6 Federal Register / Vol. 61, No. 1 / Tuesday, January 2, 1996 / Rules and Regulations

Dated: December 22, 1995.

Stephen F. Sundlof,

Director, Center for Veterinary Madicine.

[FR Doc. 95–31556 Filed 12–29–95; 8:45 am]

BILLING CODE 4160–01–F

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

[TD 8652]

RIN 1545–AT06

Cash Reporting by Court Clerks

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final regulations.

SUMMARY: This document contains final

regulations concerning the information

reporting requirements of Federal and

State court clerks upon receipt of more

than $10,000 in cash as bail for any

individual charged with a specified

criminal offense. The final regulations

reflect changes to the law made by the

Violent Crime Control and Law

Enforcement Act of 1994, and affect

court clerks who receive more than

$10,000 in cash as bail.

EFFECTIVE DATE: These regulations are

effective February 13, 1995.

FOR FURTHER INFORMATION CONTACT:

Susie K. Bird, (202) 622–4960 (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. 3507) under

control number 1545–1449. Responses

to this collection of information are

required to implement the statutory

requirements of section 6050I(g).

An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless the collection of information

displays a valid control number.

The time estimates for the reporting

requirements contained in this

regulation are reflected in the burden

estimates for Form 8300.

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, T: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.

Books and records relating to this

collection of information must be

retained as long as their contents may

become material in the administration

of any internal revenue law. Generally,

tax returns and tax return information

are confidential, as required by 26

U.S.C. 6103.

Background

This document provides final Income

Tax Regulations (26 CFR parts 1 and

602) under section 6050I(g) of the

Internal Revenue Code of 1986 (Code).

This provision was added by section

20415 of the Violent Crime Control and

Law Enforcement Act of 1994 (the Act)

(Public Law 103–322).

On December 15, 1994, the IRS

published in the Federal Register

temporary regulations (TD 8572, 59 FR

64572) with a cross-reference to a notice

of proposed rulemaking (IA–57–94, 59

FR 64635).

Written comments responding to the

notice were received. No public hearing

was requested or held. After

consideration of all comments, the

proposed regulations are adopted as

revised by this Treasury decision, and

the corresponding temporary

regulations are removed.

Explanation of Revisions and Summary

of Comments

Under the temporary and proposed

regulations, reporting may be required

when more than $10,000 in cash is

received as bail by a clerk of a Federal

or State court. The temporary and

proposed regulations provide that a

clerk is the clerk’s office or the office,

department, division, branch, or unit of

the court that is authorized to receive

bail. One commentator suggested that

the regulations clarify whether reporting

under section 6050I(g) is required by a

clerk if an entity that is not a part of the

court receives bail. In some

jurisdictions, for example, a sheriff

receives bail. The final regulations

provide that if someone other than a

clerk receives bail on behalf of a clerk,

the clerk is treated as receiving the bail.

Thus, the clerk must make the return of

information if the other requirements of

section 6050I(g) are satisfied.

Under the temporary and proposed

regulations, a statement must be sent to

each payor of bail reporting certain

information, including the ‘‘aggregate

amount of reportable cash received

during the calendar year by the clerk

who made the information return

required by [section 6050I(g)] in all cash

transactions relating to the payor of

bail.’’ The temporary and proposed

regulations reflect the statutory

requirement in section 6050I(g)(5)(B)

that clerks provide the aggregate amount

of reportable cash. A commentator

asked whether separately reported

amounts satisfy this aggregate amount

requirement. The final regulations

clarify that the aggregate amount

requirement can be satisfied either by

sending a single written statement with

an aggregate amount listed or by

furnishing a copy of each Form 8300

relating to that payor of bail.

In addition, the final regulations

clarify that, if multiple payments are

made to satisfy bail reportable under

this section and the initial payment

does not exceed $10,000, the initial

payment and subsequent payments

must be aggregated and the information

return required by section 6050I(g) must

be filed by the 15th day after receipt of

the payment that causes the aggregate

amount to exceed $10,000. However,

payments made to satisfy separate bail

requirements are not required to be

aggregated.

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 Chief Counsel for

Advocacy of the Small Business

Administration for comment on their

impact on small businesses.

