64740 Federal Register / Vol. 66, No. 241 / Friday, December 14, 2001 / Rules and Regulations

17064–101, 17064–102, 17064–103, or

17064–104.

Note 1: This AD applies to each airplane

identified in the preceding applicability

provision, regardless of whether it has been

modified, altered, or repaired in the area

subject to the requirements of this AD. For

airplanes that have been modified, altered, or

repaired so that the performance of the

requirements of this AD is affected, the

owner/operator must request approval for an

alternative method of compliance in

accordance with paragraph (g) of this AD.

The request should include an assessment of

the effect of the modification, alteration, or

repair on the unsafe condition addressed by

this AD; and, if the unsafe condition has not

been eliminated, the request should include

specific proposed actions to address it.

Compliance: Required as indicated, unless

accomplished previously.

To prevent failure of MLG main fitting,

which could result in collapse of the MLG

upon landing, accomplish the following:

Inspection and Replacement

(a) Prior to the accumulation of 1,500 total

flight cycles, or within 150 flight cycles after

December 4, 2001, the effective date of this

AD, whichever occurs later: Perform an eddy

current inspection to detect cracking of the

MLG main fittings, in accordance with Part

B of the Accomplishment Instructions of

Bombardier Alert Service Bulletin A601R–

32–079, Revision D, dated December 1, 2000.

If any cracking is found, prior to further

flight, replace the cracked fitting with a new

or serviceable fitting in accordance with the

alert service bulletin. Repeat the inspection

thereafter at intervals not to exceed 500 flight

cycles.

Servicing the Shock Struts

(b) Prior to the accumulation of 1,500 total

flight cycles since the date of manufacture, or

within 500 flight cycles after the effective

date of this AD, whichever occurs later:

Perform a servicing (Oil and Nitrogen) of the

MLG shock struts (left and right main landing

shock struts), in accordance with Part C (for

airplanes on the ground) or Part D (for

airplanes on jacks) of the Accomplishment

Instructions of Bombardier Alert Service

Bulletin A601R–32–079, Revision D, dated

December 1, 2000.

Other Inspections

(c) Within 500 flight cycles after

completing the actions required by paragraph

(b) of this AD: Perform an inspection of the

MLG left and right shock struts for nitrogen

pressure, visible chrome dimension, and oil

leakage, in accordance with Part E of the

Accomplishment Instructions of Bombardier

Alert Service Bulletin A601R–32–079,

Revision D, dated December 1, 2000.

Thereafter, repeat the inspection at intervals

not to exceed 500 flight cycles.

Corrective Actions for Certain Inspections

(d) If the chrome extension dimension of

the shock strut pressure reading is outside

the limits specified in the Airplane

Maintenance Manual, Task 32–11–05–220–

801, or any oil leakage is found: Prior to

further flight, service the MLG shock strut in

accordance with Part C (for airplanes on the

ground) or Part D (for airplanes on jacks) of

the Accomplishment Instructions of

Bombardier Alert Service Bulletin A601R–

32–079, Revision D, dated December 1, 2000.

Extension of the Repetitive Interval

(e) After the effective date of this AD: After

a total of five consecutive inspections of the

MLG shock struts that verify that the shock

struts are serviced properly, and a total of

five consecutive eddy current inspections of

the MLG main fitting has been accomplished

that verify there is no cracking of the main

fitting, in accordance with Bombardier Alert

Service Bulletin A601R–32–079, Revision D,

dated December 1, 2000, the repetitive

interval for the eddy current inspections

required by paragraph (a) of this AD may be

extended from every 500 flight cycles to

every 1,000 flight cycles.

Reporting Requirement

(f) Within 30 days after each inspection

and servicing required by paragraphs (a), (b),

and (c) of this AD, report all findings,

positive or negative, to: Bombardier

Aerospace, Regional Aircraft, CRJ Action

Desk, fax number 514–855–8501. Information

collection requirements contained in this AD

have been approved by the Office of

Management and Budget (OMB) under the

provisions of the Paperwork Reduction Act of

1980 (44 U.S.C. 3501 et seq.) and have been

assigned OMB Control Number 2120–0056.

