27 CFR Part 70 — Procedure and Administration

PART 70—PROCEDURE AND ADMINISTRATION Authority: 5 U.S.C. 301 and 552; 26 U.S.C. 4181, 4182, 5123, 5203, 5207, 5275, 5367, 5415, 5504, 5555, 5684(a), 5741, 5761(b), 5802, 6020, 6021, 6064, 6102, 6109, 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. Source: T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, unless otherwise noted. Editorial Note: Nomenclature changes to part 70 appear by T.D. ATF-450, 66 FR 29022-29030, May 29, 2001. Subpart A—Scope § 70.1 General. (a) The regulations in Subparts C, D, and E of this part set forth the procedural and administrative rules of the Alcohol and Tobacco Tax and Trade Bureau for: (1) The issuance and enforcement of summonses, examination of books of account and witnesses, administration of oaths, entry of premises for examination of taxable objects, granting of rewards for information, canvass for taxable objects and persons, and authority of TTB officers. (2) The use of commercial banks for payment of excise taxes imposed by 26 U.S.C. Subtitles E and F. (3) The preparing or executing of returns; deposits; payment on notice and demand; assessment; abatements, credits and refunds; limitations on assessment; limitations on credit or refund; periods of limitation in judicial proceedings; interest; additions to tax, additional amounts, and assessable penalties; enforced collection activities; authority for establishment, alteration, and distribution of stamps, marks, or labels; jeopardy assessment of alcohol, tobacco, and firearms taxes, registration of dealers in alcohol fit for beverage use, and registration of persons paying a special tax. (4) Distilled spirits, wines, beer, tobacco products, cigarette papers and tubes, firearms, ammunition, and explosives. (b) The regulations in Subpart F of this part relate to the limitations imposed by 26 U.S.C. 6423, on the refund or credit of tax paid or collected in respect to any article of a kind subject to a tax imposed by Part I, Subchapter A of Chapter 51, I.R.C., or by any corresponding provision of prior internal revenue laws. (c) The regulations in Subpart G of this part implement 26 U.S.C. 5064, which permits payments to be made by the United States for amounts equal to the internal revenue taxes paid or determined and customs duties paid on distilled spirits, wines, and beer, previously withdrawn, that were lost, made unmarketable, or condemned by a duly authorized official as a result of disaster, vandalism, or malicious mischief. This subpart applies to disasters or other specified causes of loss, occurring on or after February 1, 1979. This subpart does not apply to distilled spirits, wines, and beer manufactured in Puerto Rico and brought into the United States. [T.D. ATF-376, 61 FR 31031, June 19, 1996, as amended by T.D. TTB-44, 71 FR 16958, Apr. 4, 2006; T.D. TTB-79, 74 FR 37424, July 28, 2009; T.D. TTB-91, 76 FR 5481, Feb. 1, 2011] § 70.2 Forms prescribed. (a) The appropriate TTB officer is authorized to prescribe all forms required by this part. All of the information called for in each form shall be furnished as indicated by the headings on the form and the instructions on or pertaining to the form. In addition, information called for in each form shall be furnished as required by this part. The form will be filed in accordance with the instructions for the form. (b) Forms prescribed by this part are available for printing through the TTB Web site ( https://www.ttb.gov [T.D. ATF-376, 61 FR 31031, June 19, 1996, as amended by T.D. ATF-450, 66 FR 29022, May 29, 2001; T.D. TTB-44, 71 FR 16959, Apr. 4, 2006; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.3 Delegations of the Administrator. Most of the regulatory authorities of the Administrator contained in this part are delegated to appropriate TTB officers. These TTB officers are specified in TTB Order 1135.70, Delegation of the Administrator's Authorities in 27 CFR Part 70, Procedure and Administration. You may obtain a copy of this order by accessing the TTB Web site ( https://www.ttb.gov [T.D. TTB-44, 71 FR 16959, Apr. 4, 2006, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] Subpart B—Definitions § 70.11 Meaning of terms. When used in this part and in forms prescribed under this part, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meaning ascribed in this section. Words in the plural form shall include the singular, and vice versa, and words imparting the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude things not enumerated which are in the same general class. Administrator. Appropriate TTB officer. Bureau. CFR. Commercial bank. Electronic fund transfer or EFT. Enforced collection. IRC. Levy. Lien. Person. Provisions of 26 U.S.C. enforced and administered by the Bureau. Secretary of the Treasury or Secretary. Seizure. Treasury Account. U.S.C. (Aug. 16, 1954, Ch. 736, 68A Stat. 775 (26 U.S.C. 6301); June 29, 1956, Ch. 462, 70 Stat. 391 (26 U.S.C. 6301)) [T.D. ATF-48, 43 FR 13535, Mar. 31, 1978; 44 FR 55841, Sept. 28,979, as amended by T.D. ATF-77, 46 FR 3002, Jan. 13, 1981; T.D. ATF-301, 55 FR 47608, Nov. 14, 1990; T.D. ATF-331, 57 FR 40327, Sept. 3, 1992; T.D. ATF-378, 61 FR 29955, June 13, 1996; T.D. ATF-450, 66 FR 29022, May 29, 2001; T.D. TTB-44, 71 FR 16959, Apr. 4, 2006; T.D. TTB-91, 76 FR 5481, Feb. 1, 2011; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] Subpart C—Discovery of Liability and Enforcement of Laws Examination and Inspection § 70.21 Canvass for taxable persons and objects. Each appropriate TTB officer shall, to the extent deemed practicable, cause officers or employees under the appropriate TTB officer's supervision and control to proceed, from time to time, and inquire after and concerning all persons therein who may be liable to pay any tax, imposed under provisions of 26 U.S.C. enforced and administered by the Bureau, and all persons owning or having the care and management of any objects with respect to which such tax is imposed. [T.D. ATF-331, 57 FR 40327, Sept. 3, 1992, as amended by T.D. ATF-450, 66 FR 29023, May 29, 2001] § 70.22 Examination of books and witnesses. (a) In general. (b) Summonses. (Aug. 16, 1954, Chapter 736, 68A Stat. 901; (26 U.S.C. 7602)) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-42, 42 FR 8367, Feb. 10, 1977; T.D. ATF-301, 55 FR 47608, Nov. 14, 1990; T.D. ATF-331, 57 FR 40328, Sept. 3, 1992; T.D. ATF-450, 66 FR 29023, May 29, 2001; T.D. TTB-91, 76 FR 5481, Feb. 1, 2011] § 70.23 Service of summonses. (a) In general. (b) Persons who may serve summonses. (68A Stat. 902, as amended (26 U.S.C. 7603); 26 U.S.C. 7805 (68A Stat. 917), 27 U.S.C. 205 (49 Stat. 981 as amended), 18 U.S.C. 926 (82 Stat. 959), and sec. 38, Arms Export Control Act (22 U.S.C. 2778, 90 Stat. 744), 27 U.S.C. 205, 22 U.S.C. 2778, 26 U.S.C. 7602, and 5 U.S.C. 301) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-48, 43 FR 13531, Mar. 31, 1978; T.D. ATF-201, 50 FR 12533, Mar. 29, 1985; T.D. ATF-249, 52 FR 5961, Feb. 27, 1987; T.D. ATF-301, 55 FR 47608, Nov. 14, 1990; T.D. ATF-450, 66 FR 29023, May 29, 2001] § 70.24 Enforcement of summonses. (a) In general. (b) Persons who may apply for an attachment. (68A Stat. 902, as amended (26 U.S.C. 7604)) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973; 38 FR 33767, Dec. 7, 1973, as amended by T.D. ATF-450, 66 FR 29023, May 29, 2001] § 70.25 Special procedures for third-party summonses. (a) When the Bureau summons the records of persons defined by 26 U.S.C. 7609(a)(3) as “third-party recordkeepers”, the person about whom information is being gathered must be notified in advance, except when: (1) The summons is served on the person about whom information is being gathered, or any officer or employee of such person, or (2) The summons is served to determine whether or not records of the business transactions or affairs of an identified person have been made or kept, or (3) The summons does not identify the person with respect to whose liability the summons is issued (a “John Doe” summons issued under the provisions of 26 U.S.C. 7609(f)), or (4) The appropriate TTB officer petitions, and the court determines, on the basis of the facts and circumstances alleged, that there is reasonable cause to believe the giving of notice may lead to attempts to conceal, destroy, or alter records relevant to the examination, to prevent the communication of information from other persons through intimidation, bribery, or collusion, or to flee to avoid prosecution, testifying or production of records. (b) Within 3 days of the day on which the summons was served, the notice required by paragraph (a) of this section shall be served upon the person entitled to notice, or mailed by certified or registered mail to the last known address of such person, or, in the absence of a last known address, left with the person summoned. No examination of any records required to be produced under a summons as to which notice is required under paragraph (a) of this section may be made: (1) Before the close of the 23rd day after the day notice with respect to the summons is given in the manner provided in this paragraph, or (2) Where a proceeding under paragraph (c) of this section was begun within the 20-day period referred to in that paragraph and the requirements of paragraph (c) of this section have been met, expect in accordance with an order of the court having jurisdiction of such proceeding or with the consent of the person beginning the proceeding to quash. (c) If the person about whom information is being gathered has been given notice, that person has the right to institute, until and including the 20th day following the day such notice was served on or mailed, by certified or registered mail, to such notified person, a proceeding to quash the summons. During the time the validity of the summons is being litigated, the statutes of limitation are suspended under 26 U.S.C. 7609(e). Title 26 U.S.C. 7609 does not restrict the authority under 26 U.S.C. 7602 (or under any other provision of law) to examine records and witnesses without serving a summons and without giving notice of an examination. (26 U.S.C. 7609) [T.D. ATF-301, 55 FR 47608, Nov. 14, 1990] § 70.26 Third-party recordkeepers. (a) Definitions Accountant. (2) Attorney. (3) Credit cards Person extending credit through credit cards. (ii) [Reserved] (iii) Similar devices to credit cards. (b) When third-party recordkeeper status arises. (1) Records relating to noncredit card transactions, such as a cash sale by the issuer to a holder of the issuer's credit card; or (2) Records relating to transactions involving the use of another issuer's credit card. (c) Duty of third-party recordkeeper In General. (2) Disclosing recordkeepers not liable In general. (ii) Certificate of the Secretary. (A) That the 20-day period, within which a notified person may institute a proceeding to quash the summons has expired; and (B) That no proceeding has been properly instituted within that period. The appropriate TTB officer may also issue a “Certificate of the Secretary” to the recordkeeper if the taxpayer, with respect to whose tax liability the summons was issued, expressly consents to the examination of the records summoned. (3) Reimbursement of costs. (26 U.S.C. 7609) [T.D. ATF-301, 55 FR 47608, Nov. 14, 1990] § 70.27 Right to intervene; right to institute a proceeding to quash. (a) Notified person. (b) Right to institute a proceeding to quash In general. (2) Elements of institution of a proceeding to quash. (i) File a petition to quash in the name of the notified person in a district court having jurisdiction. (ii) Notify the Bureau by sending a copy of that petition by registered or certified mail to the Bureau employee and office designated to receive the copy in the notice of summons that was given to the notified person, and (iii) Notify the recordkeeper by sending to that recordkeeper by registered or certified mail a copy of the petition. Failure to give timely notice to either the summoned party or the Bureau in the manner described in this paragraph means that the notified person has failed to institute a proceeding to quash and the district court has no jurisdiction to hear the proceeding. Thus, for example, if the notified person mails a copy of the petition to the summoned person but not to the designated Bureau employee and office, the notified person has failed to institute a proceeding to quash. Similarly, if the notified person mails a copy of such petition to the summoned person, but instead of sending a copy of the petition by registered or certified mail to the designated employee and office, the notified person gives the designated employee and office the petition by some other means, the notified person has failed to institute a proceeding to quash. (3) Failure to institute a proceeding to quash. (c) Presumption no notice has been mailed. (26 U.S.C. 7609) [T.D. ATF-301, 55 FR 47609, Nov. 14, 1990] § 70.28 Summonses excepted from 26 U.S.C. 7609 procedures. (a) In aid of the collection of certain liabilities In general. (2) Examples. (i) Summonses issued to determine the amount held in a bank in the name of a person against whom an assessment has been made or judgment rendered; (ii) Summonses issued to enforce transferee liability for a tax which has been assessed. (b) Numbered account (or similar arrangement). (26 U.S.C. 7609) [T.D. ATF-301, 55 FR 47610, Nov. 14, 1990] § 70.29 Suspension of statutes of limitations. (a) Suspension while a proceeding under 26 U.S.C. 7609(b) is pending. (1) Agent, nominee, etc. (2) Period during which a proceeding, etc., is pending. (3) Taking of action as provided in 26 U.S.C. 7609(b). (b) Suspension after 6 months of service of summons. (1) Beginning on the date which is 6 months after the service of such summons, and (2) Ending with the final resolution of such response. (26 U.S.C. 7609) [T.D. ATF-301, 55 FR 47610, Nov. 14, 1990] § 70.30 Time and place of examination. (a) Time and place. (b) Restrictions on examination of taxpayer. (68A Stat. 902, as amended (26 U.S.C. 7605)) [T.D. ATF-450, 66 FR 29023, May 29, 2001] § 70.31 Entry of premises for examination of taxable objects. (a) General. (b) Distilled spirits plants. (c) Authority to break up grounds. (68A Stat. 903, 72 Stat. 1357 (26 U.S.C. 7606, 5203)) [T.D. ATF-450, 66 FR 29023, May 29, 2001] § 70.32 Examination of records and objects. Any appropriate TTB officer may enter, during business hours, the premises of any regulated establishment for the purpose of inspecting and examining any records, articles, or other objects required to be kept by such establishment under 18 U.S.C. chapter 40 or 44, or provisions of 26 U.S.C. enforced and administered by the Bureau, or regulations issued pursuant thereto. (68A Stat. 715, as amended, 903, 72 Stat. 1348, 1361, 1373, 1381, 1390, 1391, 1395, 82 Stat. 231, as amended, 84 Stat. 955; (26 U.S.C. 5741, 7606, 5146, 5207, 5275, 5367, 5415, 5504, 5555, 18 U.S.C. 923, 843)) [T.D. ATF-331, 57 FR 40328, Sept. 3, 1992, as amended by T.D. ATF-450, 66 FR 29023, May 29, 2001] § 70.33 Authority of enforcement officers of the Bureau. Appropriate TTB officers may perform the following functions: (a) Carry firearms; (b) Execute and serve search warrants and arrest warrants, and serve subpoenas and summonses issued under authority of the United States; (c) In respect to the performance of such duty, make arrests without warrant for any offense against the United States committed in their presence, or for any felony cognizable under the laws of the United States if they have reasonable grounds to believe that the person to be arrested has committed, or is committing, such felony; and (d) In respect to the performance of such duty, make seizures of property subject to forfeiture to the United States. (53 Stat. 1291, 62 Stat. 840, 68 Stat. 848, as amended, 72 Stat. 1429, as amended, 82 Stat. 233, as amended, 84 Stat. 956 (49 U.S.C. 782, 18 U.S.C. 3615, 22 U.S.C. 1934, 26 U.S.C. 7608, 18 U.S.C. 924, 844); 26 U.S.C. 7805 (68A Stat. 917), 27 U.S.C. 205 (49 Stat. 981 as amended), 18 U.S.C. 926 (82 Stat. 959), and sec. 38, Arms Export Control Act (22 U.S.C. 2778, 90 Stat. 744)) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-48, 43 FR 13531, Mar. 31, 1978. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990; T.D. ATF-450, 66 FR 29023, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.34 Listing by appropriate TTB 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 TTB officer, as required by law or by regulations prescribed pursuant to law, an appropriate TTB 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 TTB officer, are sufficient lists of such articles for all purposes. [T.D. ATF-450, 66 FR 29023, May 29, 2001] General Powers and Duties § 70.40 Authority to administer oaths and certify. Appropriate TTB officers are authorized to administer such oaths or 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)) [T.D. ATF-450, 66 FR 29023, May 29, 2001] § 70.41 [Reserved] § 70.42 Returns prepared or executed by appropriate TTB officers. (a) Preparation of returns General. (2) Responsibility of person for whom return is prepared. (b) Execution of returns General. (2) Status of returns. (c) Cross references. (2) For additions to the tax and additional amounts for failure to file returns, see section 6651 of the Internal Revenue Code. (3) For additions to the tax for failure to pay tax, see sections 5684, 5761, and 6653 of the Internal Revenue Code. (4) For failure to make deposit of taxes or overstatement of deposit claims, see section 6656 of the Internal Revenue Code. (5) For an additional penalty for tendering a bad check or money order, see section 6657 of the Internal Revenue Code. (6) For certain failures to pay tax with respect to cases pending under Title 11 of the United States Code, see section 6658 of the Internal Revenue Code. (7) For failure to supply identifying numbers, see section 6676 of the Internal Revenue Code. (8) For penalties for aiding and abetting understatement of tax liability, see section 6701 of the Internal Revenue Code. (9) For criminal penalties for willful failure to make returns, see sections 7201, 7202, and 7203 of the Internal Revenue Code. (10) For criminal penalties for willfully making false or fraudulent returns, see sections 7206 and 7207 of the Internal Revenue Code. (11) For authority to examine books and witnesses, see section 7602 of the Internal Revenue Code and § 70.22. (26 U.S.C. 6020) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47610, Nov. 14, 1990; T.D. ATF-450, 66 FR 29024, May 29, 2001] Subpart D—Collection of Excise and Special (Occupational) Tax Collection—General Provisions § 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 TTB officers. (26 U.S.C. 6301) [T.D. ATF-450, 66 FR 29024, May 29, 2001] § 70.52 Signature presumed authentic. An individual's name signed to a return, statement, or other document shall be prima facie evidence for all purposes that the return, statement or other document was actually signed by that individual. (26 U.S.C. 6064) [T.D. ATF-301, 55 FR 47611, Nov. 14, 1990] Receipt of Payment § 70.61 Payment by check or money order. (a) Authority to Receive General. (A) U.S. postal, bank, express, or telegraph money order; and (B) Money order issued by a domestic building and loan association (as defined in section 7701(a)(19) of the Internal Revenue Code) or by a similar association incorporated under the laws of a possession of the United States; (C) A money order issued by such other organization as the appropriate TTB officer may designate; and (D) A money order described in paragraph (a)(1)(ii) of this section in cases therein described. However, the appropriate TTB officers may refuse to accept any personal check whenever there is good reason to believe that such check will not be honored upon presentment. (ii) An American citizen residing in a country with which the United States maintains direct exchange of money orders on a domestic basis may pay his/her tax by postal money order of such country. For a list of such countries, see section 171.27 of the Postal Manual of the United States. (iii) If one check or money order is remitted to cover two or more persons' taxes, the remittance should be accompanied by a letter of transmittal clearly identifying— (A) Each person whose tax is to be paid by the remittance; (B) The amount of the payment on account of each such person; and (C) The kind of tax paid. (2) Payment for internal revenue stamps—In general. (3) Payment of tax on distilled spirits, wine, beer, tobacco products, pistols, revolvers, firearms (other than pistols and revolvers), shells and cartridges; proprietor in default. (b) Checks or money orders not paid Ultimate liability. (2) Liability of banks and others. (26 U.S.C. 6311) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990; T.D. ATF-331, 57 FR 40328, Sept. 3, 1992; T.D. ATF-353, 59 FR 2522, Jan. 18, 1994] § 70.62 Fractional parts of a cent. In the payment of any tax, a fractional part of a cent shall be disregarded unless it amounts to one-half cent or more, in which case it shall be increased to one cent. Fractional parts of a cent shall not be disregarded in the computation of taxes. (26 U.S.C. 6313) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990] § 70.63 Computations on returns or other documents. (a) Amounts shown on forms. Exact amount To be reported as $18.49 $18 $18.50 19 $18.51 19 (b) Election not to use whole dollar amounts Method of election. (2) Time of election. (3) Effect of election. (4) Fractional part of a cent. (c) Inapplicability to computation of amount. (26 U.S.C. 6102) [T.D. ATF-301, 55 FR 47611, Nov. 14, 1990] § 70.64 Receipt for taxes. The appropriate TTB 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 TTB 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. No receipt shall be issued in lieu of a stamp representing a tax, whether the payment is in cash or otherwise. (26 U.S.C. 6314) [T.D. ATF-301, 55 FR 47611, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29024, May 29, 2001] § 70.65 Use of commercial banks. For provisions relating to the use of commercial banks and electronic fund transfer of taxpayment to the Treasury Account, see the regulations relating to the particular tax. (Aug. 16, 1954, ch. 736, 68A Stat. 775 (26 U.S.C. 6301); June 29, 1956, ch. 462, 70 Stat. 391 (26 U.S.C. 6301)) [T.D. ATF-77, 46 FR 3002, Jan. 13, 1981. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990] Assessment § 70.71 Assessment authority. The appropriate TTB officers are authorized and required to make all inquiries necessary to the determination and assessment of all taxes imposed under the provisions of 26 U.S.C. enforced and administered by the Bureau. The appropriate TTB officers are further authorized and required to make the determinations and the assessments of such taxes. The term “taxes” includes interest, additional amounts, additions to the taxes, and assessable penalties. The authority of the appropriate TTB officers to make assessment includes the following: (a) Taxes shown on return. (b) Unpaid taxes payable by stamp. (i) Any article upon which a tax is required to be paid by means of a stamp is sold or removed for sale or use by the manufacturer thereof, or (ii) Any transaction or act upon which a tax is required to be paid by means of a stamp occurs, the appropriate TTB officer, upon such information as can be obtained, must estimate the amount of the tax which has not been paid and the appropriate TTB officer must make assessment therefor upon the person the appropriate TTB officer determines to be liable for the tax. However, the appropriate TTB officer may not assess any tax which is payable by stamp unless the taxpayer fails to pay such tax at the time and in the manner provided by law or regulations. (2) If a taxpayer gives a check or money order as a payment for stamps but the check or money order is not paid upon presentment, then the appropriate TTB officer shall assess the amount of the check or money order against the taxpayer as if it were a tax due at the time the check or money order was received by appropriate TTB officer. (26 U.S.C. 6201) [T.D. ATF-301, 55 FR 47611, Nov. 14, 1990] § 70.72 Method of assessment. The assessment shall be made by an appropriate TTB officer signing the summary record of assessment. The summary record, through supporting records, shall provide identification of the taxpayer, the character of the liability assessed, the taxable period, if applicable, and the amount of the assessment. The amount of the assessment shall, in the case of tax shown on a return by the taxpayer, be the amount so shown, and in all other cases the amount of the assessment shall be the amount shown on the supporting list or record. The date of the assessment is the date the summary record is signed by an appropriate TTB officer. If the taxpayer requests a copy of the record of assessment, the taxpayer shall be furnished a copy of the pertinent parts of the assessment which set forth the name of the taxpayer, the date of assessment, the character of the liability assessed, the taxable period, if applicable, and the amounts assessed. (26 U.S.C. 6203) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47612, Nov. 14, 1990; T.D. ATF-450, 66 FR 29025, May 29, 2001] § 70.73 Supplemental assessments. If any assessment is incomplete or incorrect in any material respect, the appropriate TTB officer, subject to the applicable period of limitation, may make a supplemental assessment for the purpose of correcting or completing the original assessment. (26 U.S.C. 6204) [T.D. ATF-301, 55 FR 47612, Nov. 14, 1990] § 70.74 Request for prompt assessment. (a) Except as otherwise provided in § 70.223 of this part, any tax for which a return is required and for which: (1) A decedent or an estate of a decedent may be liable, or (2) A corporation which is contemplating dissolution, is in the process of dissolution, or has been dissolved, may be liable, shall be assessed, or a proceeding in court without assessment for the collection of such tax shall be begun, within 18 months after the receipt of a written request for prompt assessment thereof. (b) The executor, administrator, or other fiduciary representing the estate of the decedent, or the corporation, or the fiduciary representing the dissolved corporation, as the case may be, shall, after the return in question has been filed, file the request for prompt assessment in writing with the appropriate TTB officer. The request, in order to be effective, must be transmitted separately from any other document, must set forth the classes of tax and the taxable periods for which the prompt assessment is requested, and must clearly indicate that it is a request for prompt assessment under the provisions of 26 U.S.C. 6501(d). The effect of such a request is to limit the time in which an assessment of tax may be made, or a proceeding in court without assessment for collection of tax may be begun, to a period of 18 months from the date the request is filed with the appropriate TTB officer. The request does not extend the time within which an assessment may be made, or a proceeding in court without assessment shall be begun, after the expiration of 3 years from the date the return was filed. This special period of limitations will not apply to any return filed after a request for prompt assessment has been made unless an additional request is filed in the manner provided herein. (c) In the case of a corporation the 18-month period shall not apply unless: (1) The written request notifies the appropriate TTB officer that the corporation contemplates dissolution at or before the expiration of such 18-month period; the dissolution is in good faith begun before the expiration of such 18-month period; and the dissolution so begun is completed either before or after the expiration of such 18-month period; or (2) The written request notifies the appropriate TTB officer that a dissolution has in good faith begun, and the dissolution is completed either before or after the expiration of such 18-month period; or (3) A dissolution has been completed at the time the written request is made. (26 U.S.C. 6501(d)) [T.D. ATF-301, 55 FR 47612, Nov. 14, 1990, as amended by T.D. ATF-353, 59 FR 2522, Jan. 18, 1994] § 70.75 Jeopardy assessment of alcohol, tobacco, and firearms taxes. (a) If the appropriate TTB 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 TTB 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 TTB 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. (1) The taxpayer is or appears to be designing quickly to depart from the United States or to conceal himself or herself. (2) The taxpayer is or appears to be designing quickly to place the taxpayer's property beyond the reach of the Government either by removing it from the United States, by concealing it, or by dissipating it, or by transferring it to other persons. (3) The taxpayer's financial solvency is or appears to be threatened. (b) The tax, interest, additional amounts, and additions to the tax will, upon assessment, become immediately due and payable, and the appropriate TTB officer shall, without delay, issue a notice and demand for payment thereof in full. (c) See 26 U.S.C. 7429 with respect to requesting the appropriate TTB officer to review the making of the jeopardy assessment. (d) For provisions relating to stay of collection of jeopardy assessments, see § 70.76 of this part. (26 U.S.C. 6862 and 6863) [T.D. ATF-301, 55 FR 47612, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29025, May 29, 2001] § 70.76 Stay of collection of jeopardy assessment; bond to stay collection. (a) The collection of taxes assessed under 26 U.S.C. 6862 (referred to as a “jeopardy assessment” for purposes of this section) of any tax may be stayed by filing with the appropriate TTB officer a bond on the form to be furnished by TTB upon request. (b) The bond may be filed: (1) At any time before the time collection by levy is authorized under 26 U.S.C. 6331(a), or (2) After collection by levy is authorized and before levy is made on any property or rights to property, or (3) In the discretion of the appropriate TTB officer, after any such levy has been made and before the expiration of the period of limitations on collection. (c) The bond must be in an amount equal to the portion (including interest thereon to the date of payment as calculated by the appropriate TTB officer) of the jeopardy assessment collection of which is sought to be stayed. See 26 U.S.C. 7101 and § 70.281, relating to the form of bond and the sureties thereon. The bond shall be conditioned upon the payment of the amount (together with interest thereon), for which the collection is stayed, at the time at which, but for the making of the jeopardy assessment, such amount would be due. (d) Upon the filing of a bond in accordance with this section, the collection of so much of the assessment as is covered by the bond will be stayed. The taxpayer may at any time waive the stay of collection of the whole or of any part of the amount covered by the bond. If as a result of such waiver any part of the amount covered by the bond is paid, or if any portion of the jeopardy assessment is abated by the appropriate TTB officer, then the bond shall (at the request of the taxpayer) be proportionately reduced. (26 U.S.C. 6863) [T.D. ATF-301, 55 FR 47613, Nov. 14, 1990] § 70.77 Collection of jeopardy assessment; stay of sale of seized property pending court decision. (a) General rule. (1) The period provided in 26 U.S.C. 7429(a)(2) to request the appropriate TTB officer to review the action taken expires. (2) The period provided in 26 U.S.C. 7429(b)(1) to file an action in U.S. District Court expires if a request for redetermination is made to the appropriate TTB officer. (3) The U.S. District Court judgment in such action becomes final, if a civil action is begun in accordance with 26 U.S.C. 7429(b). (b) Exceptions. (1) If the taxpayer files with the appropriate TTB officer a written consent to the sale, or (2) If the appropriate TTB officer determines that the expenses of conservation and maintenance of the property will greatly reduce the net proceeds from the sale of such property, or (3) If the property is of a type to which 26 U.S.C. 6336 (relating to sale of perishable goods) is applicable. (26 U.S.C. 6863) [T.D. ATF-301, 55 FR 47613, Nov. 14, 1990, as amended by T.D. ATF-353, 59 FR 2522, Jan. 18, 1994] Notice and Demand § 70.81 Notice and demand for tax. (a) General rule. (b) Assessment prior to last date for payment. (26 U.S.C. 6303 and 7521) [T.D. ATF-301, 55 FR 47613, Nov. 14, 1990] § 70.82 Payment on notice and demand. Upon receipt of notice and demand from the appropriate TTB officer, there shall be paid at the place and time stated in such notice the amount of any tax (including any interest, additional amounts, additions to the tax, and assessable penalties) stated in such notice and demand. (26 U.S.C. 6155) [T.D. ATF-301, 55 FR 47613, Nov. 14, 1990] Interest § 70.90 Interest on underpayments. (a) General rule. (b) Interest on penalties, additional amounts, or additions to the tax General. (2) Interest on certain additions to tax. (c) Payments made within 10 days after notice and demand. (d) Satisfaction by credits. (e) Last date prescribed for payment. (2) In the case of taxes payable by stamp and in all other cases where the last date for payment of the tax is not otherwise prescribed, such last date for the purpose of the interest computation shall be deemed to be the date on which the liability for the tax arose. However, such last date shall in no event be later than the date of issuance of a notice and demand for the tax. (26 U.S.C. 6601) [T.D. ATF-251, 52 FR 19314, May 22, 1987, as amended by T.D. ATF-301, 55 FR 47613, Nov. 14, 1990] § 70.91 Interest on erroneous refund recoverable by suit. Any portion of an internal revenue tax (or any interest, assessable penalty, additional amount, or addition to tax) which has been erroneously refunded, and which is recoverable by a civil action pursuant to 26 U.S.C. 7405, shall bear interest at the underpayment rate referred to in § 70.93 of this part. (26 U.S.C. 6602) [T.D. ATF-301, 55 FR 47614, Nov. 14, 1990] § 70.92 Interest on overpayments. (a) General rule. (b) Date of overpayment. (c) Period for which interest is allowable in case of refunds. (d) Period for which interest allowable in case of credits General rule. (2) Determination of due date General. due date, (ii) Tax not due yet. (iii) Interest. (iv) Additional amount, addition to the tax, or assessable penalty. (26 U.S.C. 6611) [T.D. ATF-251, 52 FR 19314, May 22, 1987, as amended by T.D. ATF-301, 55 FR 47614, Nov. 14, 1990; T.D. ATF-358, 59 FR 29367, June 7, 1994] § 70.93 Interest rate. (a) In general. (1) On amounts outstanding before July 1, 1975, 6 percent per annum. (2) On amounts outstanding: After And before Rate per annum (percent) June 30, 1975 Feb. 1, 1976 9 Jan. 31, 1976 Feb. 1, 1978 7 Jan. 31, 1978 Feb. 1, 1980 6 Jan. 31, 1980 Feb. 1, 1982 12 Jan. 31, 1982 Jan. 1, 1983 20 (3) On amounts outstanding after December 31, 1982, the adjusted rates for overpayment and underpayment established by the Commissioner of Internal Revenue under 26 U.S.C. 6621. These adjusted rates shall be published by the Commissioner in a Revenue Ruling. See § 70.94 of this part for application of daily compounding in determining interest accruing after December 31, 1982. Because interest accruing after December 31, 1982, accrues at the prescribed rate per annum compounded daily, the effective annual percentage rate of interest will exceed the prescribed rate of interest. (b) Applicability of interest rates Computation. (2) Additions to tax. (3) Interest. [T.D. ATF-301, 55 FR 47614, Nov. 14, 1990] § 70.94 Interest compounded daily. (a) General rule. (b) Applicability to unpaid amounts on December 31, 1982. (26 U.S.C. 6622) [T.D. ATF-301, 55 FR 47614, Nov. 14, 1990] Additions to the Tax, Additional Amounts, and Assessable Penalties Additions to the Tax and Additional Amounts § 70.95 Scope. For purposes of the administration of excise taxes by the Alcohol and Tobacco Tax and Trade Bureau in accordance with Title 26 of the United States Code, the penalties prescribed in §§ 70.96 through 70.107 shall apply. [T.D. ATF-251, 52 FR 19314, May 22, 1987, as amended by T.D. ATF-301, 55 FR 47614, Nov. 14, 1990] § 70.96 Failure to file tax return or to pay tax. (a) Addition to the tax Failure to file tax return. (i) Title 26 U.S.C. 61, relating to returns and records; (ii) Title 26 U.S.C. 51, relating to distilled spirits, wines and beer; (iii) Title 26 U.S.C. 52, relating to tobacco products, and cigarette papers and tubes; or (iv) Title 26 U.S.C. 53, relating to machine guns, destructive devices, and certain other firearms; and the regulations thereunder, on or before the date prescribed for filing (determined with regard to any extension of time for such filing), there shall be added to the tax required to be shown on the return the amount specified below unless the failure to file the return within the prescribed time is shown to the satisfaction of the appropriate TTB officer to be due to reasonable cause and not to willful neglect. The amount to be added to the tax is 5 percent thereof if the failure is not for more than one month, with an additional 5 percent for each additional month or fraction thereof during which the failure continues, but not to exceed 25 percent in the aggregate. The amount of any addition under paragraph (a)(1) of this section shall be reduced by the amount of the addition under paragraph (a)(2) of this section for any month to which an addition to tax applies under both paragraphs (a)(1) and (a)(2) of this section. (2) Failure to pay tax shown on return. (3) Failure to pay tax not shown on return. (4) Increases in penalties in certain cases. (b) Month defined. (2) If the date prescribed for filing the return or paying tax is a date other than the last day of a calendar month, the period which terminates with the date numerically corresponding thereto in the succeeding calendar month and each such successive period shall constitute a month for purposes of section 6651. If, in the month of February, there is no date corresponding to the date prescribed for filing the return or paying tax, the period from such date in January through the last day of February shall constitute a month for purposes of section 6651. Thus, if a return is due on January 30, the first month shall end on February 28 (or 29 if a leap year), and the succeeding months shall end on March 30, April 30, etc. (3) If a return is not timely filed or tax is not timely paid, the fact that the date prescribed for filing the return or paying tax, or the corresponding date in any succeeding calendar month, falls on a Saturday, Sunday, or legal holiday is immaterial in determining the number of months for which the addition to the tax under section 6651 applies. (c) Showing of reasonable cause. (d) Penalty imposed on net amount due Credits against the tax. (2) Partial payments. (ii) The amount of tax stated in the notice and demand for purposes of section 6651(a)(3) of the Internal Revenue Code shall, for the purpose of computing the addition for any month, be reduced by the amount of any part of the tax which is paid before the first day of such month. (e) No addition to tax if fraud penalty assessed. (26 U.S.C. 6651) [T.D. ATF-251, 52 FR 19314, May 22, 1987, as amended by T.D ATF-301, 55 FR 47614, Nov. 14, 1990; T.D. ATF-353, 59 FR 2522, Jan. 18, 1994; T.D. ATF-450, 66 FR 29025, May 29, 2001; T.D. TTB-79, 74 FR 37424, July 28, 2009; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.97 Failure to pay tax. (a) Negligence General. (2) Underpayment taken into account reduced by a portion attributable to fraud. There shall not be taken into account under paragraph (a) of this section any portion of an underpayment attributable to fraud with respect to which a penalty is imposed under paragraph (b) of this section. (3) Negligence. (4) The provisions of paragraph (a) apply to returns the due date for which (determined without regard to extensions) is after December 31, 1986. (b) Fraud General. (2) The provisions of paragraph (b) of this section, apply to returns the due date for which (determined without regard to extensions) is on or before December 31, 1986. (c) Fraud General. (2) Determination of portion attributable to fraud. If the appropriate TTB officer establishes that any portion of an underpayment is attributable to fraud, the entire underpayment shall be treated as attributable to fraud, except with respect to any portion of the underpayment which the taxpayer establishes is not attributable to fraud. (3) The provisions of this paragraph (c) apply to returns the due date for which (determined without regard to extensions) is after December 31, 1986. (d) Definition of underpayment. underpayment (1) The sum of, (i) The amount shown as the tax by the taxpayer upon the taxpayers return (determined without regard to any credit for an overpayment for any prior period, and without regard to any adjustment under authority of sections 6205(a) and 6413(a) of the Internal Revenue Code), if a return was made by the taxpayer within the time prescribed for filing such return (determined with regard to any extension of time for such filing) and an amount was shown as the tax by the taxpayer thereon, plus; (ii) Any amount, not shown on the return, paid in respect of such tax, over— (2) The amount of rebates made. rebate (e) No delinquency penalty if fraud assessed. (f) Failure to pay stamp tax. (g) Additional penalty. (26 U.S.C. 6653) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-353, 59 FR 2522, Jan. 18, 1994] § 70.98 Penalty for underpayment of deposits. (a) General rule. (1) For penalties assessed before October 22, 1986, 5 percent of the amount of the underpayment without regard to the period during which the underpayment continues. (2) For penalties assessed after October 21, 1986, on deposits of taxes required to be made before January 1, 1990, 10 percent of the amount of the underpayment without regard to the period during which the underpayment continues. (3) For deposits of taxes required to be made after December 31, 1989. (i) 2 percent of the amount of the underpayment if the failure is for not more than 5 days, (ii) 5 percent of the amount of the underpayment if the failure is for more than 5 days but not more than 15 days, (iii) 10 percent of the amount of the underpayment if the failure is for more than 15 days, (iv) 15 percent of the amount of the underpayment if the tax is not deposited before the earlier of: (A) The day 10 days after the date of the first delinquency notice to the taxpayer under section 6303, or (B) The day on which notice and demand for immediate payment is given under 26 U.S.C. 6862 or the last sentence of 26 U.S.C. 6331(a). For purposes of this section, the term “underpayment” means the amount of tax required to be deposited less the amount, if any, that was deposited on or before the date prescribed therefor. Section 7502(e) of the Internal Revenue Code applies in determining the date a deposit is made. (b) Assertion of reasonable cause. (26 U.S.C. 6656) [T.D. ATF-251, 52 FR 19314, May 22, 1987, as amended by T.D. ATF-301, 55 FR 47615, Nov. 14, 1990; T.D. ATF-353, 59 FR 2523, Jan. 18, 1994] § 70.100 Penalty for fraudulently claiming drawback. Whenever any person fraudulently claims or seeks to obtain an allowance of drawback on goods, wares, or merchandise on which no internal revenue tax shall have been paid, or fraudulently claims any greater allowance of drawback than the tax actually paid, that person shall forfeit triple the amount wrongfully or fraudulently claimed or sought to be obtained, or the sum of $500, at the election of the appropriate TTB officer. (26 U.S.C. 7304) [T.D. ATF-301, 55 FR 47615, Nov. 14, 1990] § 70.101 Bad checks. If any check or money order in payment of any amount receivable under Title 26 of the United States Code is not duly paid, in addition to any other penalties provided by law, there shall be paid as a penalty by the person who tendered such check, upon notice and demand, in the same manner as tax, an amount equal to 1 percent of the amount of such check, except