53230 Federal Register / Vol. 62, No. 198 / Tuesday, October 14, 1997 / Rules and Regulations

purposes of this subpart O, the Farm

Credit banks, the Funding Corporation

and the Federal Reserve Banks shall

treat the participant to whose securities

account an interest in a book-entry

security has been credited as the person

exclusively entitled to issue a transfer

message, to receive interest and other

payments with respect thereof and

otherwise to exercise all the rights and

powers with respect to such security,

notwithstanding any information or

notice to the contrary. The Federal

Reserve Banks, the Farm Credit banks,

and the Funding Corporation are not

liable to a person asserting or having an

adverse claim to a security entitlement

or to a book-entry security in a

participant’s securities account,

including any such claim arising as a

result of the transfer or disposition of a

book-entry security by a Federal Reserve

Bank pursuant to a transfer message that

the Federal Reserve Bank reasonably

believes to be genuine.

* * * * *

7. Section 615.5457 is amended by

revising paragraphs (c) and (d) to read

as follows:

§ 615.5457 Withdrawal of eligible bookentry securities for conversion to definitive

form.

* * * * *

(c) Farm Credit securities which are to

be delivered upon withdrawal may be

issued in either registered or bearer

form, to the extent permitted by the

applicable securities documentation.

(d) All requests for withdrawal of

eligible book-entry securities must be

made prior to the maturity or the

applicable date of call of the Farm

Credit securities.

8. Section 615.5460 is amended by

adding a new paragraph (c) to read as

follows:

§ 615.5460 Additional provisions.

* * * * *

(c) Conversion of definitive securities

into book-entry securities. Definitive

Farm Credit securities may be converted

to book-entry form in accordance with

the terms of the applicable securities

documentation and Federal Reserve

Operating Circular.

Dated: October 3, 1997.

Floyd Fithian,

Secretary, Farm Credit Administration Board.

[FR Doc. 97–26999 Filed 10–10–97; 8:45 am]

BILLING CODE 6705–01–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 301 and 602

[TD 8737]

RIN 1545–AU88

Rewards for Information Relating to

Violations of Internal Revenue Laws

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final and temporary

regulations.

SUMMARY: This document contains

temporary regulations relating to

rewards for information that relates to

violations of the internal revenue laws.

The regulations reflect changes to the

law made by the Taxpayer Bill of Rights

2 and affect persons that are eligible to

receive an informant’s reward.

The text of these regulations also

serves as the text of the proposed

regulations set forth in the notice of

proposed rulemaking on this subject in

the Proposed Rules section of this issue

of the Federal Register.

DATES: These regulations are effective

October 14, 1997.

For dates of applicability, see

§ 301.7623–1T(g).

FOR FURTHER INFORMATION CONTACT:

Judith A. Lintz (202)622–4940 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

These regulations are being issued

without prior notice and public

procedure pursuant to the

Administrative Procedure Act (5 U.S.C.

553). For this reason, the collections of

information contained in these

regulations have been reviewed and,

pending receipt and evaluation of

public comments, approved by the

Office of Management and Budget under

control number 1545–1534. Responses

to the collection of information are

voluntary with respect to the provision

of information relating to violations of

the internal revenue laws, but are

required to obtain a benefit with respect

to filing a claim for reward.

An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless it displays a valid control

number assigned by the Office of

Management and Budget.

For further information concerning

these collections of information, and

where to submit comments on the

collections of information and the

accuracy of the estimated burden, and

suggestions for reducing this burden,

please refer to the preamble to the crossreferencing notice of proposed

rulemaking published in the Proposed

Rules section of this issue of the Federal

Register.

Books or records relating to a

collection of information must be

retained as long as 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 26

U.S.C. 6103.

Background

This document contains amendments

to the Procedure and Administration

Regulations (26 CFR part 301) under

section 7623 relating to rewards for

information that relates to violations of

the internal revenue laws. This section

was amended by section 1209 of the

Taxpayer Bill of Rights 2 (TBOR 2) (Pub.

L. 104–168, 110 Stat. 1452 (1996)).

Explanation of Provisions

Section 7623 provides the Secretary

with the authority, by regulation, to pay

rewards for information that relates to

violations of the internal revenue laws.

Section 1209 of TBOR 2 amended

section 7623 to clarify that rewards may

be paid for information relating to civil,

as well as criminal, violations. TBOR 2

also provided that the rewards are to be

paid out of the proceeds of amounts

(other than interest) collected by reason

of the information. These temporary

regulations reflect those amendments.