Alternative Methods of Compliance

(g) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager, New York

Aircraft Certification Office (ACO), FAA.

Operators shall submit their requests through

an appropriate FAA Principal Maintenance

Inspector, who may add comments and then

send it to the Manager, New York ACO.

Note 2: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the New York ACO.

Special Flight Permits

(h) Special flight permits may be issued in

accordance with sections 21.197 and 21.199

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the airplane to

a location where the requirements of this AD

can be accomplished.

Incorporation by Reference

(i) The actions shall be done in accordance

with Bombardier Alert Service Bulletin

A601R–32–079, Revision D, dated December

1, 2000. This incorporation by reference was

approved previously by the Director of the

Federal Register as of December 4, 2001 (66

FR 54658, October 30, 2001). Copies may be

obtained from Bombardier, Inc., Canadair,

Aerospace Group, P.O. Box 6087, Station

Centre-ville, Montreal, Quebec H3C 3G9,

Canada. Copies may be inspected at the FAA,

Transport Airplane Directorate, 1601 Lind

Avenue, SW., Renton, Washington; or at the

FAA, New York Aircraft Certification Office,

10 Fifth Street, Third Floor, Valley Stream,

New York; or at the Office of the Federal

Register, 800 North Capitol Street, NW., suite

700, Washington, DC.

Note 3: The subject of this AD is addressed

in Canadian airworthiness directive CF–

1999–32R1, dated January 22, 2001.

Effective Date

(j) The effective date of this amendment

remains December 4, 2001.

Issued in Renton, Washington, on

December 7, 2001.

Kalene C. Yanamura,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 01–30863 Filed 12–13–01; 8:45 am]

BILLING CODE 4910–13–U

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 8969]

RIN 1545–AW37

Payment by Credit Card and Debit

Card

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final regulations and removal of

temporary regulations.

SUMMARY: This document contains final

regulations authorizing the

Commissioner to accept payment of

internal revenue taxes by credit card or

debit card and limit the use and

disclosure of information relating to

payment of taxes by credit card and

debit card. Additionally, the final

regulations provide that payments of tax

by check or money order should be

made payable to the United States

Treasury. The final regulations reflect

changes to the law made by the

Taxpayer Relief Act of 1997 and affect

persons who pay their tax liabilities by

credit card, debit card, check, or money

order.

DATES: Effective Date: These final

regulations are effective December 14,

2001.

Applicability Date: For dates of

applicability, see § 301.6311–2(h).

FOR FURTHER INFORMATION CONTACT:

Brinton Warren, (202) 622–4940 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Background

This document contains final

regulations amending the Procedure and

Administration Regulations (26 CFR

part 301) under sections 6103 and 6311

of the Internal Revenue Code (Code).

The final regulations reflect the

Federal Register / Vol. 66, No. 241 / Friday, December 14, 2001 / Rules and Regulations 64741

amendment of sections 6103 and 6311

by section 1205 of the Taxpayer Relief

Act of 1997, Public Law 105–34 (111

Stat. 788) (TRA 1997); section 4003(k) of

the Tax and Trade Relief Extension Act

of 1998, Public Law 105–277 (112 Stat.

2681) (TREA 1998); and section 3703 of

the Internal Revenue Service

Restructuring and Reform Act of 1998,

Public Law 105–206 (112 Stat. 685)

(RRA 1998).

On December 15, 1998, the IRS and

Treasury published temporary

regulations (TD 8793) in the Federal

Register (63 FR 68995). A notice of

proposed rulemaking (REG–111435–98)

cross-referencing the temporary

regulations was published on the same

day in the Federal Register (63 FR

69031). (References herein to the

proposed regulations shall be to the

temporary regulations.) No public

hearing was requested or held. Two

written comment letters were received.

After consideration of the comments,

the proposed regulations are adopted as

revised by this Treasury decision, and

the corresponding temporary

regulations are removed. The comments

and revisions are discussed below.

