Final Regulation

1056

Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Rules and Regulations

DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 49 and 602
[TD 8855]
RIN 1545–AV63

Communications Excise Tax; Prepaid
Telephone Cards
AGENCY: Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations
SUMMARY: This document contains final
regulations relating to the application of
the communications excise tax to
prepaid telephone cards (PTCs). The
regulations implement certain changes
made by the Taxpayer Relief Act of
1997. They affect certain
telecommunications carriers, resellers,
and purchasers of PTCs.
DATES: Effective Dates: These
regulations are effective January 7, 2000.
Applicability Dates: For the date of
applicability, see § 49.4251–4(f).
FOR FURTHER INFORMATION CONTACT:
Bernard H. Weberman (202) 622–3130
(not a toll-free number).
SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act
The collection of information
contained in these final regulations has
been approved by the Office of
Management and Budget in accordance
with the Paperwork Reduction Act (44
U.S.C. 3507) under control number
1545–1628. Responses to this collection
of information are required to obtain a
tax benefit.
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.
The estimated average burden per
respondent is 0.25 hour. The estimated
average annual burden per recordkeeper
is 1.2 hours.
Comments concerning the accuracy of
this burden estimate and suggestions for
reducing this burden should be sent to
the Internal Revenue Service, Attn: IRS
Reports Clearance Officer, OP:FS:FP,
Washington, DC 20224, and 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.
Books or records relating to this
collection of information must be
retained as long as their contents may
become material in the administration
of any internal revenue law. Generally,

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tax returns and tax return information
are confidential, as required by 26
U.S.C. 6103.
Background
On December 17, 1998, a notice of
proposed rulemaking (REG–118620–97)
was published in the Federal Register
(63 FR 69585). Three written comments
were received but no hearing was held
because no requests to speak were
received. The proposed regulations are
adopted as revised by this Treasury
decision.
The principal concerns of the
commenters related to the rules for
determining the face amount of an
untariffed unit card transferred to a
transferee reseller. The proposed
regulations provide that the face amount
can be determined by reference to actual
retail sales by the carrier, by reference
to the price at which the PTC is sold to
the transferee reseller, or by reference to
the minutes of domestic
communications service provided by
the PTC. One commenter requested
additional explanation of the basis for
these rules. Another suggested that in
many situations, particularly in the case
of high-denomination (for example,
multi-hour) PTCs, none of the proposed
methods for determining the face
amount will accurately reflect the true
retail value of the PTC. This commenter
also suggested that if a carrier can
substantiate the actual retail price of a
PTC it should have the option of
treating that price as the face amount.
The final regulations modify the rules
relating to untariffed unit cards in three
respects. First, they clarify that when
the face amount is determined by
reference to actual retail sales by the
carrier, the retail sales taken into
account are sales of PTCs that provide
the same type and amount of
communications service. The final
regulations also modify the markup
percentage used when the face amount
is determined by reference to the price
at which the carrier sells the PTC to the
transferee reseller. The proposed
regulations apply a markup of 65
percent. Under the final regulations, the
markup is reduced to 35 percent to
correspond more closely to markups in
the retail sector generally. Lastly, the
final regulations modify the rule for
determining the face amount by
reference to the minutes of domestic
communications service provided by
the PTC. The proposed regulations
provide that the face amount may be
determined by multiplying the number
of minutes by a flat $0.30 per-minute
rate. As noted in the comments,
however, a high-denomination PTC
generally provides lower cost service on

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a per-minute basis than an otherwise
equivalent low-denomination PTC.
Accordingly, the final regulations
provide that the per-minute rate used to
determine face amount is reduced from
$0.30 per minute to $0.20 per minute as
the amount of domestic
communications service provided by a
PTC increases from 40 to 240 minutes.
For sales to transferee resellers, the
final regulations do not permit carriers
that can substantiate the actual retail
price of a PTC to use that price as the
face amount. The IRS and Treasury
Department believe that the
modifications to the methods for
determining face amount address
concerns that the prescribed methods
may overstate the face amount.
Moreover, a system based on the actual
retail sale price when the retail sale is
made by a person other than the carrier
could prove very difficult for the IRS to
administer because of the difficulty of
verifying the prices at which PTCs are
sold by large numbers of small retailers
that may have acquired the PTCs
indirectly through one or more
transferee resellers.
Commenters also suggested that state
and local taxes should be excluded from
the face amount even if they are not
separately stated. In general, the
comments propose an exclusion based
on the average amount of state and local
taxes imposed on the carrier’s PTCs.
These suggestions were not adopted.
Section 4254(c) excludes from the
section 4251 tax base only those state
and local taxes that are imposed on the
sale or furnishing of communications
services and that are separately stated in
the bill. A tax that is not separately
stated (because, for example, it is
imposed after the taxable sale of the
PTC and its amount is not known at the
time of the sale) does not qualify for this
exclusion.
The regulations apply to PTCs
transferred by carriers in calendar
quarters beginning after January 7, 2000.
Carriers and transferees may, however,
rely on the regulations in determining
the tax treatment of PTCs transferred in
quarters beginning on or before that
date.
Special Analyses
It has been determined that this
Treasury decision is not a significant
regulatory action as defined in
Executive Order 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 regulations. It is hereby
certified that the collection of
information in these regulations will not