Drafting Information

The principal author of these

regulations is Susie K. Bird, Office of

Assistant Chief Counsel (Income Tax

and Accounting). 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.
Federal Register / Vol. 61, No. 1 / Tuesday, January 2, 1996 / Rules and Regulations 7

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 removing the

entry for § 1.6050I–2T and adding an

entry in numerical order to read as

follows:

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

Section 1.6050I–2 also issued under 26

U.S.C. 6050I. * * *

§§ 1.6050I–0T and 1.6050I–2T [Removed]

Par. 2. Sections 1.6050I–0T and

1.6050I–2T are removed.

Par. 3. Sections 1.6050I–0 and

1.6050I–2 are added to read as follows:

§ 1.6050I–0 Table of contents.

This section lists the major captions

that appear in §§ 1.6050I–1 and 1.6050I–

2.

§ 1.6050I–1 Returns relating to cash in

excess of $10,000 received in a trade or

business.

(a) Reporting requirement.

(1) In general.

(2) Cash received for the account of

another.

(3) Cash received by agents.

(i) General rule.

(ii) Exception.

(iii) Example.

(b) Multiple payments.

(1) Initial payment in excess of $10,000.

(2) Initial payment of $10,000 or less.

(3) Subsequent payments.

(4) Example.

(c) Meaning of terms.

(1) Cash.

(i) Amounts received prior to February 3,

1992.

(ii) Amounts received on or after February

3, 1992.

(iii) Designated reporting transaction.

(iv) Exception for certain loans.

(v) Exception for certain installment sales.

(vi) Exception for certain down payment

plans.

(vii) Examples.

(2) Consumer durable.

(3) Collectible.

(4) Travel or entertainment activity.

(5) Retail sale.

(6) Trade or business.

(7) Transaction.

(8) Recipient.

(d) Exceptions to the reporting

requirements of section 6050I.

(1) Receipt of cash by certain financial

institutions.

(2) Receipt of cash by certain casinos

having gross annual gaming revenue in

excess of $1,000,000.

(i) In general.

(ii) Casinos exempt under 31 CFR

103.45(c).

(iii) Reporting of cash received in a

nongaming business.

(iv) Example.

(3) Receipt of cash not in the course of the

recipient’s trade or business.

(4) Receipt is made with respect to a

foreign cash transaction.

(i) In general.

(ii) Example.

(e) Time, manner, and form of reporting.

(1) Time of reporting.

(2) Form of reporting.

(3) Manner of reporting.

(i) Where to file.

(ii) Verification.

(iii) Retention of returns.

(f) Requirement of furnishing statements.

(1) In general.

(2) Form of statement.

(3) When statement is to be furnished.

(g) Cross-reference to penalty provisions.

(1) Failure to file correct information

return.

(2) Failure to furnish correct statement.

(3) Criminal penalties.

§ 1.6050I–2 Returns relating to cash in

excess of $10,000 received as bail by court

clerks.

(a) Reporting requirement.

(b) Meaning of terms.

(c) Time, form, and manner of reporting.

(1) Time of reporting.

(i) In general.

(ii) Multiple payments.

(2) Form of reporting.

(3) Manner of reporting.

(i) Where to file.

(ii) Verification of identity.

(d) Requirement to furnish statements.

(1) Information to Federal prosecutors.

(i) In general.

(ii) Form of statement.

(2) Information to payors of bail.

(i) In general.

(ii) Form of statement.

(iii) Aggregate amount.

(e) Cross-reference to penalty provisions.

(f) Effective date.

§ 1.6050I–2 Returns relating to cash in

excess of $10,000 received as bail by court

clerks.

(a) Reporting requirement. Any clerk

of a Federal or State court who receives

more than $10,000 in cash as bail for

any individual charged with a specified

criminal offense must make a return of

information with respect to that cash

receipt. For purposes of this section, a

clerk is the clerk’s office or the office,

department, division, branch, or unit of

the court that is authorized to receive

bail. If someone other than a clerk

receives bail on behalf of a clerk, the

clerk is treated as receiving the bail for

purposes of this paragraph (a).