Explanation of Provisions

Section 301.6311–1 currently

provides that checks or money orders

should be made payable to the Internal

Revenue Service. Section 3703 of RRA

1998 states that the Secretary of the

Treasury shall establish such rules,

regulations, and procedures as are

necessary to allow payment of taxes by

check or money order payable to the

United States Treasury. The amendment

to § 301.6311–1 accordingly provides

that checks and money orders should be

made payable to the United States

Treasury.

As amended by section 1205 of TRA

1997, section 6311(a) provides that it

shall be lawful for the Secretary of the

Treasury to receive payment for internal

revenue taxes by any commercially

acceptable means that the Secretary

deems appropriate, to the extent and

under the conditions provided in

regulations prescribed by the Secretary.

The legislative history accompanying

TRA 1997 explains that commercially

acceptable means include ‘‘electronic

funds transfers, including those arising

from credit cards, debit cards, and

charge cards.’’ H.R. Conf. Rep. No. 105–

220, at 652 (1997). The current

regulations under § 301.6311–1 permit

payment of taxes by checks, drafts

drawn on financial institutions, or

money orders. The final regulations add

payments by credit cards (which

includes charge cards) and debit cards

to the acceptable methods of payment

under section 6311. Section 6302 and

the regulations thereunder remain the

authority for forms of payment by

electronic funds transfer other than

payment by credit card or debit card.

Only credit cards or debit cards

approved by the Commissioner may be

used for payment of internal revenue

taxes under section 6311, only the types

of tax liabilities specified by the

Commissioner may be paid by credit

card or debit card, and all such

payments must be made in the manner

and in accordance with the forms,

instructions, and procedures prescribed

by the Commissioner. The

Commissioner has entered into

contracts with third party service

providers who will process the credit

and debit card transactions. The

Commissioner may not impose any fee

on persons making payment of taxes by

credit card or debit card. However, other

persons participating in the program,

including third party service providers

who process credit or debit card

transactions, are not prohibited from

charging fees.

The final regulations provide, as

required by section 6311(d)(3), that the

payment of taxes by credit card or debit

card is subject to the error resolution

procedures of section 161 of the Truth

in Lending Act (TILA) (15 U.S.C. 1666),

section 908 of the Electronic Fund

Transfer Act (EFTA) (15 U.S.C. 1693f),

or any similar provisions of state or

local law. The payment, however, is

subject to the error resolution

procedures of these statutes only for the

purpose of resolving errors relating to

the credit card or debit card account,

and not for the purpose of resolving any

errors, disputes, or adjustments relating

to the underlying tax liability. These

provisions ensure that any disputes

concerning the merits of the tax liability

will be resolved in the traditional

administrative and judicial forums (e.g.,

by filing a petition in Tax Court or by

paying the disputed tax and filing a

claim for refund), and will not be raised

in any dispute with the card issuer,

financial institution, or other person

participating in the credit card or debit

card transaction.

As authorized by section

6311(d)(3)(E), the final regulations

permit the Commissioner to return

funds erroneously received due to errors

relating to the credit card or debit card

account by arranging for a credit to the

taxpayer’s account with the issuer of the

credit card or debit card or other

appropriate financial institution or

person. Returns of funds through credit

card or debit card account credits,

however, are available only to correct

errors relating to the credit card or debit

card account, and not to refund

overpayments of taxes.

The final regulations also provide the

procedures required under sections

6103(k)(9) and 6311(e) with respect to

the use and disclosure of information

relating to payment of taxes by credit

card and debit card. Section 1205(c)(1)

of TRA 1997 (as amended by section

6012(b)(2) of RRA 1998) added section

6103(k)(9), which authorizes the IRS to

disclose returns and return information

to financial institutions and others to

the extent necessary for the

administration of section 6311. Section

6103(k)(9) further provides that

disclosures of information for purposes

other than to accept payments by check

or money order (for example, to accept

payment by credit card or debit card)

shall be made only to the extent

authorized by written procedures

promulgated by the Secretary. Section

6311(e) provides that no person shall

use or disclose any information relating

to credit card or debit card transactions

obtained pursuant to section 6103(k)(9),

except to the extent authorized by

written procedures promulgated by the

Secretary.