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Federal Register / Vol. 65, No. 5 / Friday, January 7, 2000 / Rules and Regulations
have a significant economic impact on
a substantial number of small entities.
This certification is based on the fact
that the time required to prepare or
retain the notification is minimal and
will not have a significant impact on
those small entities that are required to
provide notification. Furthermore,
notification is provided only once to
each seller. Accordingly, 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, the notice of proposed rulemaking
preceding these regulations was
submitted to the Chief Counsel for
Advocacy of the Small Business
Administration for comment on its
impact on small business.
Drafting Information: The principal
author of these regulations is Bernard H.
Weberman, Office of Assistant Chief
Counsel (Passthroughs and Special
Industries). However, other personnel
from the IRS and Treasury Department
participated in their development.
List of Subjects
26 CFR Part 49
Excise taxes, Reporting and
recordkeeping requirements, Telephone,
Transportation.
26 CFR Part 602
Reporting and recordkeeping
requirements.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR parts 49 and 602
are amended as follows:
PART 49—FACILITIES AND SERVICES
EXCISE TAXES
Paragraph 1. The authority citation
for part 49 is revised to read as follows:
Authority: 26 U.S.C. 7805.
Section 49.4251–4 also issued under 26
U.S.C. 4251(d).

Par. 2. Section 49.4251–4 is added to
read as follows:
§ 49.4251–4

Prepaid telephone cards.

(a) In general. In the case of
communications services acquired by
means of a prepaid telephone card
(PTC), the face amount of the PTC is
treated as an amount paid for
communications services and that
amount is treated as paid when the PTC
is transferred by any carrier to any
person that is not a carrier. This section
provides rules for the application of the
section 4251 tax to PTCs.
(b) Definitions. The following
definitions apply to this section:

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Carrier means a telecommunications
carrier as defined in 47 U.S.C. 153.
Comparable PTC means a currently
available dollar card or tariffed unit card
(other than a PTC transferred in bulk or
under special circumstances, such as for
promotional purposes) that provides the
same type and amount of
communications services as the PTC to
which it is being compared.
Dollar card means a PTC the value of
which is designated by the carrier in
dollars (even if also designated in units
of service), provided that the designated
value is not less than the amount for
which the PTC is expected to be sold to
a holder.
Holder means a person that purchases
other than for resale.
Prepaid telephone card (PTC) means
a card or similar arrangement that
permits its holder to obtain a fixed
amount of communications services by
means of a code (such as a personal
identification number (PIN)) or other
access device provided by the carrier
and to pay for those services in advance.
Tariff means a schedule of rates and
regulations filed by a carrier with the
Federal Communications Commission.
Tariffed unit card means a unit card
that is transferred by a carrier—
(1) To a holder at a price that does not
exceed the designated number of units
on the PTC multiplied by the carrier’s
tariffed price per unit; or
(2) To a transferee reseller subject to
a contractual or other arrangement
under which the price at which the PTC
is sold to a holder will not exceed the
designated number of units on the PTC
multiplied by the carrier’s tariffed price
per unit.
Transferee means the first person that
is not a carrier to whom a PTC is
transferred by a carrier.
Transferee reseller means a transferee
that purchases a PTC for resale.
Unit card means a PTC other than a
dollar card.
Untariffed unit card means a unit card
other than a tariffed unit card.
(c) Determination of face amount—(1)
Dollar card. The face amount of a dollar
card is the designated dollar value.
(2) Tariffed unit card. The face
amount of a tariffed unit card is the
designated number of units on the PTC
multiplied by the tariffed price per unit.
(3) Untariffed unit card—(i) Transfer
to holder. The face amount of an
untariffed unit card transferred by a
carrier to a holder is the amount for
which the carrier sells the PTC to the
holder.
(ii) Transfer to transferee reseller—(A)
In general. The face amount of an
untariffed unit card transferred by a
carrier to a transferee reseller is at the
option of the carrier—

