[Federal Register Volume 66, Number 103 (Tuesday, May 29, 2001)]
[Rules and Regulations]
[Pages 29021-29031]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-12803]


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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 70

[T.D. ATF-450 ]
RIN 1512-AC19


Delegation of Authority

AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Treasury.

ACTION: Treasury decision, final rule.

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SUMMARY: This final rule places most ATF authorities contained in its 
Procedure and Administration regulations with the ``appropriate ATF 
officer'' and requires that persons file documents required these 
regulations with the ``appropriate ATF officer'' or in accordance with 
the instructions on the ATF form. Concurrently with this Treasury 
Decision, ATF Order 1130.19 is being issued and will be made available 
as specified in this rule. Through this order, the Director has 
delegated most of the authorities to the appropriate ATF officers and 
specified the ATF officers with whom applications, notices and other 
reports, which are not ATF forms, are filed. In addition, this final 
rule corrects some typographical errors and updates the disclosure 
provisions.

EFFECTIVE DATE: This rule is effective May 29, 2001.

FOR FURTHER INFORMATION CONTACT: Robert Ruhf, Regulations Division, 
Bureau of Alcohol, Tobacco and Firearms, 650 Massachusetts Avenue NW., 
Washington, DC 20226 (telephone 202-927-8210 or e-mail to 
[email protected]).

SUPPLEMENTARY INFORMATION:

Background

Delegations of Authority

    Pursuant to Treasury Order 120-01 (formerly 221), dated June 6, 
1972, and 120-03, dated November 5, 1990, the Secretary of the Treasury 
delegated to the Director of the Bureau of Alcohol, Tobacco and 
Firearms (ATF), the authority to enforce, among other laws, the 
provisions of section 4181 of chapter 32 and chapters 51, 52 and 53 of 
the Internal Revenue Code of 1986 (IRC) and the Federal Alcohol 
Administration (FAA) Act. The Director has subsequently redelegated 
certain of these authorities to appropriate subordinate officers by way 
of various means, including by regulation, ATF delegation orders, 
regional directives, or similar delegation documents. As a result, to 
ascertain what particular officer is authorized to perform a particular 
function under such provisions, each of these various delegation 
instruments must be consulted. Similarly, each time a delegation of 
authority is revoked or redelegated, each of the delegation documents 
must be reviewed and amended as necessary.
    ATF has determined that this multiplicity of delegation instruments 
complicates and hinders the task of determining which ATF officer is 
authorized to perform a particular function. ATF also believes these 
multiple delegation instruments exacerbate the administrative burden 
associated with maintaining up-to-date delegations, resulting in an 
undue delay in reflecting current authorities.
    Accordingly, this final rule rescinds all authorities of the 
Director in part 70 that were previously delegated and places those 
authorities with the ``appropriate ATF officer.'' Most of the 
authorities of the Director that were not previously delegated are also 
placed with the ``appropriate ATF officer.'' Along with this final 
rule, ATF is publishing ATF Order 1130.19, Delegation Order--Delegation 
of the Director's Authorities in 27 CFR Part 70, Procedure and 
administration, which delegates certain of these authorities to the 
appropriate organizational level. The effect of these changes is to 
consolidate all delegations of authority in part 70 into one delegation 
instrument. This action both simplifies the process for determining 
what ATF officer is authorized to perform a particular function and 
facilitates the updating of delegations in the future. As a result, 
delegations of authority will be reflected in a more timely and user-
friendly manner.
    In addition, this final rule also eliminates all references in the 
regulations that identify the ATF officer with whom an ATF form is 
filed. This is because ATF forms will indicate the officer with whom 
they must be filed. Similarly, this final rule also amends part 70 to 
provide that the submission of documents other than ATF forms (such as 
letterhead applications, notices and reports) must be filed with the 
``appropriate ATF officer'' identified in ATF Order 1130.19. These 
changes will facilitate the identification of the officer with whom 
forms and other required submissions are filed.
    This final rule eliminates all references to an ATF region, which 
were comprised of certain States for ATF administrative purposes but no 
longer exist. Also, this final rule eliminates the definition of 
``delegate'' in Sec. 70.11 and the references to ``delegate'' in 
Sec. 70.803. The definition of delegate in Sec. 70.11 is any officer, 
employee, or agency of the Department of the Treasury authorized by the 
Secretary of the Treasury directly, or indirectly by one or more 
redelegations of authority, to perform the function mentioned or 
described in the delegation order. To prevent any misunderstanding or 
confusion with the ATF delegation order, ATF Order 1130.19, we are 
removing this term from the aforementioned sections of 27 CFR part 70.
    This final rule also makes various technical amendments to Subpart 
D--Administrative and Miscellaneous Provisions of 27 CFR part 70. 
Specifically, a new Sec. 70.3 is added to recognize the authority of 
the Director to delegate regulatory authorities in part 70 and to 
identify ATF Order 1130.19 as the instrument reflecting such 
delegations. Also, Sec. 70.2 is amended to provide that the 
instructions for an ATF form identify the ATF officer with whom it must 
be filed.
    ATF has made or will make similar changes in delegations to all 
other parts of Title 27 of the Code of Federal Regulations through 
separate rulemakings.

Typographical and Miscellaneous Corrections

    This final rule removes a sentence from Sec. 70.438 that refers to 
an obsolete ATF publication, corrects references to other sections of 
regulations in Sec. 70.253(b)(1) and (2) and in Sec. 70.438, corrects 
Sec. 70.224 that refers to the general statute of limitations on 
collecting an assessment in accordance with 26 U.S.C. 6502, and 
corrects Sec. 70.482(e) by raising the amount for which a Chief 
Counsel's opinion need not be filed for offers-in-compromise in 
accordance with 26 U.S.C. 7122(b).

Disclosure Changes

    In Sec. 70.802 we have eliminated the card index record of permits, 
which is no longer maintained, and made appropriate changes to the 
information available or provided by ATF because of the disclosure 
restrictions of 26 U.S.C. 6103.

[[Page 29022]]

Paperwork Reduction Act

    The provisions of the Paperwork Reduction Act of 1995, Pub. L. 104-
13, 44 U.S.C. Chapter 35, and its implementing regulations, 5 CFR part 
1320, do not apply to this final rule because there are no new or 
revised recordkeeping or reporting requirements.

Regulatory Flexibility Act

    Because no notice of proposed rulemaking is required for this rule, 
the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) 
do not apply. A copy of this final rule was submitted to the Chief 
Counsel for Advocacy of the Small Business Administration in accordance 
with 26 U.S.C. 7805(f). No comments were received.

Executive Order 12866

    It has been determined that this rule is not a significant 
regulatory action because it will not: (1) Have an annual effect on the 
economy of $100 million or more or adversely affect in a material way 
the economy, a sector of the economy, productivity, competition, jobs, 
the environment, public health or safety, or State, local or tribal 
governments or communities; (2) Create a serious inconsistency or 
otherwise interfere with an action taken or planned by another agency; 
(3) Materially alter the budgetary impact of entitlements, grants, user 
fees, or loan programs or the rights and obligations of recipients 
thereof; or (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
Executive Order 12866.

Administrative Procedure Act

    Because this final rule merely makes technical amendments and 
conforming changes to improve the clarity of the regulations, it is 
unnecessary to issue this final rule with notice and public procedure 
under 5 U.S.C. 553(b). Similarly it is unnecessary to subject this 
final rule to the effective date limitation of 5 U.S.C. 553(d).

Drafting Information

    The principal author of this document is Robert Ruhf, Regulations 
Division, Bureau of Alcohol, Tobacco and Firearms.

List of Subjects in 27 CFR Part 70

    Administrative practice and procedure, Alcohol and alcoholic 
beverages, Arms and munitions, Authority delegations (Government 
Agencies), Bankruptcy, Cigars and cigarettes, Claims, Customs duties 
and inspection, Disaster Assistance, Excise taxes, Law enforcement, 
Penalties, Privacy, Seizures, Surety bonds, Tobacco.

Authority and Issuance

    Title 27, Code of Federal Regulations is amended as follows:

PART 70--PROCEDURE AND ADMINISTRATION

    Paragraph 1. 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, 5146, 
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.


Secs. 70.2, 70.25, 70.26, 70.61, 70.94, 70.161, 70.182, 70.191, 70.213, 
70.301, 70.31, 70.482 and 70.485(a)   [Amended]

    Par. 2. In part 70 remove the word ``Director'' each place it 
appears and add, in substitution, the words ``appropriate ATF officer'' 
each place it appears in the following places:
    a. Section 70.2(a);
    b. Section 70.25(a)(4);
    c. Section 70.26(c)(2)(ii);
    d. Section 70.61(a)(1)(i) introductory text, (a)(1)(i)(C) and 
(a)(2);
    e. Section 70.94(a);
    f. Section 70.161(a)(4)(i)(B);
    g. Section 70.182(a);
    h. Section 70.191(b) introductory text;
    i. Section 70.213;
    j. Section 70.301(a);
    k. Section 70.311;
    l. Section 70.482(a) introductory text; and
    m. Section 70.485(a).

