Removal of Tobacco Products and Cigarette Papers and Tubes, Without Payment of Tax, for United States Use in Law Enforcement Activities (2003R-268P), 65456-65457 [E7-22703]
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65456
Federal Register / Vol. 72, No. 224 / Wednesday, November 21, 2007 / Rules and Regulations
tax return is necessary as a result of an
incorrect credit rate claimed pursuant to
§ 24.278, that person must make the
adjustment on the Excise Tax Return,
TTB F 5000.24, no later than the return
period in which production (or the
production of the controlled group of
which the person is a member) exceeds
the amount used in computation of the
credit. If the adjustment is due to failure
to produce, the person must make the
adjustment no later than the last return
period of the calendar year. The
adjustment is the difference between the
credit taken for prior return periods in
that year and the appropriate credit for
those return periods. The person must
make tax adjustments for all bonded
wine premises where excess credits
were taken against tax that year, and
must include interest payable. In the
case of a person who continued to
deduct credit after reaching the 100,000
gallon maximum during the calendar
year, that person must make an
adjustment in the full amount of excess
credit taken and must include interest
payable under 26 U.S.C. 6601 from the
date on which the excess credit was
taken. In addition, the person must
include the penalty payable under 26
U.S.C. 6662 if the appropriate TTB
officer determines that the
underpayment was due to negligence or
disregard of rules or regulations and
advises the person to include the
penalty as part of the adjustment. The
appropriate TTB officer will provide
information, when requested, regarding
interest rates applicable to specific time
periods and regarding any applicable
penalties. In the case of a controlled
group of bonded wine premises that
took excess credits, all member
proprietors who took incorrect credits
must make tax adjustments as
determined in this section. In the case
of a small producer who instructed a
transferee in bond to take credit as
authorized by § 24.278(b)(2), and
subsequently determines that the credit
was less or not applicable, that producer
must immediately inform the transferee
in bond, in writing, of the correct credit
information. The transferee must make
any increasing adjustment on its next
tax return based on revised credit
information given by the producer or a
TTB officer.
(b) Decreasing adjustments. Where a
person fails to deduct the credit or
deducts less than the appropriate credit
provided for by § 24.278 during the
calendar year, the person may file a
claim for refund of excess tax paid. The
claim must be filed in accordance with
§ 24.69. In the case of wine removed on
behalf of a small producer by a
VerDate Aug<31>2005
15:23 Nov 20, 2007
Jkt 214001
transferee in bond, if the transferee in
bond was instructed to deduct credit
and failed to deduct credit or deducted
less than the appropriate credit and was
later reimbursed for the tax by that
producer, the transferee may file the
claim. The provisions of 26 U.S.C. 6423
and 27 CFR part 70, subpart F, will
apply, and the producer and transferee
in bond must show that the conditions
of § 24.278(b)(2) were met. (26 U.S.C.
5041(c))
(Approved by the Office of Management and
Budget under control number 1513–0088)
Signed: August 24, 2007.
John J. Manfreda,
Administrator.
Approved: November 5, 2007.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and
Tariff Policy).
[FR Doc. E7–22698 Filed 11–20–07; 8:45 am]
BILLING CODE 4810–31–P
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade
Bureau
27 CFR Part 45
[T.D. TTB–63; Re: T.D. TTB–26]
Statutory and Regulatory Provisions
Section 5704(b) of the Internal
Revenue Code of 1986 (26 U.S.C.
5704(b)) provides that a manufacturer
may, among other things, remove
tobacco products and cigarette papers
and tubes without payment of tax for
use of the United States, in accordance
with regulations prescribed by the
Secretary of the Treasury. The
regulations administered by the Alcohol
and Tobacco Tax and Trade Bureau
(TTB) include, in part 45 (27 CFR part
45), provisions that implement this
aspect of section 5704(b). Section 45.31
of those regulations (27 CFR 45.31)
previously set forth two circumstances
in which manufacturers of tobacco
products and cigarette papers and tubes
were permitted to remove those articles
without payment of Federal excise tax
for gratuitous distribution under the
supervision of a Federal agency. Neither
of those circumstances included the
removal of articles for use by Federal
agencies in law enforcement activities.
In addition, Section 45.46 of the TTB
regulations (27 CFR 45.46) provided that
every package of tobacco products and
cigarette papers and tubes removed
under part 45 must have the words
‘‘Tax-Exempt. For Use of U.S. Not To Be
Sold.’’ adequately imprinted on the
package or on a label securely affixed to
the package.