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(1) The highest amount for which the
carrier sells a PTC that provides the
same type and amount of
communications services to a holder
that ordinarily would not be expected to
buy more than one such PTC at a time
(if the carrier makes such sales on a
regular and arm’s-length basis) or the
face amount of a comparable PTC (if the
carrier does not make such sales on a
regular and arm’s-length basis);
(2) 135 percent of the amount for
which the carrier sells the PTC to the
transferee reseller (including in that
amount, in addition to any sum certain
fixed at the time of the sale, any
contingent amount per unit multiplied
by the designated number of units on
the PTC); or
(3) If the PTC is of a type that
ordinarily is used entirely for domestic
communications service, the maximum
number of minutes of domestic
communications service on the PTC
multiplied by the applicable rate.
(B) Applicable rate. The applicable
rate under paragraph (c)(3)(ii)(A)(3) of
this section with respect to a PTC is
$0.30 reduced (but not below $0.20) by
$0.01 for each full 20 minutes by which
the maximum number of minutes of
domestic communications service on
the PTC exceeds 40 minutes.
(C) Sales not at arm’s length. In the
case of a transfer of an untariffed unit
card by a carrier to a transferee reseller
otherwise than through an arm’s-length
transaction, the fair market retail value
of the PTC shall be substituted for the
amount determined in paragraph
(c)(3)(ii)(A)(2) of this section.
(4) Exclusion. The amount of any state
or local tax imposed on the furnishing
or sale of communications services that
is separately stated in the bill or on the
face of the PTC and the amount of any
section 4251 tax separately stated in the
bill or on the face of the PTC are
disregarded in determining, for
purposes of this paragraph (c), the
amount for which a PTC is sold.
(d) Liability for tax—(1) In general.
Under section 4251(d), the section
4251(a) tax is imposed on the transfer of
a PTC by a carrier to a transferee. The
person liable for the tax is the
transferee. Except as provided in
paragraph (d)(2) of this section, the
person responsible for collecting the tax
is the carrier transferring the PTC to the
transferee. If a holder purchases a PTC
from a transferee reseller, the amount
the holder pays for the PTC is not
treated as an amount paid for
communications services and thus tax is
not imposed on that payment.
(2) Effect of statement that purchaser
is a carrier—(i) On transferor. A carrier
that transfers a PTC to a purchaser is not

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responsible for collecting the tax if, at
the time of transfer, the transferor
carrier has received written notification
from the purchaser that the purchaser is
a carrier, and the transferor has no
reason to believe otherwise. The
notification to be provided by the
purchaser is a statement, signed under
penalties of perjury by a person with
authority to bind the purchaser, that the
purchaser is a carrier (as defined in
paragraph (b) of this section). The
statement is not required to take any
particular form.
(ii) On purchaser. If a purchaser that
is not a carrier provides the notification
described in paragraph (d)(2)(i) of this
section to the carrier that transfers a
PTC, the purchaser remains liable for
the tax imposed on the transfer of the
PTC.
(3) Exemptions. Any exemptions
available under section 4253 apply to
the transfer of a PTC from a carrier to
a holder. Section 4253 does not apply to
the transfer of a PTC from a carrier to
a transferee reseller.
(e) Examples. The following examples
illustrate the provisions of this section:
Example 1. Unit card; sold to individual.
(i) On May 1, 2000, A, a carrier, sells a card
it calls a prepaid telephone card at A’s retail
store to P, an individual, for P’s use in
making telephone calls. A provides P with a
PIN. The value of the card is not
denominated in dollars, but the face of the
card is marked 30 minutes. The sales price
is $9. A tariff has not been filed for the
minutes on the card. The toll telephone
service acquired by purchasing the card will
be obtained by entering the PIN and the
telephone number to be called.
(ii) Because P purchased from a carrier
other than for resale, P is a holder. The card
provides its holder, P, with a fixed amount
of communications services (30 minutes of
toll telephone service) to be obtained by
means of a PIN, for which P pays in advance
of obtaining service; therefore, the card is a
PTC. Because the value of the PTC is not
designated in dollars and a tariff has not been
filed for the minutes on the PTC, the PTC is
an untariffed unit card. Because it is
transferred by the carrier to the holder, the
face amount is the sales price ($9).
(iii) The card is a PTC; thus, under section
4251(d), the face amount is treated as an
amount paid for communications services
and that amount is treated as paid when the
PTC is transferred from A to P. Accordingly,
at the time of transfer, P is liable for the 3
percent tax imposed by section 4251(a). The
amount of the tax is $0.27 (3% × the $9 face
amount). Thus, the total paid by P is $9.27,
the $9 sales price plus $0.27 tax. A is
responsible for collecting the tax from P.
Example 2. Unit card; given to individual.
(i) The facts are the same as in Example 1,
except that instead of selling a card, A gives
a 30 minute card to P.
(ii) Although the card provides P with a
fixed amount of communications services (30
minutes of toll telephone service) to be