    Par. 3. Section 70.2 is further amended by adding a sentence at the 
end of paragraph (a) and revising paragraph (b) to read as follows:


Sec. 70.2  Forms prescribed.

    (a) * * * The form will be filed in accordance with the 
instructions for the form.
    (b) Forms may be requested from the ATF Distribution Center, P.O. 
Box 5950, Springfield, Virginia 22150-5950, or by accessing the ATF web 
site (http://www.atf.treas.gov/).

    Par. 4. In Subpart A--Scope, a new Sec. 70.3 is added as follows:


Sec. 70.3  Delegations of the Director.

    Most of the regulatory authorities of the Director contained in 
this Part 70 are delegated to appropriate ATF officers. These ATF 
officers are specified in ATF Order 1130.19, Delegation Order--
Delegation of the Director's Authorities in 27 CFR Part 70, Procedure 
and administration. ATF delegation orders, such as ATF Order 1130.19, 
are available to any interested person by mailing a request to the ATF 
Distribution Center, P.O. Box 5950, Springfield, Virginia 22150-5950, 
or by accessing the ATF web site (http://www.atf.treas.gov/).

    Par. 5. Section 70.11 is amended by removing the definitions of 
``ATF officer'', ``Chief, Tax Processing Center'', ``Delegate'', 
``Regional director (compliance)'', and ``Special agent in charge'', 
and by adding a new definition of ``Appropriate ATF officer'' to read 
as follows:


Sec. 70.11  Meaning of terms.

* * * * *
    Appropriate ATF officer. An officer or employee of the Bureau of 
Alcohol, Tobacco and Firearms (ATF) authorized to perform any functions 
relating to the administration or enforcement of this part by ATF Order 
1130.19, Delegation Order--Delegation of the Director's Authorities in 
27 CFR Part 70, Procedure and Administration.
* * * * *


Secs. 70.21, 70.100, 70.167, 70.168, 70.169, 70.181, 70.182, 70.183, 
70.184, 70.185, 70.186, 70.187, 70.188, 70.206, 70.253, 70.263, 70.413, 
70.433, 70.425, 70.504, 70.507, 70.602, 70.606, 70.608 and 
70.609  [Amended]

    Par. 6. Part 70 is further amended by removing the words ``regional 
director (compliance)'' and ``regional director's'' each place it 
appears and adding, in substitution, the words ``appropriate ATF 
officer'' and ``appropriate ATF officer's'', respectively, in the 
following places:
    a. Section 70.21;
    b. Section 70.100;
    c. The last sentence of the undesignated paragraph following 
Sec. 70.167(b)(1)(iii);
    d. Section 70.168(a);
    e. Section 70.169;
    f. Section 70.181(b)(1) and (2), and (c)(1)(i) and (ii), (c)(2), 
(c)(3)(i), introductory text of (c)(4)(i), undesignated paragraph after 
(c)(4)(ii)(D), and (c)(4)(iv) introductory text, (c)(5) introductory 
text, (c)(5)(ii)(B) and (c)(8);
    g. Section 70.182(a)(1), (3), (4) introductory text and (6)(ii), 
and (b);
    h. Section 70.183(b)(2), (3), (6), (7) introductory text, (9)(ii) 
and (11);
    i. Section 70.184(a), (b), (c) introductory text, and (c) (1);

[[Page 29023]]

    j. Section 70.185(a), (b) and (c);
    k. Section 70.186(b)(2) and (c);
    l. Section 70.187(a);
    m. Section 70.188;
    n. Section 70.206(a)(1), (b)(3)(ii), the introductory text and the 
last sentence of (b)(4)(ii), (b)(4)(ii)(A), the undesignated paragraph 
following (b)(4)(ii)(B), (b)(4)(iii), (c)(2) and (3);
    o. Section 70.253(b)(2);
    p. Section 70.263(d);
    q. Section 70.413(a);
    r. The third sentence of Sec. 70.433(a);
    s. Section 70.435(i);
    t. Section 70.504(c)(2);
    u. Section 70.507(g);
    v. Section 70.602(a) and (b)(1) introductory text;
    w. Section 70.606 introductory text;
    x. Section 70.608; and
    y. Section 70.609.


Sec. 70.21  [Amended]

    Par. 7. Section 70.21 is further amended by removing the phrase 
``through the region''.


Sec. 70.22  [Amended]

    Par. 8. Section 70.22 is amended as follows:
    a. By removing the words ``authorized officer or employee of the 
Bureau'' and adding, in substitution, the words ``appropriate ATF 
officer'' in paragraph (a);
    b. By removing the words ``officers and employees of the Bureau 
designated in paragraph (c) of this section'' and, in substitution, 
adding the words ``appropriate ATF officers'' in the first sentence of 
paragraph (b);
    c. By removing the words ``The officers and employees designated in 
paragraph (c) of this section may designate any other employee of the 
Bureau'' and adding, in substitution, the words ``Such ATF officer may 
designate an appropriate ATF officer'' in the second sentence of 
paragraph (b);
    d. By removing the words ``other employee'' and adding, in 
substitution, the words ``officer'' in the third sentence in paragraph 
(b); and
    e. By removing paragraph (c).

    Par. 9. Paragraph (b) of Sec. 70.23 is revised to read as follows:


Sec. 70.23  Service of summonses.

* * * * *
    (b) Persons who may serve summonses. Any appropriate ATF officer 
may serve a summons issued under 26 U.S.C. 7602.
* * * * *


Sec. 70.24  [Amended]

    Par. 10. The first sentence of Sec. 70.24(b) is amended by removing 
the words ``The officers and employees of the Bureau designated in 
paragraph (c) of Sec. 70.22'' and adding, in substitution, the words 
``Appropriate ATF officers''.

    Par. 11. Section 70.30 is revised to read as follows:


Sec. 70.30  Time and place of examination.

    (a) Time and place. The time and place of examination pursuant to 
the provisions of 26 U.S.C. 7602 must be such time and place as may be 
fixed by an appropriate ATF officer and as are reasonable under the 
circumstances. The date fixed for appearance shall not be less than 10 
days from the date of the summons.
    (b) Restrictions on examination of taxpayer. No taxpayer is to be 
subjected to unnecessary examination or investigations, and only one 
inspection of a taxpayer's books of account shall be made for each 
taxable year unless the taxpayer requests otherwise or unless an 
authorized internal revenue or an appropriate ATF officer, after 
investigation, notifies the taxpayer in writing that an additional 
inspection is necessary.

(68A Stat. 902, as amended (26 U.S.C. 7605))

    Par. 12. Section 70.31 is revised to read as follows:


Sec. 70.31  Entry of premises for examination of taxable objects.

    (a) General. An appropriate ATF officer may, in the performance of 
his or her duty, enter in the daytime any building or place where any 
articles or objects subject to tax are made, produced, or kept, so far 
as it may be necessary for the purpose of examining said articles or 
objects and also enter at night any such building or place, while open, 
for a similar purpose.
    (b) Distilled spirits plants. Any appropriate ATF officer may, at 
all times, as well by night as by day, enter any plant or any other 
premises where distilled spirits are produced or rectified, or 
structure or place used in connection therewith for storage or other 
purposes; to make examination of the materials, equipment and 
facilities thereon; and make such gauges and inventories as such 
officer deems necessary. Whenever any appropriate ATF officer, having 
demanded admittance, and having declared his or her name and office, is 
not admitted to such premises by the proprietor or other person having 
charge thereof, such officer may at all times, use such force as is 
necessary for such officer to gain entry to such premises.
    (c) Authority to break up grounds. An appropriate ATF officer, and 
any person acting in his or her aid, may break up the ground on any 
part of a distilled spirits plant, or any other premises where spirits 
are produced or rectified, or any ground adjoining or near to such 
plant or premises, or any wall or partition thereof, or belonging 
thereto, or other place, to search for any pipe, cock, private 
conveyance, or utensil; and, upon finding any such pipe or conveyance 
leading therefrom or thereto, to break up any ground, house, wall, or 
other place through or into which such pipe or other conveyance leads, 
and to break or cut away such pipe or other conveyance, and turn any 
cock, or to determine whether such pipe or other conveyance conveys or 
conceals any spirits, mash, wort, or beer, or other liquor, from the 
sight or view of the appropriate ATF officer, so as to prevent or 
hinder such officer from taking a true account thereof.

