1513-0097 Law and Reg.

1513-0097

26 U.S.C.

Sec. 4181. Imposition of tax

There is hereby imposed upon the sale by the manufacturer, roducer, or importer of the following articles a tax equivalent to the specified percent of the price for which so sold:

Articles taxable at 10 percent--

Pistols.

Revolvers.

Articles taxable at 11 percent--

Firearms (other than pistols and revolvers).

Shells, and cartridges.

(Aug. 16, 1954, ch. 736, 68A Stat. 490.)

27 CFR

Sec. 53.158 Payment of tax by electronic fund transfer.

(a) In general. For return periods after September 30, 1992, any

taxpayer liable for firearms and ammunition excise taxes incurred under

this part may elect to remit payments and deposits of the taxes

(taxpayments) by electronic fund transfer (EFT). A taxpayer who elects

to make remittance by EFT must use that method of remitting excise taxes on firearms and ammunition for a minimum of four consecutive calendar quarters. A taxpayer who makes remittance by EFT for a calendar quarter may not use any other method of remitting and ammunition excise taxes for that quarter.

(b) Requirements. (1) On or before the 10th day of the calendar

quarter preceding the calendar quarter in which the taxpayer will begin

remitting taxes by EFT, each taxpayer who elects to make remittances by

EFT of firearms and ammunition excise taxes incurred under this part

shall give written notice to the appropriate TTB officer, indicating

that remittances will be paid by EFT. Taxpayers who gave written

notification in a previous calendar quarter electing to make remittances of tax by EFT are not required to give additional written notifications to continue remitting tax by EFT for succeeding calendar quarters.

(2) For each deposit made or return filed in accordance with this

subpart, the taxpayer shall direct the taxpayer's financial institution

to make an EFT in the amount of the taxpayment to the Treasury Account

as provided in paragraph (e) of this section. The request will be made

to the financial institution early enough for the transfer of funds to

be made to the Treasury Account no later than the close of business on

the last day for making the deposit or filing the return as prescribed

in Sec. Sec. 53.157 or 53.159, and 53.153. The request will take into

account any time limit established by the financial institution.

(3) Taxpayers who elect to discontinue making remittances by EFT of

firearms and ammunition excise taxes may make such election at any time

following four consecutive calendar quarters in which tax is remitted by EFT. Taxpayers electing to discontinue making remittances by EFT shall remit the tax with the next deposit or return as prescribed in

Sec. Sec. 53.157 or 53.159, and 53.151 for remittances not made by EFT

and notify the appropriate TTB officer by attaching a written

notification to the tax deposit form or return stating that remittance

of firearms and ammunition excise taxes will no longer be made by EFT.

(c) Remittance. (1) Taxpayers who elect to make firearms and

ammunition excise taxpayments by EFT shall file the deposit form and/or

return with TTB in accordance with the applicable instructions on the

forms.

(2) Remittances will be considered as made when the taxpayment by

EFT is received by the Treasury Account when it is paid to a Federal

Reserve Bank.

(3) When the taxpayer directs the financial institution to effect an electronic fund transfer message as required by paragraph (b)(2) of this section, the transfer data record furnished to the taxpayer through normal banking procedures will serve as the record of payment and will be retained as part of the required records.

(d) Failure to make a taxpayment by EFT. The taxpayer is subject to

penalties imposed by 26 U.S.C. 6651 and 6656, as applicable, for failure to make a payment or deposit of tax by EFT on or before the close of business on the prescribed last day for making such payment or deposit.

(e) Procedure. Upon the notification required under paragraph (b)(1) of this section, the appropriate TTB officer will issue to the taxpayer an TTB Procedure entitled Payment of Tax by Electronic Fund Transfer. This publication outlines the procedure a taxpayer follows when preparing deposits, returns and EFT remittances in accordance with this subpart.

[T.D. ATF-330, 57 FR 40326, Sept. 3, 1992, as amended by T.D. ATF-365,

60 FR 33671, June 28, 1995; T.D. ATF-447, 66 FR 19088, Apr. 13, 2001]