Federal Register / Vol. 66, No. 103 / Tuesday, May 29, 2001 / Rules and Regulations 29021

* * * * *

Dated: May 15, 2001.

Stephen F. Sundlof,

Director, Center for Veterinary Medicine.

[FR Doc. 01–13300 Filed 5–25–01; 8:45 am]

BILLING CODE 4160–01–S

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and

Firearms

27 CFR Part 70

[T.D. ATF–450 ]

RIN 1512–AC19

Delegation of Authority

AGENCY: Bureau of Alcohol, Tobacco

and Firearms (ATF), Treasury.

ACTION: Treasury decision, final rule.

SUMMARY: This final rule places most

ATF authorities contained in its

Procedure and Administration

regulations with the ‘‘appropriate ATF

officer’’ and requires that persons file

documents required these regulations

with the ‘‘appropriate ATF officer’’ or in

accordance with the instructions on the

ATF form. Concurrently with this

Treasury Decision, ATF Order 1130.19

is being issued and will be made

available as specified in this rule.

Through this order, the Director has

delegated most of the authorities to the

appropriate ATF officers and specified

the ATF officers with whom

applications, notices and other reports,

which are not ATF forms, are filed. In

addition, this final rule corrects some

typographical errors and updates the

disclosure provisions.

EFFECTIVE DATE: This rule is effective

May 29, 2001.

FOR FURTHER INFORMATION CONTACT:

Robert Ruhf, Regulations Division,

Bureau of Alcohol, Tobacco and

Firearms, 650 Massachusetts Avenue

NW., Washington, DC 20226 (telephone

202–927–8210 or e-mail to

alctob@atfhq.atf.treas.gov).

SUPPLEMENTARY INFORMATION:

Background

Delegations of Authority

Pursuant to Treasury Order 120–01

(formerly 221), dated June 6, 1972, and

120–03, dated November 5, 1990, the

Secretary of the Treasury delegated to

the Director of the Bureau of Alcohol,

Tobacco and Firearms (ATF), the

authority to enforce, among other laws,

the provisions of section 4181 of chapter

32 and chapters 51, 52 and 53 of the

Internal Revenue Code of 1986 (IRC)

and the Federal Alcohol Administration

(FAA) Act. The Director has

subsequently redelegated certain of

these authorities to appropriate

subordinate officers by way of various

means, including by regulation, ATF

delegation orders, regional directives, or

similar delegation documents. As a

result, to ascertain what particular

officer is authorized to perform a

particular function under such

provisions, each of these various

delegation instruments must be

consulted. Similarly, each time a

delegation of authority is revoked or

redelegated, each of the delegation

documents must be reviewed and

amended as necessary.

ATF has determined that this

multiplicity of delegation instruments

complicates and hinders the task of

determining which ATF officer is

authorized to perform a particular

function. ATF also believes these

multiple delegation instruments

exacerbate the administrative burden

associated with maintaining up-to-date

delegations, resulting in an undue delay

in reflecting current authorities.

Accordingly, this final rule rescinds

all authorities of the Director in part 70

that were previously delegated and

places those authorities with the

‘‘appropriate ATF officer.’’ Most of the

authorities of the Director that were not

previously delegated are also placed

with the ‘‘appropriate ATF officer.’’

Along with this final rule, ATF is

publishing ATF Order 1130.19,

Delegation Order—Delegation of the

Director’s Authorities in 27 CFR Part 70,

Procedure and administration, which

delegates certain of these authorities to

the appropriate organizational level.

The effect of these changes is to

consolidate all delegations of authority

in part 70 into one delegation

instrument. This action both simplifies

the process for determining what ATF

officer is authorized to perform a

particular function and facilitates the

updating of delegations in the future. As

a result, delegations of authority will be

reflected in a more timely and userfriendly manner.

In addition, this final rule also

eliminates all references in the

regulations that identify the ATF officer

with whom an ATF form is filed. This

is because ATF forms will indicate the

officer with whom they must be filed.

Similarly, this final rule also amends

part 70 to provide that the submission

of documents other than ATF forms

(such as letterhead applications, notices

and reports) must be filed with the

‘‘appropriate ATF officer’’ identified in

ATF Order 1130.19. These changes will

facilitate the identification of the officer

with whom forms and other required

submissions are filed.

This final rule eliminates all

references to an ATF region, which were

comprised of certain States for ATF

administrative purposes but no longer

exist. Also, this final rule eliminates the

definition of ‘‘delegate’’ in § 70.11 and

the references to ‘‘delegate’’ in § 70.803.

The definition of delegate in § 70.11 is

any officer, employee, or agency of the

Department of the Treasury authorized

by the Secretary of the Treasury

directly, or indirectly by one or more

redelegations of authority, to perform

the function mentioned or described in

the delegation order. To prevent any

misunderstanding or confusion with the

ATF delegation order, ATF Order

1130.19, we are removing this term from

the aforementioned sections of 27 CFR

part 70.

This final rule also makes various

technical amendments to Subpart D—

Administrative and Miscellaneous

Provisions of 27 CFR part 70.

Specifically, a new § 70.3 is added to

recognize the authority of the Director to

delegate regulatory authorities in part 70

and to identify ATF Order 1130.19 as

the instrument reflecting such

delegations. Also, § 70.2 is amended to

provide that the instructions for an ATF

form identify the ATF officer with

whom it must be filed.

ATF has made or will make similar

changes in delegations to all other parts

of Title 27 of the Code of Federal

Regulations through separate

rulemakings.

Typographical and Miscellaneous

Corrections

This final rule removes a sentence

from § 70.438 that refers to an obsolete

ATF publication, corrects references to

other sections of regulations in

§ 70.253(b)(1) and (2) and in § 70.438,

corrects § 70.224 that refers to the

general statute of limitations on

collecting an assessment in accordance

with 26 U.S.C. 6502, and corrects

§ 70.482(e) by raising the amount for

which a Chief Counsel’s opinion need

not be filed for offers-in-compromise in

accordance with 26 U.S.C. 7122(b).

Disclosure Changes

In § 70.802 we have eliminated the

card index record of permits, which is

no longer maintained, and made

appropriate changes to the information

available or provided by ATF because of

the disclosure restrictions of 26 U.S.C.

6103.

29022 Federal Register / Vol. 66, No. 103 / Tuesday, May 29, 2001 / Rules and Regulations

Paperwork Reduction Act

The provisions of the Paperwork

Reduction Act of 1995, Pub. L. 104-13,

44 U.S.C. Chapter 35, and its

implementing regulations, 5 CFR part

1320, do not apply to this final rule

because there are no new or revised

recordkeeping or reporting

requirements.

Regulatory Flexibility Act

Because no notice of proposed

rulemaking is required for this rule, the

provisions of the Regulatory Flexibility

Act (5 U.S.C. 601 et seq.) do not apply.

A copy of this final rule was submitted

to the Chief Counsel for Advocacy of the

Small Business Administration in

accordance with 26 U.S.C. 7805(f). No

comments were received.

Executive Order 12866

It has been determined that this rule

is not a significant regulatory action

because it will not: (1) Have an annual

effect on the economy of $100 million

or more or adversely affect in a material

way the economy, a sector of the

economy, productivity, competition,

jobs, the environment, public health or

safety, or State, local or tribal

governments or communities; (2) Create

a serious inconsistency or otherwise

interfere with an action taken or

planned by another agency; (3)

Materially alter the budgetary impact of

entitlements, grants, user fees, or loan

programs or the rights and obligations of

recipients thereof; or (4) Raise novel

legal or policy issues arising out of legal

mandates, the President’s priorities, or

the principles set forth in Executive

Order 12866.

Administrative Procedure Act

Because this final rule merely makes

technical amendments and conforming

changes to improve the clarity of the

regulations, it is unnecessary to issue

this final rule with notice and public

procedure under 5 U.S.C. 553(b).

Similarly it is unnecessary to subject

this final rule to the effective date

limitation of 5 U.S.C. 553(d).

Drafting Information

The principal author of this document

is Robert Ruhf, Regulations Division,

Bureau of Alcohol, Tobacco and

Firearms.

List of Subjects in 27 CFR Part 70

Administrative practice and

procedure, Alcohol and alcoholic

beverages, Arms and munitions,

Authority delegations (Government

Agencies), Bankruptcy, Cigars and

cigarettes, Claims, Customs duties and

inspection, Disaster Assistance, Excise

taxes, Law enforcement, Penalties,

Privacy, Seizures, Surety bonds,

Tobacco.

Authority and Issuance

Title 27, Code of Federal Regulations

is amended as follows:

PART 70—PROCEDURE AND

ADMINISTRATION

Paragraph 1. The authority citation

for part 70 continues to read as follows:

Authority: 5 U.S.C. 301 and 552; 26 U.S.C.

