[Federal Register Volume 63, Number 126 (Wednesday, July 1, 1998)]
[Proposed Rules]
[Pages 35893-35895]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17389]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 48
[REG-119227-97]
RIN 1545-AV71
Kerosene Tax; Aviation Fuel Tax; Tax on Heavy Trucks and Trailers
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Proposed rule, notice of proposed rulemaking by cross-reference
to temporary regulations and notice of public hearing.
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SUMMARY: In the Rules and Regulations section of this issue of the
Federal Register, the IRS is issuing temporary regulations relating to
the kerosene and aviation fuel excise taxes and the tax on the first
retail sale of certain tractors, truck, trailer, and semitrailer
chassis and bodies. The text of those temporary regulations also serves
as the text of these proposed regulations.
DATES: Written comments must be received by September 29, 1998.
Requests to speak and outlines of oral comments to be discussed at the
public hearing scheduled for Wednesday, November 4, 1998, must be
received by September 29, 1998.
ADDRESSES: Send submissions to: CC:DOM:CORP:R (REG-119227-97), room
5226, Internal Revenue Service, POB 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand delivered between the
hours of 8:00 a.m. and 5 p.m. to: CC:DOM:CORP:R (REG-119227-97),
Courier's Desk, Internal Revenue Service, 1111 Constitution Avenue NW.,
Washington, DC. Alternatively, taxpayers may submit comments
electronically via the Internet by selecting the ``Tax Regs'' option on
the IRS Home Page, or by submitting comments directly to the IRS
Internet site at http://www.irs.ustreas.gov/prod/tax__regs/
comments.html. The public hearing will be held in the IRS Auditorium,
Seventh Floor, 7400 Corridor, Internal Revenue Building, 1111
Constitution Avenue, NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Frank
Boland (202) 622-3130; concerning submissions and the hearing, LaNita
VanDyke (202) 622-7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The collection of information contained in this notice of proposed
rulemaking has been submitted to the Office of Management and Budget
for review in accordance with the Paperwork Reduction Act of 1995 (44
U.S.C. 3507(d)). Comments on the collection of information should be
sent to the Office of Management and Budget, Attn: Desk Officer for the
Department of the Treasury, Office of Information and Regulatory
Affairs, Washington, DC 20503, with copies to the Internal Revenue
Service, Attn: IRS Reports Clearance Officer, OP:FS:FP, Washington, DC
20224. Comments on the collection of information should be received by
August 31, 1998. Comments are specifically requested concerning:
Whether the proposed collection of information is necessary for the
proper performance of the functions of the Internal Revenue Service,
including whether the information will have practical utility;
The accuracy of the estimated burden associated with the proposed
collection of information (see below);
How the quality, utility, and clarity of the information to be
collected may be enhanced;
How the burden of complying with the proposed collection of
information may be minimized, including through the application of
automated collection techniques or other forms of information
technology; and
Estimates of capital or start-up costs of operation, maintenance,
and purchase of services to provide information.
The collection of information in this notice of proposed rulemaking
is in Secs. 48.4052-1, 48.4082-7(a), 48.4082-8(e), 48.4091-3(c),
48.4101-2(a)(4), 48.4101-3(d), and 48.6427-11. This information is
required to support exempt transactions and to inform consumers of the
type of fuel that is being purchased. The likely respondents are
businesses and other for-profit organizations.
Estimated total annual reporting burden: 3,340 hours.
The estimated annual burden per respondent varies from .20 hours to
1 hour, depending on individual circumstances, with an estimated
average of .29 hour.
Estimated number of respondents: 11,600.
Estimated annual frequency of responses: On occasion.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless the collection of
information displays a valid control number assigned by the Office of
Management and Budget.
Books or records relating to a collection of information must be
retained as long as their contents may become material in the
administration of any internal revenue law. Generally, tax returns and
tax return information are confidential, as required by 26 U.S.C. 6103.
Background
Temporary regulations published in the Rules and Regulations
section of this issue of the Federal Register provide rules relating to
the kerosene tax, certain aviation fuel tax refunds allowed by section
4091(d), and registration requirements for certain heavy vehicle
manufacturers and retailers. The text of those regulations also serves
as the text of these proposed regulations relating to kerosene. The
preamble to the temporary regulations explains the temporary
regulations.
Special Analyses
It has been determined that this notice of proposed rulemaking is
not a significant regulatory action as defined in EO 12866. Therefore,
a regulatory 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
[[Page 35894]]
regulations. It is hereby certified that the collection of information
in these regulations will not have a significant economic impact on a
substantial number of small entities. This certification is based upon
the fact that the time required to prepare and submit the exemption
certificates described in these regulations (many of which are similar
to certificates that are already in use) is minimal and will not have a
significant impact on those small entities that choose to provide the
certificates. Therefore, a Regulatory Flexibility Analysis under the
Regulatory Flexibility Act (5 U.S.C. chapter 6) is not required.
Pursuant to section 7805(f) of the Internal Revenue Code, this notice
of proposed rulemaking will be submitted to the Chief Counsel for
Advocacy of the Small Business Administration for comment on its impact
on small business.
Comments and Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any comments that are submitted (in the
manner described in the ADDRESSES caption) timely to the IRS. All
comments will be available for public inspection and copying.
A public hearing has been scheduled for Wednesday, November 4,
1998, at 10 a.m. in the IRS Auditorium, Internal Revenue Building, 1111
Constitution Avenue, NW., Washington DC. Because of access
restrictions, visitors will not be admitted beyond the Internal Revenue
Building lobby more than 15 minutes before the hearing starts.