(68A Stat. 903, 72 Stat. 1357 (26 U.S.C. 7606, 5203))


Sec. 70.32  [Amended]

    Par. 13. Section 70.32 is amended by removing the phrase ``of the 
Bureau'' and by adding the words ``appropriate ATF'' before the word 
``officer'' each place it appears.
    Par. 14. The introductory text of Sec. 70.33 is revised to read as 
follows:


Sec. 70.33  Authority of enforcement officers of the Bureau.

    Appropriate ATF officers may perform the following functions:
* * * * *

    Par. 15. Section Sec. 70.34 is revised to read as follows:


Sec. 70.34  Listing by appropriate ATF officers of taxable objects 
owned by nonresidents.

    Whenever there are any articles in any internal revenue district 
subject to tax, which are not owned or possessed by, or under the care 
or control of, any person within such district, and of which no list 
has been transmitted to the appropriate ATF officer, as required by law 
or by regulations prescribed pursuant to law, an appropriate ATF 
officer shall enter the premises where such articles are situated, make 
such inspection of the articles as may be necessary, and make lists of 
the same according to the forms prescribed. Such lists, being 
subscribed by the appropriate ATF officer, are sufficient lists of such 
articles for all purposes.
* * * * *

    Par. 16. Section 70.40 is revised to read as follows:


Sec. 70.40  Authority to administer oaths and certify.

    Appropriate ATF officers are authorized to administer such oaths or

[[Page 29024]]

affirmations and to certify to such papers as may be necessary under 
the tax laws administered by the Bureau, the Federal Alcohol 
Administration Act, or regulations issued thereunder, except that the 
authority to certify must not be construed as applying to those papers 
or documents the certification of which is authorized by separate order 
or directive.

(68A Stat. 904 (26 U.S.C. 7622))

    Par. 17. Section 70.41 is amended by revising the first sentence of 
paragraph (a); the first, second and last sentences of paragraph (c); 
the first sentence of paragraph (d); and the last two sentences of 
paragraph (f) to read as follows:


Sec. 70.41  Rewards for information relating to violations of tax laws 
administered by the Bureau.

    (a) In general. An appropriate ATF officer may approve such reward 
as he or she deems suitable for information that leads to the detection 
and punishment of any person guilty of violating any tax law 
administered by the Bureau or conniving at the same. * * *
* * * * *
    (c) Amount and payment of reward. All relevant factors, including 
the value of the information furnished in relation to the facts 
developed by the investigation of the violation, must be taken into 
account in determining whether a reward must be paid, and, if so, the 
amount thereof. The amount of a reward shall represent what the 
appropriate ATF officer deems to be adequate compensation in the 
particular case, normally not to exceed 10 percent of the additional 
taxes, penalties, and fines which are recovered as a result of the 
information. * * * No person is authorized under these regulations to 
make any offer, or promise, or otherwise to bind the appropriate ATF 
officer with respect to the payment of any reward or the amount 
thereof.
    (d) Submission of Information. Persons desiring to claim rewards 
under the provisions of 26 U.S.C. 7623 and this section may submit 
information relating to violations of tax laws administered by the 
Bureau to an appropriate ATF officer. * * *
* * * * *
    (f) Filing claim for reward. * * * Claim for reward under the 
provisions of 26 U.S.C. 7623 must be made on ATF Form 3200.13. ATF Form 
3200.13 should be obtained from the office where the information is 
filed.
* * * * *

    Par. 18. The section heading and paragraphs (a)(1), (b) and (c)(1) 
of Sec. 70.42 are revised to read as follows:


Sec. 70.42  Returns prepared or executed by appropriate ATF officers.

    (a) Preparation of returns--(1) General. If any person, required by 
provisions of 26 U.S.C. enforced and administered by the Bureau or by 
the regulations prescribed thereunder to make a return, fails to make 
such return, it may be prepared by an appropriate ATF officer provided 
the person required to make the return consents to disclose all 
information necessary for the preparation of such return. The return 
upon being signed by the person required to make it must be received by 
the appropriate ATF officer, as the return of such person.
* * * * *
    (b) Execution of returns--(1) General. If any person, required by 
provisions of 26 U.S.C. enforced and administered by the Bureau or by 
the regulations prescribed thereunder to make a return, fails to make a 
return at the time prescribed therefor, or makes, willfully or 
otherwise, a false or fraudulent return, the appropriate ATF officer 
must make such return from such officer's own knowledge and from such 
information as the officer can obtain through testimony or otherwise.
    (2) Status of returns. Any return made in accordance with paragraph 
(b)(1) of this section and subscribed by the appropriate ATF officer is 
prima facie good and sufficient for all legal purposes.
    (c) Cross references. (1) For provisions that the return executed 
by an appropriate ATF officer will not start the running of the period 
of limitations on assessment and collection, see 26 U.S.C. 6501(b)(3) 
and Sec. 70.222(b) of this part.
* * * * *

    Par. 19. Section 70.51 is revised to read as follows:


Sec. 70.51  Collection authority.

    The taxes imposed by provisions of 26 U.S.C. enforced and 
administered by the Bureau must be collected by appropriate ATF 
officers.

(26 U.S.C. 6301)

Sec. 70.61, 70.77, 70.96, 70.167  [Amended]

    Par. 20. Part 70 is further amended by removing the phrase 
``regional director(s) (compliance) or the Chief, Tax Processing 
Center,'' or ``regional director (compliance) or the Chief, Tax 
Processing Center'' and adding, in substitution, the words ``the 
appropriate ATF officer'' each place it appears in the following 
places:
    a. The introductory text of Sec. 70.61(a)(1)(i);
    b. Section 70.77(b)(1) and (2);
    c. Section 70.96(a)(1)(iv), (a)(2) and (a)(3); and
    d. Section 70.167(a)(2)(ii).


Secs. 70.61, 70.71 and 70.123  [Amended]

    Par. 21. Part 70 is further amended by removing the words 
``regional directors (compliance) and Chief, Tax Processing Center'' or 
``regional director (compliance) and Chief, Tax Processing Center'' and 
adding, in substitution, the words ``appropriate ATF officers'' each 
place that they appear in the following places:
    a. Section 70.61 (a)(1)(i)(D) and (a)(3);
    b. Section 70.71 introductory text; and
    c. Section 70.123(b)(2).

    Par. 22. The first three sentences of Sec. 70.64 are revised to 
read as follows:


Sec. 70.64  Receipt for taxes.

    The appropriate ATF officer must, upon request, issue a receipt for 
each tax payment made (other than a payment for stamps sold or 
delivered). In addition, an appropriate ATF officer or employee must 
issue a receipt for each payment of 1 dollar or more made in cash, 
whether or not requested. In the case of payments made by check, the 
canceled check is usually a sufficient receipt. * * *
* * * * *


Secs. 70.71, 70.73, 70.74, 70.75, 70.76, 70.77, 70.81, 70.82, 70.92, 
70.96, 70.98, 70.101, 70.113, 70.122, 70.123, 70.124, 70.161, 70.162, 
70.163, 170.164, 70.223, 70.271, 70.281, 70.447, 70.481 and 
70.486  [Amended]

    Par. 23. Part 70 is further amended by removing the words 
``regional director (compliance) or the Chief, Tax Processing Center'' 
or ``regional director (compliance) or Chief, Tax Processing Center'' 
and adding, in substitution, the words ``appropriate ATF officer'' each 
place it appears in the following places:
    a. Section 70.71(a); (b)(1)(ii) and (b)(2);
    b. Section 70.73;
    c. Section 70.74(c)(1) and (c)(2);
    d. Section 70.75(b) and (c);
    e. Section 70.76(a), (b)(3), (c) and (d);
    f. Section 70.77(a)(1) and (2);
    g. Section 70.81(a);
    h. Section 70.82;
    i. Section 70.92(c) and (d)(2)(i);
    j. The fourth sentence of Sec. 70.96(c);
    k. The third sentence of Sec. 70.98(b);
    l. Section 70.101;
    m. Section 70.113(b);
    n. Section 70.122;
    o. Section 70.123(b)(1);

[[Page 29025]]

    p. Section 70.124;
    q. Section 70.161(a)(1), (2) and (b);
    r. Section 70.162(a) and (b);
    s. Section 70.163(b)(1) and (c);
    t. Section 170.164(b)(1) introductory text;
    u. Section 70.223(d);
    v. Section 70.271(d)(1);
    w. Section 70.281(b)(2) introductory text, (b)(2)(vi), and 
(b)(3)(v);
    x. Section 70.447;
    y. Section 70.481(a), and (b)(2)(ii), (3)(ii) and (4)(iii); and
    z. Section 70.486.


