Return of Wine to Bonded Premises, 55246-55249 [2015-23132]

Download as PDF 55246 Federal Register / Vol. 80, No. 178 / Tuesday, September 15, 2015 / Rules and Regulations 851(b)(3) since its assets invested in Corporations A, B, C, and D exceed in each case 5 percent of the value of the total assets of the company at the close of the particular quarter. Example 3. (i) Investment Company X at the close of a particular quarter of the taxable year has its assets invested as follows: Percent Cash and Government securities Securities of Corporation A .......... Securities of Corporation B .......... Securities of Corporation C .......... Securities of various corporations (not exceeding 5 percent of its assets in any one company) ..... 20 5 10 25 Total .......................................... 100 40 (ii) Investment Company X owns more than 20 percent of the voting power of Corporations B and C and less than 10 percent of the voting power of all of the other corporations. Corporation B manufactures radios and Corporation C acts as its distributor and also distributes radios for other companies. Investment Company X fails to meet the requirements of subparagraph (B) of section 851(b)(3) since it has 35 percent of its assets invested in the securities of two issuers which it controls and which are engaged in related trades or businesses. Example 4. (i) Investment Company Y at the close of a particular quarter of its taxable year has its assets invested as follows: Percent 30 10 20 Total .......................................... mstockstill on DSK4VPTVN1PROD with RULES Cash and Government securities Securities of Corporation K (a regulated investment company) Securities of Corporation A .......... Securities of Corporation B .......... Securities of various corporations (not exceeding 5 percent of its assets in any one company) ..... 15 100 25 (ii) Corporation K has 20 percent of its assets invested in Corporation L, and Corporation L has 40 percent of its assets invested in Corporation B. Corporation A also has 30 percent of its assets invested in Corporation B. Investment Company Y owns more than 20 percent of the voting power of Corporations A and K. Corporation K owns more than 20 percent of the voting power of Corporation L. (iii) At the end of that quarter, Investment Company Y is disqualified under subparagraph (B)(i) of section 851(b)(3) because, after applying section 851(c)(1), more than 25 percent of the value of Investment Company Y’s total assets is invested in the securities of Corporation B. This result is shown by the following calculation: Percent Percentage of assets invested directly in Corporation B .............. VerDate Sep<11>2014 19:08 Sep 14, 2015 Jkt 235001 20.0 Percent Percentage invested indirectly through K and L (30% × 20% × 40%) .......................................... Percentage invested indirectly through A (10% × 30%) ............ Total percentage of assets of Investment Company Y invested in Corporation B ........ 2.4 3.0 invested in qualified publicly traded partnerships. (iii) Investment Company T is disqualified under subparagraph (B)(iii) of section 851(b)(3), because, after applying section 851(c)(1), more than 25 percent of the value of Investment Company T’s total assets is invested in the securities of one or more qualified publicly traded partnerships. This result is shown by the following calculation: 25.4 Percent Example 5. Investment Company Z, which keeps its books and makes its returns on the basis of the calendar year, at the close of the first quarter of 2016 meets the requirements of section 851(b)(3) and has 20 percent of its assets invested in Corporation A. Later during the taxable year it makes distributions to its shareholders and because of such distributions, it finds at the close of the taxable year that it has more than 25 percent of its remaining assets invested in Corporation A. Investment Company Z does not lose its status as a regulated investment company for the taxable year 2016 because of such distributions, nor will it lose its status as a regulated investment company for any subsequent year solely as a result of such distributions. See section 851(d)(1). Example 6. Investment Company Q, which keeps its books and makes its returns on the basis of the calendar year, at the close of the first quarter of 2016 meets the requirements of section 851(b)(3) and has 20 percent of its assets invested in Corporation P. At the close of the taxable year 2016, it finds that it has more than 25 percent of its assets invested in Corporation P. This situation results entirely from fluctuations in the market values of the securities in Investment Company Q’s portfolio and is not due in whole or in part to the acquisition of any security or other property. Investment Company Q does not lose its status as a regulated investment company for the taxable year 2016 because of such fluctuations in the market values of the securities in its portfolio, nor will it lose its status as a regulated investment company for any subsequent year solely as a result of such market value fluctuations. See section 851(d)(1). Example 7. (i) Investment Company T at the close of a particular quarter of its taxable year has its assets invested as follows: Percent Percentage of assets invested directly in qualified publicly traded partnerships .............................. Percentage invested in qualified publicly traded partnerships indirectly through A (20% × 80%) Total percentage of assets of Investment Company T invested in qualified publicly traded partnerships ............... 