4181, 4182, 5146, 5203, 5207, 5275, 5367,

5415, 5504, 5555, 5684(a), 5741, 5761(b),

5802, 6020, 6021, 6064, 6102, 6155, 6159,

6201, 6203, 6204, 6301, 6303, 6311, 6313,

6314, 6321, 6323, 6325, 6326, 6331–6343,

6401–6404, 6407, 6416, 6423, 6501–6503,

6511, 6513, 6514, 6532, 6601, 6602, 6611,

6621, 6622, 6651, 6653, 6656–6658, 6665,

6671, 6672, 6701, 6723, 6801, 6862, 6863,

6901, 7011, 7101, 7102, 7121, 7122, 7207,

7209, 7214, 7304, 7401, 7403, 7406, 7423,

7424, 7425, 7426, 7429, 7430, 7432, 7502,

7503, 7505, 7506, 7513, 7601–7606, 7608–

7610, 7622, 7623, 7653, 7805.

§§ 70.2, 70.25, 70.26, 70.61, 70.94, 70.161,

70.182, 70.191, 70.213, 70.301, 70.31, 70.482

and 70.485(a) [Amended]

Par. 2. In part 70 remove the word

‘‘Director’’ each place it appears and

add, in substitution, the words

‘‘appropriate ATF officer’’ each place it

appears in the following places:

a. Section 70.2(a);

b. Section 70.25(a)(4);

c. Section 70.26(c)(2)(ii);

d. Section 70.61(a)(1)(i) introductory

text, (a)(1)(i)(C) and (a)(2);

e. Section 70.94(a);

f. Section 70.161(a)(4)(i)(B);

g. Section 70.182(a);

h. Section 70.191(b) introductory text;

i. Section 70.213;

j. Section 70.301(a);

k. Section 70.311;

l. Section 70.482(a) introductory text;

and

m. Section 70.485(a).

Par. 3. Section 70.2 is further

amended by adding a sentence at the

end of paragraph (a) and revising

paragraph (b) to read as follows:

§ 70.2 Forms prescribed.

(a) * * * The form will be filed in

accordance with the instructions for the

form.

(b) Forms may be requested from the

ATF Distribution Center, P.O. Box 5950,

Springfield, Virginia 22150–5950, or by

accessing the ATF web site (http://

www.atf.treas.gov/).

Par. 4. In Subpart A—Scope, a new

§ 70.3 is added as follows:

§ 70.3 Delegations of the Director.

Most of the regulatory authorities of

the Director contained in this Part 70 are

delegated to appropriate ATF officers.

These ATF officers are specified in ATF

Order 1130.19, Delegation Order—

Delegation of the Director’s Authorities

in 27 CFR Part 70, Procedure and

administration. ATF delegation orders,

such as ATF Order 1130.19, are

available to any interested person by

mailing a request to the ATF

Distribution Center, P.O. Box 5950,

Springfield, Virginia 22150–5950, or by

accessing the ATF web site (http://

www.atf.treas.gov/).

Par. 5. Section 70.11 is amended by

removing the definitions of ‘‘ATF

officer’’, ‘‘Chief, Tax Processing Center’’,

‘‘Delegate’’, ‘‘Regional director

(compliance)’’, and ‘‘Special agent in

charge’’, and by adding a new definition

of ‘‘Appropriate ATF officer’’ to read as

follows:

§ 70.11 Meaning of terms.

* * * * *

Appropriate ATF officer. An officer or

employee of the Bureau of Alcohol,

Tobacco and Firearms (ATF) authorized

to perform any functions relating to the

administration or enforcement of this

part by ATF Order 1130.19, Delegation

Order—Delegation of the Director’s

Authorities in 27 CFR Part 70,

Procedure and Administration.

* * * * *

§§ 70.21, 70.100, 70.167, 70.168, 70.169,

70.181, 70.182, 70.183, 70.184, 70.185,

70.186, 70.187, 70.188, 70.206, 70.253,

70.263, 70.413, 70.433, 70.425, 70.504,

70.507, 70.602, 70.606, 70.608 and 70.609

[Amended]

Par. 6. Part 70 is further amended by

removing the words ‘‘regional director

(compliance)’’ and ‘‘regional director’s’’

each place it appears and adding, in

substitution, the words ‘‘appropriate

ATF officer’’ and ‘‘appropriate ATF

officer’s’’, respectively, in the following

places:

a. Section 70.21;

b. Section 70.100;

c. The last sentence of the

undesignated paragraph following

§ 70.167(b)(1)(iii);

d. Section 70.168(a);

e. Section 70.169;

f. Section 70.181(b)(1) and (2), and

(c)(1)(i) and (ii), (c)(2), (c)(3)(i),

introductory text of (c)(4)(i),

undesignated paragraph after

(c)(4)(ii)(D), and (c)(4)(iv) introductory

text, (c)(5) introductory text, (c)(5)(ii)(B)

and (c)(8);

g. Section 70.182(a)(1), (3), (4)

introductory text and (6)(ii), and (b);

h. Section 70.183(b)(2), (3), (6), (7)

introductory text, (9)(ii) and (11);

i. Section 70.184(a), (b), (c)

introductory text, and (c) (1);

Federal Register / Vol. 66, No. 103 / Tuesday, May 29, 2001 / Rules and Regulations 29023

j. Section 70.185(a), (b) and (c);

k. Section 70.186(b)(2) and (c);

l. Section 70.187(a);

m. Section 70.188;

n. Section 70.206(a)(1), (b)(3)(ii), the

introductory text and the last sentence

of (b)(4)(ii), (b)(4)(ii)(A), the

undesignated paragraph following

(b)(4)(ii)(B), (b)(4)(iii), (c)(2) and (3);

o. Section 70.253(b)(2);

p. Section 70.263(d);

q. Section 70.413(a);

r. The third sentence of § 70.433(a);

s. Section 70.435(i);

t. Section 70.504(c)(2);

u. Section 70.507(g);

v. Section 70.602(a) and (b)(1)

introductory text;

w. Section 70.606 introductory text;

x. Section 70.608; and

y. Section 70.609.

§ 70.21 [Amended]

Par. 7. Section 70.21 is further

amended by removing the phrase

‘‘through the region’’.

§ 70.22 [Amended]

Par. 8. Section 70.22 is amended as

follows:

a. By removing the words ‘‘authorized

officer or employee of the Bureau’’ and

adding, in substitution, the words

‘‘appropriate ATF officer’’ in paragraph

(a);

b. By removing the words ‘‘officers

and employees of the Bureau designated

in paragraph (c) of this section’’ and, in

substitution, adding the words

‘‘appropriate ATF officers’’ in the first

sentence of paragraph (b);

c. By removing the words ‘‘The

officers and employees designated in

paragraph (c) of this section may

designate any other employee of the

Bureau’’ and adding, in substitution, the

words ‘‘Such ATF officer may designate

an appropriate ATF officer’’ in the

second sentence of paragraph (b);

d. By removing the words ‘‘other

employee’’ and adding, in substitution,

the words ‘‘officer’’ in the third sentence

in paragraph (b); and

e. By removing paragraph (c).

Par. 9. Paragraph (b) of § 70.23 is

revised to read as follows:

§ 70.23 Service of summonses.

* * * * *

(b) Persons who may serve

summonses. Any appropriate ATF

officer may serve a summons issued

under 26 U.S.C. 7602.

* * * * *

§ 70.24 [Amended]

Par. 10. The first sentence of

§ 70.24(b) is amended by removing the

words ‘‘The officers and employees of

the Bureau designated in paragraph (c)

of § 70.22’’ and adding, in substitution,

the words ‘‘Appropriate ATF officers’’.

Par. 11. Section 70.30 is revised to

read as follows:

§ 70.30 Time and place of examination.

(a) Time and place. The time and

place of examination pursuant to the

provisions of 26 U.S.C. 7602 must be

such time and place as may be fixed by

an appropriate ATF officer and as are

reasonable under the circumstances.

The date fixed for appearance shall not

be less than 10 days from the date of the

summons.

(b) Restrictions on examination of

taxpayer. No taxpayer is to be subjected

to unnecessary examination or

investigations, and only one inspection

of a taxpayer’s books of account shall be

made for each taxable year unless the

taxpayer requests otherwise or unless an

authorized internal revenue or an

appropriate ATF officer, after

investigation, notifies the taxpayer in

writing that an additional inspection is

necessary.

(68A Stat. 902, as amended (26 U.S.C. 7605))

Par. 12. Section 70.31 is revised to

read as follows:

§ 70.31 Entry of premises for examination

of taxable objects.

(a) General. An appropriate ATF

officer may, in the performance of his or

her duty, enter in the daytime any

building or place where any articles or

objects subject to tax are made,

produced, or kept, so far as it may be

necessary for the purpose of examining

said articles or objects and also enter at

night any such building or place, while

open, for a similar purpose.

(b) Distilled spirits plants. Any

appropriate ATF officer may, at all

times, as well by night as by day, enter

any plant or any other premises where

distilled spirits are produced or

rectified, or structure or place used in

connection therewith for storage or

other purposes; to make examination of

the materials, equipment and facilities

thereon; and make such gauges and

inventories as such officer deems

necessary. Whenever any appropriate

ATF officer, having demanded

admittance, and having declared his or

her name and office, is not admitted to

such premises by the proprietor or other

person having charge thereof, such

officer may at all times, use such force

as is necessary for such officer to gain

entry to such premises.