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obtained by means of a PIN, P does not pay
for the service. Therefore, the card is not a
PTC, even though it is called a prepaid
telephone card by A.
(iii) Because the card is not a PTC, section
4251(d) does not apply. Furthermore, no tax
is imposed by section 4251(a) because no
amount is paid for the communications
services.
Example 3. Unit card; adding value. (i)
After using the card described in Example 2,
P arranges with A by telephone to have 30
minutes of toll telephone service added to
the card. The sales price is $9. P is told to
continue using the PIN provided with the
card.
(ii) Because P purchased from a carrier
other than for resale, P is a holder. The
arrangement provides its holder, P, with a
fixed amount of communications services (30
minutes of toll telephone service) to be
obtained by means of a PIN, for which P pays
in advance of obtaining service; therefore, the
arrangement is a PTC. Because the value of
the PTC is not designated in dollars and a
tariff has not been filed for the minutes on
the PTC, the PTC is an untariffed unit card.
Because it is transferred by the carrier to the
holder, the face amount is the sales price
($9).
(iii) The arrangement is a PTC; thus, under
section 4251(d), the face amount is treated as
an amount paid for communications services
and that amount is treated as paid when the
PTC is transferred from A to P. Accordingly,
at the time of transfer, P is liable for the 3
percent tax imposed by section 4251(a). The
amount of the tax is $0.27 (3% × the $9 face
amount). Thus, the total paid by P is $9.27,
the $9 sales price plus $0.27 tax. A is
responsible for collecting the tax from P.
Example 4. Dollar card; sold other than for
resale. (i) On May 1, 2000, B, a carrier, sells
100,000 cards it calls prepaid telephone
cards to Q, an auto dealer, for $50,000. Q will
give away a card to each person that visits
Q’s dealership. B provides Q with a PIN for
each card. The face of each card is marked
$3. The toll telephone service acquired by
purchasing the card will be obtained by
entering the PIN and the telephone number
to be called.
(ii) Because Q purchased from a carrier
other than for resale, Q is a holder. Each card
provides its holder, Q, with a fixed amount
of communications services ($3 of toll
telephone service) to be obtained by means
of a PIN, for which Q pays in advance of
obtaining service; therefore, each card is a
PTC even though Q’s visitors do not pay for
the cards. The value of each PTC is
designated in dollars; therefore, each PTC is
a dollar card. Because the PTC is a dollar
card, the face amount is the designated dollar
value ($3).
(iii) The cards are PTCs; thus, under
section 4251(d), the face amount is treated as
an amount paid for communications services
and that amount is treated as paid when the
PTCs are transferred from B to Q.
Accordingly, at the time of transfer, Q is
liable for the 3 percent tax imposed by
section 4251(a). The amount of the tax is
$9,000 (3% × the $3 face amount × 100,000
PTCs). Thus, the total paid by Q is $59,000,
the $50,000 sales price plus $9,000 tax. B is
responsible for collecting the tax from Q.