Sec. 70.72  [Amended]

    Par. 24. Section 70.72 is amended by:
    a. Removing the first sentence; and
    b. Removing the words ``assessment officer'' and adding, in 
substitution, the words ``appropriate ATF officer'' in the remaining 
first and fourth sentences.


Secs. 70.73, 70.96 and 70.98  [Amended]

    Par. 25. Part 70 is further amended by removing the words 
``regional director (compliance) of the region in which the taxpayer is 
located or with the Chief, Tax Processing Center'' and adding, in 
substitution, the words ``appropriate ATF officer'' each place it 
appears in the following places:
    a. The first sentence of Sec. 70.74(b);
    b. The second sentence of Sec. 70.96(c); and
    c. The second sentence of Sec. 70.98(b).

    Par. 26. The introductory text of paragraph (a) of Sec. 70.75 is 
revised to read as follows:


Sec. 70.75  Jeopardy assessment of alcohol, tobacco, and firearms 
taxes.

    (a) If the appropriate ATF officer believes that the collection of 
any tax imposed under provisions of 26 U.S.C. enforced and administered 
by the Bureau will be jeopardized by delay, the appropriate ATF officer 
must, whether or not the time otherwise prescribed by law for filing 
the return or paying such tax has expired, immediately assess such tax, 
together with all interest, additional amounts and additions to the tax 
provided by law. An appropriate ATF officer will make an assessment 
under this section if collection is determined to be in jeopardy 
because at least one of the following conditions exists.
* * * * *


Sec. 70.96  [Amended]

    Par. 27. The third sentence of Sec. 70.96(c) is amended by removing 
the words ``ATF officer working under the supervision of the regional 
director (compliance)'' and adding, in substitution, the words 
``appropriate ATF officer''.


Sec. 70.123  [Amended]

    Par. 28. Section 70.123(a)(2) is amended by removing the words 
``regional director (compliance), for the region in which the claimant 
is located, or, in the case of special (occupational) tax, with the 
Chief, Tax Processing Center'' and adding, in substitution, the words 
``appropriate ATF officer''.

    Par. 29. In Sec. 70.125, paragraph(a), the last sentence of 
paragraph (b), and paragraph (c) are revised to read as follows:


Sec. 70.125  Abatements.

    (a) The appropriate ATF officer may abate the unpaid portion of any 
assessment or liability, if the assessment is in excess of the correct 
tax liability, if the assessment is made subsequent to the expiration 
of the period of limitation applicable thereto, or if the assessment 
has been erroneously or illegally made.
    (b) * * * All such claims must be filed with the appropriate ATF 
officer who made demand for the amount assessed.
    (c) The appropriate ATF officer may issue uniform instructions to 
abate amounts the collection of which is not warranted because of the 
administration and collection costs.
* * * * *


Sec. 70.126  [Amended]

    Par. 30. Section 70.126 is amended by removing the words ``regional 
director (compliance) or the Chief, Tax Processing Center, or an 
authorized certifying officer designated by the regional director 
(compliance) or the Chief, Tax Processing Center'' and adding, in 
substitution, the words ``appropriate ATF officer''.


Secs. 170.149 and 170.161  [Amended]

    Par. 31. Part 70 is further amended by removing the words ``Chief, 
Tax Processing Center or the regional director (compliance)'' and 
adding, in substitution, the words ``appropriate ATF officer'' each 
place it appears in the following places:
    a. The introductory text of paragraph (a)(3) and paragraph 
(b)(2)(i)(A) of Sec. 70.149; and
    b. The last sentence of Sec. 70.161(c).

    Par. 32. In Sec. 70.150 the introductory text of paragraph (a) is 
revised to read as follows:


Sec. 70.150  Release of lien or discharge of property.

    (a) Release of lien. An appropriate ATF officer is charged with 
releasing liens or discharging property from liens. The appropriate ATF 
officer must issue a certificate of release of a lien imposed with 
respect to any tax imposed by a provision of 26 U.S.C. enforced and 
administered by the Bureau, not later than 30 days after the day on 
which either:
* * * * *


Sec. 70.150, 70.164, 70.170, 70.187, 70.205, 70.231, 70.241, 70.242 and 
70.245  [Amended]

    Par. 33. Part 70 is further amended by removing the words ``Chief, 
Tax Processing Center'' or ``Chief, Tax Processing Center's'' and 
adding, in substitution, the words ``appropriate ATF officer'' or the 
words ``appropriate ATF officer's'', respectively, each place they 
appear in the following places:
    a. Section 70.150 (a)(1) and (2), (b), (c)(1), (2) and (3), (d), 
(e)(1) introductory text and (e)(2)(i) introductory text, (e)(2)(i)(B);
    b. Section 70.164(c);
    c. Section 70.170(b);
    d. Section 70.187 (a) and (b);
    e. Section 70.205(a)(1), (a)(2)(i) and (a)(2)(ii)(C), (b)(1) except 
the last sentence and (b)(2), and (c)(1) except the last sentence, 
(e)(2), (e)(3) and (e)(4);
    f. Section 70.231(i)(3);
    g. Section 70.241(a)(8);
    h. Section 70.242(a) and (c); and
    i. Section 70.245 section heading, (a) and (c)(2) and (d).


Sec. 70.150, 70.151, 70.161, 70.162, 70.163, 70.164, 70.167, 70.187, 
70.204, 70.205, 70.206, 70.207, 70.208, 70.209, 70.210, 70.241, 70.281, 
70.413, 70.414, 70.481 and 70.482  [Amended]

    Par. 34. Part 70 is further amended by removing the word 
``official'' or ``official's'' and adding, in substitution, the word 
``officer'' or ``officer's'', respectively, each place they appear in 
the following places:
    a. Section 70.150 (b)(1), (b)(2)(i), (b) (3), (c)(1) and (c)(2);
    b. Section 70.151(a), (b), (d), (e)(1), (f)(3) and (g)
    c. Section 70.161(a)(2);
    d. Section 70.162(c) and (d);
    e. Section 70.163(a)(1) and (c);
    f. Section 70.164(b)(1)(i) and (ii), (b)(2)(i), (b)(2)(ii), and 
(c);
    g. Section 70.167(a)(4), (b)(2) introductory text and (b)(3);
    h. Section 70.186(a)(5);
    i. The undesignated paragraph after Sec. 70.204(a)(3);
    j. Section 70.205(b)(1) and (e)(2);
    k. Section 70.206(b)(4)(ii)(B);
    l. Section 70.207(b)(1)(iii);
    m. Section 70.208;
    n. Section 70.209 (a) and (b);
    o. Section 70.210(a)(1);
    p. Section 70.241(a)(8);
    q. Section 70.281(b)(2)(vi) and (3)(iv);
    r. Section 70.413(c)(1);

[[Page 29026]]

    s. Section 70.414(k);
    t. Section 70.481(b)(2) introductory text, (3)(i), (3)(ii)(B) and 
(4) introductory text; and
    u. Section 70.482(d)(1)(i).


Sec. 70.151  [Amended]

    Par. 35. Section 70.151(g) is further amended by removing the words 
``the regional director (compliance) of the region in which a notice of 
Federal tax lien was filed or the Chief, Tax Processing Center'' and 
adding, in substitution, the words ``an appropriate ATF officer''.

    Par. 36. Section 70.161 is amended by:
    a. Revising the first, second, third and eleventh sentences of 
paragraph (a)(1) to read as follows:


Sec. 70.161  Levy and distraint.

    (a) Authority to levy--(1) In general. If any person liable to pay 
any tax neglects or refuses to pay the tax within 10 days after notice 
and demand, the appropriate ATF officer who initiated the assessment 
may proceed to collect the tax by levy, provided the taxpayer has been 
furnished the notice described in Sec. 70.162(a) of this part. The 
appropriate ATF officer may levy upon any property, or rights to 
property, whether real or personal, tangible or intangible, belonging 
to the taxpayer. The appropriate ATF officer may also levy upon 
property with respect to which there is a lien provided by 26 U.S.C. 
6321 for the payment of the tax. For exemption of certain property from 
levy, see 26 U.S.C. 6334 and Secs. 70.241 through 70.245 of this part. 
* * * For example, if on the first day of the month a delinquent 
taxpayer sold personal property subject to an agreement that the buyer 
remit the purchase price on the last day of the month, a levy made on 
the buyer on the 10th day of the month would reach the amount due on 
the sale, although the buyer need not satisfy the levy by paying over 
the amount to the appropriate ATF officer until the last day of the 
month. * * *
    b. Removing the words ``Chief, Tax Processing Center or to the 
region director (compliance) having jurisdiction over such person'' in 
the fifth sentence of paragraph (c) and adding, in substitution, the 
words ``appropriate ATF officer''.

    Par. 37. The introductory text of Sec. 70.163(a)(2)(ii) is revised 
to read as follows:


Sec. 70.163  Surrender of property subject to levy.

