67690 Federal Register / Vol. 88, No. 189 / Monday, October 2, 2023 / Proposed Rules 

TABLE 1—CHANGES TO THE SCHEDULE OF FEES

Item No. Proposed 

fee 

Current 

fee 

Change in 

fee 

Percentage 

decrease 

Projected 

annual 

number of 

applications 1

Estimated 

change in 

annual fees 

collected 2

Change in 

state 

retained 

fees 

Change in 

remittance to 

Treasury 

SCHEDULE OF FEES FOR CONSULAR SERVICES 

*******

PASSPORT AND CITIZENSHIP SERVICES 

8. Administrative Processing of Request for Certificate of Loss of 

Nationality ................................... $450 $2,350 ($1,900) (80) 4,661 ($8,855,900) $0 ($8,855,900) 

1Based on estimated FY 2022 workload calculated with FY2021 actual demand. 

2 Using FY 2021 workload to generate collections. This will be a reduction in total annual remittance to Treasury. 

Executive Orders 12372 and 13132 

This rulemaking will not have 

substantial direct effects on the states, 

on the relationship between the 

National Government and the states, or 

on the distribution of power and 

responsibilities among the various 

levels of government. Therefore, in 

accordance with section 6 of Executive 

Order 13132, it is determined that this 

proposed rule does not have sufficient 

federalism implications to require 

consultations or warrant the preparation 

of a federalism summary impact 

statement. The regulations 

implementing Executive Order 12372 

regarding intergovernmental 

consultation on Federal programs and 

activities do not apply to this regulation. 

Executive Order 13175 

The Department has determined that 

this rulemaking will not have tribal 

implications, will not impose 

substantial direct compliance costs on 

Indian Tribal Governments, and will not 

preempt tribal law. Accordingly, the 

requirements of Executive Order 13175 

do not apply to this rulemaking. 

Paperwork Reduction Act 

This rulemaking does not impose any 

new reporting or recordkeeping 

requirements subject to the Paperwork 

Reduction Act. 

List of Subjects in 22 CFR Part 22 

Consular services, Fees. 

Accordingly, for the reasons stated in 

the preamble, 22 CFR part 22 is 

proposed to be amended as follows: 

PART 22—SCHEDULE OF FEES FOR 

CONSULAR SERVICES— 

DEPARTMENT OF STATE AND 

FOREIGN SERVICE 

■ 1. The authority citation for part 22 

continues to read as follows: 

Authority: 8 U.S.C. 1101 note, 1153 note, 

1157 note, 1183a note, 1184(c)(12), 1201(c), 

1351, 1351 note, 1713, 1714, 1714 note; 10 

U.S.C. 2602(c); 22 U.S.C. 214, 214 note, 

1475e, 2504(h), 2651a, 4206, 4215, 4219, 

6551; 31 U.S.C. 9701; E.O. 10718, 22 FR 

4632, 3 CFR, 1954–1958 Comp., p. 382; E.O. 

11295, 31 FR 10603, 3 CFR, 1966–1970 

Comp., p. 570. 

■ 2. In § 22.1, amend the table by 

revising Item 8 to read as follows: 

§ 22.1 Schedule of Fees. 

The following table sets forth the fees 

for the following categories listed on the 

U.S. Department of State’s Schedule of 

Fees for Consular Services: 

SCHEDULE OF FEES FOR CONSULAR SERVICES

Item No. Fee 

Passport and Citizenship Services 

*******

8. Administrative Processing of Request for Certificate of Loss of Nationality ........................................................................................... $450 

* * * * * * * 

Hugo Rodriguez, 

Acting Assistant Secretary for Consular 

Affairs, Department of State. 

[FR Doc. 2023–21559 Filed 9–29–23; 8:45 am] 

BILLING CODE 4710–06–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Parts 40 and 47 

[REG–115559–23] 

RIN 1545–BQ93 

Excise Tax on Designated Drugs; 

Procedural Requirements 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: This document contains 

proposed regulations that would 

provide guidance on how taxpayers will 

report liability for the excise tax 

imposed on manufacturers, producers, 

or importers of certain designated drugs. 