(c) Authority to break up grounds. An

appropriate ATF officer, and any person

acting in his or her aid, may break up

the ground on any part of a distilled

spirits plant, or any other premises

where spirits are produced or rectified,

or any ground adjoining or near to such

plant or premises, or any wall or

partition thereof, or belonging thereto,

or other place, to search for any pipe,

cock, private conveyance, or utensil;

and, upon finding any such pipe or

conveyance leading therefrom or

thereto, to break up any ground, house,

wall, or other place through or into

which such pipe or other conveyance

leads, and to break or cut away such

pipe or other conveyance, and turn any

cock, or to determine whether such pipe

or other conveyance conveys or

conceals any spirits, mash, wort, or

beer, or other liquor, from the sight or

view of the appropriate ATF officer, so

as to prevent or hinder such officer from

taking a true account thereof.

(68A Stat. 903, 72 Stat. 1357 (26 U.S.C. 7606,

5203))

§ 70.32 [Amended]

Par. 13. Section 70.32 is amended by

removing the phrase ‘‘of the Bureau’’

and by adding the words ‘‘appropriate

ATF’’ before the word ‘‘officer’’ each

place it appears.

Par. 14. The introductory text of

§ 70.33 is revised to read as follows:

§ 70.33 Authority of enforcement officers

of the Bureau.

Appropriate ATF officers may

perform the following functions:

* * * * *

Par. 15. Section § 70.34 is revised to

read as follows:

§ 70.34 Listing by appropriate ATF officers

of taxable objects owned by nonresidents.

Whenever there are any articles in any

internal revenue district subject to tax,

which are not owned or possessed by,

or under the care or control of, any

person within such district, and of

which no list has been transmitted to

the appropriate ATF officer, as required

by law or by regulations prescribed

pursuant to law, an appropriate ATF

officer shall enter the premises where

such articles are situated, make such

inspection of the articles as may be

necessary, and make lists of the same

according to the forms prescribed. Such

lists, being subscribed by the

appropriate ATF officer, are sufficient

lists of such articles for all purposes.

* * * * *

Par. 16. Section 70.40 is revised to

read as follows:

§ 70.40 Authority to administer oaths and

certify.

Appropriate ATF officers are

authorized to administer such oaths or

29024 Federal Register / Vol. 66, No. 103 / Tuesday, May 29, 2001 / Rules and Regulations

affirmations and to certify to such

papers as may be necessary under the

tax laws administered by the Bureau,

the Federal Alcohol Administration Act,

or regulations issued thereunder, except

that the authority to certify must not be

construed as applying to those papers or

documents the certification of which is

authorized by separate order or

directive.

(68A Stat. 904 (26 U.S.C. 7622))

Par. 17. Section 70.41 is amended by

revising the first sentence of paragraph

(a); the first, second and last sentences

of paragraph (c); the first sentence of

paragraph (d); and the last two

sentences of paragraph (f) to read as

follows:

§ 70.41 Rewards for information relating to

violations of tax laws administered by the

Bureau.

(a) In general. An appropriate ATF

officer may approve such reward as he

or she deems suitable for information

that leads to the detection and

punishment of any person guilty of

violating any tax law administered by

the Bureau or conniving at the same.

***

* * * * *

(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, must be

taken into account in determining

whether a reward must be paid, and, if

so, the amount thereof. The amount of

a reward shall represent what the

appropriate ATF officer deems to be

adequate compensation in the particular

case, normally not to exceed 10 percent

of the additional taxes, penalties, and

fines which are recovered as a result of

the information. * * * No person is

authorized under these regulations to

make any offer, or promise, or otherwise

to bind the appropriate ATF officer with

respect to the payment of any reward or

the amount thereof.

(d) Submission of Information.

Persons desiring to claim rewards under

the provisions of 26 U.S.C. 7623 and

this section may submit information

relating to violations of tax laws

administered by the Bureau to an

appropriate ATF officer. * * *

* * * * *

(f) Filing claim for reward. ***

Claim for reward under the provisions

of 26 U.S.C. 7623 must be made on ATF

Form 3200.13. ATF Form 3200.13

should be obtained from the office

where the information is filed.

* * * * *

Par. 18. The section heading and

paragraphs (a)(1), (b) and (c)(1) of

§ 70.42 are revised to read as follows:

§ 70.42 Returns prepared or executed by

appropriate ATF officers.

(a) Preparation of returns—(1)

General. If any person, required by

provisions of 26 U.S.C. enforced and

administered by the Bureau or by the

regulations prescribed thereunder to

make a return, fails to make such return,

it may be prepared by an appropriate

ATF officer provided the person

required to make the return consents to

disclose all information necessary for

the preparation of such return. The

return upon being signed by the person

required to make it must be received by

the appropriate ATF officer, as the

return of such person.

* * * * *

(b) Execution of returns—(1) General.

If any person, required by provisions of

26 U.S.C. enforced and administered by

the Bureau or by the regulations

prescribed thereunder to make a return,

fails to make a return at the time

prescribed therefor, or makes, willfully

or otherwise, a false or fraudulent

return, the appropriate ATF officer must

make such return from such officer’s

own knowledge and from such

information as the officer can obtain

through testimony or otherwise.

(2) Status of returns. Any return made

in accordance with paragraph (b)(1) of

this section and subscribed by the

appropriate ATF officer is prima facie

good and sufficient for all legal

purposes.

(c) Cross references. (1) For provisions

that the return executed by an

appropriate ATF officer will not start

the running of the period of limitations

on assessment and collection, see 26

U.S.C. 6501(b)(3) and § 70.222(b) of this

part.

* * * * *

Par. 19. Section 70.51 is revised to

read as follows:

§ 70.51 Collection authority.

The taxes imposed by provisions of 26

U.S.C. enforced and administered by the

Bureau must be collected by appropriate

ATF officers.

(26 U.S.C. 6301)

§ 70.61, 70.77, 70.96, 70.167 [Amended]

Par. 20. Part 70 is further amended by

removing the phrase ‘‘regional

director(s) (compliance) or the Chief,

Tax Processing Center,’’ or ‘‘regional

director (compliance) or the Chief, Tax

Processing Center’’ and adding, in

substitution, the words ‘‘the appropriate

ATF officer’’ each place it appears in the

following places:

a. The introductory text of

§ 70.61(a)(1)(i);

b. Section 70.77(b)(1) and (2);

c. Section 70.96(a)(1)(iv), (a)(2) and

(a)(3); and

d. Section 70.167(a)(2)(ii).

§§ 70.61, 70.71 and 70.123 [Amended]

Par. 21. Part 70 is further amended by

removing the words ‘‘regional directors

(compliance) and Chief, Tax Processing

Center’’ or ‘‘regional director

(compliance) and Chief, Tax Processing

Center’’ and adding, in substitution, the

words ‘‘appropriate ATF officers’’ each

place that they appear in the following

places:

a. Section 70.61 (a)(1)(i)(D) and (a)(3);

b. Section 70.71 introductory text; and

c. Section 70.123(b)(2).

Par. 22. The first three sentences of

§ 70.64 are revised to read as follows:

§ 70.64 Receipt for taxes.

The appropriate ATF officer must,

upon request, issue a receipt for each

tax payment made (other than a

payment for stamps sold or delivered).

In addition, an appropriate ATF officer

or employee must issue a receipt for

each payment of 1 dollar or more made

in cash, whether or not requested. In the

case of payments made by check, the

canceled check is usually a sufficient

receipt. * * *

* * * * *

§§ 70.71, 70.73, 70.74, 70.75, 70.76, 70.77,

70.81, 70.82, 70.92, 70.96, 70.98, 70.101,

70.113, 70.122, 70.123, 70.124, 70.161,

70.162, 70.163, 170.164, 70.223, 70.271,

70.281, 70.447, 70.481 and 70.486

[Amended]

Par. 23. Part 70 is further amended by

removing the words ‘‘regional director

(compliance) or the Chief, Tax

Processing Center’’ or ‘‘regional director

(compliance) or Chief, Tax Processing

Center’’ and adding, in substitution, the

words ‘‘appropriate ATF officer’’ each

place it appears in the following places:

a. Section 70.71(a); (b)(1)(ii) and

(b)(2);

b. Section 70.73;

c. Section 70.74(c)(1) and (c)(2);

d. Section 70.75(b) and (c);

e. Section 70.76(a), (b)(3), (c) and (d);

f. Section 70.77(a)(1) and (2);

g. Section 70.81(a);

h. Section 70.82;

i. Section 70.92(c) and (d)(2)(i);

j. The fourth sentence of § 70.96(c);

k. The third sentence of § 70.98(b);

l. Section 70.101;

m. Section 70.113(b);

n. Section 70.122;

o. Section 70.123(b)(1);

Federal Register / Vol. 66, No. 103 / Tuesday, May 29, 2001 / Rules and Regulations 29025

p. Section 70.124;

q. Section 70.161(a)(1), (2) and (b);

r. Section 70.162(a) and (b);

s. Section 70.163(b)(1) and (c);

t. Section 170.164(b)(1) introductory

text;

u. Section 70.223(d);

v. Section 70.271(d)(1);

w. Section 70.281(b)(2) introductory

text, (b)(2)(vi), and (b)(3)(v);

x. Section 70.447;

y. Section 70.481(a), and (b)(2)(ii),

(3)(ii) and (4)(iii); and

z. Section 70.486.