In addition, these temporary

regulations incorporate and update

§ 301.7623–1. For example, the

regulations increase the limit on awards

from 10% to 15% and provide new

titles and addresses to which persons

should submit information relating to

violations of the internal revenue laws.

Special Analyses

It has been determined that this

Treasury Decision is not a significant

regulatory action as defined in EO

12866. Therefore, a regulatory

assessment is not required. It has also

been determined that section 553(b) of

the Administrative Procedure Act (5

U.S.C. chapter 5) does not apply to these

regulations.

It is hereby certified that the

regulations in this document will not

have a significant economic impact on

a substantial number of small entities.

This certification is based on a

determination that in the past

approximately 10,000 persons have filed

claims for reward on an annual basis. Of

these persons, almost all have been

individuals. Accordingly, a regulatory
Federal Register / Vol. 62, No. 198 / Tuesday, October 14, 1997 / Rules and Regulations 53231

flexibility analysis under the Regulatory

Flexibility Act (5 U.S.C. chapter 6) is

not required.

Pursuant to section 7805(f) of the

Internal Revenue Code, this Treasury

Decision will be submitted to the Chief

Counsel for Advocacy of the Small

Business Administration for comments

on its impact on small businesses.

Drafting Information: The principal

author of these regulations is Judith A.

Lintz, Office of Assistant Chief Counsel

(Income Tax & Accounting), Internal

Revenue Service. However, other

personnel from the IRS and Treasury

Department participated in their

development.

List of Subjects

26 CFR Part 301

Employment taxes, Estate taxes,

Excise taxes, Gift taxes, Income taxes,

Penalties, Reporting and recordkeeping

requirements.

26 CFR Part 602

Reporting and recordkeeping

requirements.

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR parts 301 and

602 are amended as follows:

PART 301—PROCEDURE AND

ADMINISTRATION

Paragraph 1. The authority citation

for part 301 continues to read in part as

follows:

Authority: 26 U.S.C. 7805 * * *

Par. 2. § 301.7623–1 is amended by

adding paragraph (g) to read as follows:

§ 301.7623–1 Rewards for information

relating to violations of internal revenue

laws.

* * * * *

(g) Effective date. This section is

applicable with respect to rewards paid

on or before January 29, 1997. See

§ 301.7623–1T for rewards paid after

January 29, 1997.

Par. 3. Section 301.7623–1T is added

to read as follows:

§ 301.7623–1T Rewards for information

relating to violations of internal revenue

laws (temporary).

(a) In general. In cases where rewards

are not otherwise provided for by law,

a district or service center director may

approve a reward, in a suitable amount,

for information that leads to the

detection of underpayments of tax, or

the detection and bringing to trial and

punishment of persons guilty of

violating the internal revenue laws or

conniving at the same. The rewards

provided for by section 7623 and this

section will be paid from the proceeds

of amounts (other than interest)

collected by reason of the information

provided.

(b) Eligibility to file claim for

reward—(1) In general. Any person,

other than certain present or former

federal employees described in

paragraph (b)(2) of this section, that

submits, in the manner described in

paragraph (d) of this section,

information relating to the violation of

an internal revenue law is eligible to file

a claim for reward under section 7623

and this section.

(2) Federal employees. No person who

was an officer or employee of the

Department of the Treasury at the time

the individual came into possession of

information relating to violations of the

internal revenue laws, or at the time the

individual divulged such information, is

eligible for a reward under section 7623

and this section. Any other current or

former federal employee is eligible to

file a claim for reward if the information

provided came to the individual’s

knowledge other than in the course of

the individual’s official duties.

(3) Deceased informants. A claim for

reward may be filed by an executor,

administrator, or other legal

representative on behalf of a deceased

informant if, prior to the informant’s

death, the informant was eligible to file

a claim for such reward under section

7623 and this section. Certified copies

of the letters testamentary, letters of

administration, or other similar

evidence must be attached to the claim

for reward on behalf of a deceased

informant in order to show the authority

of the legal representative to file the

claim.

(c) Amount and payment of reward.