    (a) * * *
    (2) * * *
    (ii) Notwithstanding paragraph (a)(1) of this section, if a levy 
has been made upon property or rights to property subject to levy which 
a bank engaged in the banking business in the United States or a 
possession of the United States is in possession of (or obligated with 
respect to), an appropriate ATF officer shall not enforce the levy with 
respect to any deposits held in an office of the bank outside the 
United States or a possession of the United States, unless the notice 
of levy specifies that such officer intends to reach such deposits. The 
notice of levy must not specify that such officer intends to reach such 
deposits unless that officer making such levy believes:
* * * * *


Sec. 70.165  [Amended]

    Par. 38. Section 70.165 is amended by adding the word 
``appropriate'' before the words ``ATF officer''.

    Par. 39. Paragraphs (a)(1), (a)(2)(i)(C) and (D), and (a)(4), and 
the introductory text of paragraph (b)(1) of Sec. 70.167 are revised to 
read as follows:


Sec. 70.167  Authority to release levy and return property.

    (a) Release of levy--(1) Authority. An appropriate ATF officer may 
release the levy upon all or part of the property or rights to property 
levied upon as provided in paragraphs (a)(2), (3) and (4) of this 
section. A levy may be released under paragraph (a)(3) of this section 
only if the delinquent taxpayer complies with such of the conditions 
thereunder as an appropriate ATF officer may require and if the 
appropriate ATF officer determines that such action will facilitate the 
collection of the liability. * * *
* * * * *
    (2) * * *
    (i) * * *
    (C) The taxpayer has entered into an agreement under 26 U.S.C. 6159 
to satisfy such liability by means of installment payments, unless such 
agreement provides otherwise (an appropriate ATF officer is not 
required to release the levy in this case if release of such levy would 
jeopardize the secured creditor status of the United States).
    (D) An appropriate ATF officer has determined that such levy is 
creating an economic hardship due to the financial condition of the 
taxpayer, or
    (4) Release where value of interest of United States is 
insufficient to meet expenses of sale. An appropriate ATF officer may 
release the levy as authorized under paragraph (a)(1) of this section 
if that officer determines that the value of the interest of the United 
States in the seized property, or in the part of the seized property to 
be released is insufficient to cover the expenses of the sale of such 
property.
* * * * *
    (b) Return of property--(1) General rule. If an appropriate ATF 
officer determines that property has been wrongfully levied upon, the 
appropriate ATF officer may return:
* * * * *


Secs. 70.167 and 70.251  [Amended]

    Par. 40. Part 70 is further amended by removing the words ``a 
regional director (compliance) or the Chief, Tax Processing Center'' 
and adding, in substitution the words ``an appropriate ATF officer'' 
each place they appear in the following places:
    a. Section 70.167(a)(2)(i) introductory text and (a)(3); and
    b. Section 70.251(a)(2) and (b).

    Par. 41. The first sentence of paragraph (b)(2) and paragraph (c) 
of Sec. 70.168 are revised to read as follows:


Sec. 70.168  Redemption of property.

* * * * *
    (b) * * *
    (2) Price. Such property or tract of property may be redeemed upon 
payment to the purchaser, or in case the purchaser cannot be found in 
the county in which the property to be redeemed is situated, then to 
the appropriate ATF officer, for the use of the purchaser, the 
purchaser's heirs, or assigns, the amount paid by such purchaser and 
interest thereon at the rate of 20 percent per annum. * * *
* * * * *
    (c) Record. When any real property is redeemed, the appropriate ATF 
officer must cause entry of the fact to be made upon the record of sale 
kept in accordance with 26 U.S.C. 6340 and Sec. 70.187 of this part, 
and such entry is evidence of such redemption. The party who redeems 
the property must notify the appropriate ATF officer of the date of 
such redemption and of the transfer of the certificate of sale, the 
amount of the redemption price, and the name of the party to whom such 
redemption price was paid.
* * * * *


Sec. 70.181  [Amended]

    Par. 42. Section 70.181 is further amended by:
    a. Adding the word ``appropriate'' before the words ``ATF officer'' 
in paragraphs (a), (c)(3)(ii) and (c)(4)(iii);
    b. Removing the phrase ``within the ATF region where the seizure is 
made'' from the second sentence and the

[[Page 29027]]

phrase ``within such region'' from the third sentence in paragraph 
(b)(1);
    c. Removing the phrase ``or cause the ATF officer conducting the 
sale to adjourn'' and the comma preceding such phrase in paragraph 
(c)(2); and
    d. Removing ``AFT'' before the word ``officer'' in paragraph 
(c)(5)(ii)(D).


Secs. 70.181, 70.182, 70.183, 70.204 and 70.251  [Amended]

    Par. 43. Part 70 is further amended by removing the term ``ATF'' 
before the word ``officer'' or ``officers'' each place it appears in 
the following places:
    a. Paragraph (c)(5)(ii)(E) and the first sentence of paragraph 
(c)(8) of Sec. 70.181;
    b. Section 70.182(a)(2)(ii), (6)(iv) and (v), (7) and (9);
    c. Section 70.183 (b)(4), (9)(iv) and (v), (10);
    d. The last sentence of the undesignated paragraph after 
Sec. 70.204(a)(3); and
    e. Section 70.251(b).

    Par. 44. The fourth and subsequent sentences of paragraph (a)(2)(i) 
of Sec. 70.182 are revised to read as follows:


Sec. 70.182  Disposition of personal property acquired by the United 
States.

    (a) Sale--* * *
* * * * *
    (2) Time, place, manner and terms of sale.
    (i) Time, notice, and place of sale. * * * In addition, the 
appropriate ATF officer may use such other methods of advertising as 
such officer believes will result in obtaining the highest price for 
the property. Generally, the place of sale will be within the area 
where the property was originally acquired by the United States. 
However, if the appropriate ATF officer believes that a substantially 
higher price may be obtained, the sale may be held outside such area.
* * * * *

    Par. 45. Section 70.183 is further amended by:
    a. Removing the words ``regional director (compliance) for the 
region in which the property is situated'' and adding, in substitution, 
the words ``appropriate ATF officer'' each place they appear in 
paragraphs (a), (b) introductory text, (c) and (e);
    b. Removing the words ``regional director (compliance) for the 
region in which the property is located'' and adding, in substitution, 
the words ``appropriate ATF officer'' in paragraph (d); and
    c. Revising paragraph (f) to read as follows:


Sec. 70.183  Administration and disposition of real estate acquired by 
the United States.

* * * * *
    (f) Authority of appropriate ATF officer. Notwithstanding the other 
paragraphs of this section, the appropriate ATF officer may, when such 
officer deems it advisable, take charge of, and assume responsibility 
for, any real estate to which this section is applicable. In such case, 
such officer will notify in writing the appropriate ATF officer from 
whom he or she is taking charge and assuming responsibility. Also, in 
any case where a single parcel of real estate is situated in an area in 
which more than one officer has jurisdiction, the appropriate ATF 
officer may designate in writing one officer who is to be in charge of, 
and responsible for, the entire property.
* * * * *


Sec. 70.187  [Amended]

    Par. 46. The first sentence of Sec. 70.187(a) is further amended by 
removing the words ``that region'' and adding, in substitution, the 
words ``his or her jurisdiction''.

    Par. 47. Section 70.191(a) is revised to read as follows:


Sec. 70.191  Authorization.

    (a) In general. A civil action for the collection or recovery of 
taxes, or of any fine, penalty, or forfeiture (with respect to the 
provisions of 26 U.S.C. enforced and administered by the Bureau) will 
be commenced when the appropriate ATF officer, directs that the action 
be commenced.
* * * * *

    Par. 48. Paragraph (a) of Sec. 70.192 is revised to read as 
follows:


Sec. 70.192  Action to enforce lien or to subject property to payment 
of tax.

    (a) Civil actions. In any case where there has been a refusal or 
neglect to pay any tax (with respect to the provisions of 26 U.S.C. 
enforced and administered by the Bureau) or to discharge any liability 
in respect thereof, whether or not levy has been made, the Attorney 
General or designated delegate at the request of the appropriate ATF 
officer, may direct a civil action to be filed in any court of the 
United States to enforce the lien of the United States under the 
Internal Revenue Code with respect to such tax or liability or to 
subject any property, of whatever nature, of the delinquent, or in 
which the delinquent has any right, title or interest, to the payment 
of such tax or liability. In any such proceeding, at the instance of 
the United States, the court may appoint a receiver to enforce the 
lien, or, upon certification by the appropriate ATF officer during the 
pendency of such proceedings that it is in the public interest, may 
appoint a receiver with all the powers of a receiver in equity.
* * * * *


Sec. 70.205  [Amended]

    Par. 49. The last sentences of 70.205(b)(1) and (c)(1) are amended 
by removing the phrase ``the authority of the Chief, Tax Processing 
Center and the regional director (compliance) to release a lien or to 
discharge'' and adding, in substitution, the words ``releasing a lien 
or discharging''.