Pursuant to section 6311(e), the final

regulations provide that information

received by any person in connection

with the payment of tax by credit card

or debit card shall be treated as

confidential by all persons who receive

such information, whether such

information is received from the IRS or

from any other person, including the

taxpayer. IRS personnel are authorized

to disclose to card issuers, financial

institutions, and other persons

information necessary to process the tax

payment or to bill or collect the amount

charged or debited (for example, to

resolve billing errors).

The final regulations set forth the

limited purposes and activities for

which such information may be used or

disclosed by card issuers, financial

institutions, and other persons. The

permitted purposes and activities

principally involve credit card and debit

card processing, billing, collection,

account servicing, account transfers,

internal business records, legal

compliance, and legal proceedings. The

final regulations expressly prohibit the

selling of information, the sharing of

information with credit bureaus, or the

use of information for any marketing

purpose. Any person who uses or

discloses information in violation of

section 6311(e) is subject to civil

liability for damages under section

7431(a)(2). See section 7431(h), added

by section 1205(c)(2) of TRA 1997 (as

amended by section 6012(b)(3) of RRA

1998).

64742 Federal Register / Vol. 66, No. 241 / Friday, December 14, 2001 / Rules and Regulations

Summary of Comments

Commentators recommended that the

final regulations be amended to permit

the IRS to compensate private sector

companies for the services they provide

in connection with the payment of taxes

by credit and debit card. However,

section 6311(d)(2) prohibits the

payment of such compensation. Thus,

the final regulations do not adopt this

recommendation.

Commentators also recommended that

the final regulations incorporate by

reference the applicable regulations and

staff commentaries adopted by the

Federal Reserve Board under the

provisions of TILA and EFTA

referenced in the final regulations. The

final regulations do not adopt this

recommendation because the references

in section 6311 and the final regulations

to section 161 of TILA and section 908

of EFTA are sufficient to make the

Federal Reserve Board regulations and

other legal guidance under section 161

of TILA and section 908 of EFTA

applicable to the payment of taxes by

credit card or debit card, except as

explicitly excepted in sections

6311(d)(3)(A) and (C).

Commentators also recommended a

clarification of § 301.6311–2T(c)(2) of

the temporary regulations, which

provides that the United States has a

lien for the guaranteed amount of a

transaction upon all the assets of the

institution making the guarantee if the

United States is not duly paid after the

taxpayer tenders a payment of taxes by

credit card or debit card. The

commentators note that the mere

tendering of payment by credit card or

debit card is not sufficient for the

United States to have a lien. Rather, the

parties involved in the transaction must

also follow the applicable procedures

required to authorize the transaction

and to obtain the guarantee. Thus, the

commentators recommended that

language be added to the final

regulations to provide that the United

States will not have a lien unless the

parties involved follow the procedures

required to authorize the transaction

and obtain a guarantee.

Under the temporary regulations, the

financial institution must expressly

guarantee the payment in order for the

United States to have a lien on the

assets of the institution making the

guarantee. The financial institution’s

express guarantee will arise only if the

applicable procedures necessary to

authorize the transaction and obtain the

guarantee are properly followed.

Additional language in the final

regulations is therefore unnecessary.

One commentator questioned the use

of the term commercial transactions in

§ 301.6311–2T(d)(2)(D). The

commentator recommended removing

the word commercial because, in

general, TILA does not apply to

commercial transactions. The final

regulations adopt this recommendation

by replacing § 301.6311–2T(d)(2)(D) in

the final regulations with a provision

covering other types of errors similar to

the ones explicitly covered by error

resolution procedures in the final

regulations.

