[Federal Register Volume 71, Number 22 (Thursday, February 2, 2006)]
[Proposed Rules]
[Pages 5629-5631]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 06-980]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

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

[Notice No. 56]
RIN 1513-AB17


Quarterly Excise Tax Filing for Small Alcohol Excise Taxpayers 
(2005R-441P)

AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.

ACTION: Notice of proposed rulemaking; cross-reference to temporary 
rule.

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SUMMARY: Elsewhere in this issue of the Federal Register, the Alcohol 
and Tobacco Tax and Trade Bureau is issuing a temporary rule 
implementing the quarterly excise tax payment procedure contained in 
section 5061 of the Internal Revenue Code of 1986 as amended by section 
11127 of the Safe, Accountable, Flexible, Efficient Transportation 
Equity Act: A Legacy for Users. In this notice of proposed rulemaking, 
we are soliciting comments from all interested parties on the 
regulatory amendments to implement this new payment period. The text of 
the regulations in the temporary rule published in the Rules and 
Regulations section of this issue of the Federal Register serves as the 
text of the proposed regulations.

DATES: Comments must be received on or before April 3, 2006.

ADDRESSES: You may send comments to any of the following addresses:
    <bullet> Director, Regulations and Procedures Division, Alcohol and 
Tobacco Tax and Trade Bureau, Attn: Notice No. 56, P.O. Box 14412, 
Washington, DC 20044-4412.
    <bullet> 202-927-8525 (facsimile).
    <bullet> <a href="/cdn-cgi/l/email-protection#3b554b49567b4f4f59155c544d"><span class="__cf_email__" data-cfemail="3f514f4d527f4b4b5d11585049">[email protected]</span></a> (e-mail).
    <bullet> http://www.ttb.gov/alcohol/rules/index.htm. An online 
comment form is posted with this notice on our Web site.
    <bullet> http://www.regulations.gov. Federal e-rulemaking portal; 
follow instructions for submitting comments.
    You may view copies of any comments we receive about this notice by 
appointment at the TTB Information Resource Center, 1310 G Street, NW., 
Washington, DC 20220. To make an appointment, call 202-927-2400. You 
may also access copies of this notice and any comments online at http://www.ttb.gov/alcohol/rules/index.htm.
    See the Public Participation section of this document for specific 
instructions and requirements for submitting comments, and for 
information on how to request a public hearing.

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 <a href="/cdn-cgi/l/email-protection#acc1cddec6c3dec5c982ded9c4caecd8d8ce82cbc3da"><span class="__cf_email__" data-cfemail="88e5e9fae2e7fae1eda6fafde0eec8fcfceaa6efe7fe">[email protected]</span></a>).

SUPPLEMENTARY INFORMATION:

Background

    In the Rules and Regulations section of this issue of the Federal 
Register, we are publishing a temporary rule setting forth regulatory 
amendments to implement section 11127 of the Safe, Accountable, 
Flexible, Efficient Transportation Equity Act: A Legacy for Users, 
Public Law 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, to 
allow certain alcohol excise taxpayers to pay taxes quarterly rather 
than semimonthly. The Alcohol and Tobacco Tax and Trade Bureau (TTB) is 
responsible for the administration of the IRC provisions relating to 
alcohol excise taxes on products removed from domestic production 
facilities and brought to the United States from Puerto Rico.
    The amendment made by section 11127 of the Act applies 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 amended statute 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 tax payments exceed the $50,000 limit 
during the calendar year is required to revert to the semimonthly 
payment procedure for the remainder of the year.

[[Page 5630]]

    The temporary regulations published elsewhere in this issue of the 
Federal Register involve amendments to parts 19, 24, 25, 26, and 70 of 
the TTB regulations (27 CFR parts 19, 24, 25, 26, and 70). The text of 
the temporary regulations serves as the text of these proposed 
regulations. The preamble to the temporary regulations explains the 
proposed regulations.

Public Participation

Comments Sought

    We invite comments from everyone interested. All comments must 
reference Notice No. 56 and must include your name and mailing address. 
They must be legible and written in language acceptable for public 
disclosure. Although we do not acknowledge receipt, we will consider 
your comments if we receive them on or before the closing date. We 
regard all comments as originals.

Confidentiality

    All comments are part of the public record and subject to 
disclosure. Do not enclose any material in your comments that you 
consider confidential or inappropriate for public disclosure.

Submitting Comments

    You may submit comments in any of five ways:
    <bullet> Mail: You may send written comments to TTB at the address 
listed in the ADDRESSES section of this document.
    <bullet> Facsimile: You may submit comments by facsimile 
transmission to 202-927-8525. Faxed comments must:
    (1) Be on 8.5- by 11-inch paper;
    (2) Contain a legible, written signature; and
    (3) Be no more than five pages long. This limitation ensures 
electronic access to our equipment. We will not accept faxed comments 
that exceed five pages.
    <bullet> E-mail: You may e-mail comments to <a href="/cdn-cgi/l/email-protection#a7c9d7d5cae7d3d3c589c0c8d1"><span class="__cf_email__" data-cfemail="c5abb5b7a885b1b1a7eba2aab3">[email protected]</span></a>. Comments 
transmitted by electronic mail must:
    (1) Contain your e-mail address;
    (2) Reference Notice No. 56 on the subject line; and
    (3) Be legible when printed on 8.5- by 11-inch paper.
    <bullet> Online form: We provide a comment form with the online 
copy of this document on our Web site at http://www.ttb.gov/alcohol/rules/index.htm. Select the ``Send comments via e-mail'' link under 
Notice No. 56.
    <bullet> Federal e-Rulemaking Portal: To submit comments to us via 
the Federal e-rulemaking portal, visit http://www.regulations.gov and 
follow the instructions for submitting comments.
    You may also write to the Administrator before the comment closing 
date to ask for a public hearing. The Administrator reserves the right 
to determine, in light of all circumstances, whether to hold a public 
hearing.