The proposed regulations affect 

manufacturers, producers, and 

importers of designated drugs that sell 

such drugs during certain statutory 

periods. The proposed regulations also 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 88, No. 189 / Monday, October 2, 2023 / Proposed Rules 67691 

would except such tax from 

semimonthly deposit requirements. 

DATES: Written or electronic comments 

and requests for a public hearing must 

be received by December 1, 2023. 

Requests for a public hearing must be 

submitted as prescribed in the 

‘‘Comments and Requests for a Public 

Hearing’’ section. 

ADDRESSES: Commenters are strongly 

encouraged to submit public comments 

electronically via the Federal 

eRulemaking Portal at https://

www.regulations.gov (indicate IRS and 

REG–115559–23) by following the 

online instructions for submitting 

comments. Requests for a public hearing 

must be submitted as prescribed in the 

‘‘Comments and Requests for a Public 

Hearing’’ section. Once submitted to the 

Federal eRulemaking Portal, comments 

cannot be edited or withdrawn. The 

Department of the Treasury (Treasury 

Department) and the IRS will publish 

for public availability any comments 

submitted to the IRS’s public docket. 

Send paper submissions to: 

CC:PA:LPD:PR (REG–115559–23), Room 

5203, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

contact Jacob W. Peeples, James S. 

Williford, or Michael H. Beker at (202) 

317–6855 (not a toll-free number); 

concerning the submission of comments 

and/or requests for a public hearing, 

contact Vivian Hayes by phone at (202) 

317–5306 (not a toll-free number) or by 

email at publichearings@irs.gov 

(preferred). 

SUPPLEMENTARY INFORMATION: 

Background 

This document contains proposed 

regulations that would amend the 

Excise Tax Procedural Regulations (26 

CFR part 40) and add a new part 47 to 

26 CFR chapter 1 to contain the 

‘‘Designated Drugs Excise Tax 

Regulations’’ related to the excise tax 

imposed by section 5000D of the 

Internal Revenue Code (Code) on certain 

sales by manufacturers, producers, or 

importers of designated drugs (section 

5000D tax). 

Section 5000D, added to chapter 50A 

of the Code by section 11003 of Public 

Law 117–169, 136 Stat. 1818 (August 

16, 2022), commonly known as the 

Inflation Reduction Act of 2022 (IRA), 

imposes an excise tax on the sale by the 

manufacturer, producer, or importer 

(taxpayer) of any designated drug during 

a day that falls within a period 

described in section 5000D(b). Because 

chapter 50A is a new chapter of the 

Code, the existing regulations that 

prescribe the procedural rules 

applicable to most excise taxes do not 

apply to chapter 50A. 

Notice 2023–52 (2023–35 I.R.B. 650) 

announces that the Treasury 

Department and the IRS intend to 

propose regulations addressing 

substantive and procedural issues 

related to the section 5000D tax. These 

proposed regulations address return 

filing and other procedural 

requirements related to the section 

5000D tax as set forth in Notice 2023– 

52. The Treasury Department and the 

IRS will issue a separate notice of 

proposed rulemaking to address 

substantive issues related to the section 

5000D tax. 

Explanation of Provisions 

I. Proposed Amendments to 26 CFR Part 

40 

These proposed regulations would 

apply the Excise Tax Procedural 

Regulations in 26 CFR part 40 to excise 

taxes imposed by chapter 50A of the 

Code (and thus to the section 5000D 

tax), with some limited exceptions. 

A. Proposed Amendments to § 40.0–1 

Section 40.0–1(a) provides generally 

that the regulations in part 40 set forth 

administrative rules relating to the 

excise taxes imposed by chapters 31 

through 34, 36, 38, 39, and 49 of the 

Code. Proposed § 40.0–1(a) would 

amend that provision by adding chapter 

50A of the Code to the list of Code 

chapters subject to the part 40 

regulations. 

