30012 Federal Register / Vol. 61, No. 115 / Thursday, June 13, 1996 / Proposed Rules

reveal the identity of a source who

furnished information to the

Government under an express promise

that the identity of the source would be

held in confidence, or, if furnished to

the Government prior to September 27,

1975, under an implied promise that the

identity of the source would be held in

confidence.

(3) Systems of Records ACDA–3—

Security Records. This system contains

investigatory materials compiled solely

for the purpose of determining

suitability, eligibility, or qualifications

for Federal civilian employment,

military service, Federal contracts, or

access to classified information which is

exempt from disclosure by the Act (5

U.S.C. 552a(k)(5)), but only to the extent

that disclosure of such material would

reveal the identity of a source who

furnished information to the

Government under an express promise

that the identity of the source would be

held in confidence, or, if furnished to

the Government prior to September 27,

1975, under an implied promise that the

identity of the source would be held in

confidence.

(b) Nothing in these regulations shall

be construed to allow an individual

access to:

(1) Any information compiled in

reasonable anticipation of a civil action

or proceeding; or

(2) Testing or examination material

used solely to determine individual

qualification for appointment or

promotion in the Federal Service, the

disclosure of which would compromise

the objectivity or fairness of the testing

or examination process.

§ 603.9 New and amended systems of

records.

(a) The Agency shall provide adequate

advance notice to Congress and to the

Office of Management and Budget of

any proposal to establish or alter any

system of records. Such notice shall be

in a form consistent with guidance on

content, format and timing issued by the

Office of Management and Budget.

(b) The Agency shall publish by

August 31 of each year in the Federal

Register a notice of the existence and

character of each system of records

maintained by the Agency. Such notice

shall be consistent with guidance on

format contained in the Act and issued

by the General Services Administration.

At least 30 days before any new or

changed routine use of records

contained within a system of records

can be made, the Agency shall publish

notice of such new or changed use in

the Federal Register.

§ 603.10 Fees.

Fees to be charged in responding to

requests under the Privacy Act shall be,

to the extent permitted by paragraph

(f)(5) of the Act, the rates established in

title 22 CFR 602.20 for responding to

requests under the Freedom of

Information Act.

Dated: May 30, 1996.

Mary Elizabeth Hoinkes,

General Counsel.

[FR Doc. 96–15027 Filed 6–12–96; 8:45 am]

BILLING CODE 6820–32–M

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[GL–007–96]

RIN 1545–AU13

Sale of Seized Property

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document contains

proposed regulations relating to the sale

of seized property. The proposed

regulations reflect changes concerning

the setting of a minimum price for

seized property by the Tax Reform Act

of 1986. The proposed regulations affect

all sales of seized property.

DATES: Written comments and requests

for a public hearing must be received by

September 11, 1996.

ADDRESSES: Send submissions to:

CC:DOM:CORP:R (GL–007–96), room

5228, Internal Revenue Service, POB

7604, Ben Franklin Station, Washington,

DC 20044. In the alternative,

submissions may be hand delivered to:

CC:DOM:CORP:R (GL–007–96), room

5228, Internal Revenue Service, 1111

Constitution Avenue NW., Washington,

DC.

FOR FURTHER INFORMATION CONTACT:

Concerning the regulations, Kevin B.

Connelly, (202) 622–3640 (not a toll-free

number).

SUPPLEMENTARY INFORMATION:

Background

This document contains proposed

amendments to the Procedure and

Administration Regulations (26 CFR

part 301) relating to the sale of seized

property under section 6335 of the

Internal Revenue Code (Code). The Tax

Reform Act of 1986 amended section

6335(e), relating to the manner and

conditions of sale, to authorize the

Secretary to determine whether it would

be in the best interest of the United

States to buy seized property at the

minimum price set by the Secretary.

These proposed regulations reflect this

change.

Explanation of Provisions

Section 1570 of the Tax Reform Act of

1986 amended section 6335(e) of the

Code to require the Secretary to

determine before the sale of seized

property whether it would be in the best

interest of the United States to purchase

such property at the minimum price set

by the Secretary. The best interest

determination is to be based on criteria

prescribed by the Secretary. If, at the

sale, one or more persons offer at least

the minimum price, the property shall

be sold to the highest bidder. If no one

offers at least the minimum price and

the Secretary has determined that it

would be in the best interest of the

United States to purchase the property

for the minimum price, the property

will be declared sold to the United

States for the minimum price. If no one

offers the minimum price and the

Secretary has not determined that it

would be in the best interest of the

United States to purchase the property

for the minimum price, the property

shall be released to the owner of the

property and the expense of the levy

and sale shall be added to the amount

of tax for the collection of which the

United States made the levy. Any

property released shall remain subject to

any lien imposed by subchapter C of

chapter 64 of subtitle F of the Code.

The proposed regulations reflect the

changes made by the Tax Reform Act of

1986. The regulations propose to

authorize district directors to make the

required determination whether it

would be in the best interest of the

United States to purchase seized

property for the minimum price. In

addition, the regulations propose to set

forth factors the district director may

consider when determining the best

interest of the United States. The district

director may consider all relevant facts

and circumstances including for

example: (1) marketability of the

property; (2) cost of maintaining the

property; (3) cost of repairing or

restoring the property; (4) cost of

transporting the property; (5) cost of

safeguarding the property; (6) cost of

potential toxic waste cleanup; and (7)

other factors pertinent to the type of

property.

Special Analyses

It has been determined that this notice

of proposed rulemaking is not a

significant regulatory action as defined

in EO 12866. Therefore, a regulatory
Federal Register / Vol. 61, No. 115 / Thursday, June 13, 1996 / Proposed Rules 30013

assessment is not required. It also has

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, this notice of proposed

rulemaking will be submitted to the

Chief Counsel for Advocacy of the Small

Business Administration for comment

on its impact on small business.