RIN 1513–AA99
Publication of Temporary Rule
Removal of Tobacco Products and
Cigarette Papers and Tubes, Without
Payment of Tax, for United States Use
in Law Enforcement Activities (2003R–
268P)
On April 15, 2005, TTB published in
the Federal Register at 70 FR 19888, as
T.D. TTB–26, a temporary rule that
amended the TTB regulations to
eliminate the need for manufacturers of
tobacco products and cigarette papers
and tubes to obtain a variance to remove
their products without payment of tax
for use by a Federal Agency in an
investigation or other law enforcement
activity. Under the temporary rule, the
supplying of tobacco products and
cigarette papers and tubes by
manufacturers to Federal agencies
continued to be voluntary. The changes
to the regulations did not impose
additional cost, compliance, or
reporting burdens on manufacturers.
The temporary rule revised § 45.31 by
dividing that section into paragraphs (a)
and (b) in order to include the
substantive change and improve the
readability of the section.
In addition, we amended § 45.46 by
adding an exception to the tax exempt
labeling requirements.
The Bureau received three comments
on the temporary rule. One commenter
specifically endorsed the temporary
changes, recognizing that they would
significantly help law enforcement
Alcohol and Tobacco Tax and
Trade Bureau, Treasury.
ACTION: Final rule; Treasury decision.
AGENCY:
SUMMARY: This Treasury decision adopts
as a final rule, without change, a
temporary rule that allows
manufacturers of tobacco products and
cigarette papers and tubes to remove
these articles without payment of tax for
use by Federal agencies in law
enforcement activities, and without
inclusion of the otherwise required taxexempt label.
DATES: Effective Date: November 21,
2007.
FOR FURTHER INFORMATION CONTACT:
Amy Greenberg, Alcohol and Tobacco
Tax and Trade Bureau, Regulations and
Rulings Division, 1310 G Street, NW.,
Suite 200–E, Washington, DC 20220;
telephone 202–927–8210; or e-mail
Amy.Greenberg@ttb.gov.
SUPPLEMENTARY INFORMATION:
PO 00000
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Federal Register / Vol. 72, No. 224 / Wednesday, November 21, 2007 / Rules and Regulations
efforts. The second commenter, a
cigarette importer, supported the
temporary rule for purposes of
facilitating law enforcement. The third
commenter supported the principle of
tax-free removals for certain purposes.
Based on the reasons set forth above
and on comments received, we believe
it is appropriate to adopt the temporary
rule as a final rule without change.
Signed: September 18, 2007.
John J. Manfreda,
Administrator.
Approved: November 5, 2007.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and
Tariff Policy).
[FR Doc. E7–22703 Filed 11–20–07; 8:45 am]
Inapplicability of Delayed Effective
Date Requirement
DEPARTMENT OF JUSTICE
Because these regulations recognize
an exemption to tax payment, relieve
manufacturers of the requirement to file
a variance, and are identical to
temporary regulations currently in
effect, it has been determined pursuant
to 5 U.S.C. 553(d)(1) and (3) that good
cause exists to issue these regulations
without a delayed effective date.
Regulatory Flexibility Act
We certify that this regulation will not
have a significant impact on a
substantial number of small entities.
This regulation provides greater
flexibility for manufacturers of tobacco
products and cigarette papers and tubes
to remove these products without being
subject to tax and imposes no new
reporting, recordkeeping, or other
administrative requirement. Therefore,
no regulatory flexibility analysis is
required.
Executive Order 12866
We have determined that this notice
of final rulemaking is not a significant
regulatory action as defined by
Executive Order 12866. Therefore, a
regulatory assessment is not required.
Drafting Information
Maria Mahone of the Knowledge
Management Staff drafted this final rule.
List of Subjects in 27 CFR Part 45
Authority delegations (Government
agencies), Cigars and cigarettes, Excise
taxes, Labeling, Packaging and
containers, Reporting and recordkeeping
requirements, Tobacco.
The Regulatory Amendment
For the reasons discussed in the
preamble, the temporary rule amending
27 CFR part 45 published in the Federal
Register at 70 FR 19888 on April 15,
2005, is adopted as a final rule without
change.
rmajette on PROD1PC64 with RULES
I
VerDate Aug<31>2005
15:23 Nov 20, 2007
Jkt 214001
1. The authority citation for part 0
continues to read as follows:
Authority: 5 U.S.C. 301; 28 U.S.C. 509,
510, 515–19.
[Tax Division Directive No. 135]
Redelegation of Authority To
Compromise and Close Civil Claims
Department of Justice.
Final rule.