15.0 16.0 31.0 (b) Effective/applicability dates. The rules of this section apply to quarters that begin on or after December 14, 2015. For purposes of applying the first sentence of section 851(d)(1) to a quarter that begins on or after March 14, 2016, the rules of this section apply in determining whether the taxpayer met the requirements of section 851(b)(3) and (c) at the close of prior quarters. John Dalrymple, Deputy Commissioner for Services and Enforcement. Approved: September 2, 2015. Mark J. Mazur, Assistant Secretary of the Treasury (Tax Policy). [FR Doc. 2015–23137 Filed 9–14–15; 8:45 am] BILLING CODE 4830–01–P DEPARTMENT OF THE TREASURY Alcohol and Tobacco Tax and Trade Bureau 27 CFR Parts 24 and 70 [Docket No. TTB–2015–0013; T.D. TTB–130] RIN 1513–AB92 Cash and Government securities Securities of Corporation A .......... Securities of various qualified publicly traded partnerships (within the meaning of sections 851(b)(3) and 851(h)) ............... Securities of various corporations (not exceeding 5 percent of its assets in any one company) ..... 40 20 25 Total .......................................... 100 Alcohol and Tobacco Tax and Trade Bureau, Treasury. 15 ACTION: Final rule; Treasury decision. AGENCY: (ii) Investment Company T owns more than 20 percent of the voting power of Corporation A and less than 10 percent of the voting power of all of the other corporations. Corporation A has 80 percent of its assets PO 00000 Frm 00026 Fmt 4700 Sfmt 4700 Return of Wine to Bonded Premises The Alcohol and Tobacco Tax and Trade Bureau is revising the wine regulations governing the return of wine to bonded wine premises in response to two statutory changes. First, to incorporate a provision contained in the Taxpayer Relief Act of 1997, TTB is removing a regulatory requirement that wine returned to bond must be SUMMARY: E:\FR\FM\15SER1.SGM 15SER1 Federal Register / Vol. 80, No. 178 / Tuesday, September 15, 2015 / Rules and Regulations unmerchantable. Second, to incorporate a provision contained in the Internal Revenue Service Restructuring and Reform Act of 1998, TTB is revising the regulations to clarify that the refund or credit of excise tax applies to any wine removed from a bonded wine cellar and subsequently returned to bond. The current regulatory text states that a refund or credit of tax is available only for wine produced in the United States. DATES: This rule is effective on October 15, 2015. FOR FURTHER INFORMATION CONTACT: Jennifer Berry, Alcohol and Tobacco Tax and Trade Bureau, Regulations and Rulings Division; telephone 202–453– 1039, ext. 275. SUPPLEMENTARY INFORMATION: mstockstill on DSK4VPTVN1PROD with RULES Background TTB Authority Chapter 51 of the Internal Revenue Code of 1986, as amended (IRC), 26 U.S.C. chapter 51, sets forth excise tax collection and related provisions pertaining to, among other things, the production and importation of wine. Under 26 U.S.C. 5041(a), a Federal excise tax is imposed on all wine in bond in, produced in, or imported, into the United States, and such tax is determined at the time the wine is removed for consumption or sale. As a general matter, the tax is determined or paid at the time the product is removed from bonded premises in accordance with 26 U.S.C. 5041(a). Tax on imported wine, however, is imposed when the product is imported into the United States, and is generally determined or paid when the product is removed from bonded premises or from customs custody for consumption or sale in accordance with relevant statutory provisions and Treasury regulations and orders. Section 5361 of the IRC (26 U.S.C. 5361) provides that taxpaid wine may be returned to bonded wine premises, and section 5044(a) of the IRC (26 U.S.C. 5044(a)) states that, under regulations prescribed by the Secretary of the Treasury, when wine is removed from a bonded wine cellar and subsequently returned to bond, then: (1) If tax on wine returned to bond has been paid (taxpaid wine), that tax shall be refunded or credited, without interest, to the proprietor of the bonded wine cellar to which the wine is delivered; and (2) if tax on wine returned to bond has not been paid, the person liable for the tax may be relieved of liability. The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers chapter 51 of the IRC pursuant to section 1111(d) of the Homeland Security Act of VerDate Sep<11>2014 19:08 Sep 14, 2015 Jkt 235001 2002, codified at 6 U.S.C. 531(d). The Secretary has delegated various authorities through Treasury Department Order 120–01, dated December 10, 2013, to the TTB Administrator to perform the functions and duties in the administration and enforcement of this law. Current Regulatory Requirements Regulations implementing the provisions of chapter 51 of the IRC pertaining to the establishment and operation of wine premises are contained in 27 CFR part 24. Provisions regarding the return of wine to bonded premises are contained in 27 CFR 24.295. Section 24.295(a) states that when taxpaid wine produced in the United States has been removed from bonded