§ 70.72 [Amended]

Par. 24. Section 70.72 is amended by:

a. Removing the first sentence; and

b. Removing the words ‘‘assessment

officer’’ and adding, in substitution, the

words ‘‘appropriate ATF officer’’ in the

remaining first and fourth sentences.

§§ 70.73, 70.96 and 70.98 [Amended]

Par. 25. Part 70 is further amended by

removing the words ‘‘regional director

(compliance) of the region in which the

taxpayer is located or with the Chief,

Tax Processing Center’’ and adding, in

substitution, the words ‘‘appropriate

ATF officer’’ each place it appears in the

following places:

a. The first sentence of § 70.74(b);

b. The second sentence of § 70.96(c);

and

c. The second sentence of § 70.98(b).

Par. 26. The introductory text of

paragraph (a) of § 70.75 is revised to

read as follows:

§ 70.75 Jeopardy assessment of alcohol,

tobacco, and firearms taxes.

(a) If the appropriate ATF officer

believes that the collection of any tax

imposed under provisions of 26 U.S.C.

enforced and administered by the

Bureau will be jeopardized by delay, the

appropriate ATF officer must, whether

or not the time otherwise prescribed by

law for filing the return or paying such

tax has expired, immediately assess

such tax, together with all interest,

additional amounts and additions to the

tax provided by law. An appropriate

ATF officer will make an assessment

under this section if collection is

determined to be in jeopardy because at

least one of the following conditions

exists.

* * * * *

§ 70.96 [Amended]

Par. 27. The third sentence of

§ 70.96(c) is amended by removing the

words ‘‘ATF officer working under the

supervision of the regional director

(compliance)’’ and adding, in

substitution, the words ‘‘appropriate

ATF officer’’.

§ 70.123 [Amended]

Par. 28. Section 70.123(a)(2) is

amended by removing the words

‘‘regional director (compliance), for the

region in which the claimant is located,

or, in the case of special (occupational)

tax, with the Chief, Tax Processing

Center’’ and adding, in substitution, the

words ‘‘appropriate ATF officer’’.

Par. 29. In § 70.125, paragraph(a), the

last sentence of paragraph (b), and

paragraph (c) are revised to read as

follows:

§ 70.125 Abatements.

(a) The appropriate ATF officer may

abate the unpaid portion of any

assessment or liability, if the assessment

is in excess of the correct tax liability,

if the assessment is made subsequent to

the expiration of the period of limitation

applicable thereto, or if the assessment

has been erroneously or illegally made.

(b) * * * All such claims must be

filed with the appropriate ATF officer

who made demand for the amount

assessed.

(c) The appropriate ATF officer may

issue uniform instructions to abate

amounts the collection of which is not

warranted because of the administration

and collection costs.

* * * * *

§ 70.126 [Amended]

Par. 30. Section 70.126 is amended by

removing the words ‘‘regional director

(compliance) or the Chief, Tax

Processing Center, or an authorized

certifying officer designated by the

regional director (compliance) or the

Chief, Tax Processing Center’’ and

adding, in substitution, the words

‘‘appropriate ATF officer’’.

§§ 170.149 and 170.161 [Amended]

Par. 31. Part 70 is further amended by

removing the words ‘‘Chief, Tax

Processing Center or the regional

director (compliance)’’ and adding, in

substitution, the words ‘‘appropriate

ATF officer’’ each place it appears in the

following places:

a. The introductory text of paragraph

(a)(3) and paragraph (b)(2)(i)(A) of

§ 70.149; and

b. The last sentence of § 70.161(c).

Par. 32. In § 70.150 the introductory

text of paragraph (a) is revised to read

as follows:

§ 70.150 Release of lien or discharge of

property.

(a) Release of lien. An appropriate

ATF officer is charged with releasing

liens or discharging property from liens.

The appropriate ATF officer must issue

a certificate of release of a lien imposed

with respect to any tax imposed by a

provision of 26 U.S.C. enforced and

administered by the Bureau, not later

than 30 days after the day on which

either:

* * * * *

§ 70.150, 70.164, 70.170, 70.187, 70.205,

70.231, 70.241, 70.242 and 70.245

[Amended]

Par. 33. Part 70 is further amended by

removing the words ‘‘Chief, Tax

Processing Center’’ or ‘‘Chief, Tax

Processing Center’s’’ and adding, in

substitution, the words ‘‘appropriate

ATF officer’’ or the words ‘‘appropriate

ATF officer’s’’, respectively, each place

they appear in the following places:

a. Section 70.150 (a)(1) and (2), (b),

(c)(1), (2) and (3), (d), (e)(1) introductory

text and (e)(2)(i) introductory text,

(e)(2)(i)(B);

b. Section 70.164(c);

c. Section 70.170(b);

d. Section 70.187 (a) and (b);

e. Section 70.205(a)(1), (a)(2)(i) and

(a)(2)(ii)(C), (b)(1) except the last

sentence and (b)(2), and (c)(1) except the

last sentence, (e)(2), (e)(3) and (e)(4);

f. Section 70.231(i)(3);

g. Section 70.241(a)(8);

h. Section 70.242(a) and (c); and

i. Section 70.245 section heading, (a)

and (c)(2) and (d).

§ 70.150, 70.151, 70.161, 70.162, 70.163,

70.164, 70.167, 70.187, 70.204, 70.205,

70.206, 70.207, 70.208, 70.209, 70.210,

70.241, 70.281, 70.413, 70.414, 70.481 and

70.482 [Amended]

Par. 34. Part 70 is further amended by

removing the word ‘‘official’’ or

‘‘official’s’’ and adding, in substitution,

the word ‘‘officer’’ or ‘‘officer’s’’,

respectively, each place they appear in

the following places:

a. Section 70.150 (b)(1), (b)(2)(i), (b)

(3), (c)(1) and (c)(2);

b. Section 70.151(a), (b), (d), (e)(1),

(f)(3) and (g)

c. Section 70.161(a)(2);

d. Section 70.162(c) and (d);

e. Section 70.163(a)(1) and (c);

f. Section 70.164(b)(1)(i) and (ii),

(b)(2)(i), (b)(2)(ii), and (c);

g. Section 70.167(a)(4), (b)(2)

introductory text and (b)(3);

h. Section 70.186(a)(5);

i. The undesignated paragraph after

§ 70.204(a)(3);

j. Section 70.205(b)(1) and (e)(2);

k. Section 70.206(b)(4)(ii)(B);

l. Section 70.207(b)(1)(iii);

m. Section 70.208;

n. Section 70.209 (a) and (b);

o. Section 70.210(a)(1);

p. Section 70.241(a)(8);

q. Section 70.281(b)(2)(vi) and (3)(iv);

r. Section 70.413(c)(1);

29026 Federal Register / Vol. 66, No. 103 / Tuesday, May 29, 2001 / Rules and Regulations

s. Section 70.414(k);

t. Section 70.481(b)(2) introductory

text, (3)(i), (3)(ii)(B) and (4) introductory

text; and

u. Section 70.482(d)(1)(i).

§ 70.151 [Amended]

Par. 35. Section 70.151(g) is further

amended by removing the words ‘‘the

regional director (compliance) of the

region in which a notice of Federal tax

lien was filed or the Chief, Tax

Processing Center’’ and adding, in

substitution, the words ‘‘an appropriate

ATF officer’’.

Par. 36. Section 70.161 is amended

by:

a. Revising the first, second, third and

eleventh sentences of paragraph (a)(1) to

read as follows:

§ 70.161 Levy and distraint.

(a) Authority to levy—(1) In general. If

any person liable to pay any tax neglects

or refuses to pay the tax within 10 days

after notice and demand, the

appropriate ATF officer who initiated

the assessment may proceed to collect

the tax by levy, provided the taxpayer

has been furnished the notice described

in § 70.162(a) of this part. The

appropriate ATF officer may levy upon

any property, or rights to property,

whether real or personal, tangible or

intangible, belonging to the taxpayer.

The appropriate ATF officer may also

levy upon property with respect to

which there is a lien provided by 26

U.S.C. 6321 for the payment of the tax.