The rules of 26 CFR 601.601(a)(3) apply to the hearing.
Persons that wish to present oral comments at the hearing must
submit comments by September 29, 1998 and submit an outline of the
topics to be discussed and the time to be devoted to each topic by
September 29, 1998.
A period of 10 minutes will be allotted to each person for making
comments.
An agenda showing the scheduling of the speakers will be prepared
after the deadline for receiving outlines has passed. Copies of the
agenda will be available free of charge at the hearing.
Drafting Information
The principal author of these regulations is Frank Boland, Office
of the Assistant Chief Counsel (Passthroughs and Special Industries),
IRS. However, other personnel from the IRS and the Treasury Department
participated in their development.
List of Subjects in 26 CFR Part 48
Excise taxes, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 48 is proposed to be amended as follows:
PART 48--MANUFACTURERS AND RETAILERS EXCISE TAXES
Paragraph 1. The authority citation for part 48 is amended by
adding entries in numerical order to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Section 48.4052-1 also issued under 26 U.S.C. 4052 * * *
Sections 48.4082-6, 48.4082-7, and 48.4082-8 also issued under
26 U.S.C. 4082 * * *
Section 48.4101-3 also issued under 26 U.S.C. 4101(a) * * *
Sections 48.6427-10 and 48.6427-11 also issued under 26 U.S.C.
6427(n) * * *
Par. 2. In subpart H, Sec. 48.4052-1 is added to read as follows:
Sec. 48.4052-1 Special rule.
After June 30, 1998, the sale of an article is a taxable sale
unless the seller has in good faith accepted from the purchaser a
statement that the purchaser executed in good faith and that is in
substantially the same form as the certificate described in
Sec. 145.4052-1(a)(6) of this chapter, except that the statement must
be signed under penalties of perjury and need not include a
registration number.
Par. 3. Section 48.4081-1 is amended as follows:
1. Paragraph (b) is amended by adding the definition of kerosene.
2. Paragraph (d) is revised.
The addition and revision read as follows:
Sec. 48.4081-1 Taxable fuel; definitions.
* * * * *
(b) * * *
Kerosene means--
(1) The two grades of kerosene (No. 1-K and No. 2-K) described in
ASTM Specification D 3699; and
(2) Kerosene-type jet fuel described in ASTM Specification D 1655
and military specifications MIL-T-5624R and MIL-T-83133D (Grades JP-5
and JP-8). For availability of ASTM and military specification
material, see Sec. 48.4081-1(c)(2)(i).
* * * * *
(d) Effective date.
(1) Except as provided in paragraph (d)(2) of this section, this
section is applicable January 1, 1994.
(2) In paragraph (b) of this section--
(i) The definition of aviation gasoline and the third sentence in
the definition of terminal are applicable January 2, 1998; and
(ii) The definition of kerosene is applicable July 1, 1998.
Par. 4. Sections 48.4082-6, 48.4082-7, 48.4082-8, 48.4082-9 and
48.4082-10 are added to read as follows:
Sec. 48.4082-6 Kerosene; treatment as diesel fuel in certain cases.
[The text of this proposed section is the same as the text of
Sec. 48.4082-6T published elsewhere in this issue of the Federal
Register.]
Sec. 48.4082-7 Kerosene; notice required with respect to dyed
kerosene.
[The text of this proposed section is the same as the text of
Sec. 48.4082-7T published elsewhere in this issue of the Federal
Register.]
Sec. 48.4082-8 Kerosene; exemption for aviation-grade kerosene.
[The text of this proposed section is the same as the text of
Sec. 48.4082-8T published elsewhere in this issue of the Federal
Register.]
Sec. 48.4082-9 Kerosene; exemption from non-fuel feedstock purposes.
[The text of this proposed section is the same as the text of
Sec. 48.4082-9T published elsewhere in this issue of the Federal
Register.]
Sec. 48.4082-10 Kerosene; additional exemption from floor stocks tax.
[The text of this proposed section is the same as the text of
Sec. 48.4082-10T published elsewhere in this issue of the Federal
Register.]
Par. 5. Section 48.4091-3 is added to read as follows:
Sec. 48.4091-3 Aviation fuel; conditions to allowance of refunds of
aviation fuel tax under section 4091(d).
[The text of this proposed section is the same as the text of
Sec. 48.4091-3T published elsewhere in this issue of the Federal
Register.]
Par. 6. Section 48.4101-2 is amended by adding paragraph (a)(4) to
read as follows:
Sec. 48.4101-2 Information reporting.
(a) * * *
(4) Registered aviation fuel producers.
[The text of this proposed paragraph is the same as the text of
Sec. 48.4101-2T(a)(4) published elsewhere in this issue of the Federal
Register].
Sec. 48.6427-10 Claims with respect to kerosene.
[The text of this proposed section is the same as the text of
Sec. 48.6427-10T published elsewhere in this issue of the Federal
Register.]
[[Page 35895]]
Sec. 48.6427-11 Special rules for claims by registered ultimate
vendors of kerosene (blocked pump).
[The text of this proposed section is the same as the text of
Sec. 48.6427-11T published elsewhere in this issue of the Federal
Register.]
Michael P. Dolan,
Deputy Commissioner of Internal Revenue.
[FR Doc. 98-17389 Filed 6-26-98; 2:02 pm]
BILLING CODE 4830-01-U