premises and subsequently found to be unmerchantable, such wine may be returned to a bonded wine premises for reconditioning, reformulation, or destruction. When such wine is returned to bond, the tax paid on such wine may be refunded or credited without interest to the proprietor of the bonded premises to which the wine was delivered if a claim pursuant to 27 CFR part 70, subpart G has or will not be made. In the case of untaxpaid domestic wine that was removed from bonded premises and then found to be unmerchantable, the person liable for the tax may be relieved of that liability when such wine is returned to bond. Claims for relief, credit, or refund may be filed pursuant to § 24.66. Section 24.66 (27 CFR 24.66) currently provides that a claim for credit or refund, or relief from liability, of tax on unmerchantable U.S. wine returned to bond will be filed with the appropriate TTB officer within six months after the date of the return of the wine to bond. A single claim may not be filed under this section for a quantity on which the credit or refund of tax would be less than $25. However, this limitation does not apply to any returned wine on which the six- month period for filing a claim will expire. Statutory Changes and Conforming Regulatory Amendments Public Law 105–34 Section 1416 of the Taxpayer Relief Act of 1997, Public Law 105–34, 111 Stat. 788, amended section 5044 of the IRC to remove a previous requirement that wine returned to bond must be unmerchantable. Accordingly, TTB is amending its regulatory provisions to conform the regulations to the statute by removing the word ‘‘unmerchantable’’ from where it appears in §§ 24.66(a), PO 00000 Frm 00027 Fmt 4700 Sfmt 4700 55247 24.295, and 24.312, and from the undesignated center heading that precedes § 24.295. TTB is also removing the definition of unmerchantable wine from 27 CFR 24.10 since that definition is no longer relevant with respect to the part 24 regulations. In addition, TTB is removing the word ‘‘unmerchantable’’ in the four instances where it appears in Part 70, Procedure and Administration (see §§ 70.411(c)(10), 70.413(c)(2)(ii) (removing the phrase ‘‘as unmerchantable’’), 70.413(d)(2), and 70.414(d)(3)). Public Law 105–206 Section 6014(b)(2) of the Internal Revenue Service Restructuring and Reform Act of 1998, Public Law 105– 206, 112 Stat. 685, amended section 5044 of the IRC by removing a prior requirement that wine returned to bond must have been produced in the United States and instead required only that the wine first have been removed from a bonded wine cellar. To conform the regulations to the statute, TTB is removing references to ‘‘United States’’ or ‘‘produced in the United States’’ when it modifies the term ‘‘wine’’ in §§ 24.66(a) and 24.295, respectively. TTB is also removing the word ‘‘domestic’’ in the two instances where it modifies ‘‘wine’’ in part 70, Procedure and Administration (see §§ 70.413(d)(2) and 70.414(d)(3)). OMB Information Collection Control Numbers In addition, TTB is removing obsolete references to Office of Management and Budget (OMB) control numbers for information collection requests used by the former Bureau of Alcohol, Tobacco and Firearms (ATF) and replacing them with the OMB control numbers assigned to TTB. Specifically, in the second parenthetical statement at the end of § 24.66, OMB control number ‘‘1512– 0492’’ is updated to ‘‘1513–0030’’; in the second parenthetical statement at the end of § 24.295, OMB control numbers ‘‘1512–0216,’’ ‘‘1512–0298,’’ and ‘‘1512– 0492’’ are updated to ‘‘1513–0053,’’ ‘‘1513–0115,’’ and ‘‘1513–0030’’ respectively; in the second parenthetical statement at the end of § 24.312, OMB control number ‘‘1512–0298’’ is updated to ‘‘1513–0115’’; and in the first parenthetical statement at the end of § 70.413, OMB control number ‘‘1512– 0141’’ is updated to ‘‘1513–0030.’’ The changes to these OMB control numbers are technical in nature and do not change any TTB information collection or recordkeeping requirement. E:\FR\FM\15SER1.SGM 15SER1 55248 Federal Register / Vol. 80, No. 178 / Tuesday, September 15, 2015 / Rules and Regulations Inapplicability of Prior Notice and Comment TTB is issuing this final rule without prior notice and comment pursuant to authority under section 4(a) of the Administrative Procedure Act (5 U.S.C. 553(b)(3)(B)). This provision authorizes an agency to issue a rule without prior notice and comment when the agency for good cause finds that those procedures are ‘‘impracticable, unnecessary, or contrary to the public interest.’’ TTB finds that prior notice and comment for this rule is unnecessary because the rule is limited to conforming TTB regulations to statutory amendments that TTB lacks discretion to change. Regulatory Flexibility Act Because no notice of proposed rulemaking is required, the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do not apply. Accordingly, a regulatory flexibility analysis is not required. Pursuant to section 7805(f) of the IRC, TTB submitted this final rule to the Chief Counsel for Advocacy of the Small Business Administration for comment on the impact of the regulations, and no comments were received. Paperwork Reduction Act The collections of information in the regulations contained in this final rule have been previously reviewed and approved by the Office of Management and Budget (OMB) in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507), and assigned control numbers 1513–0030, 1513–0053, and 1513–0115. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by OMB. There is no new collection of information imposed by this final rule. Executive Order 12866 This final rule is not a significant regulatory action as defined by Executive Order 12866 of September 30, 1993. Therefore, it requires no regulatory assessment. mstockstill on DSK4VPTVN1PROD with RULES Drafting Information Jennifer Berry of the Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, drafted this document. List of Subjects 27 CFR Part 24 Administrative practice and procedure, Claims, Electronic fund transfers, Excise taxes, Exports, Food VerDate Sep<11>2014 19:08 Sep 14, 2015 Jkt 235001 additives, Fruit juices, Labeling, Liquors, Packaging and containers, Reporting and recordkeeping requirements, Research, Scientific equipment, Spices and flavorings, Surety bonds, Vinegar, Warehouses, Wine. removing the Office of Management and Budget control numbers ‘‘1512–0216, 1512–0298, and 1512–0492’’ and adding, in their place, the numbers ‘‘1513–0053, 1513–0115, and 1513– 0030’’. The revisions read as follows: 27 CFR Part 70 § 24.295 Administrative practice and procedure, Claims, Excise taxes, Freedom of information, Law enforcement, Penalties, Reporting and recordkeeping requirements, Surety bonds. (a) General. Wine, domestic or imported, which has been taxpaid and removed from bonded wine premises, may be received by the proprietor of a bonded wine premises for return to bond. The proprietor may, when such taxpaid wine is returned to bond, make a claim for refund or credit, without interest. However, tax will not be refunded or credited for any wine for which a claim has been or will be made under 27 CFR part 70, subpart G. If the tax has been determined but not paid, the person liable for the tax may, when such wine is returned to bond, be relieved of the liability. Claims for refund or credit, or relief from tax paid or determined on wine returned to bond, are filed in accordance with § 24.66. * * * * * ■ 6. In § 24.312: ■ a. The section heading is revised, and the introductory text is amended by removing the word ‘‘unmerchantable’’; and ■ b. The second parenthetical phrase at the end of the section is amended by removing the Office of Management and Budget control number ‘‘1512–0298’’ and adding, in its place, the number ‘‘1513–0115’’. The revision reads as follows: Amendments to the Regulations For the reasons discussed in the preamble, TTB amends 27 CFR, chapter I, parts 24 and 70 as set forth below: PART 24—WINE 1. The authority citation for 27 CFR part 24 continues to read as follows: ■ Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001, 5008, 5041, 5042, 5044, 5061, 5062, 5121, 5122–5124, 5173, 5206, 5214, 5215, 5351, 5353, 5354, 5356, 5357, 5361, 5362, 5364– 5373, 5381–5388, 5391, 5392, 5511, 5551, 5552, 5661, 5662, 5684, 6065, 6091, 6109, 6301, 6302, 6311, 6651, 6676, 7302, 7342, 7502, 7503, 7606, 7805, 7851; 31 U.S.C. 9301, 9303, 9304, 9306. § 24.10 [Amended] 2. Section 24.10 is amended by removing the definition of ‘‘Unmerchantable wine’’. ■ § 24.66 [Amended] 3. In § 24.66: a. The first sentence of paragraph (a) is amended by removing the words ‘‘unmerchantable United States’’; and ■ b. The second parenthetical phrase at the end of the section is amended by removing the Office of Management and Budget control number ‘‘1512–0492’’ and adding, in its place, the number ‘‘1513–0030’’. ■ ■ Subpart N—[Amended] 4. In subpart N, the undesignated center heading located before § 24.295 is revised to read as follows: ■ Return of Wine to Bond 5. In § 24.295: a. The section heading and paragraph (a) are revised; ■ b. The first sentences of paragraph (b) and paragraph (c) are amended by removing the word ‘‘unmerchantable’’; ■ c. Paragraph (b) is amended by removing the term ‘‘United States’’ where it occurs in two instances; and ■ d. The second parenthetical phrase at the end of the section is amended by ■ ■ PO 00000 Frm 00028 Fmt 4700 Sfmt 4700 § 24.312 * * Return of wine to bond. Wine returned to bond record. * * * PART 70—PROCEDURE AND ADMINISTRATION 7. 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, 5123, 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. § 70.411 [Amended] 8. Section 70.411 is amended by removing the word ‘‘unmerchantable’’ from paragraph (c)(10). ■ E:\FR\FM\15SER1.SGM 15SER1 Federal Register / Vol. 80, No. 178 / Tuesday, September 15, 2015 / Rules and Regulations § 70.413 [Amended] 9. In § 70.413: a. Paragraph (c)(2)(ii) is amended by removing the words ‘‘as unmerchantable,’’; ■ b. Paragraph (d)(2) is amended by removing the words ‘‘unmerchantable domestic’’; and ■ c. The first parenthetical phrase at the end of the section is amended by removing the Office of Management and Budget control number ‘‘1512–0141’’ and adding, in its place, the number ‘‘1513–0030’’. ■ ■ § 70.414 [Amended] 10. Section 70.414 is amended by removing the words ‘‘unmerchantable domestic’’ from paragraph (d)(3). ■ Signed: June 11, 2015. John J. Manfreda, Administrator. Approved: June 19, 2015. Timothy E. Skud, Deputy Assistant Secretary (Tax, Trade, and Tariff Policy). [FR Doc. 2015–23132 Filed 9–14–15; 8:45 am] BILLING CODE 