One commentator recommended

clarification of § 301.6311–2T(g)(3)(i),

which prohibits use or disclosure of

information relating to credit and debit

card transactions for purposes related to

the sale or exchange of such

information separate from the

underlying receivable or account. The

commentator stated that this provision

conflicts with other provisions in the

temporary regulations that specifically

permit an exchange of credit and debit

card information to process credit and

debit card transactions and resolve

billing errors without a sale or exchange

of the underlying receivable or account.

The commentator’s concern stems from

an ambiguity created by the use of the

term exchange. To avoid confusion, the

final regulations replace exchange with

transfer for consideration.

Explanation of Other Revisions

Other changes to the final regulations

include the following. First, the final

regulations clarify that sending receipts

or confirmation of a transaction to the

taxpayer, including secured electronic

transmissions and facsimiles, is a

permissible disclosure. See § 301.6311–

2(g)(1)(i)(E). Second, the final

regulations clarify that disclosure of

information necessary to complete a

transaction by the taxpayer with a state

or local government agency (for

example, to pay state or local tax by

credit card or debit card) is a

permissible disclosure when explicitly

authorized by the taxpayer. This allows

a taxpayer to make a state or local tax

payment immediately after making a

federal tax payment without requiring

the taxpayer to reenter information (for

example, name and Taxpayer

Identification Number). See § 301.6311–

2(g)(1)(i)(F). Third, the final regulations

provide that the term tax as used in

these final regulations includes interest,

penalties, additional amounts, and

additions to tax. See § 301.6311–2(a)(1).

The temporary regulations did not refer

to additional amounts.

Special Analyses

It has been determined that this

Treasury decision is not a significant

regulatory action as defined in

Executive Order 12866. Therefore, a

regulatory assessment is not required. It

also has been determined that section

553(b) of the Administrative Procedure

Act (5 U.S.C. chapter 5) does not apply

to these final regulations, and because

these final regulations do not impose a

collection of information on small

entities, the Regulatory Flexibility Act

(5 U.S.C. chapter 6) does not apply.

Therefore, a Regulatory Flexibility

Analysis is not required. Pursuant to

section 7805(f) of the Code, the notice

of proposed rulemaking preceding these

final regulation was submitted to the

Chief Counsel for Advocacy of the Small

Business Administration for comment

on its impact on small business.

Drafting Information

The principal author of these final

regulations is R. Bradley Taylor of the

Office of Associate Chief Counsel,

Procedure and Administration

(Administrative Provisions and Judicial

Practice Division).

List of Subjects in 26 CFR Part 301

Employment taxes, Estate taxes,

Excise taxes, Gift taxes, Income taxes,

Penalties, Reporting and recordkeeping

requirements.

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR part 301 is

amended as follows:

PART 301—PROCEDURE AND

ADMINISTRATION

Paragraph 1. The authority citation

for part 301 is amended by adding

entries in numerical order to read in

part as follows:

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

Section 301.6103(k)(9)–1 also issued under

26 U.S.C. 6103(k)(9) and 26 U.S.C. 6103(q).

***

Section 301.6311–2 also issued under 26

U.S.C. 6311. * * *

Par. 2. Section 301.6103(k)(9)–1 is

added to read as follows:

§ 301.6103(k)(9)–1 Disclosure of returns

and return information relating to payment

of tax by credit card and debit card.

Officers and employees of the Internal

Revenue Service may disclose to card

issuers, financial institutions, or other

persons such return information as the

Commissioner deems necessary in

connection with processing credit card

and debit card transactions to effectuate

payment of tax as authorized by

Federal Register / Vol. 66, No. 241 / Friday, December 14, 2001 / Rules and Regulations 64743

§ 301.6311–2. Officers and employees of

the Internal Revenue Service may

disclose such return information to such

persons as the Commissioner deems

necessary in connection with billing or

collection of the amounts charged or

debited, including resolution of errors

relating to the credit card or debit card

account as described in § 301.6311–2(d).

§ 301.6103(k)(9)–1T [Removed]

Par. 3. Section 301.6103(k)(9)–1T is

removed.