B. Proposed Amendments to 

§ 40.6011(a)–1 

Section 40.6011(a)–1(a)(1) provides 

that the return of tax to which part 40 

applies must be made on Form 720, 

Quarterly Federal Excise Tax Return, 

according to the instructions applicable 

to the form. Section 40.6011(a)–1(a)(2) 

provides, in part, that a return must be 

filed for the first calendar quarter in 

which liability for tax is incurred (or tax 

must be collected and paid over) and for 

each subsequent calendar quarter, 

whether or not liability is incurred (or 

tax must be collected and paid over) 

during that subsequent quarter, until a 

final return under § 40.6011(a)–2 is 

filed. 

Proposed § 40.6011(a)–1(d) would 

provide that a return that reports 

liability imposed by section 5000D must 

be made for a period of one calendar 

quarter, and that a return must be filed 

for each calendar quarter in which 

liability for the section 5000D tax is 

incurred. Therefore, under these 

proposed regulations, taxpayers would 

be required to report any section 5000D 

tax liability on Form 720; however, 

taxpayers would not be required to file 

subsequent returns for quarters in which 

they incur no section 5000D tax 

liability. 

C. Proposed Amendments to 

§ 40.6302(c)–1 

Section 40.6302(c)–1(a) provides that 

except as provided by statute or by 

§ 40.6302(c)–1(e), each person required 

under § 40.6011(a)–1(a)(2) to file a 

quarterly return must make a deposit of 

tax for each semimonthly period (as 

defined in § 40.0–1(c)) in which tax 

liability is incurred. Section 40.6302(c)– 

1(e) provides a list of taxes that are 

excepted from the semimonthly deposit 

requirement. 

Proposed § 40.6302(c)–1(e)(1)(vi) 

would add the section 5000D tax to the 

list of taxes that are excepted from the 

semimonthly deposit requirement. 

Therefore, under these proposed 

regulations, taxpayers with section 

5000D tax liability would not be 

required to make semimonthly deposits 

of the section 5000D tax. 

II. Proposed Addition of 26 CFR Part 47 

In addition to proposing the addition 

of a new part 47 to 26 CFR chapter 1, 

proposed § 47.5000D–1 would provide 

an introductory provision under part 47 

that would designate 26 CFR part 47 as 

the ‘‘Designated Drugs Excise Tax 

Regulations.’’ 

Proposed Applicability Dates 

These proposed regulations, once 

adopted as final regulations in a 

Treasury Decision published in the 

Federal Register, are proposed to apply 

to calendar quarters beginning on or 

after October 1, 2023. Taxpayers may 

rely on these proposed regulations for 

such returns beginning on October 1, 

2023, and before the date that a 

Treasury Decision published in the 

Federal Register adopts these 

regulations as final regulations. 

Special Analyses 

I. Regulatory Planning and Review— 

Economic Analysis 

Pursuant to the Memorandum of 

Agreement, Review of Treasury 

Regulations under Executive Order 

12866 (June 9, 2023), tax regulatory 

actions issued by the IRS are not subject 

to the requirements of section 6 of 

Executive Order 12866, as amended. 

Therefore, a regulatory impact 

assessment is not required. 


lotter on DSK11XQN23PROD with PROPOSALS1
67692 Federal Register / Vol. 88, No. 189 / Monday, October 2, 2023 / Proposed Rules 

II. Paperwork Reduction Act 

The collections of information 

contained within these proposed 

regulations will be submitted to the 

Office of Management and Budget 

(OMB) for review in accordance with 

the Paperwork Reduction Act (PRA) (44 

U.S.C. 3507(d)). See 5 CFR 1320.11. The 

Treasury Department and the IRS 

request comments on the information 

collection burdens related to the 

proposed regulations. Commenters are 

strongly encouraged to submit public 

comments electronically. Written 

comments and recommendations for the 

proposed information collection should 

be sent to https://www.reginfo.gov/ 

public/do/PRAMain, with copies to the 

IRS. To find this particular information 

collection, select ‘‘Currently under 

Review—Open for Public Comments’’ 

and then use the search function. 