4810–31–P PENSION BENEFIT GUARANTY CORPORATION 29 CFR Parts 4022 and 4044 Allocation of Assets in SingleEmployer Plans; Benefits Payable in Terminated Single-Employer Plans; Interest Assumptions for Valuing and Paying Benefits Pension Benefit Guaranty Corporation. ACTION: Final rule. AGENCY: This final rule amends the Pension Benefit Guaranty Corporation’s regulations on Benefits Payable in Terminated Single-Employer Plans and Allocation of Assets in Single-Employer Plans to prescribe interest assumptions under the benefit payments regulation for valuation dates in October 2015 and interest assumptions under the asset allocation regulation for valuation dates in the fourth quarter of 2015. The interest assumptions are used for valuing and paying benefits under terminating single-employer plans covered by the pension insurance system administered by PBGC. DATES: Effective October 1, 2015. FOR FURTHER INFORMATION CONTACT: Catherine B. Klion (Klion.Catherine@ PBGC.gov), Assistant General Counsel mstockstill on DSK4VPTVN1PROD with RULES SUMMARY: VerDate Sep<11>2014 19:08 Sep 14, 2015 Jkt 235001 for Regulatory Affairs, Pension Benefit Guaranty Corporation, 1200 K Street NW., Washington, DC 20005, 202–326– 4024. (TTY/TDD users may call the Federal relay service toll free at 1–800– 877–8339 and ask to be connected to 202–326–4024.) SUPPLEMENTARY INFORMATION: PBGC’s regulations on Allocation of Assets in Single-Employer Plans (29 CFR part 4044) and Benefits Payable in Terminated Single-Employer Plans (29 CFR part 4022) prescribe actuarial assumptions—including interest assumptions—for valuing and paying plan benefits under terminating singleemployer plans covered by title IV of the Employee Retirement Income Security Act of 1974. The interest assumptions in the regulations are also published on PBGC’s Web site (http:// www.pbgc.gov). The interest assumptions in Appendix B to Part 4044 are used to value benefits for allocation purposes under ERISA section 4044. PBGC uses the interest assumptions in Appendix B to Part 4022 to determine whether a benefit is payable as a lump sum and to determine the amount to pay. Appendix C to Part 4022 contains interest assumptions for private-sector pension practitioners to refer to if they wish to use lump-sum interest rates determined using PBGC’s historical methodology. Currently, the rates in Appendices B and C of the benefit payment regulation are the same. The interest assumptions are intended to reflect current conditions in the financial and annuity markets. Assumptions under the asset allocation regulation are updated quarterly; assumptions under the benefit payments regulation are updated monthly. This final rule updates the benefit payments interest assumptions for October 2015 and updates the asset allocation interest assumptions for the fourth quarter (October through December) of 2015. The fourth quarter 2015 interest assumptions under the allocation regulation will be 2.46 percent for the first 20 years following the valuation date and 2.98 percent thereafter. In comparison with the interest assumptions in effect for the third quarter of 2015, these interest assumptions represent no change in the select period (the period during which the select rate (the initial rate) applies), an increase of 0.14 percent in the select rate, and an increase of 0.68 percent in the ultimate rate (the final rate). The October 2015 interest assumptions under the benefit payments PO 00000 Frm 00029 Fmt 4700 Sfmt 4700 55249 regulation will be 1.25 percent for the period during which a benefit is in pay status and 4.00 percent during any years preceding the benefit’s placement in pay status. In comparison with the interest assumptions in effect for September 2015, these interest assumptions are unchanged. PBGC has determined that notice and public comment on this amendment are impracticable and contrary to the public interest. This finding is based on the need to determine and issue new interest assumptions promptly so that the assumptions can reflect current market conditions as accurately as possible. Because of the need to provide immediate guidance for the valuation and payment of benefits under plans with valuation dates during October 2015, PBGC finds that good cause exists for making the assumptions set forth in this amendment effective less than 30 days after publication. PBGC has determined that this action is not a ‘‘significant regulatory action’’ under the criteria set forth in Executive Order 12866. Because no general notice of proposed rulemaking is required for this amendment, the Regulatory Flexibility Act of 1980 does not apply. See 5 U.S.C. 601(2). List of Subjects 29 CFR Part 4022 Employee benefit plans, Pension insurance, Pensions, Reporting and recordkeeping requirements. 29 CFR Part 4044 Employee benefit plans, Pension insurance, Pensions. In consideration of the foregoing, 29 CFR parts 4022 and 4044 are amended as follows: PART 4022—BENEFITS PAYABLE IN TERMINATED SINGLE-EMPLOYER PLANS 1. The authority citation for part 4022 continues to read as follows: ■ Authority: 29 U.S.C. 1302, 1322, 1322b, 1341(c)(3)(D), and 1344. 2. In appendix B to part 4022, Rate Set 264, as set forth below, is added to the table. ■ Appendix B to Part 4022—Lump Sum Interest Rates for PBGC Payments * E:\FR\FM\15SER1.SGM * * 15SER1 * *

