On File at the Federal Register 5/30/97. Publication Date 6/2/97
(Billing Code: 4810-31-P)
DEPARTMENT OF THE TREASURY
Bureau of Alcohol, Tobacco and Firearms
27 CFR Part 24
(Notice No. 852)
Implementation of Public Law 104-188, Section 1702, Amendments related
to Revenue Reconciliation Act of 1990 (96R-028T)
AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Department of
ACTION: Notice of proposed rulemaking cross referenced to temporary
SUMMARY: In the Rules and Regulations portion of this Federal Register,
the Bureau of Alcohol, Tobacco and Firearms (ATF) is issuing temporary
regulations to implement section 1702 the Small Business Job Protection
Act of 1996. The new law changed the small producers wine tax credit and
wine bond provisions of the Internal Revenue Code of 1986. The wine regulations
are amended to extend the application of the credit to "transferees in
bond" (proprietors who store wine for a small producer, but who do not
hold title to such wine) in certain circumstances, and to make conforming
changes to the bond computation instructions, which were also affected
by the law change. In this notice of proposed rulemaking, ATF invites comments
on the temporary rule.
DATES: Written comments must be received on or before August 1, 1997.
ADDRESSES: Send written comments to: Chief, Wine, Beer & Spirits
Regulations Branch, Bureau of Alcohol, Tobacco and Firearms, P.O. Box 50221,
Washington, DC 20091-0221, Attention: Notice Number 852.
FOR FURTHER INFORMATION CONTACT: Marjorie D. Ruhf, Wine, Beer &
Spirits Regulations Branch, 650 Massachusetts Avenue, NW, Washington, DC
20226, (202) 927-8230.
Executive Order 12866
It has been determined that this proposed rule is not a significant
regulatory action as defined by Executive Order 12866, because the economic
effects flow directly from the underlying statue and not from the proposed
regulations. Therefore, a regulatory assessment is not required.
Regulatory Flexibility Act
It is hereby certified that these proposed regulations will not have
a significant economic impact on a substantial number of small entities.
Accordingly, a regulatory flexibility analysis is not required. The revenue
effects of this rulemaking on small businesses flow directly from the underlying
statute. Likewise, any secondary or incidental effects, and any reporting,
recordkeeping, or other compliance burdens flow directly from the statute.
Pursuant to 26 U.S.C. 7805(f), this proposed regulation will be submitted
to the Chief Counsel for Advocacy of the Small Business Administration
for comment on its impact on small business.
Paperwork Reduction Act
The collections of information contained in this notice of proposed
rulemaking have been submitted to the Office of Management and Budget (OMB)
for review in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3507(d)). Comments on the collections of information should be sent to
the Office of Management and Budget, Attention: Desk Officer for the Department
of the Treasury, Bureau of Alcohol, Tobacco and Firearms, Office of Information
and Regulatory Affairs, Washington, D.C., 20503, with copies to the Bureau
of Alcohol, Tobacco and Firearms at the address previously specified. Comments
are specifically requested concerning:
Whether the proposed collections of information are necessary for the
proper performance of the functions of the Bureau of Alcohol, Tobacco and
Firearms, including whether the information will have practical utility;
The accuracy of the estimated burden associated with the proposed collections
of information (see below);
How the quality, utility, and clarity of the information to be collected
may be enhanced; and
How the burden of complying with the proposed collections of information
may be minimized, including through the application of automated collection
techniques or other forms of information technology.
The collections of information in this proposed regulation are in 27
CFR 24.278 and 24.279 (OMB control numbers 1512-0540 and 1512-0492,respectively).
This information is required to advise the transferee of any available
credit, and to support entries on tax returns and claims. This information
will be used by the transferee and the small producer to compute taxes
or claims and may also be reviewed by ATF during an audit to confirm that
wine tax credits were properly taken. The collections of information are
required to obtain a benefit (reduced rate of tax). The likely recordkeepers
are businesses and small businesses.
Since this collection of information involves a disclosure (consisting
of shipping instructions from the producer-owner of the wine to the transferee)
and recordkeeping which must take place for commercial reasons unrelated
to the regulatory requirement, ATF estimates a burden of 1 hour for OMB
control number 1512-0540 (information collected in support of small producers
wine tax credit). The estimated total annual recordkeeping burden associated
OMB control number 1512-0492 (usual and customary records kept in support
of tax returns and claims) will not increase.
Estimated number or respondents and/or recordkeepers: 30 transferees
in bond and 250 small producers.
No reports are required as part of these regulations.
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 the Office of Management and Budget.
ATF requests comments on the temporary regulations from all interestedpersons.
Comments received on or before the closing date will be carefully considered.
Comments received after that date will be given the same consideration
if it is practicable to do so, but assurance of consideration cannot be
given except as to comments received on or before the closing date.
Comments may be submitted by facsimile transmission (FAX) to (202) 927-8602,
provided the comments: (1) are legible, (2) are 8 1/2" x 11" in size, (3)
contain a written signature, and (4) are three pages or less in length.
This limitation is necessary to assure reasonable access to the equipment.
Comments sent by FAX in excess of three pages will not be accepted. Receipt
of FAX transmittals will not be acknowledged. Facsimile transmitted comments
will be treated as originals.
ATF will not recognize any material in comments as confidential. Comments
may be disclosed to the public. Any material which the commenter considers
to be confidential or inappropriate for disclosure to the public should
not be included in the comment. The name of the person submitting the comment
is not exempt from disclosure. During the comment period, any person may
request an opportunity to present oral testimony at a public hearing. However,
the Director reserves the right, in light of all circumstances, to determine
if a public hearing is necessary.
The temporary regulations in this issue of the Federal Register
amend the regulations in 27 CFR Part 24. For the text of the temporary
regulations see T.D. ATF-390 published in the Rules and Regulations section
of this issue of the Federal Register.
The principal author of this document is Marjorie D. Ruhf, Wine, Beer
& Spirits Regulations Branch, Bureau of Alcohol, Tobacco and Firearms.
Signed: December 23, 1996
John W. Magaw
Dennis M. OConnell
(Regulatory, Tariff and Trade Enforcement)