Submit electronic submissions for the 

proposed information collection to the 

IRS via email at pra.comments@irs.gov 

(indicate REG–115559–23 in the subject 

line). Comments on the collection of 

information must be received by 

December 1, 2023. Comments are 

specifically requested concerning: 

Whether the proposed collections of 

information are necessary for the proper 

performance of the functions of the IRS, 

including whether the information will 

have practical utility; 

The accuracy of the estimated burden 

associated with the proposed collections 

of information (see below); 

How the quality, utility, and clarity of 

the information to be collected may be 

enhanced; 

How the burden of complying with 

the proposed collections of information 

may be minimized, including through 

the application of automated collection 

techniques or other forms of information 

technology; and 

Estimates of capital or start-up costs 

and costs of operation, maintenance, 

and purchase of services to provide 

information. 

The collections of information in 

these proposed regulations relate to 

reporting and recordkeeping 

requirements that will allow section 

5000D taxpayers to meet their tax 

reporting obligations. The collections of 

information would generally be used by 

the IRS for tax compliance purposes and 

by taxpayers to facilitate proper tax 

reporting and compliance. The reporting 

and recordkeeping requirements are 

covered within the form and 

instructions for Form 720. IRS is seeking 

OMB approval on the statutorily 

required revisions to the form. 

Therefore, collection requirements will 

be submitted to OMB under control 

number 1545–0023. 

Because the section 5000D tax is a 

new tax that has never been reported to 

the IRS, the Treasury Department and 

the IRS do not have historical data on 

the number of affected taxpayers. The 

Centers for Medicare and Medicaid 

Services (CMS) has selected 10 drugs for 

price negotiation for initial price 

applicability year 2026. CMS will select 

for negotiation a limited number of 

drugs for each initial price applicability 

year after that, as outlined in the IRA. 

Further, manufacturers, producers, and 

importers of such drugs may or may not 

become subject to section 5000D tax 

liability. Based on the foregoing, the IRS 

estimates that there will be between 0 

and 50 taxpayers during the next 3 

years. 

If a taxpayer has a section 5000D tax 

liability, it would be required to file 

Form 720 to report such liability. Form 

720 is a quarterly return. A taxpayer 

would only be required to file Form 720 

during calendar quarters in which the 

taxpayer has a section 5000D tax 

liability. Therefore, a taxpayer that has 

a section 5000D tax liability in one 

calendar quarter but not in subsequent 

calendar quarters would only be 

required to file one Form 720. 

The respondents with regard to the 

section 5000D tax are manufacturers, 

producers, and importers of certain 

drugs. The Treasury Department and the 

IRS estimate the annual burden of the 

collections of information as follows 

(these estimates, which are for PRA 

purposes only, are based on the high 

end of the range of possible taxpayers 

and the high end of the range of the 

frequency of responses, in which a 

taxpayer would have tax liability in all 

four calendar quarters): 

Estimated frequency of responses: 

Quarterly. 

Estimated number of responses: 50. 

Estimated burden time per 

respondent: 6.9 hours. 

Estimated total annual reporting 

burden: 1,380 hours. 

A Federal agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless the collection of information 

displays a valid control number 

assigned by OMB. Books or records 

relating to a collection of information 

must be retained if their contents may 

become material in the administration 

of any internal revenue law. Generally, 

tax returns and tax return information 

are confidential, as required by section 

6103. 