    Par. 50. The second sentence of Sec. 70.206(a)(1) is amended by 
removing the phrase ``the Chief, Tax Processing Center, has consented 
to the sale'' and adding, in substitution, the words ``a consent to the 
sale has been made''.

    Par. 51. Section 70.206 is further amended by:
    a. Removing the phrase ``a regional director (compliance)'' and 
adding, in substitution, the words ``an appropriate ATF officer'' in 
the introductory text of paragraph (b)(1), and the first undesignated 
sentence following paragraph (b)(4)(ii)(B); and
    b. Revising paragraphs (c)(1) and (4) to read as follows:


Sec. 70.206  Discharge of liens; redemption by United States.

* * * * *
    (c) Certificate of redemption--(1) In general. If an appropriate 
ATF officer exercises the right of redemption of the United States 
described in paragraph (a) of this section, the appropriate ATF officer 
shall apply to the officer designated by local law, if any, for the 
documents necessary to evidence the fact of redemption and to record 
title to the redeemed property in the name of the United States. If no 
such officer has been designated by local law, or if the officer 
designated by local law fails to issue the necessary documents, the 
appropriate ATF officer is authorized to issue a certificate of 
redemption for the property redeemed by the United States.
* * * * *
    (4) Application for release of right of redemption. Upon 
application of a party with a proper interest in the real property sold 
in a nonjudicial sale described in 26 U.S.C. 7425(b) and Sec. 70.204 of 
this part, which real property is subject to the right of redemption of 
the United States described in this section, the appropriate ATF 
officer may, in that officer's discretion, release the right of 
redemption with respect to the property. The application for the 
release must be

[[Page 29028]]

submitted in writing to an appropriate ATF officer and must contain 
such information as the appropriate ATF officer may require. If the 
appropriate ATF officer determines that the right of redemption of the 
United States is without value, no amount shall be required to be paid 
with respect to the release of the right of redemption.
* * * * *

    Par. 52. Paragraph (b) of Sec. 70.222 is revised to read as 
follows:


Sec. 70.222  Time return deemed filed for purposes of determining 
limitations.

* * * * *
    (b) Returns executed by appropriate ATF officers. The execution of 
a return by an appropriate ATF officer under the authority of section 
6020(b) of the Internal Revenue Code does not start the running of the 
statutory period of limitations on assessment and collection.
* * * * *

    Par. 53. Paragraphs (a)(1) and (2)(i) of Sec. 70.224 are revised to 
read as follows:


Sec. 70.224  Collection after assessment.

    (a) Length of period--(1) General rule. In any case in which a tax 
has been assessed within the statutory period of limitation properly 
applicable thereto, a proceeding in court to collect such tax may be 
begun, or levy for the collection of such tax may be made, within 10 
years after the assessment thereof.
    (2) Extension by agreement.
    (i) The 10-year period of limitation on collection after assessment 
of any tax may, prior to the expiration thereof, be extended for any 
period of time agreed upon in writing by the taxpayer and the 
appropriate ATF officer. Whenever necessary to protect the revenue, 
such officer may also execute a written agreement with the taxpayer to 
extend the period of limitation. The extension becomes effective upon 
execution of the agreement by both the taxpayer and such officer.
* * * * *

    Par. 54. The first sentence of Sec. 70.227 is revised to read as 
follows:


Sec. 70.227  Suspension of running of period of limitation; wrongful 
seizure of property of third party.

    The running of the period of limitations on collection after 
assessment prescribed in 26 U.S.C. 6502 (relating to collection after 
assessment) shall be suspended for a period equal to a period beginning 
on the date property (including money) is wrongfully seized or received 
by an appropriate ATF officer and ending on the date 30 days after the 
date on which the appropriate ATF officer returns the property pursuant 
to 26 U.S.C. 6343(b) (relating to authority to return property) or the 
date 30 days after the date on which a judgment secured pursuant to 26 
U.S.C. 7426 (relating to civil actions by persons other than taxpayers) 
with respect to such property becomes final. * * *
* * * * *


Sec. 70.253  [Amended]

    Par. 55. Paragraphs (b)(1) and (2) of Sec. 70.253 are further 
amended by removing ``Sec. 70.67'' and adding, in substitution, 
``70.167''.


Sec. 70.262  [Amended]

    Par. 56. Paragraph (b)(4) of Sec. 70.262 is further amended by 
removing the phrase ``by the regional director (compliance)''.

    Par. 57. Paragraph (c)(2) of Sec. 70.262 is amended by removing the 
words ``by the regional director (compliance) or the Chief, Tax 
Processing Center''.


Sec. 70.281  [Amended]

    Par. 58. Section 70.281 is further amended by:
    a. Removing the words and punctuation ``(which may be obtained from 
the regional director (compliance) or the Chief, Tax Processing 
Center),'' from paragraph (a)(1); and
    b. Removing the words ``acceptable in discretion of ATF officials'' 
from the section heading of paragraph (b)(2).

    Par. 59. Paragraph (a) and the first sentence of paragraph (b) of 
Sec. 70.304 are revised to read as follows:


Sec. 70.304  Place for filing documents other than returns.

    (a) If a document, other than a return, is required to be filed 
with an ATF office, such document may be hand delivered to such office.
    (b) For purposes of this section, a return or document will be 
considered to be hand carried if it is brought to an ATF supervisor of 
the ATF office by the person required to file the return or other 
document, or by the person's agent. * * *
* * * * *


Sec. 70.306  [Amended]

    Par. 60. The fifth sentence of Sec. 70.306(a) is amended by 
removing the words ``Director, the Chief, Tax Processing Center, or a 
regional director (compliance)'' and adding, in substitution, the words 
``appropriate ATF officer''.


Sec. 70.333  [Amended]

    Par. 61. Section 70.333 is amended by removing the words 
``Director, or to a regional director (compliance) or to the Chief, Tax 
Processing Center'' and adding, in substitution, the words 
``appropriate ATF officer''.


Sec. 70.411  [Amended]

    Par. 62. Section 70.411 is amended by:
    a. Removing the words ``regional director (compliance), of the ATF 
region in which operations are to be conducted'' and adding, in 
substitution, the words ``appropriate ATF officer'' in paragraph (b);
    b. By removing the third and fourth sentences and adding, in 
substitution, the sentence ``Supplies of prescribed forms may be 
obtained from the ATF Distribution Center, 7943 Angus Court, 
Springfield, Virginia 22153.'' in the introductory text of paragraph 
(c); and
    c. By removing the phrase ``by ATF officers'' in paragraph (c)(16).


Secs. 70.412 and 70.413  [Amended]

    Par. 63. Part 70 is further amended by removing the phrase ``with 
the regional director (compliance)'' each place it appears in the 
following places:
    a. The first sentence of Sec. 70.412(a); and
    b. Section 70.413((c)(2) introductory text, (d) introductory text 
and (e).

    Par. 64. The third sentence Sec. 70.412(a) is amended by removing 
the phrase ``by the regional director (compliance)'' each place it 
appears.

    Par. 65. Paragraph (b) of Sec. 70.413 is revised to read as 
follows:


Sec. 70.413  Claims.

* * * * *
    (b) Claims for abatement. When the tax on distilled spirits, wines, 
or beer is assessed and the taxpayer thinks that the tax is not due 
under the law, such taxpayer may file a claim for abatement of the tax 
on ATF Form 5620.8 with the officer who made demand for the tax. Such 
officer may call upon the taxpayer to file a bond in double the amount 
of the tax in order to insure collection of the tax if the claim is 
rejected. When the claim is acted upon, the taxpayer is notified of the 
allowance or rejection of the claim. If the claim is rejected, such 
officer, will initiate action to collect the tax.
* * * * *

    Par. 66. The last sentence of Sec. 70.414(a) is revised to read as 
follows:


Sec. 70.414  Preparation and filing of claims.

    (a) Distilled spirits at distilled spirits plants. * * * It is not 
necessary to file a claim for credit of tax on taxpaid samples taken by 
appropriate ATF officers from distilled spirits plants, as

[[Page 29029]]

the appropriate ATF officer will allow credit, without claim, for tax 
on such samples.
* * * * *

    Par. 67. Section 70.416 is revised to read as follows:


Sec. 70.416  Application for approval of interlocking directors and 
officers under section 8 of the Federal Alcohol Administration Act.