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Example 5. Tariffed unit card; sold to
transferee reseller. (i) On May 1, 2000, C, a
carrier, sells 1,000 cards it calls prepaid
telephone cards to R, a convenience store
owner, for $7,000. C provides R with a PIN
for each card. The value of the cards is not
denominated in dollars, but the face of each
card is marked 30 minutes and a tariff of
$0.33 per minute has been filed for the
minutes on each card. R agrees that it will
sell the cards to individuals for their own use
and at a price that does not exceed $0.33 per
minute. R actually sells the cards for $9 each
(that is, at a price equivalent to $0.30 per
minute). The toll telephone service acquired
by purchasing the card will be obtained by
entering the PIN and the telephone number
to be called.
(ii) Because R purchased from a carrier for
resale, R is a transferee reseller. Because R’s
customers will purchase other than for resale,
they will be holders. Each card sold by R
provides its holder, R’s customer, with a
fixed amount of communications services (30
minutes of toll telephone service) to be
obtained by means of a PIN provided by the
carrier, for which R’s customer pays in
advance of obtaining service; therefore, each
card is a PTC. Because the value of each PTC
is not designated in dollars and C sells the
PTCs to R subject to an arrangement under
which the price at which the PTCs are sold
to holders will not exceed the designated
number of minutes on the PTC multiplied by
C’s tariffed price per minute, each PTC is a
tariffed unit card. Because the PTCs are
tariffed unit cards, the face amount of each
PTC is $9.90, the designated number of
minutes on the PTC multiplied by the tariffed
price per minute (30 × $0.33), even though
the retail sale price of each card is $9.
(iii) The cards are PTCs; thus, under
section 4251(d), the face amount is treated as
an amount paid for communications services
and that amount is treated as paid when the
PTC is transferred from C to R. Accordingly,
at the time of transfer, R is liable for the 3
percent tax imposed by section 4251(a). The
amount of the tax is $297 (3% × the $9.90
face amount × 1,000 PTCs). Thus, the total
paid by R is $7,297, the $7,000 sales price
plus $297 tax. C is responsible for collecting
the tax from R.
Example 6. Unit card; sold to transferee
reseller. (i) On May 1, 2000, D, a carrier, sells
10,000 cards it calls prepaid telephone cards
to S, a convenience store owner, for $60,000.
D provides S with a PIN for each card. The
value of the cards is not denominated in
dollars, but the face of each card is marked
30 minutes. A tariff has not been filed for the
minutes on each card. S will sell the cards
to individuals for their own use for $9 each.
D also sells a card that provides 30 minutes
of the same type of communications service
at its retail store for $9. The toll telephone
service acquired by purchasing the card will
be obtained by entering the PIN and the
telephone number to be called.
(ii) Because S purchased from a carrier for
resale, S is a transferee reseller. Because S’s
customers will purchase other than for resale,
they will be holders. Each card sold by S
provides its holder, S’s customer, with a
fixed amount of communications services (30
minutes of toll telephone service) to be

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obtained by means of a PIN provided by the
carrier, for which S’s customer pays in
advance of obtaining service; therefore, each
card is a PTC. Because the value of each PTC
is not designated in dollars and a tariff has
not been filed for the minutes on the PTC,
each PTC is an untariffed unit card.
(iii) The PTCs are untariffed unit cards
transferred by the carrier to a transferee
reseller. Thus, the face amount is determined
under paragraph (c)(3)(ii) of this section,
which permits D to choose from three
alternative methods. Under paragraph
(c)(3)(ii)(A)(1) of this section, the face amount
of each PTC would be $9, the highest amount
for which D sells to holders purchasing a
single PTC. Alternatively, under paragraph
(c)(3)(ii)(A)(2) of this section, the face amount
of each PTC would be $8.10, computed as
follows: 135% × the $60,000 sales price ×
10,000 PTCs. Finally, under paragraph
(c)(3)(ii)(A)(3) of this section (assuming the
PTCs are of a type that ordinarily is used
entirely for domestic communications
services), the face amount of each PTC would
be $9 ($0.30 × 30 minutes).
(iv) The cards are PTCs; thus, under
section 4251(d), the face amount is treated as
an amount paid for communications services
and that amount is treated as paid when the
PTCs are transferred from D to S.
Accordingly, at the time of transfer, S is
liable for the 3 percent tax imposed by
section 4251(a). Assuming that D chooses to
determine the face amount as provided in
paragraph (c)(3)(ii)(A)(2) of this section, the
amount of the tax is $2,430 (3% x the $8.10
face amount x 10,000 PTCs). Thus, the total
paid by S is $62,430, the $60,000 sales price
plus $2,430 tax. D is responsible for
collecting the tax from S.
Example 7. Transfer of card that is not a
PTC. (i) On May 1, 2000, E, a carrier,
provides a telephone card to T, an
individual, for T’s use in making telephone
calls. E provides T with a PIN. The card
provides access to an unlimited amount of
communications services. E charges T $0.25
per minute of service, and bills T monthly for
services used. The communications services
acquired by using the card will be obtained
by entering the PIN and the telephone
number to be called.
(ii) Although the communications services
will be obtained by means of a PIN, T does
not receive a fixed amount of
communications services. Also, T cannot pay
in advance since the amount of T’s payment
obligation depends upon the number of
minutes used. Therefore, the card is not a
PTC.
(iii) Because the card is not a PTC, section
4251(d) does not apply. However, the 3
percent tax imposed by section 4251(a)
applies to the amounts paid by T to E for the
communications services. Accordingly, at the
time an amount is paid for communications
services, T is liable for tax. E is responsible
for collecting the tax from T.