III. Regulatory Flexibility Act 

Pursuant to the Regulatory Flexibility 

Act (5 U.S.C. chapter 6), it is hereby 

certified that these proposed regulations 

will not have a significant economic 

impact on a substantial number of small 

entities. This certification is based on 

the fact that the section 5000D tax is 

imposed only when certain drug 

manufacturers, producers, and 

importers sell certain drugs during 

periods described in section 5000D(b). 

The periods described in section 

5000D(b) relate to benchmarks in the 

Medicare Drug Price Negotiation 

Program, which involves only certain 

drugs with high Medicare expenditures. 

If any section 5000D tax liability arises, 

the taxpayers will primarily not be 

small entities. As noted earlier, data is 

not readily available about the number 

of taxpayers affected, but the number is 

likely to be limited, in part due to the 

limited number of drugs selected for the 

Drug Price Negotiation Program in any 

particular year. In addition, these 

proposed regulations will assist 

taxpayers in meeting their tax reporting 

obligations by providing clarity on how 

to report section 5000D tax liability, 

which will make it easier for taxpayers 

to comply with section 5000D. 

Therefore, these proposed regulations 

will not create additional obligations 

for, or impose a significant economic 

impact on, small entities, and a 

regulatory flexibility analysis under the 

Regulatory Flexibility Act is not 

required. Notwithstanding this 

certification, the Treasury Department 

and the IRS welcome comments on the 

impact of these proposed regulations on 

small entities. 

IV. Section 7805(f) 

Pursuant to section 7805(f) of the 

Code, these proposed regulations have 

been submitted to the Chief Counsel for 

the Office of Advocacy of the Small 

Business Administration for comment 

on its impact on small business. 

V. Unfunded Mandates Reform Act 

Section 202 of the Unfunded 

Mandates Reform Act of 1995 requires 

that agencies assess anticipated costs 

and benefits and take certain other 

actions before issuing a final rule that 

includes any Federal mandate that may 

result in expenditures in any one year 

by a State, local, or Tribal government, 

in the aggregate, or by the private sector, 

of $100 million in 1995 dollars, updated 

annually for inflation. These proposed 

regulations do not include any Federal 

mandate that may result in expenditures 

by State, local, or Tribal governments, or 


lotter on DSK11XQN23PROD with PROPOSALS1
Federal Register / Vol. 88, No. 189 / Monday, October 2, 2023 / Proposed Rules 67693 

by the private sector, in excess of that 

threshold. 

V. Executive Order 13132: Federalism 

Executive Order 13132 (Federalism) 

prohibits an agency from publishing any 

rule that has federalism implications if 

the rule either imposes substantial, 

direct compliance costs on State and 

local governments, and is not required 

by statute, or preempts State law, unless 

the agency meets the consultation and 

funding requirements of section 6 of the 

Executive order. These proposed 

regulations do not have federalism 

implications, do not impose substantial 

direct compliance costs on State and 

local governments, and do not preempt 

State law within the meaning of the 

Executive order. 

Statement of Availability of IRS 

Documents 

The IRS Notice cited in this preamble 

is published in the Internal Revenue 

Bulletin (or Cumulative Bulletin) and is 

available from the Superintendent of 

Documents, U.S. Government 

Publishing Office, Washington, DC 

20402, or by visiting the IRS website at 

https://www.irs.gov. 

Comments and Requests for a Public 

Hearing 

Before these proposed amendments to 

the regulations are adopted as final 

regulations, consideration will be given 

to comments that are submitted timely 

to the IRS as prescribed in the preamble 

under the ADDRESSES heading. The 

Treasury Department and the IRS 

request comments on all aspects of the 

proposed regulations. Any comments 

submitted will be made available at 

https://www.regulations.gov or upon 

request. 

A public hearing will be scheduled if 

requested in writing by any person who 

timely submits electronic or written 

comments. Requests for a public hearing 

are also encouraged to be made 

electronically. If a public hearing is 

scheduled, notice of the date and time 

for the public hearing will be published 

in the Federal Register. 