Agencies

[Federal Register Volume 80, Number 178 (Tuesday, September 15, 2015)]
[Rules and Regulations]
[Pages 55246-55249]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-23132]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Parts 24 and 70

[Docket No. TTB-2015-0013; T.D. TTB-130]
RIN 1513-AB92


Return of Wine to Bonded Premises

AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.

ACTION: Final rule; Treasury decision.

-----------------------------------------------------------------------

SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau is revising the 
wine regulations governing the return of wine to bonded wine premises 
in response to two statutory changes. First, to incorporate a provision 
contained in the Taxpayer Relief Act of 1997, TTB is removing a 
regulatory requirement that wine returned to bond must be

[[Page 55247]]

unmerchantable. Second, to incorporate a provision contained in the 
Internal Revenue Service Restructuring and Reform Act of 1998, TTB is 
revising the regulations to clarify that the refund or credit of excise 
tax applies to any wine removed from a bonded wine cellar and 
subsequently returned to bond. The current regulatory text states that 
a refund or credit of tax is available only for wine produced in the 
United States.

DATES: This rule is effective on October 15, 2015.

FOR FURTHER INFORMATION CONTACT: Jennifer Berry, Alcohol and Tobacco 
Tax and Trade Bureau, Regulations and Rulings Division; telephone 202-
453-1039, ext. 275.

SUPPLEMENTARY INFORMATION:

Background

TTB Authority

    Chapter 51 of the Internal Revenue Code of 1986, as amended (IRC), 
26 U.S.C. chapter 51, sets forth excise tax collection and related 
provisions pertaining to, among other things, the production and 
importation of wine. Under 26 U.S.C. 5041(a), a Federal excise tax is 
imposed on all wine in bond in, produced in, or imported, into the 
United States, and such tax is determined at the time the wine is 
removed for consumption or sale. As a general matter, the tax is 
determined or paid at the time the product is removed from bonded 
premises in accordance with 26 U.S.C. 5041(a). Tax on imported wine, 
however, is imposed when the product is imported into the United 
States, and is generally determined or paid when the product is removed 
from bonded premises or from customs custody for consumption or sale in 
accordance with relevant statutory provisions and Treasury regulations 
and orders.
    Section 5361 of the IRC (26 U.S.C. 5361) provides that taxpaid wine 
may be returned to bonded wine premises, and section 5044(a) of the IRC 
(26 U.S.C. 5044(a)) states that, under regulations prescribed by the 
Secretary of the Treasury, when wine is removed from a bonded wine 
cellar and subsequently returned to bond, then: (1) If tax on wine 
returned to bond has been paid (taxpaid wine), that tax shall be 
refunded or credited, without interest, to the proprietor of the bonded 
wine cellar to which the wine is delivered; and (2) if tax on wine 
returned to bond has not been paid, the person liable for the tax may 
be relieved of liability.
    The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers 
chapter 51 of the IRC pursuant to section 1111(d) of the Homeland 
Security Act of 2002, codified at 6 U.S.C. 531(d). The Secretary has 
delegated various authorities through Treasury Department Order 120-01, 
dated December 10, 2013, to the TTB Administrator to perform the 
functions and duties in the administration and enforcement of this law.

Current Regulatory Requirements

    Regulations implementing the provisions of chapter 51 of the IRC 
pertaining to the establishment and operation of wine premises are 
contained in 27 CFR part 24. Provisions regarding the return of wine to 
bonded premises are contained in 27 CFR 24.295. Section 24.295(a) 
states that when taxpaid wine produced in the United States has been 
removed from bonded premises and subsequently found to be 
unmerchantable, such wine may be returned to a bonded wine premises for 
reconditioning, reformulation, or destruction. When such wine is 
returned to bond, the tax paid on such wine may be refunded or credited 
without interest to the proprietor of the bonded premises to which the 
wine was delivered if a claim pursuant to 27 CFR part 70, subpart G has 
or will not be made. In the case of untaxpaid domestic wine that was 
removed from bonded premises and then found to be unmerchantable, the 
person liable for the tax may be relieved of that liability when such 
wine is returned to bond. Claims for relief, credit, or refund may be 
filed pursuant to Sec.  24.66.
    Section 24.66 (27 CFR 24.66) currently provides that a claim for 
credit or refund, or relief from liability, of tax on unmerchantable 
U.S. wine returned to bond will be filed with the appropriate TTB 
officer within six months after the date of the return of the wine to 
bond. A single claim may not be filed under this section for a quantity 
on which the credit or refund of tax would be less than $25. However, 
this limitation does not apply to any returned wine on which the six- 
month period for filing a claim will expire.

