20898 Federal Register / Vol. 60, No. 82 / Friday, April 28, 1995 / Rules and Regulations

ACTION: Final rule; correction.

SUMMARY: The Food and Drug

Administration (FDA) is correcting a

final rule that appeared in the Federal

Register of February 15, 1995 (60 FR

8916). The document established that

any over-the-counter (OTC) drug

product for the prevention of swimmer’s

ear or for the drying of water-clogged

ears is not generally recognized as safe

and effective and is misbranded. The

document was published with a

typographical error in the codified

section. This document corrects that

error.

EFFECTIVE DATE: August 15, 1995.

FOR FURTHER INFORMATION CONTACT:

William E. Gilbertson, Center for Drug

Evaluation and Research (HFD–810),

Food and Drug Administration, 5600

Fishers Lane, Rockville, MD 20857,

301–594–5000.

In FR Doc. 95–3803, appearing on

page 8916, in the Federal Register of

Wednesday, February 15, 1995, the

following correction is made:

§ 310.545 [Corrected]

1. On page 8920, in the third column,

under § 310.545, in paragraph (d)(1), in

lines 2 and 3, ‘‘(a)(1) through (a)(2)(i),

(a)(3) through (a)(4)’’ is corrected to read

‘‘(a)(1) through (a)(4)’’.

Dated: April 24, 1995.

William B. Schultz,

Deputy Commissioner for Policy.

[FR Doc. 95–10542 Filed 4–27–95; 8:45 am]

BILLING CODE 4160–01–F

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

[TD 8594]

RIN 1545–AS97

Losses on Small Business Stock

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final regulations.

SUMMARY: This document contains final

regulations amending regulations under

section 1244 relating to losses on small

business stock. The final regulations

remove the requirement that a taxpayer

claiming a section 1244 ordinary loss

file an information statement with the

taxpayer’s income tax return.

DATES: These regulations are effective

April 27, 1995.

For dates of applicability of these

regulations, see ‘‘Effective Date’’ under

SUPPLEMENTARY INFORMATION portion of

preamble.

FOR FURTHER INFORMATION CONTACT:

Kirsten L. Simpson, (202) 622–7790 (not

a toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

The collection of information

contained in these final regulations has

been reviewed and approved by the

Office of Management and Budget in

accordance with the Paperwork

Reduction Act (44 U.S.C. 3504(h)) under

control number 1545–1447. The

estimated annual burden per

recordkeeper varies from .10 hours to

.30 hours, depending on individual

circumstances, with an estimated

average of .20 hours.

Comments concerning the accuracy of

this burden estimate and suggestions for

reducing this burden should be sent to

the Internal Revenue Service, Attn: IRS

Reports Clearance Officer, PC:FP,

Washington, DC 20224, and to the

Office of Management and Budget, Attn:

Desk Officer for the Department of the

Treasury, Office of Information and

Regulatory Affairs, Washington, DC

20503.

Background

On November 15, 1994, a notice of

proposed rulemaking (CO–46–94),

amending regulations under section

1244 of the Internal Revenue Code

relating to losses on small business

stock, was published in the Federal

Register (59 FR 58800). No public

hearing was requested or held.

One written comment responding to

the notice was received. The comment

was favorable. The regulations proposed

by CO–46–94 are adopted without

revision by this Treasury decision.

Explanation of Provision

Section 1.1244(e)–1(b) of the Income

Tax Regulations is revised to eliminate

the requirement that a taxpayer file an

information statement with the

taxpayer’s income tax return. However,

because a taxpayer who claims an

ordinary loss under section 1244 still

bears the burden of establishing that the

deduction is proper, § 1.1244(e)–1(b) is

revised to state that a person who claims

an ordinary loss with respect to stock

under section 1244 must have records

sufficient to establish that the taxpayer

is entitled to the loss and satisfies the

requirements of section 1244.

Effective Date

These regulations are effective for

open taxable years beginning after

December 31, 1953, the effective date of

Treasury Decision 6495, which

prescribed regulations under section

1244.

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) and the Regulatory

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

not apply to these regulations, and,

therefore, a Regulatory Flexibility

Analysis is not required. Pursuant to

section 7805(f) of the Internal Revenue

Code, the notice of proposed rulemaking

preceding these regulations was

submitted to the Small Business

Administration for comment on its

impact on small business.

Drafting Information

The principal author of these

regulations is Kirsten L. Simpson, Office

of Assistant Chief Counsel (Corporate),

IRS. However, other personnel from the

IRS and Treasury Department

participated in their development.

List of Subjects

26 CFR Part 1

Income taxes, Reporting and

recordkeeping requirements.

26 CFR Part 602

Reporting and recordkeeping

requirements.

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR parts 1 and 602

are amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation

for part 1 is amended by adding an entry

in numerical order to read as follows:

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

1.1244(e)–1 also issued under 26 U.S.C.

1244(e). * * *

Par. 2. Section 1.1244(e)–1 is

amended as follows:

1. The section heading is revised.

2. In paragraph (a)(1), the reference in

the second sentence to ‘‘paragraph (c)(2)

of § 1.1244(c)–2’’ is removed and

‘‘§ 1.1244(c)–2(b)(2)’’ is added in its

place.

3. Paragraph (b) is revised.

The revisions read as follows:

§ 1.1244(e)–1 Records to be kept.