AGENCY:
This Tax Division directive
increases the settlement authority of the
Chiefs of the Civil Trial Sections, the
Court of Federal Claims Section, the
Appellate Section, the Office of Review,
and the Deputy Assistant Attorneys
General, to compromise and close civil
claims. In addition, this directive
increases the discretionary redelegation
of limited authority by a section chief to
his or her assistant chiefs and reviewers.
This directive supersedes Directive No.
105.
EFFECTIVE DATE: November 21, 2007.
FOR FURTHER INFORMATION CONTACT:
Deborah Meland, Tax Division,
Department of Justice, Washington, DC
20530, (202) 307–6567.
SUPPLEMENTARY INFORMATION: This rule
relates to internal agency management.
Therefore, pursuant to 5 U.S.C. 553,
notice of proposed rulemaking and
opportunity for comment are not
required, and this rule may be made
effective less than 30 days after
publication in the Federal Register.
This regulation is not a significant rule
within the meaning of Executive Order
13866, as amended, and therefore was
not reviewed by the Office of
Management and Budget. Finally, this
regulation does not have an impact on
small entities and, therefore, is not
subject to the Regulatory Flexibility Act.
This action pertains to agency
management, personnel and
organization and does not substantially
affect the rights or obligations of nonagency parties and, accordingly, is not
a ‘‘rule’’ as that term is used by the
Congressional Review Act (Subtitle E of
the Small Business Regulatory
Enforcement Fairness Act of 1996
(SBREFA)). Therefore, the reporting
requirement of 5 U.S.C. 801 does not
apply.
SUMMARY:
Frm 00017
Fmt 4700
Accordingly, 28 CFR part 0 is
amended as follows:
I
I
28 CFR Part 0
PO 00000
List of Subjects in 28 CFR Part 0
Authority delegations (Government
agencies), Government employees,
Organization and functions
(Government agencies).
PART 0—ORGANIZATION OF THE
DEPARTMENT OF JUSTICE
BILLING CODE 4810–31–P
ACTION:
65457
Sfmt 4700
2. The Appendix to Subpart Y of Part
0 is amended by removing Tax Division
Directive No. 105 and adding in its
place Tax Division Directive No. 135, to
read as follows:
I
Appendix to Subpart Y of Part 0—
Redelegations of Authority To
Compromise and Close Civil Claims
*
*
*
*
*
[Directive No. 135]
By virtue of the authority vested in me by
Part 0 of Title 28 of the Code of Federal
Regulations, particularly Sections 0.70,
0.160, 0.162, 0.164, 0.166, and 0.168, it is
hereby ordered as follows:
Section 1. The Chiefs of the Civil Trial
Sections, the Court of Federal Claims
Section, and the Appellate Section are
authorized to reject offers in compromise,
regardless of amount, provided that such
action is not opposed by the agency or
agencies involved.
Section 2. Subject to the conditions and
limitations set forth in Section 10 hereof, the
Chiefs of the Civil Trial Sections and the
Court of Federal Claims Section are
authorized to:
(A) Accept offers in compromise in, settle
administratively, and close (other than by
compromise or by entry of judgment), all
civil cases in which the amount of the
Government’s concession, exclusive of
statutory interest, does not exceed $500,000;
(B) Accept offers in compromise in
injunction or declaratory judgment suits
against the United States in which the
principal amount of the related liability, if
any, does not exceed $500,000; and
(C) Accept offers in compromise in all
other nonmonetary cases;
provided that such action is not opposed by
the agency or agencies involved, and
provided further that the proposed
compromise or concession is not subject to
reference to the Joint Committee on Taxation.
Section 3. The Chiefs of the Civil Trial
Sections and the Court of Federal Claims
Section are authorized on a case-by-case
basis to redelegate in writing to their
respective Assistant Section Chiefs or
Reviewers the authority delegated to them in
Section 1 hereof to reject offers, and in
Section 2 hereof, to accept offers in
compromise in, settle administratively, and
close (other than by compromise or by entry
of judgment), all civil cases in which the
E:\FR\FM\21NOR1.SGM
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]]>Agencies
[Federal Register Volume 72, Number 224 (Wednesday, November 21, 2007)]
[Rules and Regulations]
[Pages 65456-65457]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-22703]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 45
[T.D. TTB-63; Re: T.D. TTB-26]
RIN 1513-AA99
Removal of Tobacco Products and Cigarette Papers and Tubes,
Without Payment of Tax, for United States Use in Law Enforcement
Activities (2003R-268P)
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Final rule; Treasury decision.
-----------------------------------------------------------------------
SUMMARY: This Treasury decision adopts as a final rule, without change,
a temporary rule that allows manufacturers of tobacco products and
cigarette papers and tubes to remove these articles without payment of
tax for use by Federal agencies in law enforcement activities, and
without inclusion of the otherwise required tax-exempt label.