that if the amount of such check is less than $500, the penalty under this section shall be $5 or the amount of such check, whichever is the lesser. This section shall not apply if the person establishes to the satisfaction of the appropriate TTB officer that such check was tendered in good faith and that such person had reasonable cause to believe that such check would be duly paid. (26 U.S.C. 6657) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47615, Nov. 14, 1990] § 70.102 Coordination with title 11. (a) Certain failures to pay tax. (1) If such tax was incurred by the estate and the failure occurred pursuant to an order of the court finding probable insufficiency of funds of the estate to pay administrative expenses, or (2) If such tax was incurred by the debtor before the earlier of the order for relief or (in the involuntary case) the appointment of a trustee and (i) The petition was filed before the due date prescribed by law (including extensions) for filing a return of such tax, or (ii) The date for making the addition to the tax occurs on or after the day on which the petition was filed. (b) Exception for collected taxes. (26 U.S.C. 6658) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990] § 70.103 Failure to pay tax. Whoever fails to pay any tax imposed by Part I of Subchapter A of Chapter 51 of the Internal Revenue Code (liquor taxes) or by Chapter 52 (tobacco taxes) at the time prescribed shall, in addition to any other penalty provided in the Internal Revenue Code, be liable to a penalty of 5 percent of the tax due but unpaid. For additional penalties for failure to pay tax, see 27 CFR 70.97. (26 U.S.C. 5684(a) and 5761(b)) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990] Assessable Penalties § 70.111 Rules for application of assessable penalties. (a) Penalty assessed as tax. (b) Person defined. (26 U.S.C. 6671) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990] § 70.112 Failure to collect and pay over tax, or attempt to evade or defeat tax. Any person required to collect, truthfully account for, and pay over any tax imposed by the Internal Revenue Code who willfully fails to collect such tax, or truthfully account for and pay over such tax, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties, be liable to a penalty equal to the total amount of the tax evaded, or not collected, or not accounted for and paid over. The penalty imposed by section 6672 of the Internal Revenue Code applies only to the collection, accounting for, or payment over of taxes imposed on a person other than the person who is required to collect, account for, and pay over such taxes. No penalty under section 6653 of the Internal Revenue Code, relating to failure to pay tax, shall be imposed for any offense to which this section is applicable. (26 U.S.C. 6672) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990] § 70.113 Penalty for failure to supply taxpayer identification number. (a) In general. (b) Reasonable cause. (c) Persons required to supply taxpayer identification numbers. (26 U.S.C. 6723) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47615, Nov. 14, 1990] § 70.114 Penalties for aiding and abetting understatement of tax liability. (a) Imposition of penalty. (2) Who knows that such portion will be used in connection with any material matter arising under the internal revenue laws, and (3) Who knows that such portion (if so used) will result in an understatement of the liability for tax of another person, shall pay a penalty with respect to each such document in the amount determined under paragraph (b). (b) Amount of penalty General. (2) Corporations. (3) Only one penalty per person per period. (c) Activities of subordinates General. (i) Ordering (or otherwise causing) a subordinate to do an act, and (ii) Knowing of, and not attempting to prevent, participation by a subordinate in an act. (2) For purposes of paragraph (c)(1) of this section, the term “subordinate” means any other person (whether or not a director, officer, employee, or agent of the taxpayer involved) over whose activities the person has direction, supervision, or control. (d) Taxpayer not required to have knowledge. (e) Certain actions not treated as aid or assistance. (f) Penalty in addition to other penalties. (26 U.S.C. 6701) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990] Abatements, Credits and Refunds Procedure in General § 70.121 Amounts treated as overpayments. (a) The term overpayment (b) An amount paid as tax shall not be considered not to constitute an overpayment solely by reason of the fact that there was no tax liability in respect of which such amount was paid. (26 U.S.C. 6401) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990] § 70.122 Authority to make credits or refunds. The appropriate TTB officer, within the applicable period of limitations, may credit any overpayment of tax, including interest thereon, against any outstanding liability for any tax (or for any interest, additional amount, addition to the tax, or assessable penalty) owed by the person making the overpayment and the balance, if any, shall be refunded, subject to 26 U.S.C. 6402 (c) and (d) and the regulations thereunder, to such person by the appropriate TTB officer. (26 U.S.C. 6402) [T.D. ATF-301, 55 FR 47615, Nov. 14, 1990] § 70.123 Claims for credit or refund. (a) Requirement that claim be filed. (2) All claims relating to provisions of 26 U.S.C. enforced and administered by the Bureau, together with appropriate supporting evidence, shall be filed with the appropriate TTB officer. As to interest in the case of credits or refunds, see section 6611 of the Internal Revenue Code. See section 7502 for provisions treating timely mailing as timely filing and section 7503 for time for filing claim when the last day falls on a Saturday, Sunday, or legal holiday. (b) Grounds set forth in claim. (2) The appropriate TTB officers do not have authority to refund on equitable grounds penalties or other amounts legally collected. (c) Form for filing claim. (d) Proof of representative capacity. (e) Mailing of refund check. (2) Checks in payment of claims which have either been reduced to judgment or settled in the course or as a result of litigation will be drawn in the name of the person or persons entitled to the money and will be sent to the Assistant Attorney General, Tax Division, Department of Justice, for delivery to the taxpayer or the counsel of record in the court proceeding. (3) For restrictions on the assignment of claims, see 31 U.S.C. 3727. (Approved by the Office of Management and Budget under control number 1512-0141) (26 U.S.C. 6402) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47615, Nov. 14, 1990; T.D. ATF-450, 66 FR 29025, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.124 Payments in excess of amounts shown on return. In certain cases, the taxpayer's payments in respect of a tax liability, made before the filing of the taxpayer's return, may exceed the amount of tax shown on the return. In any case in which the appropriate TTB officer determines that the payments by the taxpayer (made within the period prescribed for payment and before the filing of the return) are in excess of the amount of tax shown on the return, the appropriate TTB officer may make credit or refund of such overpayment without awaiting examination of the completed return and without awaiting filing of a claim for refund. However, the provisions of § 70.123 of this part are applicable to such overpayment, and taxpayers should submit claims for refund to protect themselves in the event the appropriate TTB officer fails to make such determination and credit or refund. (Approved by the Office of Management and Budget under control number 1512-0141) (26 U.S.C. 6402) [T.D. ATF-301, 55 FR 47616, Nov. 14, 1990] § 70.125 Abatements. (a) The appropriate TTB 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) If more than the correct amount of tax, interest, additional amount, addition to the tax, or assessable penalty is assessed but not paid to TTB, the person against whom the assessment is made may file a claim for abatement of such overassessment. Each claim for abatement under this section shall be made on form TTB F 5620.8, Claim—Alcohol, Tobacco and Firearms Taxes, in accordance with the instructions on the form. All such claims must be filed with the appropriate TTB officer who made demand for the amount assessed. (c) The appropriate TTB officer may issue uniform instructions to abate amounts the collection of which is not warranted because of the administration and collection costs. (Approved by the Office of Management and Budget under control number 1512-0141) (26 U.S.C. 6404) [T.D. ATF-301, 55 FR 47616, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29025, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.126 Date of allowance of refund or credit. The date on which the appropriate TTB officer, first certifies the allowance of an overassessment in respect of any internal revenue tax imposed by the provisions of 26 U.S.C. enforced and administered by the Bureau shall be considered as the date of allowance of refund or credit in respect of such tax. (26 U.S.C. 6407) [T.D. ATF-301, 55 FR 47616, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29025, May 29, 2001] § 70.127 Overpayment of installment. If any installment of tax is overpaid, the overpayment shall first be applied against any outstanding installments of such tax. If the overpayment exceeds the correct amount of tax due, the overpayment shall be credited or refunded as provided in §§ 70.122 to 70.124 of this part, inclusive. (26 U.S.C. 6403) [T.D. ATF-301, 55 FR 47616, Nov. 14, 1990] Rule of Special Application § 70.131 Conditions to allowance. (a) For regulations under section 6416 of the Internal Revenue Code, see part 53 of this chapter, relating to manufacturers excise taxes on firearms and ammunition. (b) For regulations under section 6423 of the Internal Revenue Code, see part 29 of this chapter, relating to distilled spirits, wine, and beer; and part 46 of this chapter, relating to tobacco products, and cigarette papers and tubes. (26 U.S.C. 6416 and 6423) [T.D. ATF-331, 57 FR 40328, Sept. 3, 1992, as amended by T.D. ATF-457, 66 FR 32219, June 14, 2001; T.D. ATF-462, 66 FR 42737, Aug. 15, 2001] Lien for Taxes Source: Sections 70.141 through 70.151 added by T.D. ATF-301, 55 FR 47616, Nov. 14, 1990, unless otherwise noted. § 70.141 Lien for taxes. If any person liable to pay any tax under provisions of 26 U.S.C. enforced and administered by the Bureau neglects or refuses to pay the same after demand, the amount (including any interest, additional amount, addition to tax, or assessable penalty, together with any costs that may accrue in addition thereto) shall be a lien in favor of the United States upon all property and rights to property, whether real or personal, tangible or intangible, belonging to such person. The lien attaches to all property and rights to property belonging to such person at any time during the period of the lien, including any property or rights to property acquired by such person after the lien arises. Solely for purposes of this section and §§ 70.161 and 70.162 of this part, any interest in restricted land held in trust by the United States for an individual noncompetent Indian (and not for a tribe) shall not be deemed to be property, or a right to property, belonging to such Indian. (26 U.S.C. 6321) § 70.142 Scope of definitions. Except as otherwise provided by § 70.143 of this part, the definitions provided by §§ 70.143 apply for purposes of § 70.142 through 70.149 and §§ 70.231 through 70.234 of this part. § 70.143 Definitions. (a) Security interest In general. security interest (i) If, at such time, the property is in existence and the interest has become protected under local law against a subsequent judgment lien (as provided in paragraph (a)(2) of this section) arising out of an unsecured obligation; and (ii) To the extent that, at such time, the holder has parted with money or money's worth (as defined in paragraph (a)(3) of this section). For purposes of paragraph (a)(1) of this section, a contract right (as defined in § 70.232(c)(2)(i) of this part) is in existence when the contract is made. An account receivable (as defined in § 70.232(c)(2)(ii) of this part) is in existence when, and to the extent, a right to payment is earned by performance. A security interest must be in existence, within the meaning of paragraph (a) of this section, at the time as of which its priority against a tax lien is determined. For example, to be afforded priority under the provisions of § 70.145(a) of this part, a security interest must be in existence within the meaning of paragraph (a) of this section before a notice of lien is filed. (2) Protection against a subsequent judgment lien. (i) The date on which all actions required under local law to establish the priority of a security interest against a judgment lien have been taken, or (ii) If later, the date on which all required actions are deemed effective, under local law, to establish the priority of the security interest against a judgment lien. For purposes of paragraph (a)(2) of this section, the dates described in paragraphs (a)(2) (i) and (ii) of this section shall be determined without regard to any rule or principle of local law which permits the relation back or the making of any requisite action retroactive to a date earlier than the date on which the action is actually performed. For purposes of paragraph (a) of this section, a judgment lien is a lien held by a judgment lien creditor as defined in paragraph (g) of this section. (3) Money or money's worth. (4) Holder of a security interest. (b) Mechanic's lienor. mechanic's lienor (1) The date on which the mechanic's lien first becomes valid under local law against subsequent purchasers of the real property without actual notice, or (2) The date on which the mechanic's lienor begins to furnish the services, labor, or materials. (c) Motor vehicle. motor vehicle (2) A motor vehicle is “registered for highway use” at the time of a sale if immediately prior to the sale it is so registered under the laws of any State, the District of Columbia, or a foreign country. Where immediately prior to the sale of a motor vehicle by a dealer, the dealer is permitted under local law to operate it under a dealer's tag, license, or permit issued to the dealer, the motor vehicle is considered to be registered for highway use in the name of the dealer at the time of the sale. (d) Security. security (e) Tax lien filing. tax lien filing (f) Purchaser In general. purchaser (2) Interest in property. (i) A lease of property, (ii) A written executory contract to purchase or lease property, (iii) An option to purchase or lease property and any interest therein, or (iv) An option to renew or extend a lease of property. (3) Adequate and full consideration in money or money's worth. (g) Judgment lien creditor. judgment lien creditor (26 U.S.C. 6323) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.144 Special rules. (a) Actual notice or knowledge. (b) Subrogation: (c) Disclosure of amount of outstanding lien. (26 U.S.C. 6323) § 70.145 Purchasers, holders of security interests, mechanic's lienors, and judgment lien creditors. (a) Invalidity of lien without notice. (b) Cross references. (26 U.S.C. 6323) § 70.146 45-day period for making disbursements. Even though a notice of a lien imposed by 26 U.S.C. 6321 is filed in accordance with § 70.149 of this part, the lien is not valid with respect to a security interest which comes into existence, after tax lien filing, by reason of disbursements made before the 46th day after the date of tax lien filing, or if earlier, before the person making the disbursements has actual notice or knowledge of the tax lien filing, but only if the security interest is: (a) In property which is subject, at the time of tax lien filing, to the lien imposed by 26 U.S.C. 6321 and which is covered by the terms of a written agreement entered into before tax lien filing, and (b) Protected under local law against a judgment lien arising, as of the time of tax lien filing, out of an unsecured obligation. For purposes of paragraph (a) of this section, a contract right (as defined in § 70.232(c)(2)(i) of this part) is subject, at the time of tax lien filing, to the lien imposed by 26 U.S.C. 6321 if the contract has been made by such time. An account receivable (as defined in § 70.232(c)(2)(ii) of this part) is subject, at the time of tax lien filing, to the lien imposed by 26 U.S.C. 6321 if, and to the extent, a right to payment has been earned by performance at such time. For purposes of paragraph (b) of this section, a judgment lien is a lien held by a judgment lien creditor as defined in § 70.143(g) of this part. For purposes of this section, it is immaterial that the written agreement provides that the disbursements are to be made at the option of the person making the disbursements. See § 70.143 (a) and (e) of this part for definitions of the terms “security interest” and “tax lien filing,” respectively. See § 70.144(a) of this part for certain circumstances under which a person is deemed to have actual notice or knowledge of a fact. (26 U.S.C. 6323) § 70.147 Priority of interest and expenses. (a) In general. (1) Any interest or carrying charges (including finance, service, and similar charges) upon the obligation secured, (2) The reasonable charges and expenses of an indenture trustee (including, for example, the trustee under a deed of trust) or agent holding the security interest for the benefit of the holder of the security interest, (3) The reasonable expenses, including reasonable compensation for attorneys, actually incurred in collecting or enforcing the obligation secured, (4) The reasonable costs of insuring, preserving, or repairing the property to which the lien or security interest relates, (5) The reasonable costs of insuring payment of the obligation secured (including amounts paid by the holder of the security interest for mortgage insurance, such as that issued by the Federal Housing Administration), and (6) Amounts paid to satisfy any lien on the property to which the lien or security interest relates, but only if the lien so satisfied is entitled to priority over the lien imposed by 26 U.S.C. 6321. (b) Collection expenses. (c) Costs of insuring, preserving, etc. (d) Satisfaction of liens. (26 U.S.C. 6323). § 70.148 Place for filing notice; form. (a) Place for filing. (1) Under State laws Real property. (ii) Personal property. (2) With the clerk of the United States district court. (3) With the Recorder of Deeds of the District of Columbia. (b) Situs of property subject to lien. (1) Real property. (2) Personal property. For purposes of paragraph (b)(2) of this section, the residence of a corporation or partnership is deemed to be the place at which the principal executive office of the business is located, and the residence of a taxpayer whose residence is not within the United States is deemed to be in the District of Columbia. (c) Form In general. (2) TTB Form 5651.2 defined. (26 U.S.C. 6323) [T.D. ATF-301, 55 FR 47616, Nov. 14, 1990, as amended by T.D. TTB-91, 76 FR 5481, Feb. 1, 2011] § 70.149 Refiling of notice of tax lien. (a) In general Requirement to refile. (2) Effect of refiling. (3) Effect of failure to refile. (i) Property which is the subject matter of a suit, to which the United States is a party, commenced prior to the expiration of the required refiling period, or (ii) Property which has been levied upon by the United States prior to the expiration of the refiling period. However, if a suit or levy referred to in the preceding sentence is dismissed or released, respectively, and property is subject to the lien at such time, a notice of lien with respect to the property is not effective after the suit or levy is dismissed or released unless refiled during the required refiling period. Failure to refile a notice of lien does not affect the existence of the lien. (4) Filing of new notice. (b) Place for refiling notice of lien In general. (i) If the notice of lien is refiled in the office in which the prior notice of lien (including a refiled notice) was filed under the provisions of 26 U.S.C. 6323; and (ii) In any case in which 90 days or more prior to the date the refiling of the notice of lien under paragraph (a)(1)(i) of this section is completed, the Bureau receives written information (in the manner described in paragraph (b)(2) of this section) concerning a change in the taxpayer's residence, if a notice of such lien is also filed in accordance with 26 U.S.C. 6323(f)(1)(A)(ii) in the State in which such new residence is located (or, if such new residence is located in the District of Columbia or outside the United States, in the District of Columbia). A notice of lien is considered as refiled in the office in which the prior notice or refiled notice was filed under the provisions of 26 U.S.C. 6323 if it is refiled in the office which, pursuant to a change in the applicable local law, assumed the functions of the office in which the prior notice or refiled notice was filed. If on or before the 90th day referred to in paragraph (b)(1)(ii) of this section, more than one written notice is received concerning a change in the taxpayer's residence, a notice of lien is required by this subdivision to be filed only with respect to the residence shown on the written notice received on the most recent date. Paragraph (b)(1)(ii) of this section is applicable regardless of whether the taxpayer resides at the new residence on the date the refiling of notice of lien under paragraph (b)(l)(i) of this section is completed. (2) Notice of change of taxpayer's residence In general. (A) Is received, in writing, from the taxpayer or the taxpayer's representative by the appropriate TTB officer who filed the original notice of lien. (B) Relates to an unpaid tax liability of the taxpayer, and (C) States the taxpayer's name and the address of the taxpayer's new residence. Although it is not necessary that a written notice contain the taxpayer's identifying number