* * * * *

(b) By the taxpayer. A person who

claims an ordinary loss with respect to
Federal Register / Vol. 60, No. 82 / Friday, April 28, 1995 / Rules and Regulations 20899

stock under section 1244 must have

records sufficient to establish that the

taxpayer is entitled to the loss and

satisfies the requirements of section

1244. See also section 6001, requiring

records to be maintained.

PART 602—OMB CONTROL NUMBERS

UNDER THE PAPERWORK

REDUCTION ACT

Par. 3. The authority citation for part

602 continues to read as follows:

Authority: 26 U.S.C. 7805.

Par. 4. In § 602.101, paragraph (c) is

amended by revising the entry in the

table for § 1.1244(e)–1 to read as

follows:

1.1244(e)–1 ............................... 1545–0123

1545–1447

Margaret Milner Richardson,

Commissioner of the Internal Revenue.

Dated: March 27, 1995.

Leslie Samuels,

Assistant Secretary for the Treasury.

[FR Doc. 95–10424 Filed 4–27–95; 8:45 am]

BILLING CODE 4830–01–U

26 CFR Part 301

[TD 8595]

RIN 1545–AI24

Payment of Internal Revenue Tax by

Check or Money Order and Liability of

Financial Institutions for Unpaid Taxes

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final regulations.

SUMMARY: This document contains final

regulations regarding payments with

respect to internal revenue taxes and

internal revenue stamps by check or

money order. Changes to the applicable

tax law were made by the Tax Reform

Act of 1984 (TRA). The amendments,

which are intended to conform the

regulations to the change in the statute,

apply to persons making payments with

respect to internal revenue taxes or

stamps by check or money order and to

financial institutions that issue or

guarantee payment of checks or money

orders.

EFFECTIVE DATE: August 19, 1994.

FOR FURTHER INFORMATION CONTACT:

Robert A. Walker, 202–622–3640 (not a

toll-free call).

SUPPLEMENTARY INFORMATION:

Background

These final regulations contain

changes to § 301.6311–1 to reflect

amendments made to section 6311 by

section 448(a) of the Tax Reform Act of

1984, Pub. L. 98–369 (TRA). The IRS

published a notice of proposed

rulemaking in the Federal Register on

August 22, 1994, (59 FR 43073)

providing proposed rules under section

6311 of the Internal Revenue Code

(Code). No public comments were

received, and the final regulations are

identical to the proposed regulations.

Explanation of Provisions

Section 6311(a) of the Code provides

that the IRS may receive for internal

revenue taxes, or in payment for

internal revenue stamps, checks or

money orders, to the extent and under

the conditions specified in the

regulations. The regulations relating to

payment by check refer only to checks

drawn on a domestic bank or trust

company.

If money orders or certain kinds of

checks tendered in payment are not

duly paid, then section 6311(b)(2)

provides the United States with a lien

against all the assets of the drawee or

issuer for the amount of the check or

money order. Before its amendment,

this rule applied, in the case of checks,

only with respect to certified, treasurer’s

or cashier’s checks drawn on a bank or

trust company. Section 448(a) of TRA

expanded section 6311(b)(2) to include

guaranteed drafts drawn on financial

institutions other than banks and trust

companies.

The amendments to the regulations

reflect the TRA change and clarify that

payment may be made by check or draft

drawn on any domestic financial

institution. In addition, the regulations

provide a definition of ‘‘financial

institution.’’ Since the Bureau of

Alcohol, Tobacco, and Firearms has

issued, under 27 CFR, its own separate

regulations governing payment by check

or money order, provisions of these

regulations referring to the Bureau of

Alcohol, Tobacco, and Firearms have

been removed.

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) and the Regulatory

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

not apply to these regulations, and,

therefore, a Regulatory Flexibility

Analysis is not required. Pursuant to

section 7805(f) of the Internal Revenue

Code, the notice of proposed rulemaking

was submitted to the Chief Counsel for

Advocacy of the Small Business

Administration for comment on its

impact on small business.

Drafting Information

The principal author of these final

regulations is Robert A. Walker, Office

of Assistant Chief Counsel (General

Litigation). However, other personnel

from the IRS and Treasury Department

participated in their development.

List of Subjects in 26 CFR Part 301

Employment taxes, Estate taxes,

Excise taxes, Gift taxes, Income taxes,

Penalties, Reporting and recordkeeping

requirements.

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR part 301 is

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. Section 301.6311–1 is

amended by:

1. Revising the first, second, and last

sentences of paragraph (a)(1)(i).

2. Revising paragraph (a)(2).

3. Removing paragraph (a)(3).

4. Revising paragraph (b).

5. Adding paragraphs (d) and (e).

The additions and revisions read as

follows:

§ 301.6311–1 Payment by check or money

order.

(a) * * *

(1) * * *

(i) District directors, Service Center

directors, and Compliance Center

directors (director) may accept checks or

drafts drawn on any financial institution

incorporated under the laws of the

United States or under the laws of any

State, the District of Columbia, or any

possession of the United States, or

money orders in payment for internal

revenue taxes, provided the checks,

drafts, or money orders are collectible in

United States currency at par, and

subject to the further provisions

contained in this section. The director

may accept the checks, drafts, or money

orders in payment for internal revenue

stamps to the extent and under the

conditions prescribed in paragraph

(a)(2) of this section. * * * However, the

director may refuse to accept any

personal check whenever he or she has

good reason to believe that such check

will not be honored upon presentment.

* * * * *