Implementation of Public Law 104-188, Section 1702, Amendments Related to Revenue Reconciliation Act of 1990 (96R-028T)

DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 24

[Notice No. 852]

RIN 1512-AB65

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

the Treasury.

ACTION: Notice of proposed rulemaking cross referenced to temporary

regulations.

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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.

SUPPLEMENTARY INFORMATION:

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; he 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.

[[Page 29682]]

The collections of information in this proposed regulation are in

27 CFR Secs. 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 producer's 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.

Public Participation

ATF requests comments on the temporary regulations from all

interested persons. 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.

Drafting Information: The principal author of this document is

Marjorie D. Ruhf, Wine, Beer & Spirits Regulations Branch, Bureau of

Alcohol, Tobacco and Firearms.

John W. Magaw,

Director.

Approved: January 3, 1997.

Dennis M. O'Connell,

Acting Deputy Assistant Secretary (Regulatory, Tariff and Trade

Enforcement).

[FR Doc. 97-14307 Filed 5-30-97; 8:45 am]

BILLING CODE 4810-31-P