For exemption of certain property from

levy, see 26 U.S.C. 6334 and §§ 70.241

through 70.245 of this part. * * * For

example, if on the first day of the month

a delinquent taxpayer sold personal

property subject to an agreement that

the buyer remit the purchase price on

the last day of the month, a levy made

on the buyer on the 10th day of the

month would reach the amount due on

the sale, although the buyer need not

satisfy the levy by paying over the

amount to the appropriate ATF officer

until the last day of the month. * * *

b. Removing the words ‘‘Chief, Tax

Processing Center or to the region

director (compliance) having

jurisdiction over such person’’ in the

fifth sentence of paragraph (c) and

adding, in substitution, the words

‘‘appropriate ATF officer’’.

Par. 37. The introductory text of

§ 70.163(a)(2)(ii) is revised to read as

follows:

§ 70.163 Surrender of property subject to

levy.

(a) * * *

(2) * * *

(ii) Notwithstanding paragraph (a)(1)

of this section, if a levy has been made

upon property or rights to property

subject to levy which a bank engaged in

the banking business in the United

States or a possession of the United

States is in possession of (or obligated

with respect to), an appropriate ATF

officer shall not enforce the levy with

respect to any deposits held in an office

of the bank outside the United States or

a possession of the United States, unless

the notice of levy specifies that such

officer intends to reach such deposits.

The notice of levy must not specify that

such officer intends to reach such

deposits unless that officer making such

levy believes:

* * * * *

§ 70.165 [Amended]

Par. 38. Section 70.165 is amended by

adding the word ‘‘appropriate’’ before

the words ‘‘ATF officer’’.

Par. 39. Paragraphs (a)(1), (a)(2)(i)(C)

and (D), and (a)(4), and the introductory

text of paragraph (b)(1) of § 70.167 are

revised to read as follows:

§ 70.167 Authority to release levy and

return property.

(a) Release of levy—(1) Authority. An

appropriate ATF officer may release the

levy upon all or part of the property or

rights to property levied upon as

provided in paragraphs (a)(2), (3) and (4)

of this section. A levy may be released

under paragraph (a)(3) of this section

only if the delinquent taxpayer complies

with such of the conditions thereunder

as an appropriate ATF officer may

require and if the appropriate ATF

officer determines that such action will

facilitate the collection of the liability.

***

* * * * *

(2) * * *

(i) * * *

(C) The taxpayer has entered into an

agreement under 26 U.S.C. 6159 to

satisfy such liability by means of

installment payments, unless such

agreement provides otherwise (an

appropriate ATF officer is not required

to release the levy in this case if release

of such levy would jeopardize the

secured creditor status of the United

States).

(D) An appropriate ATF officer has

determined that such levy is creating an

economic hardship due to the financial

condition of the taxpayer, or

(4) Release where value of interest of

United States is insufficient to meet

expenses of sale. An appropriate ATF

officer may release the levy as

authorized under paragraph (a)(1) of this

section if that officer determines that the

value of the interest of the United States

in the seized property, or in the part of

the seized property to be released is

insufficient to cover the expenses of the

sale of such property.

* * * * *

(b) Return of property—(1) General

rule. If an appropriate ATF officer

determines that property has been

wrongfully levied upon, the appropriate

ATF officer may return:

* * * * *

§§ 70.167 and 70.251 [Amended]

Par. 40. Part 70 is further amended by

removing the words ‘‘a regional director

(compliance) or the Chief, Tax

Processing Center’’ and adding, in

substitution the words ‘‘an appropriate

ATF officer’’ each place they appear in

the following places:

a. Section 70.167(a)(2)(i) introductory

text and (a)(3); and

b. Section 70.251(a)(2) and (b).

Par. 41. The first sentence of

paragraph (b)(2) and paragraph (c) of

§ 70.168 are revised to read as follows:

§ 70.168 Redemption of property.

* * * * *

(b) * * *

(2) Price. Such property or tract of

property may be redeemed upon

payment to the purchaser, or in case the

purchaser cannot be found in the county

in which the property to be redeemed is

situated, then to the appropriate ATF

officer, for the use of the purchaser, the

purchaser’s heirs, or assigns, the amount

paid by such purchaser and interest

thereon at the rate of 20 percent per

annum. * * *

* * * * *

(c) Record. When any real property is

redeemed, the appropriate ATF officer

must cause entry of the fact to be made

upon the record of sale kept in

accordance with 26 U.S.C. 6340 and

§ 70.187 of this part, and such entry is

evidence of such redemption. The party

who redeems the property must notify

the appropriate ATF officer of the date

of such redemption and of the transfer

of the certificate of sale, the amount of

the redemption price, and the name of

the party to whom such redemption

price was paid.

* * * * *

§ 70.181 [Amended]

Par. 42. Section 70.181 is further

amended by:

a. Adding the word ‘‘appropriate’’

before the words ‘‘ATF officer’’ in

paragraphs (a), (c)(3)(ii) and (c)(4)(iii);

b. Removing the phrase ‘‘within the

ATF region where the seizure is made’’

from the second sentence and the

Federal Register / Vol. 66, No. 103 / Tuesday, May 29, 2001 / Rules and Regulations 29027

phrase ‘‘within such region’’ from the

third sentence in paragraph (b)(1);

c. Removing the phrase ‘‘or cause the

ATF officer conducting the sale to

adjourn’’ and the comma preceding

such phrase in paragraph (c)(2); and

d. Removing ‘‘AFT’’ before the word

‘‘officer’’ in paragraph (c)(5)(ii)(D).

§§ 70.181, 70.182, 70.183, 70.204 and 70.251

[Amended]

Par. 43. Part 70 is further amended by

removing the term ‘‘ATF’’ before the

word ‘‘officer’’ or ‘‘officers’’ each place

it appears in the following places:

a. Paragraph (c)(5)(ii)(E) and the first

sentence of paragraph (c)(8) of § 70.181;

b. Section 70.182(a)(2)(ii), (6)(iv) and

(v), (7) and (9);

c. Section 70.183 (b)(4), (9)(iv) and (v),

(10);

d. The last sentence of the

undesignated paragraph after

§ 70.204(a)(3); and

e. Section 70.251(b).

Par. 44. The fourth and subsequent

sentences of paragraph (a)(2)(i) of

§ 70.182 are revised to read as follows:

§ 70.182 Disposition of personal property

acquired by the United States.

(a) Sale—***

* * * * *

(2) Time, place, manner and terms of

sale.

(i) Time, notice, and place of sale.

* * * In addition, the appropriate ATF

officer may use such other methods of

advertising as such officer believes will

result in obtaining the highest price for

the property. Generally, the place of sale

will be within the area where the

property was originally acquired by the

United States. However, if the

appropriate ATF officer believes that a

substantially higher price may be

obtained, the sale may be held outside

such area.

* * * * *

Par. 45. Section 70.183 is further

amended by:

a. Removing the words ‘‘regional

director (compliance) for the region in

which the property is situated’’ and

adding, in substitution, the words

‘‘appropriate ATF officer’’ each place

they appear in paragraphs (a), (b)

introductory text, (c) and (e);

b. Removing the words ‘‘regional

director (compliance) for the region in

which the property is located’’ and

adding, in substitution, the words

‘‘appropriate ATF officer’’ in paragraph

(d); and

c. Revising paragraph (f) to read as

follows:

§ 70.183 Administration and disposition of

real estate acquired by the United States.

* * * * *

(f) Authority of appropriate ATF

officer. Notwithstanding the other

paragraphs of this section, the

appropriate ATF officer may, when such

officer deems it advisable, take charge

of, and assume responsibility for, any

real estate to which this section is

applicable. In such case, such officer

will notify in writing the appropriate

ATF officer from whom he or she is

taking charge and assuming

responsibility. Also, in any case where

a single parcel of real estate is situated

in an area in which more than one

officer has jurisdiction, the appropriate

ATF officer may designate in writing

one officer who is to be in charge of, and

responsible for, the entire property.

* * * * *

§ 70.187 [Amended]

Par. 46. The first sentence of

§ 70.187(a) is further amended by

removing the words ‘‘that region’’ and

adding, in substitution, the words ‘‘his

or her jurisdiction’’.

Par. 47. Section 70.191(a) is revised to

read as follows:

§ 70.191 Authorization.

(a) In general. A civil action for the

collection or recovery of taxes, or of any

fine, penalty, or forfeiture (with respect

to the provisions of 26 U.S.C. enforced

and administered by the Bureau) will be

commenced when the appropriate ATF

officer, directs that the action be

commenced.

* * * * *

Par. 48. Paragraph (a) of § 70.192 is

revised to read as follows:

§ 70.192 Action to enforce lien or to

subject property to payment of tax.

(a) Civil actions. In any case where

there has been a refusal or neglect to pay

any tax (with respect to the provisions

of 26 U.S.C. enforced and administered

by the Bureau) or to discharge any

liability in respect thereof, whether or

not levy has been made, the Attorney

General or designated delegate at the

request of the appropriate ATF officer,

may direct a civil action to be filed in

any court of the United States to enforce

the lien of the United States under the

Internal Revenue Code with respect to

such tax or liability or to subject any

property, of whatever nature, of the

delinquent, or in which the delinquent

has any right, title or interest, to the

payment of such tax or liability. In any

such proceeding, at the instance of the

United States, the court may appoint a

receiver to enforce the lien, or, upon

certification by the appropriate ATF

officer during the pendency of such

proceedings that it is in the public

interest, may appoint a receiver with all

the powers of a receiver in equity.