authorized by section 6109, it is preferable that it include such number. A return or amended return filed by the taxpayer with the Bureau which on its face indicates that there is a change in the taxpayer's address and correctly states the taxpayer's name, the address of the taxpayer's new residence, and the taxpayer's identifying number required by 26 U.S.C. 6109 is sufficient notice under this paragraph. (ii) Other rules applicable. (c) Required refiling period. (1) The 1-year period ending 30 days after the expiration of 6 years after the date of the assessment of the tax, and (2) The 1-year period ending with the expiration of 6 years after the close of the preceding required refiling period for such notice of lien. (26 U.S.C. 6323) § 70.150 Release of lien or discharge of property. (a) Release of lien. (1) The appropriate TTB officer finds that the entire liability for the tax has been satisfied or has become unenforceable as a matter of law (and not merely uncollectible or unenforceable as a matter of fact). Tax liabilities frequently are unenforceable in fact for the time being, due to the temporary nonpossession by the taxpayer of discoverable property or property rights. In all cases the liability for the payment of the tax continues until satisfaction of the tax in full or until the expiration of the statutory period for collection, including such extension of the period for collection as may be agreed upon in writing by the taxpayer and the appropriate TTB officer. (2) The appropriate TTB officer is furnished and accepts a bond that is conditioned upon the payment of the amount assessed (together with all interest in respect thereof and any expenses to which the Government has been put in the matter), within the time agreed upon in the bond, but not later than 6 months before the expiration of the statutory period for collection, including any period for collection agreed upon in writing by the appropriate TTB officer and the taxpayer. For provisions relating to bonds, see 26 U.S.C. 7101 and 7102 and §§ 70.281 and 70.282 of this part. (b) Discharge of specific property from the lien Property double the amount of the liability. (2) Part payment; interest of United States valueless i Part payment. (ii) Interest of the United States valueless. (iii) Valuation of interest of United States. (3) Discharge of property by substitution of proceeds of sale. (4) Application for certificate of discharge. (c) Subordination of lien By payment of the amount subordinated. (2) To facilitate tax collection. (3) Application for certificate of subordination. (d) Nonattachment of lien. (e) Effect of certificate Conclusiveness. (i) In the case of a certificate of release issued under paragraph (a) of this section, the certificate shall be conclusive that the tax lien referred to in the certificate is extinguished; (ii) In the case of a certificate of discharge issued under paragraph (b) of this section, the certificate shall be conclusive that the property covered by the certificate is discharged from the tax lien; (iii) In the case of a certificate of subordination issued under paragraph (c) of this section, the certificate shall be conclusive that the lien or interest to which the Federal tax lien is subordinated is superior to the tax lien; and (iv) In the case of a certificate of nonattachment issued under paragraph (d) of this section, the certificate shall be conclusive that the lien of the United States does not attach to the property of the person referred to in the certificate. (2) Revocation of certificate of release or nonattachment In general. (A) A certificate of release or a certificate of nonattachment of the general tax lien imposed by 26 U.S.C. 6321 was issued erroneously or improvidently, or (B) A certificate of release of such lien was issued in connection with a compromise agreement under 26 U.S.C. 7122 which has been breached, and if the period of limitation on collection after assessment of the tax liability has not expired, the appropriate TTB officer may revoke the certificate and reinstate the tax lien. (ii) Method of revocation and reinstatement. (A) Mailing notice of the revocation to the taxpayer at the taxpayer's last known address, and (B) Filing notice of the revocation of the certificate in the same office in which the notice of lien to which it relates was filed (if the notice of lien has been filed). (iii) Effect of reinstatement Effective date. (B) Treatment of reinstated lien. (3) Certificates void under certain conditions. (f) Filing of certificates and notices. (26 U.S.C. 6325) [T.D. ATF-301, 55 FR 47616, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29025, May 29, 2001] § 70.151 Administrative appeal of the erroneous filing of notice of Federal tax lien. (a) In general. (b) Certificate of Release. (c) Appeal alleging an error in the filing of notice of lien. (1) The tax liability that gave rise to the lien, plus any interest and additions to tax associated with said liability, was satisfied prior to the filing of notice of lien; (2) The tax liability that gave rise to the lien was assessed in violation of title 11 of the United States Code (the Bankruptcy Code); or (3) The statutory period for collection of the tax liability that gave rise to the lien expired prior to the filing of notice of Federal tax lien. (d) Notice of Federal tax lien that lists multiple liabilities. (e) Procedures for appeal Manner. (2) Form. (i) Name, current address, and taxpayer identification number of the person appealing the filing of notice of Federal tax lien; (ii) A copy of the notice of Federal tax lien affecting the property, if available; and (iii) The grounds upon which the filing of notice of Federal tax lien is being appealed. (A) If the ground upon which the filing of notice is being appealed is that the tax liability in question was satisfied prior to the filing, proof of full payment as defined in paragraph (f) of this section must be provided. (B) If the ground upon which the filing of notice is being appealed is that the tax liability that gave rise to the lien was assessed in violation of title 11 of the United States Code (the Bankruptcy Code), the appealing party must provide the identity of the court, the district in which the bankruptcy petition was filed, a docket number and the date of filing of the bankruptcy petition. (3) Time. (f) Proof of full payment. (1) An Alcohol and Tobacco Tax and Trade Bureau, receipt reflecting full payment of the tax liability in question prior to the date the Federal tax lien was filed; (2) A cancelled check payable to the Alcohol and Tobacco Tax and Trade Bureau in an amount which was sufficient to satisfy the tax liability for which release is being sought; or (3) Any other manner of proof acceptable to the officer who filed the lien. (g) Exception. (h) Exclusive remedy. [T.D. ATF-316, 56 FR 55079, Oct. 24, 1991] Seizure of Property for Collection of Taxes § 70.161 Levy and distraint. (a) Authority to levy In general. (2) Jeopardy cases. (3) Bankruptcy or receivership cases. (4) Certain types of compensation Federal employees. (A) The officer or employee of the United States, the District of Columbia, or of the agency or instrumentality of the United States or the District of Columbia, who has control of the payment of the wages, or (B) Any other officer or employee designated by the head of the branch, department, or agency, or instrumentality of the United States or of the District of Columbia as the party upon whom service of the notice of levy may be made. If the head of such branch, department, agency or instrumentality designates an officer or employee other than one who has control of the payment of the wages, as the party upon whom service of the notice of levy may be made, such head shall promptly notify the appropriate TTB officer of the name and address of each officer or employee so designated and the scope or extent of the authority of such designee. (ii) State and municipal employees. (iii) Seamen. (5) Noncompetent Indians. (b) Successive seizures. (c) Service of notice of levy by mail. (26 U.S.C. 6331 and 6332) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973,as amended by T.D. ATF-450, 66 FR 29026, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.162 Levy and distraint on salary and wages. (a) Notice of intent to levy. (b) Jeopardy. (c) Continuing effect of levy on salary or wages. (d) Release and notice of release from levy. (26 U.S.C. 6331) § 70.163 Surrender of property subject to levy. (a) Requirement In general. (2) Property held by banks. (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 TTB 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: (A) That the taxpayer is within the jurisdiction of a U.S. court at the time the levy is made and that the bank is in possession of (or obligated with respect to) deposits of the taxpayer in an office of the bank outside the United States or a possession of the United States; or (B) That the taxpayer is not within the jurisdiction of a U.S. court at the time the levy is made, that the bank is in possession of (or obligated with respect to) deposits of the taxpayer in an office outside the United States or a possession of the United States, and that such deposits consist, in whole or in part, of funds transferred from the United States or a possession of the United States in order to hinder or delay the collection of a tax imposed by provisions of 26 U.S.C. enforced and administered by the Bureau. (b) Enforcement of levy Extent of personal liability. (2) Penalty for violation. (c) Effect of honoring levy. (d) Person defined. (26 U.S.C. 6332) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-450, 66 FR 29026, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.164 Surrender of property subject to levy in the case of life insurance and endowment contracts. (a) In general. (b) Effect of service of notice of levy In general. (i) A demand by the officer who made the levy for the payment of the cash loan value of the contract adjusted in accordance with paragraph (c) of this section, and (ii) The exercise of the right of the person against whom the tax is assessed to the advance of such cash loan value. It is unnecessary for the official who made the levy to surrender the contract document to the insuring organization upon which the levy is made. However, the notice of levy will include a certification by the official who made the levy that a copy of the notice of levy has been mailed to the person against whom the tax is assessed at that person's last known address. At the time of service of the notice of levy, the levy is effective with respect to the cash loan value of the insurance contract, subject to the condition that if the levy is not satisfied or released before the 90th day after the date of service, the levy can be satisfied only by payment of the amount described in paragraph (c) of this section. Other than satisfaction or release of the levy, no event during the 90-day period subsequent to the date of service of the notice of levy shall release the cash loan value from the effect of the levy. For example, the termination of the policy by the taxpayer or by the death of the insured during such 90-day period shall not release the levy. For the rules relating to the time when the insuring organization is to pay over the required amount, see paragraph (c) of this section. (2) Notification of amount subject to levy Full payment before the 90th day. (ii) Notification after the 90th day. (c) Satisfaction of levy. (d) Other enforcement proceedings. (e) Cross references. (2) For provisions relating to the issuance of a certificate of discharge of a life insurance or endowment contract subject to a tax lien, see 26 U.S.C. 6325(b) and § 70.150(b) of this part. (26 U.S.C. 6332) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.165 Production of books. If a levy has been made or is about to be made on any property or rights to property, any person, having custody or control of any books or records containing evidence or statements relating to the property or rights to property subject to levy, shall, upon demand of the appropriate TTB officer who has made or is about to make the levy, exhibit such books or records to such officer. (26 U.S.C. 6333) § 70.167 Authority to release levy and return property. (a) Release of levy Authority. (2) Conditions for mandatory release. (A) The liability for which such levy was made is satisfied or becomes unenforceable by reason of lapse of time, (B) Release of such levy will facilitate the collection of such liability, (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 TTB 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 TTB officer has determined that such levy is creating an economic hardship due to the financial condition of the taxpayer, or (E) The fair market value of the property exceeds such liability and release of the levy on a part of such property could be made without hindering the collection of such liability. (ii) In the case of any tangible personal property essential in carrying on the trade or business of the taxpayer, the appropriate TTB officer shall provide for an expedited determination under paragraph (a)(2)(i) if levy on such tangible personal property would prevent the taxpayer from carrying on such trade or business. (3) Conditions for discretionary release. (i) Escrow arrangement. (ii) Bond. (iii) Payment of amount of U.S. interest in the property. (iv) Assignment of salaries and wages. (v) Extension of statute of limitations. (4) Release where value of interest of United States is insufficient to meet expenses of sale. An appropriate TTB 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 General rule. (i) The specific property levied upon, (ii) An amount of money equal to the amount of money levied upon (together with interest thereon at the overpayment rate from the date TTB receives the money to a date not more than 30 days before the date of return), or (iii) An amount of money equal to the amount of money received by the United States from a sale of the property (together with interest thereon at the overpayment rate from the date of the sale of the property to a date not more than 30 days before the date of return). If the United States is in possession of specific property, the property may be returned at any time. An amount equal to the amount of money levied upon or received from a sale of the property may be returned at any time before the expiration of 9 months from the date of the levy. When a request described in paragraph (b)(2) of this section is filed for the return of property before the expiration of 9 months from the date of levy, an amount of money may be returned after a reasonable period of time subsequent to the expiration of the 9-month period if necessary for the investigation and processing of such request. In cases where money is specifically identifiable, as in the case of a coin collection which may be worth substantially more than its face value, the money will be treated as specific property and, whenever possible, this specific property will be returned. For purposes of paragraph (b)(1)(iii) of this section, if property is declared purchased by the United States at a sale pursuant to 26 U.S.C. 6335(e), the United States is treated as having received an amount of money equal to the minimum price determined by the appropriate TTB officer before the sale or, if larger, the amount received by the United States from the resale of the property. (2) Request for return of property. (i) The name and address of the person submitting the request, (ii) A detailed description of the property levied upon, (iii) A description of the claimant's basis for claiming an interest in the property levied upon, and (iv) The name and address of the taxpayer, the originating TTB office, and the date of lien or levy as shown on the Notice of Tax Lien, Notice of Levy, or, in lieu thereof, a statement of the reasons why such information cannot be furnished. (3) Inadequate request. (26 U.S.C. 6343) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-450, 66 FR 29026, May 29, 2001] § 70.168 Redemption of property. (a) Before sale. (b) Redemption of real estate after sale Period. (2) Price. (c) Record. (26 U.S.C. 6337) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-450, 66 FR 29026, May 29, 2001] § 70.169 Expense of levy and sale. The appropriate TTB officer shall determine the expenses to be allowed in all cases of levy and sale. Such expenses shall include the expenses of protection and preservation of the property during the period subsequent to the levy, as well as the actual expenses incurred in connection with the sale thereof. In case real and personal property (or several tracts of real property) are sold in the aggregate, the appropriate TTB officer shall properly apportion the expenses to the real property (or to each tract). (26 U.S.C. 6341) § 70.170 Application of proceeds of levy. (a) Collection of liability. (1) Expense of levy and sale. (2) Specific tax liability on seized property. (3) Liability of delinquent taxpayer. (b) Surplus proceeds. (26 U.S.C. 6342) Disposition of Property Source: Sections 70.181 through 70.188 added by T.D. ATF-301, 55 FR 47627, Nov. 14, 1990, unless otherwise noted. § 70.181 Disposition of seized property. (a) Notice of seizure. (b) Notice of sale. (2) The appropriate TTB officer may use other methods of giving notice of sale and of advertising seized property in addition to those referred to in paragraph (b)(1) of this section, when the appropriate TTB officer believes that the nature of the property to be sold is such that a wider or more specialized advertising coverage will enhance the possibility of obtaining a higher price for the property. (3) Whenever levy is made without regard to the 10-day period provided in 26 U.S.C. 6331(a) (relating to cases in which collection is in jeopardy), a public notice of sale of the property seized shall not be made within such 10-day period unless 26 U.S.C. 6336 (relating to perishable goods) is applicable. (c) Time, place, manner, and conditions of sale. (1) Time and place of sale In general. (ii) Right to request sale of seized property within 60 days. (2) Adjournment of sale. (3) Minimum price. (A) A minimum price, taking into account the expenses of levy and sale, for which the property shall be sold, and (B) Whether the purchase of such property by the United States at such minimum price would be in the best interest of the United States. If, at the sale, one or more persons offer to purchase such property for not less than the amount of the minimum price, the property shall be declared to be sold to the highest bidder. If no person offers for such property at the sale the amount of the minimum price and the appropriate TTB officer has determined that the purchase of such property by the United States would be in the best interest of the United States, the property shall be declared to be sold to the United States at such minimum price. If, at the sale, the property is not declared sold to the highest bidder or the United States, the property shall be released to the owner thereof and the expense of the levy and sale shall be added to the amount of tax for the collection of which the levy was made. Any property released to the owner under these circumstances shall remain subject to any lien imposed by 26 U.S.C. chapter 64, subchapter C. (ii) The appropriate TTB officer conducting the sale shall either announce the minimum price before the sale begins or defer announcement of the minimum price until after the receipt of the highest bid, and, if the highest bid is greater than the minimum price, no announcement of the minimum price shall be made. (4) Offering of property Sale of indivisible property. (ii) Separately, in groups, or in the aggregate. (A) As separate items, or (B) As groups of items, or (C) In the aggregate, or (D) Both as separate items (or in groups) and in the aggregate. In such cases, the property shall be sold under the method which produces the highest aggregate amount. The appropriate TTB officer shall select whichever of the foregoing methods of offering the property for sale as is most feasible under all the facts and circumstances of the case, except that if the property to be sold includes both real and personal property, only the personal property may be grouped for the purpose of offering such property for sale. However, real and personal property may be offered for sale in the aggregate, provided the real property, as separate items, and the personal as a group, or as groups, or as separate items, are first offered separately. (iii) Condition of title and of property. (iv) Terms of payment. (A) Payment in full upon acceptance of the highest bid, without regard to the amount of such bid, or (B) If the aggregate price of all property purchased by a successful bidder at the sale is more than $200, an initial payment of $200 or 20 percent of the purchase price, whichever is the greater, and payment of the balance (including all costs incurred for the protection or preservation of the property subsequent to the sale and prior to final payment) within a specified period, not to exceed 1 month from the date of the sale. (5) Method of sale. (i) At public auction, at which open competitive bids shall be received, or (ii) At public sale under sealed bids. The following rules, in addition to the other rules provided in this paragraph, shall be applicable to public sale under sealed bids: (A) Invitation to bidders. (B) Form for use by bidders. (C) Remittance with bid. (D) Time for receiving and opening bids. (E) Consideration of bids. (F) Withdrawal of bids. (6) Payment of bid price. (7) Delivery and removal of personal property. (8) Default in payment. (26 U.S.C. 6335) [T.D. ATF-301, 55 FR 47627, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29025, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.182 Disposition of personal property acquired by the United States. (a) Sale In general. (2) Time, place, manner and terms of sale. (i) Time, notice, and place of sale. (ii) Rejection of bids and adjournment of sale. (iii) Liquidated