Td 8780

Federal Register / Vol. 63, No. 162 / Friday, August 21, 1998 / Rules and Regulations
determined that there is good cause for
publishing this interim rule without
prior opportunity for public comment.
Immediate action is warranted to
remove unnecessary restrictions on the
interstate movement of swine from
Alabama.
Because prior notice and other public
procedures with respect to this action
are impracticable and contrary to the
public interest under these conditions,
we find good cause under 5 U.S.C. 553
to make this action effective upon
publication in the Federal Register. We
will consider comments that are
received within 60 days of publication
of this rule in the Federal Register.
After the comment period closes, we
will publish another document in the
Federal Register. The document will
include a discussion of any comments
we receive and any amendments we are
making to the rule as a result of the
comments.
Executive Order 12866 and Regulatory
Flexibility Act
This rule has been reviewed under
Executive Order 12866. For this action,
the Office of Management and Budget
has waived its review process required
by Executive Order 12866.
This action removes the requirement
that breeding swine be tested for
brucellosis prior to movement interstate
from Alabama.
Approximately 99 percent of swine
herd producers in Alabama are small
businesses (defined by the Small
Business Administration as having
annual gross receipts of less than
$500,000). Currently, these small
producers have about 20,000 adult
swine tested annually for brucellosis, at
a cost to producers of approximately $5
per test. We are not able to determine
exactly how many of these tests are
performed for the purpose of certifying
breeding swine for movement interstate,
but we estimate the number to be small.
We anticipate, therefore, that this
action will have a minimal positive
economic impact, if any, on swine
producers in Alabama.
Under these circumstances, the
Administrator of the Animal and Plant
Health Inspection Service has
determined that this action will not
have a significant economic impact on
a substantial number of small entities.
Executive Order 12372
This program/activity is listed in the
Catalog of Federal Domestic Assistance
under No. 10.025 and is subject to
Executive Order 12372, which requires
intergovernmental consultation with
State and local officials. (See 7 CFR part
3015, subpart V.)

Executive Order 12988
This rule has been reviewed under
Executive Order 12988, Civil Justice
Reform. This rule: (1) Preempts all State
and local laws and regulations that are
in conflict with this rule; (2) has no
retroactive effect; and (3) does not
require administrative proceedings
before parties may file suit in court
challenging this rule.
Paperwork Reduction Act
This rule contains no information
collection or recordkeeping
requirements under the Paperwork
Reduction Act of 1995 (44 U.S.C. 3501
et seq.).
List of Subjects in 9 CFR Part 78
Animal diseases, Bison, Cattle, Hogs,
Quarantine, Reporting and
recordkeeping requirements,
Transportation.
Accordingly, we are amending 9 CFR
part 78 as follows:
PART 78—BRUCELLOSIS
1. The authority citation for part 78
continues to read as follows:
Authority: 21 U.S.C. 111–114a–1, 114g,
115, 117, 120, 121, 123–126, 134b, and 134f;
7 CFR 2.22, 2.80, and 371.2(d).
§ 78.43

[Amended]

2. Section 78.43 is amended by
adding ‘‘Alabama,’’ immediately before
‘‘Alaska,’’.
Done in Washington, DC, this 17th day of
August 1998.
Joan M. Arnoldi,
Acting Administrator, Animal and Plant
Health Inspection Service.
[FR Doc. 98–22522 Filed 8–20–98; 8:45 am]
BILLING CODE 3410–34–P

DELAWARE RIVER BASIN
COMMISSION
18 CFR Part 401

44777

4. On page 15, § 401.73, paragraph (b),
first line, the word ‘‘When’’ is corrected
to read ‘‘Whenever’’;
5. On page 17, § 401.82, paragraph (a),
column 2, first line, ‘‘ins’’ is corrected
to read ‘‘is’’, and in the fourth and fifth
line ‘‘Commissioner’’ is corrected to
read ‘‘Commission or’’.
BILLING CODE 1505–01–D

DEPARTMENT OF STATE
22 CFR Part 51
[Public Notice 2712]

Passport Procedures—Amendment to
Restriction of Passports Regulation
Bureau of Consular Affairs,
Department of State.
ACTION: Final rule.
AGENCY:

This rule adopts as final the
interim final rule amending the rules
concerning passport restrictions
published November 25, 1997. This rule
added one new ground for denying,
revoking or canceling a passport.
EFFECTIVE DATE: October 1, 1997.
FOR FURTHER INFORMATION CONTACT:
Sharon E. Palmer-Royston, Office of
Passport Policy and Advisory Services,
Bureau of Consular Affairs, Department
of State (202) 955–0231.
SUMMARY:

List of Subjects in 22 CFR Part 51
Administrative practice and
procedure, Passports and visas.
Accordingly, the interim rule
amending 22 CFR part 51 which was
published at 62 FR 62694 on November
25, 1997, is adopted as a final rule
without change.
Dated: August 3, 1998.
Mary A. Ryan,
Assistant Secretary for Consular Affairs.
[FR Doc. 98–22505 Filed 8–20–98; 8:45 am]
BILLING CODE 4710–06–M

Rules of Practice and Procedure
CFR Correction
In Title 18 of the Code of Federal
Regulations, parts 400 to End, revised as
of April 1, 1998, make the following
corrections:
1. On page 6, § 410.0 is corrected to
read ‘‘§ 401.0’’ in the heading;
2. On page 12, § 401.35, paragraph
(b)(18), second line, ‘‘specify’’ is
corrected to read ‘‘specially’’ and in
paragraph (d), eighth line, ‘‘Executor’’ is
corrected to read ‘‘Executive Director’’;
3. On page 13, § 401.36, paragraph (c),
third line, insert the word ‘‘sources’’
after the word ‘‘water’’;

DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 301 and 602
[TD 8780]
RIN 1545–AU85

Rewards for Information Relating to
Violations of Internal Revenue Laws
Internal Revenue Service (IRS),
Treasury.
ACTION: Final and temporary
regulations.
AGENCY:

44778

Federal Register / Vol. 63, No. 162 / Friday, August 21, 1998 / Rules and Regulations

SUMMARY: This document contains final
regulations relating to rewards for
information that relates to violations of
the internal revenue laws. The
regulations reflect changes to the law
made by the Taxpayer Bill of Rights 2
and affect persons that are eligible to
receive an informant reward.
DATES: Effective date: These regulations
are effective August 21, 1998.
Applicability date: For dates of
applicability, see § 301.7623–1(g).
FOR FURTHER INFORMATION CONTACT:
Judith A. Lintz (202) 622–4940 (not a
toll-free number).
SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act
The collections of information
contained in these final regulations have
been reviewed and approved by the
Office of Management and Budget in
accordance with the Paperwork
Reduction Act (44 U.S.C. 3507) under
control number 1545–1534. Responses
to these collections of information are
voluntary with respect to the provision
of information relating to violations of
the internal revenue laws, but are
required to obtain a benefit with respect
to filing a claim for reward.
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.
The estimated annual burden per
respondent varies from 2 to 4 hours,
depending on individual circumstances,
with an estimated average of 3 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 a
collection of information must be
retained as long as their contents may
become material in the administration
of any internal revenue law. Generally,
tax returns and tax return information
are confidential, as required by 26
U.S.C. 6103.
Background
This document contains amendments
to the Regulations on Procedure and
Administration (26 CFR Part 301) under
section 7623 relating to rewards for
information that relates to violations of
the internal revenue laws. This section
was amended by section 1209 of the