(b) Meaning of terms. The following

definitions apply for purposes of this

section—

Cash means—

(1) The coin and currency of the

United States, or of any other country,

that circulate in and are customarily

used and accepted as money in the

country in which issued; and

(2) A cashier’s check (by whatever

name called, including treasurer’s check

and bank check), bank draft, traveler’s

check, or money order having a face

amount of not more than $10,000.

Specified criminal offense means—

(1) A Federal criminal offense

involving a controlled substance (as

defined in section 802 of title 21 of the

United States Code), provided the

offense is described in Part D of

Subchapter I or Subchapter II of title 21

of the United States Code;

(2) Racketeering (as defined in section

1951, 1952, or 1955 of title 18 of the

United States Code);

(3) Money laundering (as defined in

section 1956 or 1957 of title 18 of the

United States Code); and

(4) Any State criminal offense

substantially similar to an offense

described in this paragraph (b).

(c) Time, form, and manner of

reporting—(1) Time of reporting—(i) In

general. The information return

required by this section must be filed

with the Internal Revenue Service by

the 15th day after the date the cash bail

is received.

(ii) Multiple payments. If multiple

payments are made to satisfy bail

reportable under this section and the

initial payment does not exceed

$10,000, the initial payment and

subsequent payments must be

aggregated and the information return

required by this section must be filed

with the Internal Revenue Service by

the 15th day after receipt of the payment

that causes the aggregate amount to

exceed $10,000. However, if payments

are made to satisfy separate bail

requirements, no aggregation is

required. Thus, if in Month 1 a clerk

receives $6,000 in bail for an individual

charged with a specified criminal

offense and later, in Month 2, receives

$7,000 in bail for that same individual

charged with another specified criminal

offense, no aggregation is required.

(2) Form of reporting. The return of

information required by paragraph (a) of

this section must be made on Form 8300

and must contain the following

information—

(i) The name, address, and taxpayer

identification number (TIN) of the

individual charged with the specified

criminal offense;

(ii) The name, address, and TIN of

each person posting the bail (payor of

bail), other than a person posting bail

who is licensed as a bail bondsman in

the jurisdiction in which the bail is

received;

(iii) The amount of cash received;

(iv) The date the cash was received;

and
8 Federal Register / Vol. 61, No. 1 / Tuesday, January 2, 1996 / Rules and Regulations

(v) Any other information required by

Form 8300 or its instructions.

(3) Manner of reporting—(i) Where to

file. Returns required by this section

must be filed with the Internal Revenue

Service office designated in the

instructions for Form 8300. A copy of

the information return required to be

filed under this section must be retained

for five years from the date of filing.

(ii) Verification of identity. A clerk

required to make an information return

under this section must, in accordance

with § 1.6050I–1(e)(3)(ii), verify the

identity of each payor of bail listed in

the return.

(d) Requirement to furnish

statements—(1) Information to Federal

prosecutors—(i) In general. A clerk

required to make an information return

under this section must furnish a

written statement to the United States

Attorney for the jurisdiction in which

the individual charged with the

specified crime resides and the United

States Attorney for the jurisdiction in

which the specified criminal offense

occurred (applicable United States

Attorney(s)). The written statement

must be filed with the applicable United

States Attorney(s) by the 15th day after

the date the cash bail is received.

(ii) Form of statement. The written

statement must include the information

required by paragraph (c)(2) of this

section. The requirement of this

paragraph (d)(1)(ii) will be satisfied if

the clerk provides to the applicable

United States Attorney(s) a copy of the

Form 8300 that is filed with the Internal

Revenue Service pursuant to this

section.

(2) Information to payors of bail—(i)

In general. A clerk required to make an

information return under this section

must furnish a written statement to each

payor of bail whose name is set forth in

a return required by this section. A

statement required under this paragraph

(d)(2) must be furnished to a payor of

bail on or before January 31 of the year

following the calendar year in which the

cash is received. A statement will be

considered furnished to a payor of bail

if it is mailed to the payor’s last known

address.