DATES: Effective Date: November 21, 2007.
FOR FURTHER INFORMATION CONTACT: Amy Greenberg, Alcohol and Tobacco Tax
and Trade Bureau, Regulations and Rulings Division, 1310 G Street, NW.,
Suite 200-E, Washington, DC 20220; telephone 202-927-8210; or e-mail
Amy.Greenberg@ttb.gov.
SUPPLEMENTARY INFORMATION:
Statutory and Regulatory Provisions
Section 5704(b) of the Internal Revenue Code of 1986 (26 U.S.C.
5704(b)) provides that a manufacturer may, among other things, remove
tobacco products and cigarette papers and tubes without payment of tax
for use of the United States, in accordance with regulations prescribed
by the Secretary of the Treasury. The regulations administered by the
Alcohol and Tobacco Tax and Trade Bureau (TTB) include, in part 45 (27
CFR part 45), provisions that implement this aspect of section 5704(b).
Section 45.31 of those regulations (27 CFR 45.31) previously set forth
two circumstances in which manufacturers of tobacco products and
cigarette papers and tubes were permitted to remove those articles
without payment of Federal excise tax for gratuitous distribution under
the supervision of a Federal agency. Neither of those circumstances
included the removal of articles for use by Federal agencies in law
enforcement activities.
In addition, Section 45.46 of the TTB regulations (27 CFR 45.46)
provided that every package of tobacco products and cigarette papers
and tubes removed under part 45 must have the words ``Tax-Exempt. For
Use of U.S. Not To Be Sold.'' adequately imprinted on the package or on
a label securely affixed to the package.
Publication of Temporary Rule
On April 15, 2005, TTB published in the Federal Register at 70 FR
19888, as T.D. TTB-26, a temporary rule that amended the TTB
regulations to eliminate the need for manufacturers of tobacco products
and cigarette papers and tubes to obtain a variance to remove their
products without payment of tax for use by a Federal Agency in an
investigation or other law enforcement activity. Under the temporary
rule, the supplying of tobacco products and cigarette papers and tubes
by manufacturers to Federal agencies continued to be voluntary. The
changes to the regulations did not impose additional cost, compliance,
or reporting burdens on manufacturers. The temporary rule revised Sec.
45.31 by dividing that section into paragraphs (a) and (b) in order to
include the substantive change and improve the readability of the
section.
In addition, we amended Sec. 45.46 by adding an exception to the
tax exempt labeling requirements.
The Bureau received three comments on the temporary rule. One
commenter specifically endorsed the temporary changes, recognizing that
they would significantly help law enforcement
[[Page 65457]]
efforts. The second commenter, a cigarette importer, supported the
temporary rule for purposes of facilitating law enforcement. The third
commenter supported the principle of tax-free removals for certain
purposes.
Based on the reasons set forth above and on comments received, we
believe it is appropriate to adopt the temporary rule as a final rule
without change.
Inapplicability of Delayed Effective Date Requirement
Because these regulations recognize an exemption to tax payment,
relieve manufacturers of the requirement to file a variance, and are
identical to temporary regulations currently in effect, it has been
determined pursuant to 5 U.S.C. 553(d)(1) and (3) that good cause
exists to issue these regulations without a delayed effective date.
Regulatory Flexibility Act
We certify that this regulation will not have a significant impact
on a substantial number of small entities. This regulation provides
greater flexibility for manufacturers of tobacco products and cigarette
papers and tubes to remove these products without being subject to tax
and imposes no new reporting, recordkeeping, or other administrative
requirement. Therefore, no regulatory flexibility analysis is required.
Executive Order 12866
We have determined that this notice of final rulemaking is not a
significant regulatory action as defined by Executive Order 12866.
Therefore, a regulatory assessment is not required.
Drafting Information
Maria Mahone of the Knowledge Management Staff drafted this final
rule.
List of Subjects in 27 CFR Part 45
Authority delegations (Government agencies), Cigars and cigarettes,
Excise taxes, Labeling, Packaging and containers, Reporting and
recordkeeping requirements, Tobacco.
The Regulatory Amendment
0
For the reasons discussed in the preamble, the temporary rule amending
27 CFR part 45 published in the Federal Register at 70 FR 19888 on
April 15, 2005, is adopted as a final rule without change.
Signed: September 18, 2007.
John J. Manfreda,
Administrator.
Approved: November 5, 2007.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. E7-22703 Filed 11-20-07; 8:45 am]
BILLING CODE 4810-31-P