* * * * *

§ 70.205 [Amended]

Par. 49. The last sentences of

70.205(b)(1) and (c)(1) are amended by

removing the phrase ‘‘the authority of

the Chief, Tax Processing Center and the

regional director (compliance) to release

a lien or to discharge’’ and adding, in

substitution, the words ‘‘releasing a lien

or discharging’’.

Par. 50. The second sentence of

§ 70.206(a)(1) is amended by removing

the phrase ‘‘the Chief, Tax Processing

Center, has consented to the sale’’ and

adding, in substitution, the words ‘‘a

consent to the sale has been made’’.

Par. 51. Section 70.206 is further

amended by:

a. Removing the phrase ‘‘a regional

director (compliance)’’ and adding, in

substitution, the words ‘‘an appropriate

ATF officer’’ in the introductory text of

paragraph (b)(1), and the first

undesignated sentence following

paragraph (b)(4)(ii)(B); and

b. Revising paragraphs (c)(1) and (4)

to read as follows:

§ 70.206 Discharge of liens; redemption by

United States.

* * * * *

(c) Certificate of redemption—(1) In

general. If an appropriate ATF officer

exercises the right of redemption of the

United States described in paragraph (a)

of this section, the appropriate ATF

officer shall apply to the officer

designated by local law, if any, for the

documents necessary to evidence the

fact of redemption and to record title to

the redeemed property in the name of

the United States. If no such officer has

been designated by local law, or if the

officer designated by local law fails to

issue the necessary documents, the

appropriate ATF officer is authorized to

issue a certificate of redemption for the

property redeemed by the United States.

* * * * *

(4) Application for release of right of

redemption. Upon application of a party

with a proper interest in the real

property sold in a nonjudicial sale

described in 26 U.S.C. 7425(b) and

§ 70.204 of this part, which real

property is subject to the right of

redemption of the United States

described in this section, the

appropriate ATF officer may, in that

officer’s discretion, release the right of

redemption with respect to the property.

The application for the release must be

29028 Federal Register / Vol. 66, No. 103 / Tuesday, May 29, 2001 / Rules and Regulations

submitted in writing to an appropriate

ATF officer and must contain such

information as the appropriate ATF

officer may require. If the appropriate

ATF officer determines that the right of

redemption of the United States is

without value, no amount shall be

required to be paid with respect to the

release of the right of redemption.

* * * * *

Par. 52. Paragraph (b) of § 70.222 is

revised to read as follows:

§ 70.222 Time return deemed filed for

purposes of determining limitations.

* * * * *

(b) Returns executed by appropriate

ATF officers. The execution of a return

by an appropriate ATF officer under the

authority of section 6020(b) of the

Internal Revenue Code does not start the

running of the statutory period of

limitations on assessment and

collection.

* * * * *

Par. 53. Paragraphs (a)(1) and (2)(i) of

§ 70.224 are revised to read as follows:

§ 70.224 Collection after assessment.

(a) Length of period—(1) General rule.

In any case in which a tax has been

assessed within the statutory period of

limitation properly applicable thereto, a

proceeding in court to collect such tax

may be begun, or levy for the collection

of such tax may be made, within 10

years after the assessment thereof.

(2) Extension by agreement.

(i) The 10-year period of limitation on

collection after assessment of any tax

may, prior to the expiration thereof, be

extended for any period of time agreed

upon in writing by the taxpayer and the

appropriate ATF officer. Whenever

necessary to protect the revenue, such

officer may also execute a written

agreement with the taxpayer to extend

the period of limitation. The extension

becomes effective upon execution of the

agreement by both the taxpayer and

such officer.

* * * * *

Par. 54. The first sentence of § 70.227

is revised to read as follows:

§ 70.227 Suspension of running of period

of limitation; wrongful seizure of property of

third party.

The running of the period of

limitations on collection after

assessment prescribed in 26 U.S.C. 6502

(relating to collection after assessment)

shall be suspended for a period equal to

a period beginning on the date property

(including money) is wrongfully seized

or received by an appropriate ATF

officer and ending on the date 30 days

after the date on which the appropriate

ATF officer returns the property

pursuant to 26 U.S.C. 6343(b) (relating

to authority to return property) or the

date 30 days after the date on which a

judgment secured pursuant to 26 U.S.C.

7426 (relating to civil actions by persons

other than taxpayers) with respect to

such property becomes final. * * *

* * * * *

§ 70.253 [Amended]

Par. 55. Paragraphs (b)(1) and (2) of

§ 70.253 are further amended by

removing ‘‘§ 70.67’’ and adding, in

substitution, ‘‘70.167’’.

§ 70.262 [Amended]

Par. 56. Paragraph (b)(4) of § 70.262 is

further amended by removing the

phrase ‘‘by the regional director

(compliance)’’.

Par. 57. Paragraph (c)(2) of § 70.262 is

amended by removing the words ‘‘by

the regional director (compliance) or the

Chief, Tax Processing Center’’.

§ 70.281 [Amended]

Par. 58. Section 70.281 is further

amended by:

a. Removing the words and

punctuation ‘‘(which may be obtained

from the regional director (compliance)

or the Chief, Tax Processing Center),’’

from paragraph (a)(1); and

b. Removing the words ‘‘acceptable in

discretion of ATF officials’’ from the

section heading of paragraph (b)(2).

Par. 59. Paragraph (a) and the first

sentence of paragraph (b) of § 70.304 are

revised to read as follows:

§ 70.304 Place for filing documents other

than returns.

(a) If a document, other than a return,

is required to be filed with an ATF

office, such document may be hand

delivered to such office.

(b) For purposes of this section, a

return or document will be considered

to be hand carried if it is brought to an

ATF supervisor of the ATF office by the

person required to file the return or

other document, or by the person’s

agent. * * *

* * * * *

§ 70.306 [Amended]

Par. 60. The fifth sentence of

§ 70.306(a) is amended by removing the

words ‘‘Director, the Chief, Tax

Processing Center, or a regional director

(compliance)’’ and adding, in

substitution, the words ‘‘appropriate

ATF officer’’.

§ 70.333 [Amended]

Par. 61. Section 70.333 is amended by

removing the words ‘‘Director, or to a

regional director (compliance) or to the

Chief, Tax Processing Center’’ and

adding, in substitution, the words

‘‘appropriate ATF officer’’.

§ 70.411 [Amended]

Par. 62. Section 70.411 is amended

by:

a. Removing the words ‘‘regional

director (compliance), of the ATF region

in which operations are to be

conducted’’ and adding, in substitution,

the words ‘‘appropriate ATF officer’’ in

paragraph (b);

b. By removing the third and fourth

sentences and adding, in substitution,

the sentence ‘‘Supplies of prescribed

forms may be obtained from the ATF

Distribution Center, 7943 Angus Court,

Springfield, Virginia 22153.’’ in the

introductory text of paragraph (c); and

c. By removing the phrase ‘‘by ATF

officers’’ in paragraph (c)(16).

§§ 70.412 and 70.413 [Amended]

Par. 63. Part 70 is further amended by

removing the phrase ‘‘with the regional

director (compliance)’’ each place it

appears in the following places:

a. The first sentence of § 70.412(a);

and

b. Section 70.413((c)(2) introductory

text, (d) introductory text and (e).

Par. 64. The third sentence § 70.412(a)

is amended by removing the phrase ‘‘by

the regional director (compliance)’’ each

place it appears.

Par. 65. Paragraph (b) of § 70.413 is

revised to read as follows:

§ 70.413 Claims.

* * * * *

(b) Claims for abatement. When the

tax on distilled spirits, wines, or beer is

assessed and the taxpayer thinks that

the tax is not due under the law, such

taxpayer may file a claim for abatement

of the tax on ATF Form 5620.8 with the

officer who made demand for the tax.

Such officer may call upon the taxpayer

to file a bond in double the amount of

the tax in order to insure collection of

the tax if the claim is rejected. When the

claim is acted upon, the taxpayer is

notified of the allowance or rejection of

the claim. If the claim is rejected, such

officer, will initiate action to collect the

tax.

* * * * *

Par. 66. The last sentence of

§ 70.414(a) is revised to read as follows:

§ 70.414 Preparation and filing of claims.

(a) Distilled spirits at distilled spirits

plants. * * * It is not necessary to file

a claim for credit of tax on taxpaid

samples taken by appropriate ATF

officers from distilled spirits plants, as

Federal Register / Vol. 66, No. 103 / Tuesday, May 29, 2001 / Rules and Regulations 29029

the appropriate ATF officer will allow

credit, without claim, for tax on such

samples.

* * * * *

Par. 67. Section 70.416 is revised to

read as follows:

§ 70.416 Application for approval of

interlocking directors and officers under

section 8 of the Federal Alcohol

Administration Act.