§ 301.6311–1 [Amended]

Par. 4. In section 301.6311–1,

paragraph(a)(1)(i) is amended by

removing the language ‘‘Internal

Revenue Service’’ from the third

sentence and adding the language

‘‘United States Treasury’’ in its place.

Par. 5. Section 301.6311–2 is added to

read as follows:

§ 301.6311–2 Payment by credit card and

debit card.

(a) Authority to receive—(1) Payments

by credit card and debit card. Internal

revenue taxes may be paid by credit

card or debit card as authorized by this

section. Payment of taxes by credit card

or debit card is voluntary on the part of

the taxpayer. Only credit cards or debit

cards approved by the Commissioner

may be used for this purpose, only the

types of tax liabilities specified by the

Commissioner may be paid by credit

card or debit card, and all such

payments must be made in the manner

and in accordance with the forms,

instructions and procedures prescribed

by the Commissioner. All references in

this section to tax also include interest,

penalties, additional amounts, and

additions to tax.

(2) Payments by electronic funds

transfer other than payments by credit

card and debit card. Provisions relating

to payments by electronic funds transfer

other than payments by credit card and

debit card are contained in section 6302

and the Treasury Regulations

promulgated pursuant to section 6302.

(3) Definitions—(i) Credit card means

any credit card as defined in section

103(k) of the Truth in Lending Act (15

U.S.C. 1602(k)), including any credit

card, charge card, or other credit device

issued for the purpose of obtaining

money, property, labor, or services on

credit.

(ii) Debit card means any accepted

card or other means of access as defined

in section 903(1) of the Electronic Fund

Transfer Act (15 U.S.C. 1693a(1)),

including any debit card or similar

device or means of access to an account

issued for the purpose of initiating

electronic fund transfers to obtain

money, property, labor, or services.

(b) When payment is deemed made. A

payment of tax by credit card or debit

card shall be deemed made when the

issuer of the credit card or debit card

properly authorizes the transaction,

provided that the payment is actually

received by the United States in the

ordinary course of business and is not

returned pursuant to paragraph (d)(3) of

this section.

(c) Payment not made—(1)

Continuing liability of taxpayer. A

taxpayer who tenders payment of taxes

by credit card or debit card is not

relieved of liability for such taxes until

the payment is actually received by the

United States and is not required to be

returned pursuant to paragraph (d)(3) of

this section. This continuing liability of

the taxpayer is in addition to, and not

in lieu of, any liability of the issuer of

the credit card or debit card or financial

institution pursuant to paragraph (c)(2)

of this section.

(2) Liability of financial institutions. If

a taxpayer has tendered a payment of

internal revenue taxes by credit card or

debit card, the credit card or debit card

transaction has been guaranteed

expressly by a financial institution, and

the United States is not duly paid, then

the United States shall have a lien for

the guaranteed amount of the

transaction upon all the assets of the

institution making such guarantee. The

unpaid amount shall be paid out of such

assets in preference to any other claims

whatsoever against such guaranteeing

institution, except the necessary costs

and expenses of administration and the

reimbursement of the United States for

the amount expended in the redemption

of the circulating notes of such

institution.

(d) Resolution of errors relating to the

credit card or debit card account—(1) In

general. Payments of taxes by credit

card or debit card shall be subject to the

applicable error resolution procedures

of section 161 of the Truth in Lending

Act (15 U.S.C. 1666), section 908 of the

Electronic Fund Transfer Act (15 U.S.C.

1693f), or any similar provisions of state

or local law, for the purpose of resolving

errors relating to the credit card or debit

card account, but not for the purpose of

resolving any errors, disputes or

adjustments relating to the underlying

tax liability.