damages. (3) Agreement to bid. (4) Terms of payment. (i) Payment in full upon acceptance of the highest bid, without regard to the amount of such bid, or (ii) If the aggregate price of all property purchased by a successful bidder at the sale is more than $200, an initial payment of $200 or 20 percent of the purchase price, whichever is the greater, and payment of the balance (including all costs incurred for the protection or preservation of the property subsequent to the sale and prior to final payment) within a specified period, not to exceed one month from the date of the sale. (5) Method of sale. (i) At public auction, at which open competitive bids shall be received, or (ii) At public sale under sealed bids. (6) Sales under sealed bids. (i) Invitation to bidders. (ii) Form for use by bidders. (iii) Remittance with bid. (iv) Time for receiving and opening bids. (v) Consideration of bids. (vi) Withdrawal of bids. (7) Payment of bid price. (8) Delivery and removal of personal property. (9) Certificate of sale. (b) Accounting. (26 U.S.C. 7505) [T.D. ATF-301, 55 FR 47627, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29027, May 29, 2001] § 70.183 Administration and disposition of real estate acquired by the United States. (a) Persons charged with. (b) Sale. (1) Property purchased at sale under levy. (2) Notice of sale. (3) Time and place of sale. (4) Rejection of bids and adjournment of sale. (5) Liquidated damages. (6) Agreement to bid. (7) Terms. (i) Payments in full upon acceptance of the highest bid, or (ii) If the price of the property purchased by a successful bidder at the sale is more than $200, an initial payment of $200 or 20 percent of the purchase price, whichever is the greater, and payment of the balance within a specified period, not to exceed one month from the date of the sale. (8) Method of sale. (i) At public auction, at which open competitive bids shall be received, or (ii) At public sale under sealed bids. (9) Sales under sealed bids. (i) Invitation to bidders. (ii) Form for use by bidders. (iii) Remittance with bid. (iv) Time for receiving and opening bids. (v) Consideration of bids. (vi) Withdrawal of bid. (10) Payment of bid price. (11) Deed. (c) Lease. (d) Release to debtor. (e) Accounting. (f) Authority of appropriate TTB officer. (26 U.S.C. 7506) [T.D. ATF-301, 55 FR 47627, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29027, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.184 Disposition of perishable goods. (a) Appraisal of certain seized property. (b) Return to owner. (1) Pays to the appropriate TTB officer an amount equal to the appraised value, or (2) Gives an acceptable bond as prescribed by 26 U.S.C. 7101 and § 70.281 of this part. Such bond shall be in an amount not less than the appraised value of the property and shall be conditioned upon the payment of such amount at such time as the appropriate TTB officer determines to be appropriate in the circumstances. (c) Immediate sale. (1) Notice of sale. (2) Sale. (3) Terms. (26 U.S.C. 6336) § 70.185 Certificate of sale; deed of real property. (a) Certificate of sale. (b) Deed to real property. (c) Deed to real property purchased by the United States. (26 U.S.C. 6338) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.186 Legal effect of certificate of sale of personal property and deed of real property. (a) Certificate of sale of property other than real property. (1) As evidence. (2) As conveyance. (3) As authority for transfer of corporate stock. (4) As receipts. (5) As authority for transfer of title to motor vehicle. (b) Deed to real property. (1) Deed as evidence. (2) Deed as conveyance of title. (c) Effect of junior encumbrances. See (26 U.S.C. 6339) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.187 Records of sale. (a) Requirement. (b) Copy as evidence. (26 U.S.C. 6340) [T.D. ATF-301, 55 FR 47627, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29027, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.188 Expense of levy and sale. The appropriate TTB officer shall determine the expenses to be allowed in all cases of levy and sale. Such expenses shall include the expenses of protection and preservation of the property during the period subsequent to the levy, as well as the actual expenses incurred in connection with the sale thereof. In case real and personal property (or several tracts of real property) are sold in the aggregate, the appropriate TTB officer shall properly apportion the expenses to the real property (or to each tract). (26 U.S.C. 6341) Judicial Proceedings Civil Action by the United States Source: Sections 70.191 through 70.193 added by T.D. ATF-301, 55 FR 47633, Nov. 14, 1990. § 70.191 Authorization. (a) In general. (b) Property held by banks. (1) That the taxpayer is within the jurisdiction of a U.S. court at the time the civil action is authorized or sanctioned and that the bank is in possession of (or obligated with respect to) deposits of the taxpayer in an office of the bank outside the United States or a possession of the United States; or (2) That the taxpayer is not within the jurisdiction of a U.S. court at the time the civil action is authorized or sanctioned, that the bank is in possession of (or obligated with respect to) deposits of the taxpayer in an office of the bank outside the United States or a possession of the United States, and that such deposits consist, in whole or in part, of funds transferred from the United States or a possession of the United States in order to hinder or delay the collection of a tax imposed by the provisions of 26 U.S.C. enforced and administered by the Bureau. (26 U.S.C. 7401) [T.D. ATF-301, 55 FR 47633, Nov. 14, 1990, as amended by 66 FR 29027, May 29, 2001] § 70.192 Action to enforce lien or to subject property to payment of tax. (a) Civil actions. (b) Bid by the United States. (26 U.S.C. 7403) [T.D. ATF-301, 55 FR 47633, Nov. 14, 1990, as amended by 66 FR 29027, May 29, 2001] § 70.193 Disposition of judgments and moneys recovered. All judgments and moneys recovered or received for taxes, costs, forfeitures, and penalties (with respect to the provisions of 26 U.S.C. enforced and administered by the Bureau) shall be paid to the Bureau as collections of taxes imposed under the provisions of 26 U.S.C. enforced and administered by the Bureau. (26 U.S.C. 7406) Proceedings by Taxpayers and Third Parties Source: Sections 70.202 through 70.213 added by T.D. ATF-301, 55 FR 47634, Nov. 14, 1990, unless otherwise noted. § 70.202 Intervention. If the United States is not a party to a civil action or suit, the United States may intervene in such action or suit to assert any lien arising under provisions of 26 U.S.C. enforced and administered by the Bureau on the property which is the subject of such action or suit. The provisions of 28 U.S.C. 2410 (except subsection (b)) and of 28 U.S.C. 1444 shall apply in any case in which the United States intervenes as if the United States had originally been named a defendant in such action or suit. If the application of the United States to intervene is denied, the adjudication in such civil action or suit shall have no effect upon such lien. (26 U.S.C. 7424) § 70.203 Discharge of liens; scope and application; judicial proceedings. (a) In general. (b) Judicial proceedings In general. (2) Notice of lien filed when the proceeding is commenced. (3) Notice of lien not filed when the proceeding is commenced. (4) Proceeds of a judicial sale. (26 U.S.C. 7425(a)) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.204 Discharge of liens; nonjudicial sales. (a) In general. (1) An instrument creating a lien on the property sold. (2) A confession of judgment on the obligation secured by an instrument creating a lien on the property sold, or (3) A statutory lien on the property sold. For purposes of this section, such a sale is referred to as a “nonjudicial sale.” The term “nonjudicial sale” includes, but is not limited to, the divestment of the taxpayer's interest in property which occurs by operation of law, by public or private sale, by forfeiture, or by termination under provisions contained in a contract for a deed or a conditional sales contract. Under 26 U.S.C. 7425(b)(1), if a notice of lien is filed in accordance with 26 U.S.C. 6323(f) or (g), or the title derived from the enforcement of a lien is recorded as provided by local law, more than 30 days before the date of sale and the appropriate TTB officer is not given notice of the sale (in the manner prescribed in § 70.205 of this part), the sale shall be made subject to and without disturbing the lien or title of the United States. Under 26 U.S.C. 7425(b)(2)(C), in any case in which notice of the sale is given to the appropriate TTB officer not less than 25 days prior to the date of sale (in the manner prescribed in 26 U.S.C. 7425(c)(1)), the sale shall have the same effect with respect to the discharge or divestment of the lien or title as may be provided by local law with respect to other junior liens or other titles derived from the enforcement of junior liens. A nonjudicial sale pursuant to a lien which is junior to a tax lien does not divest the tax lien, even though notice of the nonjudicial sale is given to the appropriate TTB officer. However, under the provisions of 26 U.S.C. 6325(b) and § 70.150 of this part, designated officers may discharge the property from a tax lien, including a tax lien which is senior to another lien upon the property. (b) Date of sale. (1) In the case of divestment of junior liens on property resulting directly from a public sale, the date of sale is deemed to be the date the public sale is held, regardless of the date under local law on which junior liens on the property are divested or the title to the property is transferred. (2) In the case of divestment of junior liens on property resulting directly from a private sale, the date of sale is deemed to be the date title to the property is transferred, regardless of the date junior liens on the property are divested under local law, and (3) In the case of divestment of junior liens on property not resulting directly from a public or private sale, the date of sale is deemed to be the date on which junior liens on the property are divested under local law. For provisions relating to the right of redemption of the United States, see 26 U.S.C. 7425(d) and § 70.206 of this part. (26 U.S.C. 7425(b)) § 70.205 Discharge of liens; special rules. (a) Notice of sale requirements In general. (2) Postponement of scheduled sale Where notice of sale is given. (ii) Where notice of sale is not given. (A) Notice of a nonjudicial sale would not be required under paragraph (a)(1) of this section, if the sale were held on the originally scheduled date, (B) Because of a postponement of the scheduled sale, more than 30 days elapse between the originally scheduled date of the sale and the date of the sale, and (C) A notice of lien with respect to the property to be sold is filed more than 30 days before the date of the sale, notice of the sale is required to be given to the appropriate TTB officer in accordance with the provisions of paragraph (a)(1) of this section. In any case in which notice of sale is required to be given with respect to a scheduled sale, and notice of the sale is not given, any postponement of the scheduled sale does not affect the rights of the United States under 26 U.S.C. 7425(b). (b) Consent to sale In general. see (2) Application for consent. (c) Sale of perishable goods In general. (2) Definition of perishable goods. (d) Forfeiture of land sales contract. (e) Content of notice of sale In general. (i) The name and address of the person submitting the notice of sale; (ii) A copy of each Notice of Federal Tax Lien (TTB Form 5651.2) affecting the property to be sold, or the following information as shown on each such Notice of Federal Tax Lien: (A) The initiating office named thereon, (B) The name and address of the taxpayer, and (C) The date and place of filing of the notice; (iii) With respect to the property to be sold the following information: (A) A detailed description, including location of the property affected by the notice (in the case of real property, the street address, city, and State and the legal description contained in the title or deed to the property and, if available, a copy of the abstract of title), (B) The date, time, place, and terms of proposed sale of the property, and (C) In case of a sale of perishable property described in paragraph (c) of this section, a statement of the reasons why the property is believed to be perishable; and (iv) The approximate amount of the principal obligation, including interest, secured by the lien sought to be enforced and a description of the other expenses (such as legal expenses, selling costs, etc.) which may be charged against the sale proceeds. (2) Inadequate notice. (3) Acknowledgment of notice. (4) Disclosure of adequacy of notice. (26 U.S.C. 7425(c)) [T.D. ATF-301, 55 FR 47634, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29027, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.206 Discharge of liens; redemption by United States. (a) Right to redeem In general. (2) Redemption period. (i) The period beginning with the date of the sale (as determined under § 70.204(b)) and ending with the 120th day after such date, or (ii) The period for redemption of real property allowable with respect to other secured creditors, under the local law of the place where the real property is located, whichever expires later. Which ever period is applicable, 26 U.S.C. 7425 and this section shall govern the amount to be paid and the procedure to be followed. (3) Limitations. (b) Amount to be paid In general. (i) The actual amount paid for the property (as determined under paragraph (b)(2) of this section) being redeemed (which, in the case of a purchaser who is the holder of the lien being foreclosed, shall include the amount of the obligation secured by such lien to the extent legally satisfied by reason of the sale); (ii) Interest on the amount paid (described in paragraph (b)(1)(i) of this section) at the sale by the purchaser of the real property computed at the rate of 6 percent per annum for the period from the date of the sale (as determined under § 70.204(b) of this part) to the date of redemption; (iii) The amount, if any, equal to the excess of the expenses necessarily incurred to maintain such property (as determined under paragraph (b)(3) of this section) by the purchaser (and the purchaser's successor in interest, if any) over the income from such property realized by the purchaser (and the purchaser's successor in interest, if any) plus a reasonable rental value of such property (to the extent the property is used by or with the consent of the purchaser or the purchaser's successor in interest or is rented at less than its reasonable rental value); and (iv) The amounts, if any, of a payment made by the purchaser or the purchaser's successor in interest after the foreclosure sale to a holder of a senior lien (to the extent provided under paragraph (b)(4) of this section). (2) Actual amount paid. (ii) In the case of a purchaser who is the holder of the lien being foreclosed, the actual amount paid is the sum of: (A) The amount of the obligation secured by such lien to the extent legally satisfied by reason of the sale and (B) Any additional amount bid and paid at the sale. For purposes of this section, a purchaser who acquires title as a result of a nonjudicial foreclosure sale is treated as the holder of the lien being foreclosed if a lien (or any interest reserved, created, or conveyed as security for the payment of a debt or fulfillment of other obligation) held by the purchaser is partially or fully satisfied by reason of the foreclosure sale. For example, a person whose title is derived from a tax deed issued under local law shall be treated as a purchaser who is the holder of the lien foreclosed in a case where a tax certificate, evidencing a lien on the property arising from the payment of property taxes, ripens into title. The amount paid by a purchaser at the sale includes deferred payments upon any portion of the bid price which is in excess of the amount of the lien being foreclosed. The actual amount paid does not include costs and expenses incurred prior to the foreclosure sale by the purchaser except to the extent such expenses are included in the amount of the lien being foreclosed which is legally satisfied by reason of the sale or in the amount bid and paid at the sale. Where the lien being foreclosed attaches to other property not subject to the foreclosure sale, the amount legally satisfied by reason of the sale does not include the amount of such lien that attaches to the other property. However, for purposes of the preceding sentences, the amount of the lien that attaches to the other property shall be considered to be equal to the amount by which the value of the other property exceeds the amount of any other senior lien on that property. Where, after the sale, the holder of the lien being foreclosed has the right to the unpaid balance of the amount due the holder, the amount legally satisfied by reason of the sale does not include the amount of such lien to the extent a deficiency judgment may be obtained therefor. However, for purposes of the preceding sentence, an amount, with respect to which the holder of the lien being foreclosed would otherwise have a right to a deficiency judgment, shall be considered to be legally satisfied by reason of the foreclosure sale to the extent that the holder has waived the holder's right to a deficiency judgment prior to the foreclosure sale. For this purpose, the waiver must be in writing and legally binding upon the foreclosing lienholder as of the time the sale is concluded. If, prior to the foreclosure, payments have been made by the foreclosing lienholder to a holder of a superior lien, the payments are included in the actual amount paid to the extent they give rise to an interest which is legally satisfied by reason of the foreclosure sale. (3) Excess expenses incurred by purchaser. (ii) At any time prior to the expiration of the redemption period applicable under paragraph (a)(2) of this section, the appropriate TTB officer may, by certified or registered mail or hand delivery, request a written itemized statement of the amount claimed by the purchaser or the purchaser's successor in interest to be payable under paragraph (b)(1)(iii) of this section. Unless the purchaser or the purchaser's successor in interest furnishes the written itemized statement within 15 days after the request is made by the appropriate TTB officer, it shall be presumed that no amount is payable for expenses in excess of income and the Bureau shall tender only the amount otherwise payable under paragraph (b)(1) of this section. If a purchaser or the purchaser's successor in interest has failed to furnish the written itemized statement within 15 days after the request therefor is made by the appropriate TTB officer, or there is a disagreement as to the amount properly payable under paragraph (b)(1)(iii) of this section, a payment for excess expenses shall be made after the redemption within a reasonable time following the verification by the appropriate TTB officer of a written itemized statement submitted by the purchaser or the purchaser's successor in interest or the resolution of the disagreement as to the amount properly payable for excess expenses. (4) Payments made by purchaser or the purchaser's successor in interest to a senior lienor. (ii) Before the expiration of the redemption period applicable under paragraph (a)(2) of this section, the appropriate TTB officer shall, in any case where a redemption is contemplated, send notice to the purchaser (or the purchaser's successor in interest of record) by certified or registered mail or hand delivery of the right under paragraph (b)(4) of this section to request reimbursement (payable in the event the right to redeem under 26 U.S.C. 7425(d) is exercised) for a payment made to a senior lienor. No later than 15 days after the notice from the appropriate TTB officer is sent, the request for reimbursement shall be mailed or delivered to the office specified in such notice and shall consist of: (A) A written itemized statement, signed by the claimant, of the amount claimed with respect to a payment made to a senior lienor, together with the supporting evidence requested in the notice from the appropriate TTB officer, and (B) A waiver or other document that will be effective upon redemption by the United States to discharge the property from, or transfer to the United States, any interest in or lien on the property that may arise under local law with respect to the payment made to a senior lienor. Upon a showing of reasonable cause, an appropriate TTB officer may, in that official's discretion and at any time before the expiration of the applicable period for redemption, grant an extension for a reasonable period of time to submit, amend, or supplement a request for reimbursement. Unless a request for reimbursement is timely submitted (determined with regard to any extension of time granted), no amount shall be payable to the purchaser or the purchaser's successor in interest on account of a payment made to a senior lienor if the right to redeem under 26 U.S.C. 7425(d) is exercised. A waiver or other document submitted pursuant to paragraph (b)(4)(ii) of this section shall be treated as effective only to the extent of the amount included in the redemption price under this paragraph. If the right to redeem is not exercised or a request for reimbursement is withdrawn, the appropriate TTB officer shall, by certified or registered mail or hand delivery, return to the purchaser or the purchaser's successor any waiver or other document submitted pursuant to paragraph (b)(4)(ii) of this section as soon as is practicable. (iii) A request for reimbursement submitted in accordance with paragraph (b)(4)(ii) of this section shall be considered to be approved for the total amount claimed by the purchaser, and payable in the event the right to redeem is exercised, unless