(ii) Form of statement. The statement

required by this paragraph (d)(2) need

not follow any particular format, but

must contain the following

information—

(A) The name and address of the

clerk’s office making the return;

(B) The aggregate amount of

reportable cash received during the

calendar year by the clerk who made the

information return required by this

section in all cash transactions relating

to the payor of bail; and

(C) A legend stating that the

information contained in the statement

has been reported to the Internal

Revenue Service and the applicable

United States Attorney(s).

(iii) Aggregate amount. The

requirement of furnishing the aggregate

amount in paragraph (d)(2)(ii)(B) of this

section will be satisfied if the clerk

provides to the payor of bail either a

single written statement listing the

aggregate amount, or a copy of each

Form 8300 relating to that payor of bail.

(e) Cross-reference to penalty

provisions. See sections 6721 through

6724 for penalties relating to the failure

to comply with the provisions of this

section.

(f) Effective date. This section applies

to cash received by court clerks on or

after February 13, 1995.

PART 602—OMB CONTROL NUMBERS

UNDER THE PAPERWORK

REDUCTION ACT

Par. 4. The authority citation for part

602 continues to read as follows:

Authority: 26 U.S.C. 7805.

§ 602.101 [Amended]

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

amended by removing the entry

‘‘1.6050I–2T’’ from the table and adding

the entry ‘‘1.6050I–2 ......1545–1449’’ in

numerical order in the table.

Margaret Milner Richardson,

Commissioner of Internal Revenue.

Approved: December 12, 1995.

Leslie Samuels,

Assistant Secretary of the Treasury.

[FR Doc. 95–31459 Filed 12–29–95; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Subchapter D and Part 81

[CGD 95–053]

RIN 2115–AF16

Removal of 72 COLREGS Text From

CFR and Revision of Subchapter D

Note

AGENCY: Coast Guard, DOT.

ACTION: Direct final rule.

SUMMARY: In furtherance of the

President’s Regulatory Reinvention

Initiative by this direct final rule, the

Coast Guard is removing the text of the

International Regulations for Preventing

Collisions at Sea, 1972 (72 COLREGS)

from the CFR. That text merely

duplicates text found in the United

States Code. This rule also will update

the note containing a list of U.S.

territories and possessions where the 72

COLREGS apply. This rulemaking

represents the Coast Guard’s first use of

direct final rulemaking as recommended

to agencies by the National Performance

Review.

DATES: This rule is effective on April 1,

1996, unless the Coast Guard receives

written adverse comments or written

notice of intent to submit adverse

comments on or before March 4, 1996.

ADDRESSES: Comments may be mailed to

the Executive Secretary, Marine Safety

Council (G–LRA/3406) (CGD 95–053),

U.S. Coast Guard Headquarters, 2100

Second Street SW., Washington, DC

20593–0001, or may be delivered to

room 3406 at the same address between

8 a.m. and 3 p.m., Monday through

Friday, except Federal holidays. The

telephone number is (202) 267–1477.

The Executive Secretary maintains the

public docket for this rulemaking.

Comments will become part of this

docket and will be available for

inspection or copying at room 3406,

U.S. Coast Guard Headquarters, between

8 a.m. and 3 p.m., Monday through

Friday, except Federal holidays.

FOR FURTHER INFORMATION CONTACT:

Diane Schneider Appleby, Project

Manager, at (202) 267–0352.

SUPPLEMENTARY INFORMATION:

Request for Comments

Any comments must identify the

names and address of the person

submitting the comment, specify the

rulemaking docket (CGD 95–053) and

the specific section of this rule to which

each comment applies, and give the

reason for each specific comment.

Please submit two copies of all

comments and attachments in an

unbound format, no larger than 81⁄2 by

11 inches, suitable for copying and

electronic filing. Persons wanting

acknowledgment of receipt of comments

should enclose stamped, self-addressed

postcards or envelopes.

Regulatory Information

The Coast Guard is publishing a direct

final rule, the procedures of which are

outlined in 33 CFR 1.05–55, because no

adverse comments are anticipated. If no

adverse comments or any written notice

of intent to submit adverse comments

are received within the specified

comment period, the rule will become

effective as stated in the DATES section.

In that case, prior to the effective date,

the Coast Guard will publish a notice in

the Federal Register stating that no

adverse comment was received and

confirming that the rule will become