All relevant factors, including the value

of the information furnished in relation

to the facts developed by the

investigation of the violation, will be

taken into account by a district or

service center director in determining

whether a reward will be paid, and, if

so, the amount of the reward. The

amount of a reward will represent what

the district or service center director

deems to be adequate compensation in

the particular case, generally not to

exceed fifteen percent of the amounts

(other than interest) collected by reason

of the information. Payment of a reward

will be made as promptly as the

circumstances of the case permit, but

not until the taxes, penalties, or fines

involved have been collected.

However, if the informant waives any

claim for reward with respect to an

uncollected portion of the taxes,

penalties, or fines involved, the claim

may be immediately processed. Partial

reward payments, without waiver of the

uncollected portion of the taxes,

penalties, or fines involved, may be

made when a criminal fine has been

collected prior to completion of the civil

aspects of a case, and also when there

are multiple tax years involved and the

deficiency for one or more of the years

has been paid in full. No person is

authorized under these regulations to

make any offer, or promise, or otherwise

to bind a district or service center

director with respect to the payment of

any reward or the amount of the reward.

(d) Submission of information. A

person that desires to claim a reward

under section 7623 and this section may

submit information relating to violations

of the internal revenue laws, in person,

to the office of a district director,

preferably to a representative of the

Criminal Investigation Division. Such

information may also be submitted in

writing to the Commissioner of Internal

Revenue, Attention: Assistant

Commissioner (Criminal Investigation),

1111 Constitution Avenue, N.W.,

Washington, DC 20224, to any district

director, Attention: Chief, Criminal

Investigation Division, or to any service

center director. If the information is

submitted in person, either orally or in

writing, the name and official title of the

person to whom it is submitted and the

date on which it is submitted must be

included in the formal claim for reward.

(e) Identification of informant. No

unauthorized person will be advised of

the identity of an informant.

(f) Filing claim for reward. An

informant that intends to claim a reward

under section 7623 and this section

should notify the person to whom the

information is submitted of such

intention, and must file a formal claim

on Form 211, Application for Reward

for Original Information, signed by the

informant in the informant’s true name,

as soon as practicable after the

submission of the information. If other

than the informant’s true name was

used in furnishing the information,

satisfactory proof of identity as that of

the informant must be included with the

claim for reward.

(g) Effective date. This section is

applicable with respect to rewards paid

after January 29, 1997. See § 301.7623–

1 for rewards paid on or before January

29, 1997.

PART 602—OMB CONTROL NUMBERS

UNDER THE PAPERWORK

REDUCTION ACT

Par. 4. The authority citation for part

602 continues to read as follows:

Authority: 26 U.S.C. 7805.
53232 Federal Register / Vol. 62, No. 198 / Tuesday, October 14, 1997 / Rules and Regulations

Par. 5. In § 602.101, paragraph (c) is

amended by adding an entry in

numerical order to the table to read as

follows:

§ 602.101 OMB Control numbers.

* * * * *

(c) * * *

CFR part or section where

identified and described

Current

OMB control No.

* * * * *

301.7623–1T ............................. 1545–1534

* * * * *

Michael P. Dolan,

Acting Commissioner of Internal Revenue.

Approved: August 26, 1997.

Donald C. Lubick,

Acting Assistant Secretary of the Treasury.

[FR Doc. 97–26858 Filed 10–10–97; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF THE INTERIOR

Office of Surface Mining Reclamation

and Enforcement

30 CFR Part 935

[OH–241; Amendment Number 74]

Ohio Regulatory Program

AGENCY: Office of Surface Mining

Reclamation and Enforcement (OSM),

Interior.

ACTION: Final rule; approval of

amendments and removal of condition

of program approval.

SUMMARY: OSM is approving a proposed

amendment to the Ohio regulatory

program (hereinafter referred to as the

‘‘Ohio program’’) under the Surface

Mining Control and Reclamation Act of

1977 (SMCRA). The proposed

amendment consists of revisions to

section 1501:13–6–03 of the Ohio

Administrative Code (OAC) dealing

with the Small Operator Assistance

Program (SOAP). The amendment is

intended to revise the Ohio program to

be consistent with the corresponding

Federal regulations.

EFFECTIVE DATE: October 14, 1997.

FOR FURTHER INFORMATION CONTACT:

George Rieger, Field Branch Chief,

Appalachian Regional Coordinating

Center, Office of Surface Mining

Reclamation and Enforcement, 3

Parkway Center, Pittsburgh, PA 15220,

Telephone: (412) 937–2153.

SUPPLEMENTARY INFORMATION:

I. Background on the Ohio Program

II. Submission of the Proposed Amendment

III. Director’s Findings

IV. Summary and Disposition of Comments

V. Director’s Decision

VI. Procedural Determinations

I. Background on the Ohio Program

On August 16, 1982, the Secretary of

the Interior conditionally approved the

Ohio program. Background information

on the Ohio program, including the

Secretary’s findings, the disposition of

comments, and the conditions of

approval can be found in the August 10,

1982, Federal Register (47 FR 34688).

Subsequent actions concerning

conditions of approval and program

amendments can be found at 30 CFR

935.11, 935.15, and 935.16.

II. Submission of the Proposed

Amendment

By letter dated October 3, 1996,

(Administrative Record No. OH–2170–

00) Ohio submitted a proposed

amendment to its program regarding its

SOAP pursuant to SMCRA. Ohio

submitted the proposed amendment at

its own initiative. OSM announced

receipt of the proposed amendment in

the October 18, 1996, Federal Register

(61 FR 54373) and in the same

document opened the public comment

period and provided an opportunity for

a public hearing on the adequacy of the

proposed amendment. The public

comment period closed on November

18, 1996. At the time of announcement,

the proposed amendment was identified

as [OH–240; Amendment Number 74].

Please note that the amendment is now

identified as [OH–241; Amendment

Number 74]. However, certain crossreferences contained in the proposed

amendments were inadvertently omitted

or incorrect in that notice. These were

conveyed to Ohio in a document dated

April 14, 1997, Administrative Record

No. OH–2170–07. Also, Ohio submitted

corrections to its proposed amendments

in documents dated April 1, 1997 and

May 27, 1997 (Administrative Record

Nos. OH–2170–06, and OH–2170–08,

respectively). On June 24, 1997, Ohio

submitted its revisions in response to

the April 14, 1997 document

(Administrative Record No. OH–2170–

09). Therefore, OSM reopened the

public comment period on the proposed

amendments until August 4, 1997 as

published in the July 18, 1997 Federal

Register (62 FR 38509).

III. Director’s Findings

Set forth below, pursuant to SMCRA

and the Federal regulations at 30 CFR

732.15 and 732.17, are the Director’s

findings concerning the proposed

amendment. The amendment proposes

numerous changes regarding both the

title of the division and references to

gender. Throughout the amendment,

due to a name change of the division of

reclamation, references to the ‘‘division

of reclamation’’ are changed to the

‘‘division of mines and reclamation’’

and references to ‘‘he’’ or ‘‘his’’ are

changed to ‘‘he or she’’ or ‘‘his or hers’’,

respectively. These changes are nonsubstantive and are not specifically

enumerated below. The changes

proposed by Ohio in the revised

amendment are discussed briefly below:

OAC 1501:13–6–03 Small Operator

Assistance Program

(a) Paragraph (A)(1) is amended by

adding items for which qualified

operators may request assistance. These

include engineering analysis and

designs necessary for the determination

of probable hydrologic consequences

added to subparagraph (A)(1)(a), and

amending subparagraph (A)(1)(b) to

include geologic drilling and statement

of the results of physical and chemical

analyses of test borings or core samples.

(b) New subparagraphs (c)(d) (e) and

(f) are added under paragraph (A)(1) to

identify the development of crosssection maps and plans; the collection

of archaeological information and other

historical information and the

preparation of plans necessitated

thereby; pre-blast surveys; and the

collection of site specific resource

information and production of

protection and enhancement plans for

fish and wildlife habitats and other

environmental values required by the

chief, respectively, as items for which a

qualified operator may request

assistance.

There is no direct federal counterpart.

However the proposed changes at (A)(1)

are consistent with the corresponding

Federal Regulations at 30 CFR

795.9(b)(1)–(b)(6), which describes the

SOAP services and data requirements.

(c) Paragraph (B) is amended by

deleting subparagraphs (1) and (2)

dealing with probable hydrologic

consequences and results of test borings

and core samplings which are added to

Paragraph (A) of this amendment, and

adding a statement that the services

eligible are now under paragraph (A).

The proposed change in paragraph (B)

is non-substantive and the deletion of

paragraphs (1) and (2) are not

inconsistent with SMCRA or its

corresponding Federal regulations, and

do not render the State program any less

effective than the federal regulations.

(d) Paragraph (C)(2) is amended by

substituting the Department of Natural