the appropriate TTB officer sends notice to the claimant, by certified or registered mail or hand delivery, of the denial of the amount claimed within 30 days after receipt of the request of 15 days before expiration of the applicable period for redemption, whichever is later. The notification of denial shall state the grounds for denial. If such notice of denial is given, the request for reimbursement for a payment made to a senior lienor shall be treated as having been withdrawn by the purchaser or the purchaser's successor and the Bureau shall tender only the amount otherwise payable under paragraph (b)(1) of this section. If a request for reimbursement is treated as having been withdrawn under the preceding sentence, payment for amounts described in paragraph (b)(4) of this section may, in the discretion of the appropriate TTB officer, be made after the redemption upon the resolution of the disagreement as to the amount properly payable under paragraph (b)(1)(iv) of this section. (c) Certificate of redemption In general. (2) Filing. (3) Effect of certificate of redemption. (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 § 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 TTB officer may, in that officer's discretion, release the right of redemption with respect to the property. The application for the release must be submitted in writing to an appropriate TTB officer and must contain such information as the appropriate TTB officer may require. If the appropriate TTB 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. (26 U.S.C. 7425(d)) [T.D. ATF-301, 55 FR 47634, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29027, May 29, 2001] § 70.207 Civil actions by persons other than taxpayers. (a) Actions permitted Wrongful levy. (i) That the person has an interest in, or a lien on, such property which is senior to the interest of the United States; and (ii) That such property was wrongfully levied upon. No action is permitted under 26 U.S.C. 7426(a)(1) unless there has been a levy upon the property claimed. (2) Surplus proceeds. (i) Has an interest in or lien on such property junior to that of the United States; and (ii) Is entitled to the surplus proceeds of such sale. (3) Substituted sale proceeds. (b) Adjudication Wrongful levy. (i) Grant an injunction to prohibit the enforcement of such levy or to prohibit a sale of such property if such sale would irreparably injure rights in the property which are superior to the rights of the United States in such property; or (ii) Order the return of specific property if the United States is in possession of such property; or (iii) Grant a judgment for the amount of money levied upon, with interest thereon at the overpayment rate established under 26 U.S.C. 6621 from the date that the officer who made the levy receives the money wrongfully levied upon to the date of payment of such judgment, or (iv) Grant a judgment for an amount not exceeding the amount received by the United States from the sale of such property (which, in the case of property declared purchased by the United States at a sale, shall be the greater of the minimum amount determined pursuant to 26 U.S.C. 6335(e) or the amount received by the United States from the resale of such property), or the fair market value of such property immediately before the levy, with interest thereon at the overpayment rate established under 26 U.S.C. 6621 from the date of the sale of the property to the date of payment of such judgment. For purposes of paragraph (b)(1) of this section, a levy is wrongful against a person (other than the taxpayer against whom the assessment giving rise to the levy is made), if the levy is upon property exempt from levy under 26 U.S.C. 6334, or the levy is upon property in which the taxpayer had no interest at the time the lien arose or thereafter, or the levy is upon property with respect to which such person is a purchaser against whom the lien is invalid under 26 U.S.C. 6323 or 6324(a)(2) or (b), or the levy or sale pursuant to levy will or does effectively destroy or otherwise irreparably injure such person's interest in the property which is senior to the Federal tax lien. A levy may be wrongful against a holder of a senior lien upon the taxpayer's property under certain circumstances although legal rights to enforce the holder's interest survive the levy procedure. For example, the levy may be wrongful against such a person if the property is an obligation which is collected pursuant to the levy rather than sold and nothing thereafter remains for the senior lienholder, or the property levied upon is of such a nature that when it is sold at a public sale the property subject to the senior lien is not available for the senior lienholder as a realistic source for the enforcement of the holder's interest. Some of the factors which should be taken into account in determining whether property remains or will remain a realistic source from which the senior lienholder may realize collection are: The nature of the property, the number of purchasers, the value of each unit sold or to be sold, whether, as a direct result of the distraint sale, the costs of realizing collection from the security have or will be so substantially increased as to render the security substantially valueless as a source of collection, and whether the property subject to the distraint sale constitutes substantially all of the property available as security for the payment of the indebtedness to the senior lienholder. (2) Surplus proceeds. (3) Substituted sale proceeds. (26 U.S.C. 7426) § 70.208 Review of jeopardy assessment or jeopardy levy procedures; information to taxpayer. Not later than 5 days after the day on which an assessment is made under 26 U.S.C. 6862 or when a levy is made less than 30 days after the notice and demand described in 26 U.S.C 6331(a), the officer who authorized the assessment or levy shall provide the taxpayer a written statement setting forth the information upon which that official relies in authorizing such assessment or levy. (26 U.S.C. 7429(a)(1)) § 70.209 Review of jeopardy assessment or levy procedures; administrative review. (a) Request for administrative review. (b) Administrative review. (26 U.S.C. 7429(a)(2)) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.210 Review of jeopardy assessment or levy procedures; judicial action. (a) Time for bringing judicial action. (1) The date of the reviewing officer notifies the taxpayer of the determination described in 26 U.S.C. 7429(a)(3); or (2) The 16th day after the request described in 26 U.S.C. 7429(a)(2) was made by the taxpayer; and ending on the 90th day thereafter. (b) Extension of the period for judicial review. The U.S. Government may not seek an extension of the 20-day period described in 26 U.S.C. 7429(b)(2), but it may join with the taxpayer in seeking such an extension. (26 U.S.C. 7429) § 70.213 Repayments to officers or employees. The appropriate TTB officer is authorized to repay to any officer or employee of the Bureau the full amount of such sums of money as may be recovered against such officer or employee in any court for any taxes imposed under provisions of 26 U.S.C. enforced and administered by the Bureau collected by such officer or employee with the cost and expense of suit, and all damages and costs recovered against any officer or employee of the Bureau in any suit brought against such officer or employee by reason of anything done in the official performance of duties under the provisions of 26 U.S.C. enforced and administered by the Bureau. (26 U.S.C. 7423) Limitations Limitations on Assessment and Collection § 70.221 Period of limitations upon assessment. (a) The amount of any tax imposed by the Internal Revenue Code (other than a tax collected by means of stamps) shall be assessed within 3 years after the return was filed. For rules applicable in cases where the return is filed prior to the due date thereof, see section 6501(b) of the Internal Revenue Code. In the case of taxes payable by stamps, assessment shall be made at any time after the tax becomes due and before the expiration of 3 years after the date on which any part of the tax was paid. For exceptions and additional rules, see subsections (b) and (c) of section 6501 of the Internal Revenue Code. (b) No proceeding in court without assessment for the collection of any tax shall be begun after the expiration of the applicable period for the assessment of such tax. (26 U.S.C. 6501) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990] § 70.222 Time return deemed filed for purposes of determining limitations. (a) Early Return. (b) Returns executed by appropriate TTB officers. (26 U.S.C. 6501) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990; T.D. ATF-450, 66 FR 29028, May 29, 2001] § 70.223 Exceptions to general period of limitations on assessment and collection. (a) False return. (b) Willful attempt to evade tax. (c) No return. (d) Extension by agreement. (26 U.S.C. 6501) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47641, Nov. 14, 1990; T.D. ATF-331, 57 FR 40328, Sept. 3, 1992] § 70.224 Collection after assessment. (a) Length of period General rule. (2) Extension by agreement. (ii) The period of limitation on collection after assessment of any tax (including any extension of such period) may be extended after the expiration thereof if there has been a levy on any part of the taxpayer's property prior to such expiration and if the extension is agreed upon in writing prior to a release of the levy under the provisions of 26 U.S.C. 6343. An extension under this paragraph has the same effect as an agreement made prior to the expiration of the period of limitation on collection after assessment, and during the period of the extension collection may be enforced as to all property or rights to property owned by the taxpayer whether or not seized under the levy which was released. (iii) Any period agreed upon under the provisions of paragraph (a)(1) of this section may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. (3) If a timely proceeding in court for the collection of a tax is commenced, the period during which such tax may be collected by levy shall be extended and shall not expire until the liability for the tax (or a judgment against the taxpayer arising from such liability) is satisfied or becomes unenforceable. (b) Date when levy is considered made. (26 U.S.C. 6502) [T.D. ATF-301, 55 FR 47641, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29028, May 29, 2001] § 70.225 Suspension of running of period of limitation; assets of taxpayer in control or custody of court. Where all or substantially all of the assets of a taxpayer are in the control or custody of the court in any proceeding before any court of the United States, or any State of the United States, or the District of Columbia, the period of limitations on collection after assessment prescribed in 26 U.S.C. 6502 is suspended with respect to the outstanding amount due on the assessment for the period such assets are in the control or custody of the court, and for 6 months thereafter. (26 U.S.C. 6503) [T.D. ATF-301, 55 FR 47642, Nov. 14, 1990] § 70.226 Suspension of running of period of limitation; taxpayer outside of United States. The running of the period of limitations on collection after assessment prescribed in 26 U.S.C. 6502 (relating to collection after assessment) is suspended for the period during which the taxpayer is absent from the United States if such period is a continuous period of absence from the United States extending for 6 months or more. In a case where the running of the period of limitations has been suspended under the first sentence of this paragraph and at the time of the taxpayer's return to the United States the period of limitations would expire before the expiration of 6 months from the date of the taxpayer's return, the period of limitations shall not expire until after 6 months from the date of the taxpayer's return. The taxpayer will be deemed to be absent from the United States for purposes of this section if the taxpayer is generally and substantially absent from the United States, even though the taxpayer makes casual temporary visits during the period. (26 U.S.C. 6503) [T.D. ATF-301, 55 FR 47642, Nov. 14, 1990] § 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 TTB officer and ending on the date 30 days after the date on which the appropriate TTB 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. The running of the period of limitations on collection after assessment shall be suspended under this section only with respect to the amount of such assessment which is equal to the amount of money or the value of specific property returned. (26 U.S.C. 6503) [T.D. ATF-301, 55 FR 47642, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29028, May 29, 2001] Limitations on Liens Source: Sections 70.231 through 70.234 added by T.D. ATF-301, 55 FR 47642, Nov. 14, 1990, unless otherwise noted. § 70.231 Protection for certain interests even though notice filed. (a) Securities. (1) A purchaser (as defined in § 70.143(f) of this part) of the security who at the time of purchase did not have actual notice or knowledge (as defined in § 70.144(a) of this part) of the existence of the lien; (2) A holder of a security interest (as defined in § 70.143(a) of this part) in the security who did not have actual notice or knowledge (as defined in § 70.144(a) of this part) of the existence of the lien at the time the security interest came into existence or at the time such security interest was acquired from a previous holder for a consideration in money or money's worth (as defined in § 70.143(a) of this part); or (3) A transferee of an interest protected under paragraph (a) (1) or (2) of this section to the same extent the lien is invalid against the transferor to the transferee. For purposes of this paragraph, no person can improve that person's position with respect to the lien by reacquiring the interest from an intervening purchaser or holder of a security interest against whom the lien is invalid. (b) Motor vehicles In general. (i) At the time of purchase, the purchaser did not have actual notice or knowledge (as defined in § 70.144(a) of this part) of the existence of the lien, and (ii) Before the purchaser obtains such notice or knowledge, the purchaser has acquired actual possession of the motor vehicle and has not thereafter relinquished actual possession to the seller or seller's agent. (2) Cross reference. (c) Personal property purchased at retail In general. (2) Definition of retail sale. (d) Personal property purchased in casual sale In general. (2) Limitation. (i) Of the existence of the tax lien, or (ii) That the sale is one of a series of sales. For purposes of paragraph (d)(2)(ii) of this section, a sale is one of a series of sales if the seller plans to dispose of, in separate transactions, substantially all of the seller's household goods, personal effects, and other tangible personal property described in § 70.241 of this part. (e) Personal property subject to possessory liens. (f) Real property tax and special assessment liens. (1) A tax of general application levied by any taxing authority based upon the value of the property, or (2) A special assessment imposed directly upon the property by any taxing authority, if the assessment is imposed for the purpose of defraying the cost of any public improvement; or (3) Charges for utilities or public services furnished to the property by the United States, a State or political subdivision thereof, or an instrumentality of any one or more of the foregoing. (g) Residential property subject to a mechanic's lien for certain repairs and improvements. (1) The residence is occupied by the owner and contains no more than four dwelling units, and (2) The contract price on the prime contract with the owner for the repair or improvement (excluding interest and expenses described in § 70.147 of this part) is not more than $1,000. For purposes of this paragraph, the amounts of subcontracts under the prime contract with the owner are not to be taken into consideration for purposes of computing the $1,000 prime contract price. It is immaterial that the notice of tax lien was filed before the contractor undertakes the work or that the contractor knew of the lien before undertaking the work. (h) Attorney's liens In general. (2) Claim or cause of action against the United States. (i) Any judgment or other fund resulting from the successful litigation or settlement of an administrative claim or cause of action against the United States to the extent that the United States, under any legal or equitable right, offsets its liability under the judgment or settlement against any liability of the taxpayer to the United States, or (ii) Any amount credited against any liability of the taxpayer in accordance with 26 U.S.C. 6402. (i) Certain insurance contracts. (1) Before the insuring organization has actual notice or knowledge (as defined in § 70.144(a) of this part) of the existence of the tax lien. (2) After the insuring organization has actual notice or knowledge of the lien (as defined in § 70.144(a) of this part) with respect to advances (including contractual interest thereon as provided in § 70.147(a) of this part) required to be made automatically to maintain the contract in force under an agreement entered into before the insuring organization had such actual notice or knowledge, or (3) After the satisfaction of a levy pursuant to 26 U.S.C. 6332(b), unless and until the appropriate TTB officer delivers to the insuring organization a notice (for example, another notice of levy, a letter, etc. Delivery of the notice described in paragraph (i)(3) of this section may be made by any means, including regular mail, and delivery of the notice shall be effective only from the time of actual receipt of the notification by the insuring organization. The provisions of this paragraph are applicable to matured as well as unmatured insurance contracts. (j) Passbook loans In general. (2) Definition of passbook. (i) Any tangible evidence of a savings deposit, share, or other account which, when in the possession of the bank or other savings institution, will prevent a withdrawal from the account to the extent of the loan balance, and (ii) Any procedure or system, such as an automatic data processing system, the use of which by the bank or other savings institution will prevent a withdrawal from the account to the extent of the loan balance. (26 U.S.C. 6323) § 70.232 Protection for commercial transactions financing agreements. (a) In general. (1) Comes into existence after the tax lien filing. (2) Is in qualified property covered by the terms of a commercial transactions financing agreement entered into before the tax lien filing, and (3) Is protected under local law against a judgment lien arising, as of the time of the tax lien filing, out of an unsecured obligation. See § 70.143 (a) and (e) of this part for definitions of the terms “security interest” and “tax lien filing,” respectively. For purposes of this section, a judgment lien is a lien held by a judgment lien creditor as defined in § 70.143(g) of this part. (b) Commercial transactions financing agreement. (1) To make loans to the taxpayer (whether or not at the option of the person agreeing to make such loans) to be secured by commercial financing security acquired by the taxpayer in the ordinary course of the taxpayer's trade or business, or (2) To purchase commercial financing security, other than inventory, acquired by the taxpayer in the ordinary course of the taxpayer's trade or business. Such an agreement qualifies as a commercial transactions financing agreement only with respect to loans or purchases made under the agreement before the 46th day after the date of tax lien filing or the time when the lender or purchaser has actual notice or knowledge (as defined in § 70.144(a) of this part) of the tax lien filing, if earlier. For purposes of this paragraph, a loan or purchase is considered to have been made in the course of the lender's or purchaser's trade or business if such person is in the business of financing commercial transactions (such as a bank or commercial factor) or if the agreement is incidental to the conduct of such person's trade or business. For example, if a manufacturer finances the accounts receivable of one of its customers, the manufacturer is considered to engage in such financing in the course of its trade or business. The extent of the priority of the lender or purchaser over the tax lien is the amount of the disbursement made before the 46th day after the date the notice of tax lien is filed, or made before the day (before such 46th day) on which the lender or purchaser has actual notice or knowledge of the filing of the notice of the tax lien. (c) Commercial financing security In general. (i) Paper of a kind ordinarily arising in commercial transactions, (ii) Accounts receivable (as defined in paragraph (c)(2) of this section), (iii) Mortgages on real property, and (iv) Inventory. For purposes of this subparagraph, the term “paper of a kind ordinarily arising in commercial transactions” in general includes any written document customarily used in commercial transactions. For example, such written documents include paper giving contract rights (as defined in paragraph (c)(2) of this section), chattel paper, documents of title to personal property, and negotiable instruments or securities. The term “commercial financing security” does not include general intangibles such as patents or copyrights. A mortgage on real estate (including a deed of trust, contract for sale, and similar instrument) may be commercial financing security if the taxpayer has an interest in the mortgage as a mortgagee or assignee. The term “commercial financing security” does not include a mortgage when the taxpayer is the mortgagor of realty owned by the taxpayer. For purposes of this subparagraph, the term “inventory” includes raw materials and goods in process as well as property held by the taxpayer primarily for sale to customers in the ordinary course of the taxpayer's