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.

* * * * *
20900 Federal Register / Vol. 60, No. 82 / Friday, April 28, 1995 / Rules and Regulations

(2) Payment for internal revenue

stamps. The director may accept checks,

drafts, and money orders described in

paragraph (a)(1) of this section in

payment for internal revenue stamps.

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.

(b) Checks or money orders not paid—

(1) Ultimate liability. The person who

tenders any check (whether certified or

uncertified, cashier’s, treasurer’s, or

other form of check or draft) or money

order in payment for taxes or stamps is

not released from his or her liability

until the check, draft, or money order is

paid; and, if the check, draft, or money

order is not duly paid, the person shall

also be liable for all legal penalties and

additions, to the same extent as if such

check, draft, or money order had not

been tendered.

(2) Liability of financial institutions

and others. If any certified, treasurer’s,

or cashier’s check, or other guaranteed

draft, or money order, is not duly paid,

the United States shall have a lien for

the amount of such check or draft upon

all assets of the financial institution on

which drawn, or for the amount of such

money order upon the assets of the

issuer thereof. The unpaid amount shall

be paid out of such assets in preference

to any other claims against such

financial institution or issuer except the

necessary costs and expenses of

administration and the reimbursement

of the United States for the amount

expended in the redemption of the

circulating notes of such financial

institution. In addition, the Government

has the right to exact payment from the

person required to make the payment.

* * * * *

(d) Financial institution. For purposes

of section 6311 and this section,

financial institution includes but is not

limited to—

(1) A bank or trust company (as

defined in section 581);

(2) A domestic building and loan

association (as defined in section

7701(a)(19));

(3) A mutual savings bank (including

but not limited to a mutual savings bank

as defined in section 591(b));

(4) A credit union (including both

state and federal credit unions, and

including but not limited to a credit

union as defined in section 501(c)(14));

and

(5) A regulated investment company

(as defined in section 851(a)).

Margaret Milner Richardson,

Commissioner of Internal Revenue.

Approved: April 5, 1995.

Leslie Samuels,

Assistant Secretary of the Treasury.

[FR Doc. 95–10410 Filed 4–27–95; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Parts 4 and 116

[CGD 91–063]

RIN 2115–AE15

Alteration of Obstructive Bridges

AGENCY: Coast Guard, DOT.

ACTION: Final rule.

SUMMARY: The Coast Guard is amending

the regulations which set out and

describe the procedures for determining

whether a bridge unreasonably obstructs

the free navigation of navigable waters

of the United States and, if it does, the

procedures for ordering its alteration

under the Truman-Hobbs Act, the

Bridge Act of 1906, or the Rivers and

Harbors Appropriation Act of 1899. The

amendments clarify and provide

additional details to the description of

these procedures.

DATES: This rule becomes effective on

May 30, 1995.

ADDRESSES: Documents referenced in

this preamble are available for

inspection and copying at the office of

the Executive Secretary, Marine Safety

Council, U.S. Coast Guard, 2100 Second

Street SW., Washington, DC 20593–

0001, Room 3406, between 8 a.m. and

3 p.m., Monday through Friday, except

Federal holidays. The telephone number

is (202) 267–1477 for more information.

FOR FURTHER INFORMATION CONTACT: Mr.

Larry Tyssens, Alterations, Drawbridges,

and Systems Branch (G-NBR–1), at (202)

267–0376.

SUPPLEMENTARY INFORMATION:

Drafting Information

The principal persons involved in

drafting this document are Mr. Larry R.

Tyssens, Project Manager, Office of

Navigation Safety and Waterway

Services, and LT Rachel Goldberg,

Project Counsel, Office of the Chief

Counsel.

Regulatory History

On March 22, 1994, the Coast Guard

published a Notice of Proposed

Rulemaking (NPRM) entitled

‘‘Alteration of Obstructive Bridges’’ in

the Federal Register (59 FR 13588).

Opportunity for comment on the

proposal was provided until May 23,

1994.

Discussion of Comments and Changes

Four letters were received in response

to the NPRM. Two of the comments

were submitted by railroad trade

associations, one by a private

individual, and one comment was from

the U.S. Department of Interior.

The Department of Interior reminded

the Coast Guard that in the process of

ordering the alteration of unreasonably

obstructive bridges, the Coast Guard

must comply with the requirements of

section 4(f) of the Department of

Transportation Act and section 106 of

the National Historic Preservation Act.

Interior also commented that the Coast

Guard should take into consideration

the implementation of section 147 of the

Federal Aid Highway Act of 1976 (Pub.

L. 94–280). Section 4(f) of the

Department of Transportation Act

ensures that Department of

Transportation agencies, including the

Coast Guard, make a special effort to

preserve the natural beauty of public

lands and parks. The act includes a

requirement for an agency

determination that every project

undertaken does not adversely impact

these lands unless no feasible

alternative exists and that any harm

which may result is minimized. The

Coast Guard has procedures to ensure

compliance with this requirement.

Internal Coast Guard instructions, found

in Chapter 2 of the Bridge

Administration Manual (COMDTINST

M16590.5A), detail the procedures to be

followed by a District Commander to

determine if a bridge alteration will

result in any impact on 4(f) property

and, if such impact is anticipated,

procedures for evaluating the planned

impact and consideration of

alternatives.

Section 106 of the National Historic

Preservation Act (16 U.S.C. 470)

requires that Federal agencies identify

and help preserve historic and cultural

resources. To meet this requirement,

internal Coast Guard instructions, also

detailed in Chapter 2 of the Bridge

Administration Manual, require a Coast

Guard official to review the National

Register of Historic Places to determine

if any listed properties are within onehalf mile of an alteration project. If there

are any listed properties in the area, the

Coast Guard must document any effects

on such property and prepare an

Environmental Impact Statement if one

is warranted. In the development of any