(2) Matters covered by error resolution

procedures. (i) The error resolution

procedures of paragraph (d)(1) of this

section apply to the following types of

errors—

(A) An incorrect amount posted to the

taxpayer’s account as a result of a

computational error, numerical

transposition, or similar mistake;

(B) An amount posted to the wrong

taxpayer’s account;

(C) A transaction posted to the

taxpayer’s account without the

taxpayer’s authorization; and

(D) Other similar types of errors that

would be subject to resolution under

section 161 of the Truth in Lending

Action (15 U.S.C. 1666), section 908 of

the Electronic Fund Transfer Act (15

U.S.C. 1693f, or similar provisions of

state or local law.

(ii) An error described in paragraph

(d)(2)(i) of this section may be resolved

only through the procedures referred to

in paragraph (d)(1) of this section and

cannot be a basis for any claim or

defense in any administrative or court

proceeding involving the Commissioner

or the United States.

(3) Return of funds pursuant to error

resolution procedures. Notwithstanding

section 6402, if a taxpayer is entitled to

a return of funds pursuant to the error

resolution procedures of paragraph

(d)(1) of this section, the Commissioner

may, in the Commissioner’s sole

discretion, effect such return by

arranging for a credit to the taxpayer’s

account with the issuer of the credit

card or debit card or any other financial

institution or person that participated in

the transaction in which the error

occurred.

(4) Matters not subject to error

resolution procedures. The error

resolution procedures of paragraph

(d)(1) of this section do not apply to any

error, question, or dispute concerning

the amount of tax owed by any person

for any year. For example, these error

resolution procedures do not apply to

determine a taxpayer’s entitlement to a

refund of tax for any year for any reason,

nor may they be used to pay a refund.

All such matters shall be resolved

through administrative and judicial

procedures established pursuant to the

Internal Revenue Code and the rules

and regulations thereunder.

(5) Section 170 of the Truth in

Lending Act not applicable. Payments of

taxes by credit card or debit card are not

subject to section 170 of the Truth in

Lending Act (15 U.S.C. 1666i) or to any

similar provision of state or local law.

(e) Fees or charges. The Internal

Revenue Service may not impose any

fee or charge on persons making

payment of taxes by credit card or debit

card. This section does not prohibit the

imposition of fees or charges by issuers

of credit cards or debit cards or by any

other financial institution or person

participating in the credit card or debit

card transaction. The Internal Revenue

64744 Federal Register / Vol. 66, No. 241 / Friday, December 14, 2001 / Rules and Regulations

Service may not receive any part of any

fees that may be charged.

(f) Authority to enter into contracts.

The Commissioner may enter into

contracts related to receiving payments

of tax by credit card or debit card if such

contracts are cost beneficial to the

Government. The determination of

whether the contract is cost beneficial

shall be based on an analysis

appropriate for the contract at issue and

at a level of detail appropriate to the

size of the Government’s investment or

interest. The Commissioner may not pay

any fee or charge or provide any other

monetary consideration under such

contracts for such payments.

(g) Use and disclosure of information

relating to payment of taxes by credit

card and debit card. Any information or

data obtained directly or indirectly by

any person other than the taxpayer in

connection with payment of taxes by a

credit card or debit card shall be treated

as confidential, whether such

information is received from the

Internal Revenue Service or from any

other person (including the taxpayer).

(1) No person other than the taxpayer

shall use or disclose such information

except as follows—

(i) Card issuers, financial institutions,

or other persons participating in the

credit card or debit card transaction may

use or disclose such information for the

purpose and in direct furtherance of

servicing cardholder accounts,

including the resolution of errors in

accordance with paragraph (d) of this

section. This authority includes the

following—

(A) Processing the credit card or debit

card transaction, in all of its stages

through and including the crediting of

the amount charged on account of tax to

the United States Treasury;

(B) Billing the taxpayer for the

amount charged or debited with respect

to payment of the tax liability;

(C) Collecting the amount charged or

debited with respect to payment of the

tax liability;

(D) Returning funds to the taxpayer in

accordance with paragraph (d)(3) of this

section;

(E) Sending receipts or confirmation

of a transaction to the taxpayer,

including secured electronic

transmissions and facsimiles; and

(F) Providing information necessary to

make a payment to state or local

government agencies, as explicitly

authorized by the taxpayer (e.g., name,

address, taxpayer identification

number).