Drafting Information 

The principal author of these 

regulations is Jacob W. Peeples of the 

Office of the Associate Chief Counsel 

(Passthroughs & Special Industries). 

However, other personnel from the 

Treasury Department and the IRS 

participated in their development. 

List of Subjects 

26 CFR Part 40 

Excise taxes, Reporting and 

recordkeeping requirements. 

26 CFR Part 47 

Excise taxes. 

Proposed Amendments to the 

Regulations 

Accordingly, the Treasury Department 

and the IRS propose to amend 26 CFR 

chapter I, subchapter D, as follows: 

PART 40—EXCISE TAX PROCEDURAL 

REGULATIONS 

■ Paragraph 1. The authority citation 

for part 40 continues to read in part as 

follows: 

Authority: 26 U.S.C. 7805. 

* * * * * 

■ Par. 2. Section 40.0–1 is amended by 

revising paragraphs (a) and (e) to read as 

follows: 

§ 40.0–1 Introduction. 

(a) In general. The regulations in this 

part are designated the Excise Tax 

Procedural Regulations. The regulations 

in this part set forth administrative 

provisions relating to the excise taxes 

imposed by chapters 31 through 34, 36, 

38, 39, 49, and 50A of the Internal 

Revenue Code (Code) (except for the 

chapter 32 tax imposed by section 4181 

(firearms tax) and the chapter 36 taxes 

imposed by sections 4461 (harbor 

maintenance tax) and 4481 (heavy 

vehicle use tax)), and to floor stocks 

taxes imposed on articles subject to any 

of these taxes. Chapter 31 relates to 

retail excise taxes; chapter 32 to 

manufacturers’ excise taxes; chapter 33 

to taxes imposed on communications 

services and air transportation services; 

chapter 34 to taxes imposed on certain 

insurance policies; chapter 36 to taxes 

imposed on transportation by water; 

chapter 38 to environmental taxes; 

chapter 39 to taxes imposed on 

registration-required obligations; 

chapter 49 to taxes imposed on indoor 

tanning services; and chapter 50A to 

taxes imposed on designated drugs. 

References in this part to taxes also 

include references to the fees imposed 

by sections 4375 and 4376 of the Code. 

See parts 43, 46 through 49, and 52 of 

this chapter for regulations related to 

the imposition of tax. 

* * * * * 

(e) Applicability dates—(1) Paragraph 

(a). Paragraph (a) of this section applies 

to returns required to be filed under 

§ 40.6011(a)–1 for calendar quarters 

beginning on or after October 1, 2023. 

For rules that apply before October 1, 

2023, see 26 CFR part 40, revised as of 

April 1, 2023. 

(2) Paragraphs (b) and (c). Paragraphs 

(b) and (c) of this section apply to 

returns for calendar quarters beginning 

after March 31, 2013. For rules that 

apply before March 31, 2013, see 26 

CFR part 40, revised as of April 1, 2012. 

(3) Paragraph (d). Paragraph (d) of 

this section applies to returns for 

calendar quarters beginning on or after 

January 19, 2021. For rules that apply 

before January 19, 2021, see 26 CFR part 

40, revised as of April 1, 2020. 

■ Par. 3. Section 40.6011(a)–1 is 

amended by: 

■ 1. Revising the first sentence of 

paragraph (a)(2)(i). 

■ 2. Adding paragraphs (d) and (e). 

The revision and additions read as 

follows: 

§ 40.6011(a)–1 Returns. 

(a) * * * 

(2) * * * 

(i) * * * Except as provided in 

paragraphs (b) through (d) of this 

section, the return must be made for a 

period of one calendar quarter. * * * 

* * * * * 

(d) Tax on designated drugs. A return 

that reports liability imposed by section 

5000D must be made for a period of one 

calendar quarter. A return must be filed 

for each calendar quarter in which 

liability for the tax imposed by section 

5000D is incurred. There is no 

requirement that a return be filed for a 

calendar quarter in which there is no 

liability imposed by section 5000D. 