(f) Effective date. This section is
applicable with respect to PTCs
transferred by a carrier on or after the
first day of the first calendar quarter
beginning after January 7, 2000.

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PART 602—OMB CONTROL NUMBERS
UNDER THE PAPERWORK
REDUCTION ACT
Par. 3. The authority citation for part
602 continues to read as follows:

1059

Need for Correction
As published, final regulations (TD
8845) contain errors that may prove to
be misleading and are in need of
clarification.

Par. 4. In § 602.101, paragraph (b) is
amended by adding an entry in
numerical order to the table to read as
follows:

Correction of Publication
Accordingly, the publication of the
final regulations (TD 8845), which were
the subject of FR Doc. 99–30944, is
corrected as follows:

§ 602.101

§ 301.6501(c)–1

Authority: 26 U.S.C. 7805.

*

OMB Control numbers.

*
*
(b) * * *

*

*

CFR part or section where
identified and described

Current OMB
control No.

*
*
*
*
49.4251–(4)(d)(2) ..................
*

*

*

*
1545–1628

*

*

John M. Dalrymple,
Acting Deputy Commissioner of Internal
Revenue.
Approved: December 13, 1999.
Jonathan Talisman,
Acting Assistant Secretary of the Treasury.
[FR Doc. 00–56 Filed 1–6–00; 8:45 am]

[Corrected]

1. On page 67772, column 3,
§ 301.6501(c)–1(f)(5), line 9 from the top
of the column, the language ‘‘transfer
will not be subject to inclusion’’ is
corrected to read ‘‘transfer will be
subject to inclusion’’.
2. On page 67772, column 3,
§ 301.6501(c)–1(f)(5), line 11 from the
top of the column, the language
‘‘purposes. On the other hand, if the’’ is
corrected to read ‘‘purposes only to the
extent that a completed gift would be so
included. On the other hand, if the’’.
Cynthia E. Grigsby,
Chief, Regulations Unit, Assistant Chief
Counsel (Corporate).
[FR Doc. 00–57 Filed 1–6–00; 8:45 am]
BILLING CODE 4830–01–U

BILLING CODE 4830–01–U

DEPARTMENT OF THE INTERIOR
DEPARTMENT OF THE TREASURY
Internal Revenue Service

Office of Surface Mining Reclamation
and Enforcement

26 CFR Part 301

30 CFR Part 914

[TD 8845]

[SPATS No. IN–146–FOR; State Program
Amendment No. 98–3]

RIN 1545–AW20

Indiana Regulatory Program

Adequate Disclosure of Gifts;
Correction
AGENCY: Internal Revenue Service (IRS),
Treasury.
ACTION: Correction to final regulations.
SUMMARY: This document contains
corrections to final regulations which
were published in the Federal Register
on Friday, December 3, 1999, 64 FR
67767, relating to the valuation of prior
gifts in determining estate and gift tax
liability, and the period of limitations
for assessing and collecting gift tax.
DATES: This correction is effective
December 3, 1999.
FOR FURTHER INFORMATION CONTACT:
William L. Blodgett, (202) 622–3090,
(not a toll-free number).
SUPPLEMENTARY INFORMATION:

Background
The final regulations that are subject
to these corrections are under section
6501 of the Internal Revenue Code.

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AGENCY: Office of Surface Mining
Reclamation and Enforcement, Interior.
ACTION: Final rule; approval of
amendment.
SUMMARY: The Office of Surface Mining
Reclamation and Enforcement (OSM) is
approving an amendment to the Indiana
regulatory program (Indiana program)
under the Surface Mining Control and
Reclamation Act of 1977 (SMCRA).
Indiana proposed to add a new section
to its rules. The new section requires
permittees of coal mine operations to
submit an annual report of affected area
to the director of the Indiana
Department of Natural Resources
(IDNR). Indiana intends to revise its
program to improve operational
efficiency. We are also taking this
opportunity to make a technical
correction to 30 CFR 914.16(ii) and to
remove the required amendments
codified at 30 CFR 914.16(b) and
914.16(ii)(b).

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