trade or business. (2) Definitions. (i) A contract right is any right to payment under a contract not yet earned by performance and not evidenced by an instrument or chattel paper, and (ii) An account receivable is any right to payment for goods sold or leased or for services rendered which is not evidenced by an instrument or chattel paper. (d) Qualified property. (e) Purchaser treated as acquiring security interest. (26 U.S.C. 6323) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.233 Protection for real property construction or improvement financing agreements. (a) In general. (1) Comes into existence after the tax lien filing, (2) Is on qualified property covered by the terms of a real property construction or improvement financing agreement entered into before the tax lien filing, and (3) Is protected under local law against a judgment lien arising, as of the time of tax lien filing, out of an unsecured obligation. For purposes of this section, it is immaterial that the holder of the security interest had actual notice or knowledge of the lien at the time disbursements are made pursuant to such an agreement. See § 70.143 (a) and (e) of this part for general definitions of the terms “security interest” and “tax lien filing.” For purposes of this section, a judgment lien is a lien held by a judgment lien creditor as defined in § 70.143(g) of this part. (b) Real property construction or improvement financing agreement. (1) To finance the construction, improvement, or demolition of real property if the agreement provides for a security interest in the real property with respect to which the construction, improvement, or demolition has been or is to be made; (2) To finance a contract to construct or improve, or demolish real property if the agreement provides for a security interest in the proceeds of the contract; or (3) To finance the raising or harvesting of a farm crop or the raising of livestock or other animals if the agreement provides for a security interest in any property subject to the lien imposed by 26 U.S.C. 6321 at the time of tax lien filing, in the crop raised or harvested, or in the livestock or other animals raised. For purposes of paragraphs (b) (1) and (2) of this section, construction or improvement may include demolition. For purposes of any agreement described in paragraph (b)(3) of this section, the furnishing of goods and services is treated as the disbursement of cash. (c) Qualified property. (1) In the case of an agreement described in paragraph (b)(1) of this section, the real property with respect to which the construction or improvement has been or is to be made; (2) In the case of an agreement described in paragraph (b)(2) of this section, the proceeds of the contract to construct or improve real property; or (3) In the case of an agreement described in paragraph (b)(3) of this section, property subject to the lien imposed by 26 U.S.C. 6321 at the time of tax lien filing, the farm crop raised or harvested, or the livestock or other animals raised. (26 U.S.C. 6323) § 70.234 Protection for obligatory disbursement agreements. (a) In general. (1) Comes into existence after the tax lien filing, (2) Is in qualified property covered by the terms of an obligatory disbursement agreement entered into before the tax lien filing, and (3) Is protected under local law against a judgment lien arising, as of the time of tax lien filing, out of an unsecured obligation. See § 70.143 (a) and (e) of this part for definitions of the terms “security interest” and “tax lien filing.” For purposes of this section, a judgment lien creditor as defined in § 70.143(g) of this part. (b) Obligatory disbursement agreement. (c) Qualified property. (d) Special rule for surety agreements. (1) The proceeds of the contract the performance of which was insured, and (2) If the contract the performance of which was insured is a contract to construct or improve real property, to produce goods, or to furnish services, any tangible personal property used by the taxpayer in the performance of the insured contract. For example, a surety company which holds a security interest, arising from cash disbursements made after tax lien filing under a payment or performance bond on a real estate construction project, has priority over the tax lien with respect to the proceeds of the construction contract and, in addition, with respect to any tangible personal property used by the taxpayer in the construction project if its security interest in the tangible personal property is protected under local law against a judgment lien arising, as of the time the tax lien was filed, out of an unsecured obligation. (26 U.S.C. 6323) Limitations on Levies Source: Sections 70.241 through 70.245 added by T.D. ATF-301, 55 FR 47646, Nov. 14, 1990, unless otherwise noted. § 70.241 Property exempt from levy. (a) Enumeration. (1) Wearing apparel and school books. (2) Fuel, provisions, furniture, and personal effects. (3) Books and tools of a trade, business or profession. (4) Unemployment benefits. (5) Undelivered mail. (6) Certain annuity and pension payments. (7) Workmen's compensation. (8) Judgments for support of minor children. (9) Minimum exemption for wages, salary, and other income. (10) Certain service-connected disability payments. (i) 38 U.S.C. chapter 11, subchapter II, III, IV, V, or VI, or (ii) 38 U.S.C. chapter 13, 21, 23, 31, 32, 34, 35, 37, or 39 shall be exempt from levy. (11) Certain public assistance payments. (i) Title 42 U.S.C. subchapter IV (relating to aid to families with dependent children) or 42 U.S.C. subchapter XVI (relating to supplemental security income for the aged, blind, and disabled), or (ii) State or local government public assistance or public welfare programs for which eligibility is determined by a needs or income test shall be exempt from levy. (12) Assistance under job training partnership act. et seq. (13) Principal residence exempt in absence of certain approval or jeopardy. (b) Appraisal. (c) Other property. (26 U.S.C. 6334) § 70.242 Wages, salary and other income. (a) In general. (b) Eligible taxpayer income. (c) Payment of exempt amounts to taxpayer From wages, salary or other income not subject to levy. (2) From wages, salary or other income subject to levy. (26 U.S.C. 6334) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.243 Exempt amount. Amount payable to the taxpayer as wages, salary, or other income for each payroll period described in § 70.244 of this part are exempt from levy as follows: (a) If the payroll period is weekly, an amount equal to: (1) The sum of: (i) The standard deduction, and (ii) The aggregate amount of the deductions for personal exemption allowed the taxpayer under 26 U.S.C. 151 in the taxable year in which such levy occurs, divided by (2) 52. (b) If the payroll period is not weekly, the amount exempt from levy shall be an amount which as nearly as possible will result in the same total exemption from levy for such individual over a period of time as such individual would have under paragraph (a) of this section if (during such period of time) the individual were paid or received such wages, salary or other income on a regular weekly basis. (26 U.S.C. 6334) § 70.244 Payroll period. For purpose of determining the amount of wages, salary or other income exempt from levy under 26 U.S.C. 6334(a)(9): (a) Regularly used calendar periods. (b) Amounts paid on recurrent but irregular basis. (1) Amounts are paid to the taxpayer on a recurrent but irregular basis, and (2) The last payment was paid to the taxpayer more than 60 days before the current payment becomes payable, the current payment will be deemed a one-time payment ( see (c) Nonrecurrent payments. i.e., (26 U.S.C. 6334) § 70.245 Computation of exempt amount and payment of amounts not exempt from levy to the appropriate TTB officer. (a) General. (b) Statement of exemptions and filing status. (1) Completion of the form provided for this purpose by the Bureau, or (2) A written statement that: (i) Gives the taxpayer's filing status for income tax purposes, (ii) Shows any additional standard deduction if the taxpayer or the taxpayer's spouse is at least 65 and/or blind, (iii) Identified by name and by relationship to the taxpayer each person for whom a dependent exemption is claimed, (iv) Is signed by the taxpayer, and (v) Contains a declaration that it is made under the penalties of perjury. (c) Time for submission of statement. (1) The third day before the last day of the payroll period for which the exemption is claimed (that is, the third day before payday), or (2) If the appropriate TTB officer delivers the forms for the statement of exemption and filing status to the employer or other person levied upon (see § 70.242(c)(2) of this part), the second day after the date the taxpayer receives the form. For purposes of paragraphs (c) (1) and (2) of this section, the term “day” does not include Saturdays, Sunday or a legal holiday within the meaning of 26 U.S.C. 7503. Failure on the part of the taxpayer to submit a timely statement of exemptions and filing status will result in the computation of the exempt amount as if the taxpayer were a married individual filing a separate return with only 1 personal exemption for the applicable pay period, except that the employer or other person levied upon may accept a statement of exemptions and filing status not timely submitted in accordance with this paragraph, and may prepare a disbursement to the taxpayer based upon the information properly verified therein, if payment to the appropriate TTB officer in accordance with the levy is not thereby delayed. (d) Payment of amounts not exempt from levy to the appropriate TTB officer In General. see (2) Delayed payment in certain cases. (26 U.S.C. 6334) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] Periods of Limitation in Judicial Proceedings § 70.251 Periods of limitation on suits by taxpayers. (a) No suit or proceeding under section 7422(a) of the Internal Revenue Code for the recovery of any internal revenue tax, penalty, or other sum shall be begun until whichever of the following first occurs: (1) The expiration of 6 months from the date of the filing of the claim for credit or refund, or (2) A decision is rendered on such claim prior to the expiration of 6 months after the filing thereof. Except as provided in paragraph (b) of this section, no suit or proceeding for the recovery of any tax, penalty, or other sum imposed under the provision of 26 U.S.C. enforced and administered by the Bureau may be brought after the expiration of 2 years from the date of mailing, by either registered or certified mail, by an appropriate TTB officer, to a taxpayer of a statutory notice of disallowance of the part of the claim to which the suit or proceeding relates. (b) The 2-year period described in paragraph (a) of this section may be extended if an agreement to extend the running of the period of limitations is executed. The agreement must be signed by the taxpayer or by an attorney, agent, trustee, or other fiduciary on behalf of the taxpayer. If the agreement is signed by a person other than the taxpayer, it shall be accompanied by an authenticated copy of the power of attorney or other legal evidence of the authority of such person to act on behalf of the taxpayer. If the taxpayer is a corporation, the agreement should be signed with the corporate name followed by the signature of a duly authorized officer of the corporation. The agreement will not be effective until signed by an appropriate officer. (c)(1) The taxpayer may sign a waiver of the requirement that the taxpayer be mailed a notice of disallowance. Such waiver is irrevocable and will commence the running of the 2-year period described in paragraph (a) of this section on the date the waiver is filed. The waiver shall set forth: (i) The type of tax and the taxable period covered by the taxpayer's claim for refund; (ii) The amount of the claim; (iii) The amount of the claim disallowed; (iv) A statement that the taxpayer agrees the filing of the waiver will commence the running of the 2-year period provided for in section 6532(a)(1) as if a notice of disallowance had been sent the taxpayer by either registered or certified mail. (2) The filing of such a waiver prior to the expiration of 6 months from the date the claim was filed does not permit the filing of a suit for refund prior to the time specified in section 6532(a)(1) and paragraph (a) of this section. (d) Any consideration, reconsideration, or other action with respect to a claim after the mailing, by either registered or certified mail, of a notice of disallowance or after the execution of a waiver referred to in paragraph (c) of this section, shall not extend the period for bringing suit or other proceeding under section 7422(a) of the Internal Revenue Code. (26 U.S.C. 6532) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47648, Nov. 14, 1990; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.252 Periods of limitation on suits by the United States. The United States may not recover any erroneous refund by civil action under section 7405 of the Internal Revenue Code unless such action is begun within 2 years after the making of such refund. However, if any part of the refund was induced by fraud or misrepresentation of a material fact, the action to recover the erroneous refund may be brought at any time within 5 years from the date the refund was made. (26 U.S.C. 6532) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990] § 70.253 Periods of limitation on suits by persons other than taxpayers. (a) General rule. (b) Period when claim is filed. (1) 12 months from the date of filing by a third party of a written request under § 70.167(b)(2) of this part for the return of property wrongfully levied upon, or (2) 6 months from the date of mailing by registered or certified mail by the appropriate TTB officer to the party claimant of a notice of disallowance of the part of the request to which the action relates. A request which, under § 70.167(b)(3) of this part, is not considered adequate does not extend the 9-month period described in paragraph (a) of this section. (26 U.S.C. 6532) [T.D. ATF-301, 55 FR 47648, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29028, May 29, 2001] Limitations on Credit or Refund § 70.261 Period of limitation on filing claim. (a) In the case of any tax (other than a tax payable by stamp): (1) If a return is filed, a claim for credit or refund of an overpayment must be filed by the taxpayer within 3 years from the time the return was filed or within 2 years from the time the tax was paid, whichever of such periods expires the later. (2) If no return is filed, the claim for credit or refund of an overpayment must be filed by the taxpayer within 2 years from the time the tax was paid. (b) In the case of any tax payable by means of a stamp, a claim for credit or refund of an overpayment of such tax must be filed by the taxpayer within 3 years from the time the tax was paid. For provisions relating to redemption of unused stamps, see section 6805 of the Internal Revenue Code. (c) For limitations on allowance of credit or refund, special rules, and exceptions, see subsections (b) and (c) of section 6511 of the Internal Revenue Code. For rules as to time return is deemed filed and tax considered paid, see section 6513 of the Internal Revenue Code. (26 U.S.C. 6511) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990] § 70.262 Limitations on allowance of credits and refunds. (a) Effect of filing claim. (b) Limit on amount to be credited or refunded. (1) If a return was filed, and a claim is filed within 3 years from the time the return was filed, the amount of the credit or refund shall not exceed the portion of the tax paid within the period, immediately preceding the filing of the claim, equal to 3 years plus the period of any extension of time for filing the return. (2) If a return was filed, and a claim is filed after the 3 year period described in paragraph (b)(1) of this section, but within 2 years from the time the tax was paid, the amount of the credit or refund shall not exceed the portion of the tax paid within the 2 years immediately preceding the filing of the claim. (3) If no return was filed, but a claim is filed, the amount of the credit or refund shall not exceed the portion of the tax paid within the 2 years immediately preceding the filing of the claim. (4) If no claim is filed, the amount of the credit or refund allowed or made shall not exceed the amount that would have been allowable under the preceding subparagraphs if a claim had been filed on the date the credit or refund is allowed. (c) In the case of a tax payable by stamp. (2) If no claim is filed, the amount of the credit or refund allowed or made shall not exceed the portion of the tax paid within the 3 years immediately preceding the allowance of the credit or refund. For provisions relating to redemption of unused stamps, see section 6805 of the Internal Revenue Code. (26 U.S.C. 6511) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47648, Nov. 14, 1990; T.D. ATF-450, 66 FR 29028, May 29, 2001] § 70.263 Special rules applicable in case of extension of time by agreement. (a) Scope. (b) Period in which claim may be filed. (c) Limit on amount to be credited or refunded. (2) If no claim is filed, the amount of credit or refund allowed or made within the time prescribed in paragraph (b) of this section shall not exceed the portion of the tax paid after the execution of the agreement and before the making of the credit or refund, plus the amount that could have been properly credited or refunded under the provisions of section 6511(b)(2) if a claim had been filed on the date of the execution of the agreement. (d) Effective date of agreement. (26 U.S.C. 6511) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990] § 70.264 Time return deemed filed and tax considered paid. For purposes of section 6511 of the Internal Revenue Code, a return filed before the last day prescribed by law or regulations for the filing thereof shall be considered as filed on such last day. For purposes of section 6511(b) (2) and (c), payment of any portion of the tax made before the last day prescribed for payment shall be considered made on such last day. An extension of time for filing a return or for paying any tax shall not be given any effect in determining under this section the last day prescribed for filing a return or paying any tax. (26 U.S.C. 6513) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990] § 70.265 Credits or refunds after period of limitation. (a) A refund of any portion of any internal revenue tax (or any interest, additional amount, addition to the tax, or assessable penalty) shall be considered erroneous and a credit of any such portion shall be considered void: (1) If made after the expiration of the period of limitation prescribed by section 6511 of the Internal Revenue Code for filing claim therefor, unless prior to the expiration of such period claim was filed, or (2) In the case of a timely claim, if the credit or refund was made after the expiration of the period of limitation prescribed by section 6532(a) for the filing of suit, unless prior to the expiration of such period, suit was begun. (b) For procedure by the United States to recover erroneous refunds, see sections 6532(b) and 7405 of the Internal Revenue Code. (26 U.S.C. 6514) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990] § 70.266 Credit against barred liability. Any credit against a liability in respect of any taxable year shall be void if the collection of such liability would be barred by the applicable statute of limitations at the time such credit is made. (26 U.S.C. 6514) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990] Transferees § 70.271 Procedure in the case of transferred assets. (a) Method of collection. (2) Applicable provisions. (i) Delinquency in payment after notice and demand and the amount of interest attaching because of such delinquency; (ii) The authorization of distraint and proceedings in court for collection; and (iii) The prohibition of claims and suits for refund. For detailed provisions relating to assessments, collections, and refunds, see 26 U.S.C. chapters 63, 64, and 65, respectively. (b) Definition of transferee. (c) Period of limitations on assessment. (1) Initial transferee. (2) Transferee of transferee. (3) Court proceeding against taxpayer or last preceding transferee. (d) Extension by agreement Extension of time for assessment. (2) Extension of times for credit or refund. (ii) For the purpose of determining the limit specified in 26 U.S.C. 6511(c)(2) on the amount of the credit or refund, if the agreement is executed after the expiration of the period of limitations for assessment against the taxpayer with reference to whom the liability of such transferee arises, the periods specified in 26 U.S.C. 6511(b)(2) shall be increased by the period from the date of such expiration to the date the agreement is executed. (e) Period of assessment against taxpayer. (26 U.S.C. 6901) [T.D. ATF-301, 55 FR 47648, Nov. 14, 1990] Bonds § 70.281 Form of bond and security required. (a) In general. (1) On the appropriate form prescribed by the Bureau and (2) With satisfactory surety. For provisions as to what will be considered “satisfactory surety”, see paragraph (b) of this section. The bonds referred to in this paragraph shall be drawn in favor of the United States. (b) Satisfactory surety Approved surety company or bonds or notes of the United States. (i) It is executed by a surety company holding a certificate of authority from the Secretary as an acceptable surety on Federal bonds; or (ii) It is secured by bonds or notes of the United States as provided in by 31 U.S.C. 9303. (2) Other surety. (i) Executed by a corporate surety (other than a surety company) provided such corporate surety establishes that it is within its corporate powers to act as surety for another corporation or an individual; (ii) Executed by two or more individual sureties, provided such individual sureties meet the conditions contained in paragraph (b)(3) of this