(e) Applicability dates—(1) Paragraph 

(a)(2)(i). Paragraph (a)(2)(i) of this 

section applies to returns filed for 

calendar quarters beginning on or after 

October 1, 2023. For rules that apply 

before October 1, 2023, see 26 CFR part 

40, revised as of April 1, 2023. 

(2) Paragraph (c). See paragraph (c)(2) 

of this section. 

(3) Paragraph (d). Paragraph (d) of 

this section applies to returns filed for 

calendar quarters beginning on and after 

October 1, 2023. 

■ Par. 4. Section 40.6302(c)–1 is 

amended by: 

■ 1. Revising paragraphs (e)(1)(iv) and 

(v). 

■ 2. Adding paragraph (e)(1)(vi). 

■ 3. Revising paragraph (f). 

The revisions and addition read as 

follows: 

§ 40.6302(c)–1 Deposits. 

* * * * * 

(e) * * * 

(1) * * * 

(iv) Sections 4375 and 4376 (relating 

to fees on health insurance policies and 

self-insured insurance plans); 

(v) Section 5000B (relating to indoor 

tanning services); and 

(vi) Section 5000D (relating to 

designated drugs). 

* * * * * 


lotter on DSK11XQN23PROD with PROPOSALS1
67694 Federal Register / Vol. 88, No. 189 / Monday, October 2, 2023 / Proposed Rules 

(f) Applicability dates—(1) 

Paragraphs (a) through (d). Paragraphs 

(a) through (d) of this section apply to 

deposits and payments made after 

March 31, 2013. For rules that apply 

before March 31, 2013, see 26 CFR part 

40, revised as of April 1, 2012. 

(2) Paragraph (e). Paragraph (e) of this 

section applies to calendar quarters 

beginning on or after October 1, 2023. 

For rules that apply before October 1, 

2023, see 26 CFR part 40, revised as of 

April 1, 2023. 

■ Par. 5. Add part 47 to read as follows: 

PART 47—DESIGNATED DRUGS 

EXCISE TAX REGULATIONS 

Sec. 

47.5000D–0 Table of contents. 

47.5000D–1 Introduction. 

47.5000D–2–47.5000D–3 [Reserved] 

Authority: 26 U.S.C. 7805. 

Section 47.5000D–1 also issued under 26 

U.S.C. 5000D. 

§ 47.5000D–0 Table of contents. 

This section lists the table of contents 

for §§ 47.5000D–1 through 47.5000D–3. 

§ 47.5000D–1 Introduction. 

(a) In general. 

(b) Applicability date. 

§§ 47.5000D–2 and 47.5000D–3 [Reserved] 

§ 47.5000D–1 Introduction. 

(a) In general. The regulations in this 

part are designated the Designated 

Drugs Excise Tax Regulations. The 

regulations in this part relate to the tax 

imposed by section 5000D of the 

Internal Revenue Code. See part 40 of 

this chapter for regulations relating to 

returns, payments, and other procedural 

rules applicable to this part. 

(b) Applicability date. This section 

applies to returns filed for calendar 

quarters beginning on or after October 1, 

2023. 

§§ 47.5000D–2–47.5000D–3 [Reserved] 

Douglas W. O’Donnell, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. 2023–21586 Filed 9–27–23; 11:15 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF AGRICULTURE 

Forest Service 

36 CFR Parts 214 and 251 

RIN 0596–AD56 

Special Uses; Land Use Fees; 

Temporary Land Use Fee Reductions 

for Recreation Residence Permits 

AGENCY: Forest Service, Agriculture 

(USDA). 

ACTION: Proposed rule; request for 

public comment. 

SUMMARY: The Forest Service (Forest 

Service or Agency), United States 

Department of Agriculture, is proposing 

to update its special uses regulations, 

consistent with the requirement in the 

Cabin Fee Act, to provide for 

suspension or temporary reduction of 

the land use fee for a recreation 

residence permit if access to, or 

occupancy of, the recreation residence 

is significantly restricted. 