Taxpayer Bill of Rights 2 (TBOR 2) (Pub.
L. 104–168, 110 Stat. 1452 (1996)).
On October 14, 1997, final and
temporary regulations (TD 8737)
relating to informant rewards under
section 7623 were published in the
Federal Register (62 FR 53230). A
notice of proposed rulemaking (REG–
252936–96) cross-referencing the
temporary regulations was published in
the Federal Register for the same day
(62 FR 53274).
No written comments responding to
the notice were received. No public
hearing was requested or held. The
proposed regulations under section
7623 are adopted as revised by this
Treasury decision, and the
corresponding temporary regulations are
removed. The revisions are discussed
below.
Explanation of Provisions
The amendments made by TBOR 2 to
section 7623 provide that the Secretary
may pay rewards for information that
leads to the detection and bringing to
trial and punishment persons guilty of
violating the internal revenue laws or
conniving at the same, and for
information that leads to the detection
of underpayments of tax. In addition,
the amendments to section 7623 provide
that rewards will be paid from the
proceeds of amounts (other than
interest) collected by reason of the
information provided.
Following the publication of the
proposed regulations, it was determined
that the regulations should clarify that
rewards may also be paid in situations
where information leads to the denial of
a claim for refund. Therefore, the final
regulations provide that proceeds of
amounts (other than interest) collected
by reason of the information provided
include both additional amounts
collected because of the information
provided and amounts collected prior to
receipt of the information if the
information leads to the denial of a
claim for refund that otherwise would
have been paid.
Special Analyses
It has been determined that this
Treasury decision is not a significant
regulatory action as defined in EO
12866. Therefore, a regulatory
assessment is not required. It has also
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
regulations in this document will not
have a significant economic impact on
a substantial number of small entities.
This certification is based on a

determination that in the past
approximately 10,000 persons have filed
claims for reward on an annual basis. Of
these persons, almost all have been
individuals. 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 Small
Business Administration for comment
on its impact on small businesses.
Drafting Information
The principal author of these
regulations is Judith A. Lintz, Office of
Assistant Chief Counsel (Income Tax
and Accounting). However, other
personnel from the IRS and Treasury
Department participated in their
development.
List of Subjects
26 CFR Part 301
Employment taxes, Estate taxes,
Excise taxes, Gift taxes, Income taxes,
Penalties, Reporting and recordkeeping
requirements.
26 CFR Part 602
Reporting and recordkeeping
requirements.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR parts 301 and
602 are amended as follows:
PART 301—PROCEDURE AND
ADMINISTRATION
Paragraph 1. The authority citation
for part 301 continues to read as
follows:
Authority: 26 U.S.C. 7805 * * *

Par. 2. Section 301.7623–1 is revised
to read as follows:
§ 301.7623–1 Rewards for information
relating to violations of internal revenue
laws.

(a) In general. In cases where rewards
are not otherwise provided for by law,
a district or service center director may
approve a reward, in a suitable amount,
for information that leads to the
detection of underpayments of tax, or
the detection and bringing to trial and
punishment of persons guilty of
violating the internal revenue laws or
conniving at the same. The rewards
provided for by section 7623 and this
section will be paid from the proceeds
of amounts (other than interest)
collected by reason of the information
provided. For purposes of section 7623
and this section, proceeds of amounts

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Federal Register / Vol. 63, No. 162 / Friday, August 21, 1998 / Rules and Regulations
(other than interest) collected by reason
of the information provided include
both additional amounts collected
because of the information provided and
amounts collected prior to receipt of the
information if the information leads to
the denial of a claim for refund that
otherwise would have been paid.
(b) Eligibility to file claim for
reward—(1) In general. Any person,
other than certain present or former
federal employees described in
paragraph (b)(2) of this section, that
submits, in the manner described in
paragraph (d) of this section,
information relating to the violation of
an internal revenue law is eligible to file
a claim for reward under section 7623
and this section.
(2) Federal employees. No person who
was an officer or employee of the
Department of the Treasury at the time
the individual came into possession of
information relating to violations of the
internal revenue laws, or at the time the
individual divulged such information, is
eligible for a reward under section 7623
and this section. Any other current or
former federal employee is eligible to
file a claim for reward if the information
provided came to the individual’s
knowledge other than in the course of
the individual’s official duties.
(3) Deceased informants. A claim for
reward may be filed by an executor,
administrator, or other legal
representative on behalf of a deceased
informant if, prior to the informant’s
death, the informant was eligible to file
a claim for such reward under section
7623 and this section. Certified copies
of the letters testamentary, letters of
administration, or other similar
evidence must be attached to the claim
for reward on behalf of a deceased
informant in order to show the authority
of the legal representative to file the
claim.
(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, will be
taken into account by a district or
service center director in determining
whether a reward will be paid, and, if
so, the amount of the reward. The
amount of a reward will represent what
the district or service center director
deems to be adequate compensation in
the particular case, generally not to
exceed fifteen percent of the amounts
(other than interest) collected by reason
of the information. Payment of a reward
will be made as promptly as the
circumstances of the case permit, but
not until the taxes, penalties, or fines
involved have been collected. However,
if the informant waives any claim for