Any person who is an officer or

director of a corporation now engaged in

business as a distiller, rectifier, or

blender of distilled spirits, or of an

affiliate thereof, who desires to take

office in other companies similarly

engaged, must obtain permission to do

so from the appropriate ATF officer.

Applications for such permission to take

office must be prepared and filed in

accordance with instructions available

from the appropriate ATF officer.

Par. 68. Section 70.418 is revised to

read as follows:

§ 70.418 Conferences.

Any person desiring a conference

with ATF, relative to any matter arising

in connection with such person’s

operations, will be accorded such a

conference upon request. No formal

requirements are prescribed for such

conference.

Par. 69. Section 70.419 is revised to

read as follows:

§ 70.419 Representatives.

Title 31 CFR part 8 is applicable to all

representatives of the taxpayer, for any

conference with ATF.

§ 70.432 [Amended]

Par. 70. Section 70.432 is further

amended by:

a. Removing the words ‘‘with, and

obtaining a permit from, the regional

director (compliance) for the region in

which operations are to be conducted’’

from paragraph (a) and adding, in

substitution, the words ‘‘and obtaining a

permit’’;

b. Removing the words ‘‘with the

regional director (compliance) for the

region in which operations are to be

conducted’’ from paragraph (b); and

c. Removing the words ‘‘with the

regional director (compliance) for the

region in which the customs warehouse

is located’’ from paragraph (d).

Par. 71. The fourth and last sentences

of paragraph (a) and the second

sentence of paragraph (b) of § 70.433 are

revised to read as follows:

§ 70.433 Collection of taxes.

(a) Tobacco products. * * * Tax

returns, with remittances, are filed by

the domestic manufacturer in

accordance with instructions on the

appropriate ATF form. * * * Tax

returns in Puerto Rico, with remittances,

are filed in accordance with instructions

on the appropriate ATF form.

(b) Cigarette papers and tubes. ***

Such returns, with remittances, are filed

in accordance with the instructions on

the appropriate ATF form. * * *

* * * * *

§ 70.438 [Amended]

Par. 72. Section 70.438 is amended

by:

a. Revising the regulatory reference in

the first sentence from 70.131(b) to

70.431(b); and

b. Removing the second, third and

fourth sentences.

Par. 73. Section 70.471 is revised to

read as follows:

§ 70.471 Rulings.

(a) Requests for rulings. Any person

who is in doubt as to any matter arising

in connection with:

(1) Operations or transactions in the

alcohol tax area or under the Federal

Alcohol Administration Act;

(2) Operations or transactions in the

tobacco tax area; or

(3) The taxes relating to machine

guns, destructive devices, and certain

other firearms imposed by chapter 53 of

the Internal Revenue Code; the

registration by importers and

manufacturers of, and dealers in, such

firearms; the registration of such

firearms; the licensing of importers and

manufacturers of, and dealers in,

firearms and ammunition, and

collectors of firearms and ammunition

curios and relics under chapter 44 of

title 18 of the United States Code; the

licensing of manufacturers, importers,

limited manufacturer of, and dealers in,

explosives and issuance of permits for

users of explosives under chapter 40 of

title 18 of the United States Code; and

registration of importers of, and permits

to import, arms, ammunition, and

implements of war, under section 38 of

the Arms Export Control Act of 1976;

and the taxes relating to pistols,

revolvers, firearms (other than pistols

and revolvers), shells and cartridges

imposed by chapter 32 of the Internal

Revenue Code, may request a ruling

thereon by addressing a letter to the

appropriate ATF official. A ruling can

be issued only from Bureau

Headquarters unless the issues involved

are clearly covered by currently

effective rulings or come within the

plain intent of the statutes or

regulations.

(b) Routine requests for information.

Routine requests for information should

be addressed to the appropriate ATF

officer.

§ 70.481 [Amended]

Par. 74. Paragraph (b)(1) of § 70.481 is

amended by removing the phrase

‘‘entered into by an authorized ATF

official’’.

Par. 75. Section 70.482 is amended

by:

a. Removing paragraphs (d)(1)(ii)

through (v);

b. Redesignating paragraph (d)(1)(vi)

as paragraph (d)(1)(ii);

c. Revising the last sentence of the

redesignated paragraph (d)(1)(ii) and the

introductory text of paragraph (e) and

the undesignated paragraph after

paragrah (e)(3).

(d) Removing the dollar amount

‘‘$500’’ in the undesignated sentence

following paragraph (e)(3) and adding,

in substitution, the words, including the

punctuation, ‘‘$50,000. However, such

compromise shall be subject to

continuing quality review by the

Secretary.’’ The revisions read as

follows:

§ 70.482 Offers in compromise of liabilities

(other than forfeiture) under 26 U.S.C.

* * * * *

(d) * * *

(1) * * *

(ii) * * * When final action has been

taken, the proponent is notified of the

acceptance or rejection of the offer.

* * * * *

(e) Record. Except as otherwise

provided in this paragraph, if an offer in

compromise is accepted, there shall be

placed on file the opinion of counsel for

the Bureau with respect to such

compromise, with the reason therefor,

and including a statement of: * * *

* * * * *

(3) * * *

However, no such opinion shall be

required with respect to the offer in

compromise of any civil case in which

the unpaid amount of tax assessed

(including any interest, additional

amount, addition to the tax, or

assessable penalty is less than $50,000.

However, such compromise shall be

subject to continuing quality review by

the Secretary.

* * * * *

Par. 76. Section 70.483 is revised to

read as follows:

§ 70.483 Offers in compromise of

violations of Federal Alcohol Administration

Act.

The Federal Alcohol Administration

Act provides penalties for violations of

its provisions. The appropriate ATF

officer is authorized to compromise

29030 Federal Register / Vol. 66, No. 103 / Tuesday, May 29, 2001 / Rules and Regulations

such liabilities. Persons desiring to

submit offers in compromise may

submit such offers on Form 5640.2.

When the offer is acted upon, the

proponent is notified of the acceptance

or rejection of the offer. If the offer is

rejected, the sum submitted with the

offer in compromise is returned to the

proponent. If the offer is accepted, the

proponent is notified and the case is

closed.

§ 70.484 [Amended]

Par. 77. Section 70.484 is amended by

removing the words ‘‘Director or

designated delegate’’ each place it

appears and adding, in substitution, the

words ‘‘appropriate ATF officer’’.

Par. 78. The first, third and fourth

sentences of § 70.506 are revised to read

as follows:

§ 70.506 Execution and filing of claim.

Claims to which this subpart is

applicable must be executed on Form

2635 (5620.8) in accordance with the

instructions on the form. * * * Claims

for credit or refund of taxes collected by

district directors of customs, to which

the provisions of section 6423, I.R.C.,

are applicable and which Customs

regulations (19 CFR Part 24—Customs

Financial and Accounting Procedure)

require to be filed with the appropriate

ATF officer, must be executed and filed

in accordance with applicable Customs

regulations and this subpart. The claim

must set forth each ground upon which

the claim is made in sufficient detail to

apprise the appropriate ATF officer of

the exact basis therefor. * * *

* * * * *

§ 70.601 [Amended]

Par. 79. Section 70.601 is amended by

removing the definition of ‘‘Region’’.

Par. 80. Paragraph (a)(1) of § 70.603 is

revised to read as follows:

§ 70.603 Execution and filing of claim.

(a) General. (1) Claims under this

subpart must be filed on Form 2635

(5620.8).

* * * * *

Par. 81. Section 70.701 is amended by

revising paragraph (a)(1) and the last

sentence of paragraph (c) to read as

follows:

§ 70.701 Rules and regulations.

(a) Formulation. (1) Alcohol, tobacco,

firearms, and explosives rules take

various forms. The most important rules

are issued as Treasury decisions,

prescribed by the Director, and

approved by the Secretary. Other rules

may be issued over the signature of the

Director or the signature of any

appropriate ATF officer. The channeling

of rules varies with the circumstances.

Treasury decisions are prepared

within the appropriate ATF offices.

After approval by the Director, Treasury

decisions are forwarded to the Secretary

for further consideration and final

approval.

* * * * *

(c) Petition to change rules. ***

Petitions must be addressed to the

Bureau of Alcohol, Tobacco and

Firearms, Washington, DC 20226.

* * * * *

b. Removing the word ‘‘officials’’ in

the first sentence of paragraph

(d)(2)(i)(A) and adding, in substitution,

the word ‘‘officers’’;

c. Removing the words ‘‘Associate

Director (Compliance Operations) and

adding, in substitution, the words

‘‘appropriate ATF officer’’ in paragraph

(d)(2)(iv)(A);

d. Removing the words ‘‘Assistant

Director’’ each place they appear and

adding, in substitution, the words

‘‘appropriate ATF officer’’ in paragraph

(d)(2)(iv)(B); and

e. Removing the words ‘‘Assistant

Directors’’ and adding, in substitution,

the words ‘‘appropriate ATF officers’’ in

paragraph (d)(2)(iv)(C).