Statutory Changes and Conforming Regulatory Amendments

Public Law 105-34

    Section 1416 of the Taxpayer Relief Act of 1997, Public Law 105-34, 
111 Stat. 788, amended section 5044 of the IRC to remove a previous 
requirement that wine returned to bond must be unmerchantable. 
Accordingly, TTB is amending its regulatory provisions to conform the 
regulations to the statute by removing the word ``unmerchantable'' from 
where it appears in Sec. Sec.  24.66(a), 24.295, and 24.312, and from 
the undesignated center heading that precedes Sec.  24.295. TTB is also 
removing the definition of unmerchantable wine from 27 CFR 24.10 since 
that definition is no longer relevant with respect to the part 24 
regulations. In addition, TTB is removing the word ``unmerchantable'' 
in the four instances where it appears in Part 70, Procedure and 
Administration (see Sec. Sec.  70.411(c)(10), 70.413(c)(2)(ii) 
(removing the phrase ``as unmerchantable''), 70.413(d)(2), and 
70.414(d)(3)).

Public Law 105-206

    Section 6014(b)(2) of the Internal Revenue Service Restructuring 
and Reform Act of 1998, Public Law 105-206, 112 Stat. 685, amended 
section 5044 of the IRC by removing a prior requirement that wine 
returned to bond must have been produced in the United States and 
instead required only that the wine first have been removed from a 
bonded wine cellar. To conform the regulations to the statute, TTB is 
removing references to ``United States'' or ``produced in the United 
States'' when it modifies the term ``wine'' in Sec. Sec.  24.66(a) and 
24.295, respectively. TTB is also removing the word ``domestic'' in the 
two instances where it modifies ``wine'' in part 70, Procedure and 
Administration (see Sec. Sec.  70.413(d)(2) and 70.414(d)(3)).

OMB Information Collection Control Numbers

    In addition, TTB is removing obsolete references to Office of 
Management and Budget (OMB) control numbers for information collection 
requests used by the former Bureau of Alcohol, Tobacco and Firearms 
(ATF) and replacing them with the OMB control numbers assigned to TTB. 
Specifically, in the second parenthetical statement at the end of Sec.  
24.66, OMB control number ``1512-0492'' is updated to ``1513-0030''; in 
the second parenthetical statement at the end of Sec.  24.295, OMB 
control numbers ``1512-0216,'' ``1512-0298,'' and ``1512-0492'' are 
updated to ``1513-0053,'' ``1513-0115,'' and ``1513-0030'' 
respectively; in the second parenthetical statement at the end of Sec.  
24.312, OMB control number ``1512-0298'' is updated to ``1513-0115''; 
and in the first parenthetical statement at the end of Sec.  70.413, 
OMB control number ``1512-0141'' is updated to ``1513-0030.'' The 
changes to these OMB control numbers are technical in nature and do not 
change any TTB information collection or recordkeeping requirement.

[[Page 55248]]

Inapplicability of Prior Notice and Comment

    TTB is issuing this final rule without prior notice and comment 
pursuant to authority under section 4(a) of the Administrative 
Procedure Act (5 U.S.C. 553(b)(3)(B)). This provision authorizes an 
agency to issue a rule without prior notice and comment when the agency 
for good cause finds that those procedures are ``impracticable, 
unnecessary, or contrary to the public interest.'' TTB finds that prior 
notice and comment for this rule is unnecessary because the rule is 
limited to conforming TTB regulations to statutory amendments that TTB 
lacks discretion to change.

Regulatory Flexibility Act

    Because no notice of proposed rulemaking is required, the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do 
not apply. Accordingly, a regulatory flexibility analysis is not 
required. Pursuant to section 7805(f) of the IRC, TTB submitted this 
final rule to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on the impact of the regulations, and no 
comments were received.

Paperwork Reduction Act

    The collections of information in the regulations contained in this 
final rule have been previously reviewed and approved by the Office of 
Management and Budget (OMB) in accordance with the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3507), and assigned control numbers 1513-0030, 
1513-0053, and 1513-0115. An agency may not conduct or sponsor, and a 
person is not required to respond to, a collection of information 
unless it displays a valid control number assigned by OMB. There is no 
new collection of information imposed by this final rule.

Executive Order 12866

    This final rule is not a significant regulatory action as defined 
by Executive Order 12866 of September 30, 1993. Therefore, it requires 
no regulatory assessment.

Drafting Information

    Jennifer Berry of the Regulations and Rulings Division, Alcohol and 
Tobacco Tax and Trade Bureau, drafted this document.