(ii) Card issuers, financial institutions

or other persons participating in the

credit card or debit card transaction may

use and disclose such information for

the purpose and in direct furtherance of

any of the following activities—

(A) Assessment of statistical risk and

profitability;

(B) Transfer of receivables or accounts

or any interest therein;

(C) Audit of account information;

(D) Compliance with federal, state, or

local law; and

(E) Cooperation in properly

authorized civil, criminal, or regulatory

investigations by federal, state, or local

authorities.

(2) Notwithstanding the provisions of

paragraph (g)(1) of this section, use or

disclosure of information relating to

credit card and debit card transactions

for purposes related to any of the

following is not authorized—

(i) Sale of such information (or

transfer of such information for

consideration) separate from a sale of

the underlying account or receivable (or

transfer of the underlying account or

receivable for consideration);

(ii) Marketing for any purpose, such

as, marketing tax-related products or

services, or marketing any product or

service that targets those who have used

a credit card or debit card to pay taxes;

and

(iii) Furnishing such information to

any credit reporting agency or credit

bureau, except with respect to the

aggregate amount of a cardholder’s

account, with the amount attributable to

payment of taxes not separately

identified.

(3) Use and disclosure of information

other than as authorized by this

paragraph (g) may result in civil liability

under sections 7431(a)(2) and (h).

(h) Effective date. This section applies

to payments of taxes made on and after

December 14, 2001.

§ 301.6311–2T [Removed]

Par. 6. Section 301.6311–2T is

removed.

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

Approved: December 10, 2001.

Mark Weinberger,

Acting Assistant Secretary of the Treasury.

[FR Doc. 01–30934 Filed 12–13–01; 8:45 am]

BILLING CODE 4830–01–P

PENSION BENEFIT GUARANTY

CORPORATION

29 CFR Parts 4022 and 4044

Benefits Payable in Terminated SingleEmployer Plans; Allocation of Assets

in Single-Employer Plans; Interest

Assumptions for Valuing and Paying

Benefits

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Final rule.

SUMMARY: The Pension Benefit Guaranty

Corporation’s regulations on Benefits

Payable in Terminated Single-Employer

Plans and Allocation of Assets in

Single-Employer Plans prescribe interest

assumptions for valuing and paying

benefits under terminating singleemployer plans. This final rule amends

the regulations to adopt interest

assumptions for plans with valuation

dates in January 2002. Interest

assumptions are also published on the

PBGC’s Web site (http://www.pbgc.gov).

EFFECTIVE DATE: January 1, 2002.

FOR FURTHER INFORMATION CONTACT:

Harold J. Ashner, Assistant General

Counsel, Office of the General Counsel,

Pension Benefit Guaranty Corporation,

1200 K Street, NW., Washington, DC

20005, 202–326–4024. (TTY/TDD users

may call the Federal relay service tollfree at 1–800–877–8339 and ask to be

connected to 202–326–4024.)

SUPPLEMENTARY INFORMATION: The

PBGC’s regulations prescribe actuarial

assumptions—including interest

assumptions—for valuing and paying

plan benefits of terminating singleemployer plans covered by title IV of

the Employee Retirement Income

Security Act of 1974. The interest

assumptions are intended to reflect

current conditions in the financial and

annuity markets.

Three sets of interest assumptions are

prescribed: (1) A set for the valuation of

benefits for allocation purposes under

section 4044 (found in Appendix B to

part 4044), (2) a set for the PBGC to use

to determine whether a benefit is

payable as a lump sum and to determine

lump-sum amounts to be paid by the

PBGC (found in Appendix B to part

4022), and (3) a set for private-sector

pension practitioners to refer to if they

wish to use lump-sum interest rates

determined using the PBGC’s historical

methodology (found in Appendix C to

part 4022).

Accordingly, this amendment (1) adds

to Appendix B to part 4044 the interest

assumptions for valuing benefits for

allocation purposes in plans with

valuation dates during January 2002, (2)