Public Disclosure

    You may view copies of the temporary rule, this document, and any 
comments we receive by appointment at the TTB Information Center at 
1310 G Street, NW., Washington, DC 20220. You may also obtain copies at 
20 cents per 8.5- x 11-inch page. Contact the TTB information 
specialist at the above address or telephone 202-927-2400 to schedule 
an appointment or to request copies of comments.
    For your convenience, we will post the temporary rule, this 
document, and any comments we receive on the TTB Web site. We may omit 
voluminous attachments or material that we consider unsuitable for 
posting. In all cases, the full comment will be available in the TTB 
Information Center. To access the online copy of this document and the 
submitted comments, visit http://www.ttb.gov/alcohol/rules/index.htm. 
Select the ``View Comments'' link under this document's number and 
title to view the posted comments.

Regulatory Flexibility Act

    Although we are issuing this notice of proposed rulemaking, it has 
been determined that it is not subject to the provisions of 5 U.S.C. 
553(b). Because this proposed rule contains no new collections of 
information, the provisions of the Regulatory Flexibility Act (5 U.S.C. 
601 et seq.) do not apply. This proposed rule decreases the frequency 
of existing information collections for some businesses, including some 
small businesses. Pursuant to section 7805(f) of the Internal Revenue 
Code of 1986, we will submit this notice of proposed rulemaking to the 
Chief Counsel for Advocacy of the Small Business Administration for 
comment on its impact on small businesses.

Executive Order 12866

    We have determined that this notice of proposed rulemaking is not a 
significant regulatory action as defined in Executive Order 12866. 
Therefore, a regulatory assessment is not required.

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 
OMB control number. The collections of information contained in the 
regulations amended by this temporary rule have been previously 
reviewed and approved by the Office of Management and Budget in 
accordance with the Paperwork Reduction Act of 1995 under control 
numbers 1513-0053, 1513-0083, and 1513-0090. There is a reduction in 
the reporting or recordkeeping burden under these control numbers 
resulting from the change from semimonthly to quarterly tax return 
periods for some small taxpayers. There is no new or revised collection 
of information imposed by this proposed rule.

Drafting Information

    Charles Bacon, Daniel Hiland, and Marjorie Ruhf of the Regulations 
and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, drafted 
this document. However, other personnel participated in its 
development.

List of Subjects

27 CFR Part 19

    Administrative practice and procedures, Caribbean Basin Initiative, 
Claims, Electronic funds transfers, Excise taxes, Exports, Gasohol, 
Imports, Labeling, Liquors, Packaging and containers, Puerto Rico, 
Reporting and recordkeeping requirements, Research, Security measures, 
Surety bonds, Vinegar, Virgin Islands, Warehouses.

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,

[[Page 5631]]

Freedom of information, Law enforcement, Penalties, Reporting and 
recordkeeping requirements, Surety bonds.

Proposed Amendments to the Regulations

    For the reasons discussed in the preamble, TTB proposes to amend 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. [The proposed amendatory instructions and the proposed amended 
regulatory text for part 19 are the same as the amendatory instructions 
and the amended regulatory text set forth in the temporary rule on this 
subject published in the Rules and Regulations section of this issue of 
the Federal Register.]

PART 24--WINE

    3. 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.

    4. [The proposed amendatory instructions and the proposed amended 
regulatory text for part 24 are the same as the amendatory instructions 
and the amended regulatory text set forth in the temporary rule on this 
subject published in the Rules and Regulations section of this issue of 
the Federal Register.]

PART 25--BEER

    5. 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.

    6. [The proposed amendatory instructions and the proposed amended 
regulatory text for part 25 are the same as the amendatory instructions 
and the amended regulatory text set forth in the temporary rule on this 
subject published in the Rules and Regulations section of this issue of 
the Federal Register.]

PART 26--LIQUORS AND ARTICLES FROM PUERTO RICO AND THE VIRGIN 
ISLANDS

    7. 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.

    8. [The proposed amendatory instructions and the proposed amended 
regulatory text for part 26 are the same as the amendatory instructions 
and the amended regulatory text set forth in the temporary rule on this 
subject published in the Rules and Regulations section of this issue of 
the Federal Register.]

PART 70--PROCEDURES AND PRACTICES

    9. 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.

    10. [The proposed amendatory instructions and the proposed amended 
regulatory text for part 70 are the same as the amendatory instructions 
and the amended regulatory text set forth in the temporary rule on this 
subject published in the Rules and Regulations section of this issue of 
the Federal Register.]

    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. 06-980 Filed 2-1-06; 8:45 am]
BILLING CODE 4810-31-P


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