List of Subjects

27 CFR Part 24

    Administrative practice and procedure, Claims, Electronic fund 
transfers, Excise taxes, Exports, Food additives, Fruit juices, 
Labeling, Liquors, Packaging and containers, Reporting and 
recordkeeping requirements, Research, Scientific equipment, Spices and 
flavorings, Surety bonds, Vinegar, Warehouses, Wine.

27 CFR Part 70

    Administrative practice and procedure, Claims, Excise taxes, 
Freedom of information, Law enforcement, Penalties, Reporting and 
recordkeeping requirements, Surety bonds.

Amendments to the Regulations

    For the reasons discussed in the preamble, TTB amends 27 CFR, 
chapter I, parts 24 and 70 as set forth below:

PART 24--WINE

0
1. The authority citation for 27 CFR part 24 continues to read as 
follows:

    Authority: 5 U.S.C. 552(a); 26 U.S.C. 5001, 5008, 5041, 5042, 
5044, 5061, 5062, 5121, 5122-5124, 5173, 5206, 5214, 5215, 5351, 
5353, 5354, 5356, 5357, 5361, 5362, 5364-5373, 5381-5388, 5391, 
5392, 5511, 5551, 5552, 5661, 5662, 5684, 6065, 6091, 6109, 6301, 
6302, 6311, 6651, 6676, 7302, 7342, 7502, 7503, 7606, 7805, 7851; 31 
U.S.C. 9301, 9303, 9304, 9306.


Sec.  24.10  [Amended]

0
2. Section 24.10 is amended by removing the definition of 
``Unmerchantable wine''.


Sec.  24.66  [Amended]

0
3. In Sec.  24.66:
0
a. The first sentence of paragraph (a) is amended by removing the words 
``unmerchantable United States''; and
0
b. The second parenthetical phrase at the end of the section is amended 
by removing the Office of Management and Budget control number ``1512-
0492'' and adding, in its place, the number ``1513-0030''.

Subpart N--[Amended]

0
4. In subpart N, the undesignated center heading located before Sec.  
24.295 is revised to read as follows:

Return of Wine to Bond

0
5. In Sec.  24.295:
0
a. The section heading and paragraph (a) are revised;
0
b. The first sentences of paragraph (b) and paragraph (c) are amended 
by removing the word ``unmerchantable'';
0
c. Paragraph (b) is amended by removing the term ``United States'' 
where it occurs in two instances; and
0
d. The second parenthetical phrase at the end of the section is amended 
by removing the Office of Management and Budget control numbers ``1512-
0216, 1512-0298, and 1512-0492'' and adding, in their place, the 
numbers ``1513-0053, 1513-0115, and 1513-0030''.
    The revisions read as follows:


Sec.  24.295  Return of wine to bond.

    (a) General. Wine, domestic or imported, which has been taxpaid and 
removed from bonded wine premises, may be received by the proprietor of 
a bonded wine premises for return to bond. The proprietor may, when 
such taxpaid wine is returned to bond, make a claim for refund or 
credit, without interest. However, tax will not be refunded or credited 
for any wine for which a claim has been or will be made under 27 CFR 
part 70, subpart G. If the tax has been determined but not paid, the 
person liable for the tax may, when such wine is returned to bond, be 
relieved of the liability. Claims for refund or credit, or relief from 
tax paid or determined on wine returned to bond, are filed in 
accordance with Sec.  24.66.
* * * * *

0
6. In Sec.  24.312:
0
a. The section heading is revised, and the introductory text is amended 
by removing the word ``unmerchantable''; and
0
b. The second parenthetical phrase at the end of the section is amended 
by removing the Office of Management and Budget control number ``1512-
0298'' and adding, in its place, the number ``1513-0115''.
    The revision reads as follows:


Sec.  24.312  Wine returned to bond record.

* * * * *

PART 70--PROCEDURE AND ADMINISTRATION

0
7. 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, 5123, 
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.


Sec.  70.411  [Amended]

0
8. Section 70.411 is amended by removing the word ``unmerchantable'' 
from paragraph (c)(10).

[[Page 55249]]

Sec.  70.413  [Amended]

0
9. In Sec.  70.413:
0
a. Paragraph (c)(2)(ii) is amended by removing the words ``as 
unmerchantable,'';
0
b. Paragraph (d)(2) is amended by removing the words ``unmerchantable 
domestic''; and
0
c. The first parenthetical phrase at the end of the section is amended 
by removing the Office of Management and Budget control number ``1512-
0141'' and adding, in its place, the number ``1513-0030''.


Sec.  70.414  [Amended]

0
10. Section 70.414 is amended by removing the words ``unmerchantable 
domestic'' from paragraph (d)(3).

    Signed: June 11, 2015.
John J. Manfreda,
Administrator.
    Approved: June 19, 2015.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2015-23132 Filed 9-14-15; 8:45 am]
BILLING CODE 4810-31-P