DATES: Comments on the proposed rule 

must be received in writing by 

December 1, 2023. 

ADDRESSES: Comments, identified by 

RIN 0596–AD56, may be submitted via 

one of the following methods: 

• Federal eRulemaking Portal: 

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

instructions for sending comments. 

• Mail: Director, Lands Staff, 201 14th 

Street SW, Washington, DC 20250–1124. 

• Hand Delivery: Director, Lands, 

Minerals, and Geology Management 

Staff, 1st Floor Southeast, 201 14th 

Street SW, Washington, DC 20250–1124. 

Comments should be confined to 

issues pertinent to the proposed rule; 

should explain the reasons for any 

recommended changes; and should 

reference the specific section and 

wording being addressed, where 

possible. All timely comments, 

including names and addresses when 

provided, will be placed in the record 

and will be available for public review 

and copying. The public may review 

comments at the Office of the Director, 

Lands, Minerals, and Geology 

Management Staff, Sidney R. Yates 

Federal Building, 1st Floor Southeast, 

201 14th Street SW, Washington, DC, on 

business days between 8:30 a.m. and 

4:00 p.m. Visitors are encouraged to call 

ahead at (202) 205–3563 to facilitate 

entry into the building. Comments may 

also be viewed on the Federal 

eRulemaking Portal at https://

www.regulations.gov. In the search box, 

enter ‘‘RIN 0596–AD56’’ and click the 

‘‘Search’’ button. 

FOR FURTHER INFORMATION CONTACT: 

Brandon Smith, Lands, Minerals, and 

Geology Management Staff, (406) 491– 

1605 or brandon.c.smith@usda.gov. 

Individuals who use telecommunication 

devices for the hearing impaired may 

call the Federal Relay Service at (800) 

877–8339 between 8:00 a.m. and 8:00 

p.m., Eastern Time, Monday through 

Friday. 

SUPPLEMENTARY INFORMATION: 

Background 

The Forest Service administers the 

use and occupancy of National Forest 

System lands through issuance of 

special use authorizations. The Forest 

Service administers approximately 

74,000 special use authorizations, 

including nearly 14,000 recreation 

residence permits on National Forest 

System lands spread across 24 states 

and 114 national forests. Recreation 

residences are privately owned cabins 

that have been authorized on National 

Forest System lands since 1915. Like 

other types of special use 

authorizations, permits for recreation 

residences are subject to an annual land 

use fee, payable in advance at the 

beginning of the calendar year. 

Need for the Proposed Rule 

The Cabin Fee Act of 2014 (16 U.S.C. 

6214) establishes a tiered fee structure 

for the use and occupancy of recreation 

residences on National Forest System 

lands. Section 2(f)(3)(A) of the Cabin 

Fee Act requires the Forest Service to 

establish criteria by which the annual 

land use fee for a recreation residence 

permit may be suspended or 

temporarily reduced if access to, or 

occupancy of, the recreation residence 

is significantly restricted. Section 

2(f)(3)(B) of the Cabin Fee Act requires 

the determination of whether to 

suspend or temporarily reduce the 

annual land use fee for a recreation 

residence permit to be administratively 

appealable. 

Proposed Revisions to 36 CFR Part 214 

The proposed rule would amend 36 

CFR 214.4(c) by adding paragraph (6) to 

provide for appeal of a decision of 

whether to temporarily reduce the 

annual land use fee for a recreation 

residence permit during significantly 

restricted access to, or occupancy of, the 

recreation residence. 

Proposed Revisions to 36 CFR Part 251, 

Subpart B 

The proposed rule would add a 

definition to 36 CFR 251.51 for the term 

‘‘significantly restricted access to, or 

occupancy of, a recreation residence,’’ 

which would be defined as when access 

to, or occupancy of, a recreation 

residence is prohibited by law for a 


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