Follow the instructions for submitting 

comments on the DOT electronic docket 

site. 

• Fax: 1–202–493–2251. 

• Mail: Docket Management Facility; 

U.S. Department of Transportation, 400 

Seventh Street, SW., Nassif Building, 

Room PL–401, Washington, DC 20590– 

001. 

• Hand Delivery: Room PL–401 on 

the plaza level of the Nassif Building, 

400 Seventh Street, SW., Washington, 

DC, between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal 

Holidays. 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

online instructions for submitting 

comments. 

Instructions: All submissions must 

include the agency name and docket 

number or Regulatory Identification 

Number (RIN) for this rulemaking. Note 

that all comments received will be 

posted without change to http:// 

dms.dot.gov, including any personal 

information provided. Please see the 

Privacy Act heading under Regulatory 

Notices. 

Docket: For access to the docket to 

read background documents or 

comments received, go to http:// 

dms.dot.gov at any time or to Room PL– 

401 on the plaza level of the Nassif 

Building, 400 Seventh Street, SW., 

Washington, DC, between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal Holidays. 

FOR FURTHER INFORMATION CONTACT: 

Craig H. Middlebrook, Acting Chief 

Counsel, Saint Lawrence Seaway 

Development Corporation, 400 Seventh 

Street, SW., Washington, DC 20590, 

(202) 366–0091. 

SUPPLEMENTARY INFORMATION: The Saint 

Lawrence Seaway Development 

Corporation (SLSDC) and the St. 

Lawrence Seaway Management 

Corporation (SLSMC) of Canada, under 

international agreement, jointly publish 

and presently administer the St. 

Lawrence Seaway Regulations and 

Rules (Practices and Procedures in 

Canada) in their respective jurisdictions. 

Under agreement with the SLSMC, the 

SLSDC is amending the joint regulations 

by updating the Regulations and Rules 

in various categories. The changes 

update the following sections of the 

Regulations and Rules: Condition of 

Vessels; Preclearance and Security for 

Tolls; Seaway Navigation; Toll 

Assessment and Payment; and 

Information and Reports. These updates 

are necessary to take account of updated 

procedures and/or technology, which 

will enhance the safety of transits 

through the Seaway. Many of these 

changes are to clarify existing 

requirements in the regulations. Where 

new requirements or regulations are 

made, an explanation for such a change 

is provided below. 

Regulatory Notices: Privacy Act: 

Anyone is able to search the electronic 

form of all comments received into any 

of our dockets by the name of the 

individual submitting the comment (or 

signing the comment, if submitted on 

behalf of an association, business, labor 

union, etc.). You may review DOT’s 

complete Privacy Act Statement in the 

Federal Register published on April 11, 

2000 (Volume 65, Number 70; Pages 

19477–78) or you may visit http:// 

dms.dot.gov. 

The SLSDC is making two 

amendments to the joint regulations 

pertaining to the Condition of Vessels. 

Under sections 401.16, ‘‘Propeller 

Direction Alarms’’, and 401.17, ‘‘Pitch 

Indicators and Alarms’’, the SLSDC is 

adding language that would require 

visible and audible alarms to have a 

time delay of not greater than 8 seconds. 

In confined waters of the Seaway or 

while entering a lock it is important for 

the master/pilot to know immediately 

when an incorrect command is received 

in order to take appropriate corrective 

action. Currently some vessels have 

alarms with a 30 second delay in which 

time the vessel could be outside the 


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