reward with respect to an uncollected
portion of the taxes, penalties, or fines
involved, the claim may be immediately
processed. Partial reward payments,
without waiver of the uncollected
portion of the taxes, penalties, or fines
involved, may be made when a criminal
fine has been collected prior to
completion of the civil aspects of a case,
and also when there are multiple tax
years involved and the deficiency for
one or more of the years has been paid
in full. No person is authorized under
this section to make any offer, or
promise, or otherwise to bind a district
or service center director with respect to
the payment of any reward or the
amount of the reward.
(d) Submission of information. A
person that desires to claim a reward
under section 7623 and this section may
submit information relating to violations
of the internal revenue laws, in person,
to the office of a district director,
preferably to a representative of the
Criminal Investigation Division. Such
information may also be submitted in
writing to the Commissioner of Internal
Revenue, Attention: Assistant
Commissioner (Criminal Investigation),
1111 Constitution Avenue, NW.,
Washington, DC 20224, to any district
director, Attention: Chief, Criminal
Investigation Division, or to any service
center director. If the information is
submitted in person, either orally or in
writing, the name and official title of the
person to whom it is submitted and the
date on which it is submitted must be
included in the formal claim for reward.
(e) Identification of informant. No
unauthorized person will be advised of
the identity of an informant.
(f) Filing claim for reward. An
informant that intends to claim a reward
under section 7623 and this section
should notify the person to whom the
information is submitted of such
intention, and must file a formal claim
on Form 211, Application for Reward
for Original Information, signed by the
informant in the informant’s true name,
as soon as practicable after the
submission of the information. If other
than the informant’s true name was
used in furnishing the information,
satisfactory proof of identity as that of
the informant must be included with the
claim for reward.
(g) Effective date. This section is
applicable with respect to rewards paid
after January 29, 1997.
§ 301.7623–1T

[Removed]

Par. 3. Section 301.7623–1T is
removed.

PART 602—OMB CONTROL NUMBERS
UNDER THE PAPERWORK
REDUCTION ACT
Par. 4. The authority citation for part
602 continues to read as follows:
Authority: 26 U.S.C. 7805.

Par. 5. In § 602.101, paragraph (c) is
amended by removing the entry for
301.7623–1T from the table and by
revising the entry for 301.7623–1 to read
as follows:
§ 602.101

*

OMB Control numbers.

*
*
(c) * * *

*

*

CFR part or section where
identified and described

Current
OMB control No.

*
*
*
*
*
301.7623–1 ...............................
1545–0409
1545–1534
*
*
*
*
*
Michael P. Dolan,
Deputy Commissioner of Internal Revenue.
Approved: July 20, 1998.
Donald C. Lubick,
Assistant Secretary of the Treasury.
[FR Doc. 98–22464 Filed 8–20–98; 8:45 am]
BILLING CODE 4830–01–P

DEPARTMENT OF THE TREASURY
Bureau of Alcohol, Tobacco and
Firearms
27 CFR Parts 4, 19, 24, 194, 250 and
251
[T.D. ATF–398]
RIN 1512–A71

Implementation of Public Law 105–34,
Sections 908, 910 and 1415, Related to
Hard Cider, Semi-Generic Wine
Designations, and Wholesale Liquor
Dealers’ Signs (97–2523)
Bureau of Alcohol, Tobacco
and Firearms (ATF), Department of the
Treasury.
ACTION: Temporary rule (Treasury
decision).
AGENCY:

This temporary rule
implements some of the provisions of
the Taxpayer Relief Act of 1997. The
new law made changes in the excise tax
on hard cider, clarified the authority to
use semi-generic designations on wine
labels, and repealed the requirement for
wholesale dealers in liquors to post
signs. The wine regulations are
amended to incorporate the new hard
cider tax rate and to recognize the
SUMMARY: