[Federal Register Volume 62, Number 248 (Monday, December 29, 1997)]
[Proposed Rules]
[Pages 67589-67590]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-33249]


========================================================================
Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

========================================================================


Federal Register / Vol. 62, No. 248 / Monday, December 29, 1997 / 
Proposed Rules

[[Page 67589]]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 40

[REG-102894-97]
RIN 1545-AV02


Deposits of Excise Taxes

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

-----------------------------------------------------------------------

SUMMARY: In the Rules and Regulations section of this issue of the 
Federal Register, the IRS is issuing temporary regulations relating to 
deposits of excise taxes. The temporary regulations contain rules 
relating to the availability of the safe harbor deposit rule based on 
look-back quarter liability and to floor stocks taxes. The text of 
those temporary regulations also serves as the text of these proposed 
regulations.

DATES: Written comments and requests for a public hearing must be 
received by March 30, 1998.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (REG-102894-97), room 
5226, Internal Revenue Service, POB 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand delivered between the 
hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (REG-102894-97), Courier's 
Desk, Internal Revenue Service, 1111 Constitution Avenue NW., 
Washington, DC. Alternatively, taxpayers may submit comments 
electronically via the Internet by selecting the ``Tax Regs'' option on 
the IRS Home Page, or by submitting comments directly to the IRS 
Internet site at <a href="http://www.irs.ustreas.gov/prod/tax__regs/
comments.html">http://www.irs.ustreas.gov/prod/tax__regs/
comments.html</a>.

FOR FURTHER INFORMATION CONTACT: Concerning submissions, the 
Regulations Unit, (202) 622-7180; concerning the regulations, Ruth 
Hoffman, (202) 622-3130 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend the Excise Tax Procedural 
Regulations (26 CFR part 40). The temporary regulations contain rules 
relating to the availability of the safe harbor deposit rule based on 
look-back quarter liability and to floor stocks taxes.
    The text of those temporary regulations also serves as the text of 
these proposed regulations. The preamble to the temporary regulations 
explains the temporary regulations.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in EO 12866. Therefore, 
a regulatory assessment is not required. It also has been determined 
that section 553(b) of the Administrative Procedure Act (5 U.S.C. 
chapter 5) does not apply to these regulations and, because these 
regulations do not impose on small entities a collection of information 
requirement, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does 
not apply. Therefore, a Regulatory Flexibility Analysis is not 
required. Pursuant to section 7805(f) of the Internal Revenue Code, 
this notice of proposed rulemaking will be submitted to the Chief 
Counsel for Advocacy of the Small Business Administration for comment 
on its impact on small business.

Comments and Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written comments (a signed original 
and eight (8) copies) that are submitted timely to the IRS. All 
comments will be available for public inspection and copying. A public 
hearing may be scheduled if requested in writing by any person that 
timely submits written comments. If a public hearing is scheduled, 
notice of the date, time, and place for the hearing will be published 
in the Federal Register.

Drafting Information

    The principal author of these regulations is Ruth Hoffman, Office 
of Assistant Chief Counsel (Passthroughs and Special Industries). 
However, other personnel from the IRS and Treasury Department 
participated in their development.

List of Subjects in 26 CFR Part 40

    Excise taxes, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 40 is proposed to be amended 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. In Sec. 40.0-1, paragraph (a) is amended by revising the 
second sentence to read as follows:


Sec. 40.0-1  Introduction.

    (a) * * * The regulations set forth administrative provisions 
relating to the excise taxes imposed by chapters 31, 32, 33, 34, 36, 
38, and 39 (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. * 
* *
* * * * *
    Par. 3. In Sec. 40.6011(a)-1, add paragraph (a)(2)(iii) to read as 
follows:


Sec. 40.6011(a)-1  Returns.

    (a) * * *
    (2) * * *
    (iii) Floor stocks tax return.
    [The text of this proposed paragraph is the same as the text of 
Sec. 40.6011(a)-1T(a)(2)(iii) published elsewhere in this issue of the 
Federal Register].
    Par. 4. Section 40.6302(c)-1 is amended as follows:
    1. Paragraph (c)(2)(iv) is added.
    2. Paragraph (f)(1) is amended by adding a sentence to the end of 
the paragraph.
    The additions read as follows:


Sec. 40.6302(c)-1  Use of Government depositaries.

* * * * *
    (c) * * *
    (2) * * *
    (iv) Modification for new or reinstated taxes.

[[Page 67590]]

    [The text of this proposed paragraph is the same as the text of 
Sec. 40.6302(c)-1T(c)(2)(iv) published elsewhere in this issue of the 
Federal Register].
* * * * *
    (f) * * * (1) * * * Also, no deposit is required in the case of any 
floor stocks tax described in Sec. 40.0-1(a).
* * * * *
    Par. 5. In Sec. 40.6302(c)-2, add paragraph (b)(2)(iii) to read as 
follows:


Sec. 40.6302(c)-2  Special rules for use of Government depositaries 
under section 4681.

* * * * *
    (b) * * *
    (2) * * *
    (iii) Modification for new chemicals.
    [The text of this proposed paragraph is the same as the text of 
Sec. 40.6302(c)-2T(b)(2)(iii) published elsewhere in this issue of the 
Federal Register].
* * * * *
Michael P. Dolan,
Acting Commissioner of Internal Revenue.
[FR Doc. 97-33249 Filed 12-24-97; 8:45 am]
BILLING CODE 4830-01-U