§ 70.801 [Amended]

Par. 82. Section 70.801 is amended by

removing the words ‘‘Chief, Disclosure

Branch’’ and adding, in substitution, the

words ‘‘Bureau of Alcohol, Tobacco and

Firearms’’.

Par. 83. Section 70.802 is amended

by:

a. Removing the words ‘‘in the office

of the regional director (compliance)

who received the offer and in the office

of the Assistant Director (Liaison and

Public Information)’’ and adding, in

substitution, the words ‘‘with the

appropriate ATF officer’’ in the first

sentence of paragraph (a);

b. Removing the words ‘‘operating

permits under 26 U.S.C. 5171, and

industrial use permits under 26 U.S.C.

5271’’ and the commas preceding and

following these words, and removing

the words ‘‘in the offices of regional

director (compliance)’’ in paragraph

(b)(1);

c. Removing paragraph (b)(2);

d. Revising paragraph (c) and the

second, third and fifth sentences of

paragraph (g) to read as follows:

70.802 Rules for disclosure of certain

specified matters.

* * * * *

(c) List of plants and permittees. Upon

request, the appropriate ATF official

shall furnish a list of any type of

qualified proprietor or permittee if the

disclosure is not prohibited by law.

* * * * *

(g) Comments received in response to

a notice of proposed rulemaking. ***

Comments may be inspected in the

Bureau of Alcohol, Tobacco and

Firearms, Washington, DC 20226. The

request to inspect comments must be in

writing and signed by the person

making the request and should be

addressed to the Director, Bureau of

Alcohol, Tobacco and Firearms,

Washington, DC 20226. * * * Copies of

comments (or portions thereof) may be

obtained by a written request addressed

to the Director, Bureau of Alcohol,

Tobacco and Firearms, Washington, DC

20226. * * *

* * * * *

e. Removing the words ‘‘Chief,

Alcohol and Tobacco Programs

Division’’ and adding, in substitution,

the words ‘‘appropriate ATF officer’’

from the first sentence of paragraph (d);

f. Removing the words ‘‘in the office

of regional director (compliance)’’ and

adding, in substitution the words ‘‘from

the appropriate ATF officer’’ in

paragraph (e); and

g. Removing the words ‘‘Deputy

Associate Director (Regulatory

Enforcement)’’ and adding, in

substitution, the words ‘‘appropriate

ATF officer’’ in paragraph (f).

Par. 84. Section 70.803 is amended by

revising the first two sentences of

paragraph (c), paragraph (d), paragraph

(e)(1), paragraph (e)(2), the last sentence

of paragraph (e)(3), paragraphs (e)(4)

and (5), and the first two sentences of

paragraph (f) to read as follows:

§ 70.803 Requests or demands for

disclosure in testimony and in related

matters.

* * * * *

(c) Disclosure of ATF records or

information prohibited without prior

approval of the appropriate ATF officer.

The disclosure, including the

production, of ATF records or

information to any person outside the

Department of the Treasury or to any

court, administrative agency, or other

authority, in response to any request or

demand for the disclosure of such

records or information shall be made

only with the prior approval of the

appropriate ATF officer. However,

nothing in this section restricts the

disclosure of ATF records or

information for which the appropriate

ATF officer has determined that the

disclosure is authorized under any

provision of statute, Executive order, or

regulations, or for which a procedure

has been established by the Director.

***

Federal Register / Vol. 66, No. 103 / Tuesday, May 29, 2001 / Rules and Regulations 29031

(d) Delegation of authority to

determine disclosure and establish

procedures. The appropriate ATF officer

is hereby authorized to determine

whether or not ATF officers and

employees will be permitted to disclose

ATF records or information in response

to:

(1) A request by any court,

administrative agency, or other

authority, or by any person, for the

disclosure of such records or

information; or

(2) A demand for the disclosure of

such records or information.

(3) The Director is also authorized to

establish such other procedures as he or

she may deem necessary with respect to

the disclosure of ATF records or

information by ATF officers and

employees. Any determination by the

appropriate ATF officer as to whether

ATF records or information will be

disclosed, or any procedure established

by the Director in connection therewith,

must be made in accordance with

applicable statutes, Executive orders,

regulations, and any instructions that

may be issued by the Secretary.

Notwithstanding the preceding

provisions of this paragraph, the

appropriate ATF officer shall, where

either the Secretary or such officer

deems it appropriate, refer the opposing

of a request or demand for disclosure of

ATF records or information to the

Secretary.

(e) Procedure in the event of a request

or demand for ATF records or

information—(1) Request procedure.

Any ATF officer or employee who

receives a request for ATF records or

information, the disposition of which is

not covered by a procedure established

by the Director, must promptly

communicate the contents of the request

to the appropriate ATF officer. The

officer or employee must await

instructions from the appropriate ATF

officer concerning the response to the

request. * * *

(2) Demand procedure. Any ATF

officer or employee who is served with

a demand for ATF records or

information, the disposition of which is

not covered by a procedure established

by the Director, must promptly, and

without awaiting appearance before the

court, administrative agency, or other

authority, communicate the contents of

the demand to the appropriate ATF

officer. The ATF officer or employee

must await instructions from the

appropriate ATF officer concerning the

response to the demand. If it is

determined by the appropriate ATF

officer that the demand should be

opposed, the U.S. attorney, his or her

assistant, or other appropriate legal

representative shall be requested to

respectfully inform the court,

administrative agency, or other

authority that the appropriate ATF

officer has instructed the ATF officer or

employee to refuse to disclose the ATF

records or information sought. If

instructions have not been received

from the appropriate ATF officer at the

time when the ATF officer or employee

is required to appear before the court,

administrative agency, or other

authority in response to the demand, the

U.S. attorney, his or her assistant, or

other appropriate legal representative

must be requested to appear with the

ATF officer or employee upon whom

the demand has been served and request

additional time in which to receive such

instructions. In the event the court,

administrative agency, or other

authority rules adversely with respect to

the refusal to disclose the records or

information pursuant to the instructions

of the appropriate ATF officer, or

declines to defer a ruling until

instructions from the appropriate ATF

officer have been received, the ATF

officer or employee upon whom the

demand has been served must, pursuant

to this section, respectfully decline to

disclose the ATF records or information

sought.

(3) Affidavit required for testimony.

* * * The appropriate ATF officer may,

upon request and for good cause shown,

waive the requirement of this paragraph.

(4) Time limit for serving request or

demand. The request or demand,

together with the affidavit or statement

(if required by paragraph (e)(3) of this

section), must be served at least 5

working days prior to the scheduled

date of testimony or disclosure of

records, in order to ensure that the

appropriate ATF officer has adequate

time to consider whether to grant the

request or demand. The appropriate

ATF officer may, upon request and for

good cause shown, waive the

requirement of this paragraph.

(5) Factors to be considered in

determining whether a request or

demand will be granted. The

appropriate ATF officer must consider

whether granting the request or demand

would be appropriate under the relevant

rules of procedure and substantive law

concerning privilege. Among the

requests or demands that will not be

granted are those that would, if granted,

result in—

(i) The violation of a statute, such as

26 U.S.C. 6103 or 7213, or a rule of

procedure, such as the grand jury

secrecy rule (F.R.Cr.P. Rule 6(e)), or a

specific regulation;

(ii) The disclosure of classified

information;

(iii) The disclosure of a confidential

source or informant, unless the ATF

officer or employee and the source or

informant, have no objection;

(iv) The disclosure of investigative

records compiled for law enforcement

purposes if enforcement proceedings

would thereby be impeded, or of

investigative techniques and procedures

whose effectiveness would thereby be

impaired, unless the appropriate ATF

officer determines that the

administration of justice requires

disclosure;

(v) The disclosure of trade secrets

without the owner’s consent; or

(vi) Testimony in a case in which ATF

has no interest, records or other official

information.

(f) State cases. The appropriate ATF

officer, may, in the interest of Federal

and State law enforcement, upon receipt

of demands or requests of State

authorities, and at the expense of the

State, authorize employees under their

supervision to attend trials and

administrative hearings in liquor,

tobacco, firearms, or explosives cases in

which the State is a party or on behalf

of the State in any criminal case, to

produce records, and to testify as to

facts coming to their knowledge in their

official capacities. However, in cases

where a defendant in a criminal case

requests or demands testimony or the

production of ATF records or

information, authorization from the

appropriate ATF officer is required.

***

* * * * *

Signed: April 5, 2001.

Bradley A. Buckles,

Director.

Approved: April 12, 2001.

Timothy E. Skud,

Acting Deputy Assistant Secretary

(Regulatory, Tariff and Trade Enforcement).

[FR Doc. 01–12803 Filed 5–25–01; 8:45 am]

BILLING CODE 4810–31–P

POSTAL SERVICE

39 CFR Part 111

Preparation Changes for Securing

Packages of Mail

AGENCY: Postal Service.

ACTION: Final rule.

SUMMARY: This final rule sets forth

revised Domestic Mail Manual (DMM)

standards that will help ensure packages

of Periodicals and Standard Mail

maintain their integrity during

transportation and postal processing.

This final rule reorganizes DMM M020