Comments and Requests for a Public

Hearing

Before these proposed regulations are

adopted as final regulations,

consideration will be given to any

written comments that are submitted

timely (preferably a signed original and

eight (8) copies) to the IRS. All

comments will be available for public

inspection and copying. A public

hearing may be scheduled if requested

in writing by a person that timely

submits written comments. If a public

hearing is scheduled, notice of the date,

time, and place for the hearing will be

published in the Federal Register.

Drafting Information: The principal author

of these regulations is Kevin B. Connelly,

Office of Assistant Chief Counsel (General

Litigation) CC:EL:GL, IRS. However, other

personnel from the IRS and Treasury

Department participated in their

development.

List of Subjects in 26 CFR Part 301

Employment taxes, Estate taxes,

Excise taxes, Gift taxes, Income taxes,

Penalties, Reporting and recordkeeping

requirements.

Proposed Amendments to the

Regulations

Accordingly, 26 CFR part 301 is

proposed to be amended as follows:

PART 301—PROCEDURE AND

ADMINISTRATION

Paragraph 1. The authority citation

for part 301 continues to read in part as

follows:

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

Par. 2. Section 301.6335–1 is

amended as follows:

1. Paragraph (c)(3) is revised.

2. Paragraphs (c)(4) through (c)(9) are

redesignated as paragraphs (c)(5)

through (c)(10).

3. New paragraph (c)(4) is added.

The additions and revision read as

follows:

§ 301.6335–1 Sale of seized property.

* * * * *

(c) * * *

(3) Determinations relating to

minimum price—(i) Minimum price.

Before the sale of property seized by

levy, the district director shall

determine a minimum price, taking into

account the expenses of levy and sale,

for which the property shall be sold.

The internal revenue officer conducting

the sale may either announce the

minimum price before the sale begins,

or defer announcement of the minimum

price until after the receipt of the

highest bid, in which case, if the highest

bid is greater than the minimum price,

no announcement of the minimum price

shall be made.

(ii) Purchase by the United States.

Before the sale of property seized by

levy, the district director shall

determine whether the purchase of

property by the United States at the

minimum price would be in the best

interest of the United States. In

determining whether the purchase of

property would be in the best interest of

the United States, the district director

may consider all relevant facts and

circumstances including for example—

(a) Marketability of the property;

(b) Cost of maintaining the property;

(c) Cost of repairing or restoring the

property;

(d) Cost of transporting the property;

(e) Cost of safeguarding the property;

(f) Cost of potential toxic waste

cleanup; and

(g) Other factors pertinent to the type

of property.

(iii) Effective date. This paragraph

(c)(3) applies to determinations relating

to minimum price made on or after [date

final regulations are published in the

Federal Register].

(4) Disposition of property at sale—(i)

Sale to highest bidder at or above

minimum price. If one or more persons

offer to buy the property for at least the

amount of the minimum price, the

property shall be sold to the highest

bidder.

(ii) Property deemed sold to United

States at minimum price. If no one

offers at least the amount of the

minimum price for the property and the

Secretary has determined that it would

be in the best interest of the United

States to purchase the property for the

minimum price, the property shall be

declared to be sold to the United States

for the minimum price.

(iii) Release to owner. If the property

is not declared to be sold under

paragraph (c)(4)(i) or (ii) of this section,

the property shall be released to the

owner of the property and the expense

of the levy and sale shall be added to

the amount of tax for the collection of

which the United States made the levy.

Any property released under this

paragraph (c)(4)(iii) shall remain subject

to any lien imposed by subchapter C of

chapter 64 of subtitle F of the Internal

Revenue Code.

(iv) Effective date. This paragraph

(c)(4) applies to dispositions of property

at sale made on or after [date final

regulations are published in the Federal

Register].

* * * * *

Margaret Milner Richardson,

Commissioner of Internal Revenue.

[FR Doc. 96–14123 Filed 6–12–96; 8:45 am]

BILLING CODE 4830–01–U

Bureau of Alcohol, Tobacco and

Firearms

27 CFR Parts 0 and 70

[Notice No. 824]

RIN 1512–AB54

Recodification of the Statement of

Procedural Rules in Part 70 (96R–007P)

AGENCY: Bureau of Alcohol, Tobacco

and Firearms (ATF), Department of the

Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: As part of a regulatory reform

initiative, the Bureau of Alcohol,

Tobacco and Firearms (ATF) is

proposing to revise the statement of

procedural rules in subpart E of 27 CFR

Part 70, and recodify this statement as

a new part 0 of 27 CFR. ATF solicits

comments on its proposals and

suggestions for further improvements in

the statement of procedural rules.

DATES: Written comments must be

received by August 12, 1996.

ADDRESSES: Send written comments to:

Chief, Wine, Beer and Spirits

Regulations Branch, Bureau of Alcohol,

Tobacco and Firearms, P.O. Box 50221,

Washington, DC 20091–0221, Attn:

Notice No. 824. Copies of written

comments received in response to this

notice of proposed rulemaking will be

available for public inspection during

normal business hours at: ATF

Reference Library, Office of Public

Affairs and Disclosure, Room 6480, 650

Massachusetts Avenue, NW,

Washington, DC 20226.

FOR FURTHER INFORMATION CONTACT:

Marjorie D. Ruhf, Wine, Beer and Spirits

Regulations Branch, Bureau of Alcohol,

Tobacco and Firearms, 650

Massachusetts Avenue, NW.,

Washington, DC 20226 (202–927–8230).