    Any person who is an officer or director of a corporation now 
engaged in business as a distiller, rectifier, or blender of distilled 
spirits, or of an affiliate thereof, who desires to take office in 
other companies similarly engaged, must obtain permission to do so from 
the appropriate ATF officer. Applications for such permission to take 
office must be prepared and filed in accordance with instructions 
available from the appropriate ATF officer.
    Par. 68. Section 70.418 is revised to read as follows:


Sec. 70.418  Conferences.

    Any person desiring a conference with ATF, relative to any matter 
arising in connection with such person's operations, will be accorded 
such a conference upon request. No formal requirements are prescribed 
for such conference.

    Par. 69. Section 70.419 is revised to read as follows:


Sec. 70.419  Representatives.

    Title 31 CFR part 8 is applicable to all representatives of the 
taxpayer, for any conference with ATF.


Sec. 70.432  [Amended]

    Par. 70. Section 70.432 is further amended by:
    a. Removing the words ``with, and obtaining a permit from, the 
regional director (compliance) for the region in which operations are 
to be conducted'' from paragraph (a) and adding, in substitution, the 
words ``and obtaining a permit'';
    b. Removing the words ``with the regional director (compliance) for 
the region in which operations are to be conducted'' from paragraph 
(b); and
    c. Removing the words ``with the regional director (compliance) for 
the region in which the customs warehouse is located'' from paragraph 
(d).

    Par. 71. The fourth and last sentences of paragraph (a) and the 
second sentence of paragraph (b) of Sec. 70.433 are revised to read as 
follows:


Sec. 70.433  Collection of taxes.

    (a) Tobacco products. * * * Tax returns, with remittances, are 
filed by the domestic manufacturer in accordance with instructions on 
the appropriate ATF form. * * * Tax returns in Puerto Rico, with 
remittances, are filed in accordance with instructions on the 
appropriate ATF form.
    (b) Cigarette papers and tubes. * * * Such returns, with 
remittances, are filed in accordance with the instructions on the 
appropriate ATF form. * * *
* * * * *


Sec. 70.438  [Amended]

    Par. 72. Section 70.438 is amended by:
    a. Revising the regulatory reference in the first sentence from 
70.131(b) to 70.431(b); and
    b. Removing the second, third and fourth sentences.

    Par. 73. Section 70.471 is revised to read as follows:


Sec. 70.471  Rulings.

    (a) Requests for rulings. Any person who is in doubt as to any 
matter arising in connection with:
    (1) Operations or transactions in the alcohol tax area or under the 
Federal Alcohol Administration Act;
    (2) Operations or transactions in the tobacco tax area; or
    (3) The taxes relating to machine guns, destructive devices, and 
certain other firearms imposed by chapter 53 of the Internal Revenue 
Code; the registration by importers and manufacturers of, and dealers 
in, such firearms; the registration of such firearms; the licensing of 
importers and manufacturers of, and dealers in, firearms and 
ammunition, and collectors of firearms and ammunition curios and relics 
under chapter 44 of title 18 of the United States Code; the licensing 
of manufacturers, importers, limited manufacturer of, and dealers in, 
explosives and issuance of permits for users of explosives under 
chapter 40 of title 18 of the United States Code; and registration of 
importers of, and permits to import, arms, ammunition, and implements 
of war, under section 38 of the Arms Export Control Act of 1976; and 
the taxes relating to pistols, revolvers, firearms (other than pistols 
and revolvers), shells and cartridges imposed by chapter 32 of the 
Internal Revenue Code, may request a ruling thereon by addressing a 
letter to the appropriate ATF official. A ruling can be issued only 
from Bureau Headquarters unless the issues involved are clearly covered 
by currently effective rulings or come within the plain intent of the 
statutes or regulations.
    (b) Routine requests for information. Routine requests for 
information should be addressed to the appropriate ATF officer.


Sec. 70.481  [Amended]

    Par. 74. Paragraph (b)(1) of Sec. 70.481 is amended by removing the 
phrase ``entered into by an authorized ATF official''.

    Par. 75. Section 70.482 is amended by:
    a. Removing paragraphs (d)(1)(ii) through (v);
    b. Redesignating paragraph (d)(1)(vi) as paragraph (d)(1)(ii);
    c. Revising the last sentence of the redesignated paragraph 
(d)(1)(ii) and the introductory text of paragraph (e) and the 
undesignated paragraph after paragrah (e)(3).
    (d) Removing the dollar amount ``$500'' in the undesignated 
sentence following paragraph (e)(3) and adding, in substitution, the 
words, including the punctuation, ``$50,000. However, such compromise 
shall be subject to continuing quality review by the Secretary.'' The 
revisions read as follows:


Sec. 70.482  Offers in compromise of liabilities (other than 
forfeiture) under 26 U.S.C.

* * * * *
    (d) * * *
    (1) * * *
    (ii) * * * When final action has been taken, the proponent is 
notified of the acceptance or rejection of the offer.
* * * * *
    (e) Record. Except as otherwise provided in this paragraph, if an 
offer in compromise is accepted, there shall be placed on file the 
opinion of counsel for the Bureau with respect to such compromise, with 
the reason therefor, and including a statement of: * * *
* * * * *
    (3) * * *
    However, no such opinion shall be required with respect to the 
offer in compromise of any civil case in which the unpaid amount of tax 
assessed (including any interest, additional amount, addition to the 
tax, or assessable penalty is less than $50,000. However, such 
compromise shall be subject to continuing quality review by the 
Secretary.
* * * * *

    Par. 76. Section 70.483 is revised to read as follows:


Sec. 70.483  Offers in compromise of violations of Federal Alcohol 
Administration Act.

    The Federal Alcohol Administration Act provides penalties for 
violations of its provisions. The appropriate ATF officer is authorized 
to compromise

[[Page 29030]]

such liabilities. Persons desiring to submit offers in compromise may 
submit such offers on Form 5640.2. When the offer is acted upon, the 
proponent is notified of the acceptance or rejection of the offer. If 
the offer is rejected, the sum submitted with the offer in compromise 
is returned to the proponent. If the offer is accepted, the proponent 
is notified and the case is closed.


Sec. 70.484  [Amended]

    Par. 77. Section 70.484 is amended by removing the words ``Director 
or designated delegate'' each place it appears and adding, in 
substitution, the words ``appropriate ATF officer''.

    Par. 78. The first, third and fourth sentences of Sec. 70.506 are 
revised to read as follows:


Sec. 70.506  Execution and filing of claim.

    Claims to which this subpart is applicable must be executed on Form 
2635 (5620.8) in accordance with the instructions on the form. * * * 
Claims for credit or refund of taxes collected by district directors of 
customs, to which the provisions of section 6423, I.R.C., are 
applicable and which Customs regulations (19 CFR Part 24--Customs 
Financial and Accounting Procedure) require to be filed with the 
appropriate ATF officer, must be executed and filed in accordance with 
applicable Customs regulations and this subpart. The claim must set 
forth each ground upon which the claim is made in sufficient detail to 
apprise the appropriate ATF officer of the exact basis therefor. * * *
* * * * *


Sec. 70.601  [Amended]

    Par. 79. Section 70.601 is amended by removing the definition of 
``Region''.
    Par. 80. Paragraph (a)(1) of Sec. 70.603 is revised to read as 
follows:


Sec. 70.603  Execution and filing of claim.

    (a) General. (1) Claims under this subpart must be filed on Form 
2635 (5620.8).
* * * * *

    Par. 81. Section 70.701 is amended by revising paragraph (a)(1) and 
the last sentence of paragraph (c) to read as follows:


Sec. 70.701  Rules and regulations.

    (a) Formulation. (1) Alcohol, tobacco, firearms, and explosives 
rules take various forms. The most important rules are issued as 
Treasury decisions, prescribed by the Director, and approved by the 
Secretary. Other rules may be issued over the signature of the Director 
or the signature of any appropriate ATF officer. The channeling of 
rules varies with the circumstances.
    Treasury decisions are prepared within the appropriate ATF offices. 
After approval by the Director, Treasury decisions are forwarded to the 
Secretary for further consideration and final approval.
* * * * *
    (c) Petition to change rules. * * * Petitions must be addressed to 
the Bureau of Alcohol, Tobacco and Firearms, Washington, DC 20226.
* * * * *
    b. Removing the word ``officials'' in the first sentence of 
paragraph (d)(2)(i)(A) and adding, in substitution, the word 
``officers'';
    c. Removing the words ``Associate Director (Compliance Operations) 
and adding, in substitution, the words ``appropriate ATF officer'' in 
paragraph (d)(2)(iv)(A);
    d. Removing the words ``Assistant Director'' each place they appear 
and adding, in substitution, the words ``appropriate ATF officer'' in 
paragraph (d)(2)(iv)(B); and
    e. Removing the words ``Assistant Directors'' and adding, in 
substitution, the words ``appropriate ATF officers'' in paragraph 
(d)(2)(iv)(C).


Sec. 70.801  [Amended]

    Par. 82. Section 70.801 is amended by removing the words ``Chief, 
Disclosure Branch'' and adding, in substitution, the words ``Bureau of 
Alcohol, Tobacco and Firearms''.
    Par. 83. Section 70.802 is amended by:
    a. Removing the words ``in the office of the regional director 
(compliance) who received the offer and in the office of the Assistant 
Director (Liaison and Public Information)'' and adding, in 
substitution, the words ``with the appropriate ATF officer'' in the 
first sentence of paragraph (a);
    b. Removing the words ``operating permits under 26 U.S.C. 5171, and 
industrial use permits under 26 U.S.C. 5271'' and the commas preceding 
and following these words, and removing the words ``in the offices of 
regional director (compliance)'' in paragraph (b)(1);
    c. Removing paragraph (b)(2);
    d. Revising paragraph (c) and the second, third and fifth sentences 
of paragraph (g) to read as follows:


70.802  Rules for disclosure of certain specified matters.

* * * * *
    (c) List of plants and permittees. Upon request, the appropriate 
ATF official shall furnish a list of any type of qualified proprietor 
or permittee if the disclosure is not prohibited by law.
* * * * *
    (g) Comments received in response to a notice of proposed 
rulemaking. * * * Comments may be inspected in the Bureau of Alcohol, 
Tobacco and Firearms, Washington, DC 20226. The request to inspect 
comments must be in writing and signed by the person making the request 
and should be addressed to the Director, Bureau of Alcohol, Tobacco and 
Firearms, Washington, DC 20226. * * * Copies of comments (or portions 
thereof) may be obtained by a written request addressed to the 
Director, Bureau of Alcohol, Tobacco and Firearms, Washington, DC 
20226. * * *
* * * * *
    e. Removing the words ``Chief, Alcohol and Tobacco Programs 
Division'' and adding, in substitution, the words ``appropriate ATF 
officer'' from the first sentence of paragraph (d);
    f. Removing the words ``in the office of regional director 
(compliance)'' and adding, in substitution the words ``from the 
appropriate ATF officer'' in paragraph (e); and
    g. Removing the words ``Deputy Associate Director (Regulatory 
Enforcement)'' and adding, in substitution, the words ``appropriate ATF 
officer'' in paragraph (f).

    Par. 84. Section 70.803 is amended by revising the first two 
sentences of paragraph (c), paragraph (d), paragraph (e)(1), paragraph 
(e)(2), the last sentence of paragraph (e)(3), paragraphs (e)(4) and 
(5), and the first two sentences of paragraph (f) to read as follows:


Sec. 70.803  Requests or demands for disclosure in testimony and in 
related matters.

* * * * *
    (c) Disclosure of ATF records or information prohibited without 
prior approval of the appropriate ATF officer. The disclosure, 
including the production, of ATF records or information to any person 
outside the Department of the Treasury or to any court, administrative 
agency, or other authority, in response to any request or demand for 
the disclosure of such records or information shall be made only with 
the prior approval of the appropriate ATF officer. However, nothing in 
this section restricts the disclosure of ATF records or information for 
which the appropriate ATF officer has determined that the disclosure is 
authorized under any provision of statute, Executive order, or 
regulations, or for which a procedure has been established by the 
Director. * * *

[[Page 29031]]

    (d) Delegation of authority to determine disclosure and establish 
procedures. The appropriate ATF officer is hereby authorized to 
determine whether or not ATF officers and employees will be permitted 
to disclose ATF records or information in response to:
    (1) A request by any court, administrative agency, or other 
authority, or by any person, for the disclosure of such records or 
information; or
    (2) A demand for the disclosure of such records or information.
    (3) The Director is also authorized to establish such other 
procedures as he or she may deem necessary with respect to the 
disclosure of ATF records or information by ATF officers and employees. 
Any determination by the appropriate ATF officer as to whether ATF 
records or information will be disclosed, or any procedure established 
by the Director in connection therewith, must be made in accordance 
with applicable statutes, Executive orders, regulations, and any 
instructions that may be issued by the Secretary. Notwithstanding the 
preceding provisions of this paragraph, the appropriate ATF officer 
shall, where either the Secretary or such officer deems it appropriate, 
refer the opposing of a request or demand for disclosure of ATF records 
or information to the Secretary.
    (e) Procedure in the event of a request or demand for ATF records 
or information--(1) Request procedure. Any ATF officer or employee who 
receives a request for ATF records or information, the disposition of 
which is not covered by a procedure established by the Director, must 
promptly communicate the contents of the request to the appropriate ATF 
officer. The officer or employee must await instructions from the 
appropriate ATF officer concerning the response to the request. * * *
    (2) Demand procedure. Any ATF officer or employee who is served 
with a demand for ATF records or information, the disposition of which 
is not covered by a procedure established by the Director, must 
promptly, and without awaiting appearance before the court, 
administrative agency, or other authority, communicate the contents of 
the demand to the appropriate ATF officer. The ATF officer or employee 
must await instructions from the appropriate ATF officer concerning the 
response to the demand. If it is determined by the appropriate ATF 
officer that the demand should be opposed, the U.S. attorney, his or 
her assistant, or other appropriate legal representative shall be 
requested to respectfully inform the court, administrative agency, or 
other authority that the appropriate ATF officer has instructed the ATF 
officer or employee to refuse to disclose the ATF records or 
information sought. If instructions have not been received from the 
appropriate ATF officer at the time when the ATF officer or employee is 
required to appear before the court, administrative agency, or other 
authority in response to the demand, the U.S. attorney, his or her 
assistant, or other appropriate legal representative must be requested 
to appear with the ATF officer or employee upon whom the demand has 
been served and request additional time in which to receive such 
instructions. In the event the court, administrative agency, or other 
authority rules adversely with respect to the refusal to disclose the 
records or information pursuant to the instructions of the appropriate 
ATF officer, or declines to defer a ruling until instructions from the 
appropriate ATF officer have been received, the ATF officer or employee 
upon whom the demand has been served must, pursuant to this section, 
respectfully decline to disclose the ATF records or information sought.
    (3) Affidavit required for testimony. * * * The appropriate ATF 
officer may, upon request and for good cause shown, waive the 
requirement of this paragraph.
    (4) Time limit for serving request or demand. The request or 
demand, together with the affidavit or statement (if required by 
paragraph (e)(3) of this section), must be served at least 5 working 
days prior to the scheduled date of testimony or disclosure of records, 
in order to ensure that the appropriate ATF officer has adequate time 
to consider whether to grant the request or demand. The appropriate ATF 
officer may, upon request and for good cause shown, waive the 
requirement of this paragraph.
    (5) Factors to be considered in determining whether a request or 
demand will be granted. The appropriate ATF officer must consider 
whether granting the request or demand would be appropriate under the 
relevant rules of procedure and substantive law concerning privilege. 
Among the requests or demands that will not be granted are those that 
would, if granted, result in--
    (i) The violation of a statute, such as 26 U.S.C. 6103 or 7213, or 
a rule of procedure, such as the grand jury secrecy rule (F.R.Cr.P. 
Rule 6(e)), or a specific regulation;
    (ii) The disclosure of classified information;
    (iii) The disclosure of a confidential source or informant, unless 
the ATF officer or employee and the source or informant, have no 
objection;
    (iv) The disclosure of investigative records compiled for law 
enforcement purposes if enforcement proceedings would thereby be 
impeded, or of investigative techniques and procedures whose 
effectiveness would thereby be impaired, unless the appropriate ATF 
officer determines that the administration of justice requires 
disclosure;
    (v) The disclosure of trade secrets without the owner's consent; or
    (vi) Testimony in a case in which ATF has no interest, records or 
other official information.
    (f) State cases. The appropriate ATF officer, may, in the interest 
of Federal and State law enforcement, upon receipt of demands or 
requests of State authorities, and at the expense of the State, 
authorize employees under their supervision to attend trials and 
administrative hearings in liquor, tobacco, firearms, or explosives 
cases in which the State is a party or on behalf of the State in any 
criminal case, to produce records, and to testify as to facts coming to 
their knowledge in their official capacities. However, in cases where a 
defendant in a criminal case requests or demands testimony or the 
production of ATF records or information, authorization from the 
appropriate ATF officer is required. * * *
* * * * *

    Signed: April 5, 2001.
Bradley A. Buckles,
Director.

    Approved: April 12, 2001.
Timothy E. Skud,
Acting Deputy Assistant Secretary (Regulatory, Tariff and Trade 
Enforcement).
[FR Doc. 01-12803 Filed 5-25-01; 8:45 am]
BILLING CODE 4810-31-P