section; (iii) Secured by a mortgage on real or personal property; (iv) Secured by a certified, cashier's, or treasurer's check drawn on any bank or trust company incorporated under the laws of the United States or any State, Territory, or possession of the United States, or by a U.S. postal, bank, express or telegraph money order; (v) Secured by corporate bonds or stocks, or by bonds issued by a State or political subdivision thereof, of recognized stability; or (vi) Secured by any other acceptable collateral. Collateral shall be deposited with the appropriate TTB officer or, in that officer's discretion, with a responsible financial institution acting as escrow agent. (3) Conditions to be met by individual sureties. (i) The surety must reside within the State in which the principal place of business or legal residence of the primary obligor is located; (ii) The surety must have property subject to execution of a current market value, above all encumbrances, equal to at least the penalty of the bond; (iii) All real property which the surety offers as security must be located in the State in which the principal place of business or legal residence of the primary obligor is located; (iv) The surety must agree not to mortgage, or otherwise encumber, any property offered as security while the bond continues in effect without first securing the permission of the officer with whom the bond is filed; and (v) The surety must file with the bond, and annually thereafter so long as the bond continues in effect, an affidavit as to the adequacy of the security, executed on the appropriate form furnished by the appropriate TTB officer. Partners may not act as sureties upon bonds of their partnership. Stockholders of a corporate principal may be accepted as sureties provided their qualifications as such are independent of their holdings of the stock of the corporation. (4) Adequacy of surety. (26 U.S.C. 7101) [T.D. ATF-301, 55 FR 47649, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29028, May 29, 2001] § 70.282 Single bond in lieu of multiple bonds. In the case of bonds required under this part, a single bond will not be accepted in lieu of two or more bonds. (26 U.S.C. 7102) [T.D. ATF-301, 55 FR 47650, Nov. 14, 1990] Miscellaneous Provisions Source: Sections 70.301 through 70.306 added by T.D. ATF-301, 55 FR 47650, Nov. 14, 1990, unless otherwise noted. § 70.301 Reproduction of returns and other documents. (a) In general. (b) Safeguards By private contractor. (i) The films or photoimpressions, and reproductions made therefrom, shall be used only for the purpose of carrying out the provisions of the contract, and information contained in such material shall be treated as confidential and shall not be divulged or made known in any manner to any person except as may be necessary in the performance of the contract; (ii) All the services shall be performed under the supervision of the person with whom the contract is made or that person's responsible employees; (iii) All material received for processing and all processed and reproduced material shall be kept in a locked and fireproof compartment in a secure place when not being worked upon; (iv) All spoilage of reproductions made from the film or photoimpressions supplied to the contractor shall be destroyed, and a statement under the penalties of perjury shall be submitted to the Bureau that such destruction has been accomplished; and (v) All film, photoimpressions, and reproductions made therefrom, shall be transmitted to the Bureau by personal delivery, first-class mail, parcel post, or express. (2) By Federal agency. (3) Inspection. (4) Criminal sanctions. see (26 U.S.C. 7513) § 70.302 Fees and costs for witnesses. (a) Introduction. (b) Definitions Directly incurred costs. (2) Reproduction cost. (3) Search costs. (4) Third party. (5) Third party records. (6) Transportation costs. (c) Conditions and rates of payments Basis for payment. (2) Payment rates. (i) Search costs. (B) For retrieval of information stored by computer in the format in which it is normally produced, actual costs, based on computer time and necessary supplies, except that personnel time for computer search is payable only under paragraph (c)(2)(i)(A) of this section. (ii) Reproduction costs. (B) For photographers, films and other materials, actual cost, except that personnel time is payable only under paragraph (a)(2)(i)(A) of this section. (iii) Transportation costs. (d) Appearance fees and allowances In general. (2) Attendance fees. (3) Travel allowances. (4) Subsistence allowances. (26 U.S.C. 7610) § 70.303 Rules and regulations. (a) Issuance. (b) Retroactivity. (c) Preparation and distribution of regulations, forms, stamps, and other matters. (26 U.S.C. 7805) § 70.304 Place for filing documents other than returns. (a) If a document, other than a return, is required to be filed with a TTB 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 a TTB supervisor of the TTB office by the person required to file the return or other document, or by the person's agent. Examples of persons who will be considered to be agents, for purposes of the preceding sentence, are: Members of the taxpayer's family, an employee of the taxpayer, the taxpayer's attorney, accountant, or tax advisor, and messengers employed by the taxpayer. A return or document will not be considered to be hand carried if it is sent to the Bureau through the U.S. Mail. (26 U.S.C. 6091) [T.D. ATF-305, 55 FR 47650, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29028, May 29, 2001] § 70.305 Timely mailing treated as timely filing. (a) General rule. (b) Document defined. document, (c) Mailing requirements. (i) The document must be contained in an envelope or other appropriate wrapper, properly addressed to the agency, officer, or office with which the document is required to be filed. (ii) The document must be deposited within the prescribed time in the mail in the United States with sufficient postage prepaid. For this purpose, a document is deposited in the mail in the United States when it is deposited with the domestic mail service of the U.S. Postal Service, as defined by the postal regulations (39 CFR Part 2). Title 26 U.S.C. 7502 does not apply to any document which is deposited with the mail service of any other country. (iii)(A) If the postmark on the envelope or wrapper is made by the U.S. Postal Service, such postmark must bear a date on or before the last date, or the last day of the period, prescribed for filing the document. If the postmark does not bear a date on or before the last date, or the last day of the period, prescribed for filing the document, the document will be considered not to be filed timely, regardless of when the document is deposited in the mail. Accordingly, the sender who relies upon the applicability of 26 U.S.C. 7502 assumes the risk that the postmark will bear a date on or before the last date, or the last day of the period, prescribed for filing the document, but see paragraph (c)(2) of this section, with respect to the use of registered mail or certified mail to avoid this risk. If the postmark on the envelope or wrapper is not legible, the person who is required to file the document has the burden of proving the time when the postmark was made. Furthermore, in case the cover containing a document bearing a timely postmark made by the U.S. Postal Service is received after the time when a document postmarked and mailed at such time would ordinarily be received, the sender may be required to prove that it was timely mailed. (B) If the postmark on the envelope or wrapper is made other than by the U.S. Postal Service, the postmark so made must bear a date on or before the last date, or the last day of the period, prescribed for filing the document, and the document must be received by the agency, officer, or office with which it is required to be filed not later than the time when a document contained in an envelope or other appropriate wrapper which is properly addressed and mailed and sent by the same class of mail would ordinarily be received if it were postmarked at the same point of origin by the U.S. Postal Service on the last date, or the last day of the period, prescribed for filing the document. However, in case the document is received after the time when a document so mailed and so postmarked by the U.S. Postal Service would ordinarily be received, such document will be treated as having been received at the time when a document so mailed and so postmarked would ordinarily be received, if the person who is required to file the document establishes that it was actually deposited in the mail before the last collection of the mail from the place of deposit which was postmarked (except for the metered mail) by the U.S. Postal Service on or before the last date, or the last day of the period, prescribed for filing the document, that the delay in receiving the document was due to a delay in the transmission of the mail, and the cause of such delay. If the envelope has a postmark made by the U.S. Postal Service in addition to the postmark not so made, the postmark which was not made by the U.S. Postal Service shall be disregarded, and whether the envelope was mailed in accordance with this section shall be determined solely by applying the rules of paragraph (c)(1)(iii)(A) of this section. (2) If the document is sent by U.S. registered mail, the date of registration of the document shall be treated as the postmark date. If the document is sent by U.S. certified mail and the sender's receipt is postmarked by the postal employee to whom such document is presented, the date of the U.S. postmark on such receipt shall be treated as the postmark date of the document. Accordingly, the risk that the document will not be postmarked on the day that it is deposited in the mail may be overcome by the use of registered mail or certified mail. (3) As used in this section, the term “the last date, or the last day of the period, prescribed for filing the document” includes any extension of time granted for such filing. Except as provided in 26 U.S.C. 5061 for the filing of returns and payment of a tax under 26 U.S.C. subtitle E, when the last date, or the last day of the period, prescribed for filing the document falls on a Saturday, Sunday, or legal holiday, 26 U.S.C. 7503 is also applicable, so that, in applying the rules of this paragraph, the next succeeding day which is not a Saturday, Sunday, or legal holiday, shall be treated as the last date, or the last day of the period, prescribed for filing the document. (d) Delivery. (2) Title 26 U.S.C. 7502 is applicable only when the document is delivered after the last date, or the last day of the period, prescribed for filing the document. (e) Exceptions. (1) The filing of a document in, or the making of a payment to, any court, (2) Currency or other medium of payment unless actually received and accounted for, or (3) Returns, claims, statements, or other documents, or payments, which are required under any provision of 26 U.S.C. enforced and administered by the Bureau or the regulations thereunder to be delivered by any method other than by mailing. (26 U.S.C. 5061 and 7503) § 70.306 Time for performance of acts other than payment of tax or filing of any return when the last day falls on Saturday, Sunday, or legal holiday. (a) In general. (b) Legal holidays. (i) January 1, New Year's Day, (ii) Third Monday in January, Birthday of Martin Luther King, Jr., (iii) January 20, when such day is Inauguration Day, (iv) Third Monday in February, Washington's Birthday, (v) Last Monday in May, Memorial Day, (vi) July 4, Independence Day, (vii) First Monday in September, Labor Day, (viii) Second Monday in October, Columbus Day, (ix) November 11, Veterans' Day, (x) Fourth Thursday in November, Thanksgiving Day, and (xi) December 25, Christmas Day. When a legal holiday in the District of Columbia falls on a Sunday, the next day is a legal holiday in the District of Columbia. For the purpose of 26 U.S.C. 7503, when a legal holiday in the District of Columbia (other than Inauguration Day) falls on a Saturday it shall be treated as falling on the preceding Friday. (2) In the case of any statement or other document required to be filed, or any other act required under the authority of provisions of 26 U.S.C. enforced and administered by the Bureau to be performed at any office of the Bureau or any other office or agency of the United States, located outside the District of Columbia, the term “legal holiday” includes, in addition to the legal holidays enumerated in paragraph (b)(1) of this section, any statewide legal holiday of the State where the act is required to be performed. If the act is performed in accordance with law at an office of the Bureau or any other office or agency of the United States located in a Territory or possession of the United States, the term “legal holiday” includes, in addition to the legal holidays described in paragraph (b)(1) of this section, any legal holiday which is recognized throughout the Territory or possession in which the office is located. (26 U.S.C. 5061 and 7503) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-365, 60 FR 33674, June 28, 1995; T.D. ATF-450, 66 FR 29028, May 29, 2001; T.D. TTB-89, 76 FR 3515, Jan. 20, 2011; T.D. TTB-91, 76 FR 5481, Feb. 1, 2011] General Provisions Relating to Stamps, Marks or Labels § 70.311 Authority for establishment, alteration, and distribution of stamps, marks, or labels. The appropriate TTB officer may establish, and from time to time alter, renew, replace, or change the form, style, character, material, and device of any stamp, mark, or label under any provision of the law relating to Subtitle E of the Internal Revenue Code (or to any provision of Subtitle F which relates to Subtitle E). (26 U.S.C. 6801) [T.D. ATF-251, 52 FR 19314, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990] Registration § 70.321 Registration of persons paying a special tax. (a) Persons required to register. (1)-(5) [Reserved] (6) Section 5731 (relating to special tax on manufacturers of tobacco products, manufacturers of cigarette papers and tubes, and export warehouse proprietors); or (7) Section 5802 (relating to importers, manufacturers and dealers of National Firearms Act weapons). (b) Procedure for registration. (26 U.S.C. 5802, 7011) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-271, 53 FR 17549, May 17, 1988. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47653, Nov. 14, 1990; T.D. ATF-379, 61 FR 31426, June 20, 1996; T.D. TTB-79, 74 FR 37424, July 28, 2009] Crimes, Other Offenses and Forfeitures Source: Sections 70.331 through 70.333 added by T.D. ATF-301, 55 FR 47653, Nov. 14, 1990, unless otherwise noted. § 70.331 Fraudulent returns, statements, or other documents. Any person who willfully delivers or discloses to any officer or employee of the Bureau any list, return, account, statement, or other document, known by him to be fraudulent or to be false as to any material matter, shall be fined not more than $10,000 ($50,000 in the case of a corporation) or imprisoned not more than 1 year, or both. (26 U.S.C. 7207) § 70.332 Unauthorized use or sale of stamps. Any person who buys, sells, offers for sale, uses, transfers, takes or gives in exchange, or pledges or gives in pledge, except as authorized in the Internal Revenue Code or in regulations made pursuant thereto, any stamp, coupon, ticket, book, or other device prescribed by the Administrator under provisions of 26 U.S.C. enforced and administered by the Bureau for the collection or payment of any tax imposed thereunder, shall, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than 6 months, or both. (26 U.S.C. 7209) § 70.333 Offenses by officers and employees of the United States. Any officer or employee of the United States acting in connection with any provisions of 26 U.S.C. enforced and administered by the Bureau required to make a written report under the provisions of 26 U.S.C. 7214(a)(8) shall submit such report to the appropriate TTB officer. (26 U.S.C. 7214) [T.D. ATF-301, 55 FR 47653, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29028, May 29, 2001] Subpart E—Procedural Rules Relating to Alcohol, Tobacco, Firearms, and Explosives Source: T.D. ATF-251, 52 FR 19325, May 22, 1987, unless otherwise noted. Redesignated by T.D. ATF-301, 55 FR 47653, Nov. 14, 1990. Provisions Relating to Distilled Spirits, Wines, and Beer § 70.411 Imposition of taxes, qualification requirements, and regulations. (a) Imposition of taxes. (b) Qualification requirements. (c) Regulations. (1) Establishment and operation of distilled spirits plants. (2) Miscellaneous liquor transactions. (3) [Reserved] (4) Gauging of distilled spirits. (5) Rules of practice in permit proceedings. et seq. (6) Basic permit requirements under the Federal Alcohol Administration Act. (7) Bulk sales and bottling of distilled spirits. (8) Labeling and advertising of distilled spirits. (9) American viticultural areas. (10) Production and removal of wine. (11) Bottling or Packaging of taxpaid wine. (12) Nonindustrial use of distilled spirits and wine. (13) Labeling and advertising of wine. (14) Establishment and operations of breweries and experimental breweries. (15) Labeling and advertising of malt beverages. (16) Liquor dealers. (17) Drawback of tax on spirits used in nonbeverage products. (18) Production of volatile fruit-flavor concentrates. (19) Tied-House. (20) Exclusive outlets. (21) Commercial bribery. (22) Consignment sales. (23) Distribution and use of denatured alcohol and rum. (24) Formulas for denatured alcohol and rum. (25) Distribution and use of tax-free alcohol. (26) Liquors and articles from Puerto Rico and the Virgin Islands. (27) Importation of liquors. (28) Exportation of liquors. [T.D. ATF-251, 52 FR 19325, May 22, 1987] Editorial Note: For Federal Register www.govinfo.gov. § 70.412 Excise taxes. (a) Collection. (b) Assessment. [T.D. ATF-251, 52 FR 19325, May 22, 1987, as amended by T.D. ATF-271, 53 FR 17549, May 17, 1988. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47653, Nov. 14, 1990; T.D. ATF-450, 66 FR 29028, May 29, 2001; T.D. TTB-41, 71 FR 5605, Feb. 2, 2006; T.D. TTB-79, 74 FR 37424, July 28, 2009; T.D. TTB-89, 76 FR 3515, Jan. 20, 2011; T.D. TTB-159, 85 FR 33542, June 2, 2020] § 70.413 Claims. (a) Claims for remission. (b) Claims for abatement. (c) Claims for refund Taxes illegally, erroneously, or excessively collected. (2) Taxes on liquors lost, destroyed, returned to bond, or taken as samples by the United States. (i) Spirits returned to bonded premises, lost by accident or disaster, or taken as samples by the United States, or (ii) Wine returned to bond or lost by disaster, or (iii) Beer returned to a brewery or voluntarily destroyed, or lost, whether by theft or otherwise, or destroyed or otherwise rendered unmerchantable by fire, casualty, or act of God. If the claim is allowed, a check for the amount of the refund is forwarded to the claimant; except, that where there are any unpaid taxes outstanding against the claimant, the refund may be applied to the outstanding taxes and a check for the balance, if any, forwarded to the claimant. If the claim is rejected, a copy of the claim giving the reasons for rejection is forwarded to the claimant. (d) Claims for allowance, credit, or relief. (1) Spirits returned to bonded premises, lost or destroyed on bonded premises, or in transit thereto, or lost by accident or disaster; (2) Wine lost or destroyed on bonded premises or in transit thereto and wine returned to bond; (3) Beer returned to a brewery or voluntarily destroyed, or lost, whether by theft or otherwise, or destroyed or otherwise rendered unmerchantable by fire, casualty, or act of God; (4) Denatured spirits lost or destroyed in bond, or lost on the premises of a qualified dealer or user or in transit to such premises; and (5) Tax-free spirits lost on the premises of a qualified user or in transit to such premises. (e) Claims for payment-disaster losses. (Approved by the Office of Management and Budget under control number 1513-0030) [T.D. ATF-251, 52 FR 19325, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47653, Nov. 14, 1990; T.D. ATF-450, 66 FR 29028, May 29, 2001; T.D. TTB-91, 76 FR 5481, Feb. 1, 2011; T.D. TTB-130, 80 FR 55249, Sept. 15, 2015] § 70.414 Preparation and filing of claims. (a) Distilled spirits at distilled spirits plants. (b) Specially denatured spirits. (c) Tax-free alcohol. (d) Wine spirits and wine at bonded wine cellar. (1) Remission of tax on wine spirits lost on the premises of a bonded wine cellar or in transit thereto, (2) Allowance of losses of wine in bond, and (3) Credit or refund of tax paid on wine returned to bond are contained in part 24 of title 27 CFR. (e) Beer. (f) Distilled spirits, wines, or beer for export. (1) Drawback of internal revenue tax on distilled spirits, wines, or beer for export, use as supplies on certain vessels or aircraft, or deposit in a foreign-trade zone, or deposit of distilled spirits or wine in a customs bonded warehouse, and (2) Remission of tax on distilled spirits, specially denatured spirits, wines, or beer, withdrawn without payment or free of tax and lost during transportation to the port of export, customs bonded warehouse (distilled spirits and wine only), manufacturing bonded warehouse, vessel or aircraft, or foreign-trade zone, as applicable, are contained in part 28 of title 27 CFR. Procedural instructions as to claims respecting export with benefit of drawback of tax on domestic distilled spirits products containing spirits from Puerto Rico or the Virgin Islands are contained in parts 19 and 28 of title 27 CFR. (g) Miscellaneous. (1) Refund or credit of tax on distilled spirits, wines or beer where such refund or credit is claimed on the grounds that tax was assessed or collected erroneously, illegally, without authority, or in any manner wrongfully, or on the grounds that such amount was excessive, and where such refund or credit is subject to the limitations imposed by section 6423 of the Internal Revenue Code. (2) Payment of an amount equal to the internal revenue tax paid or determined and customs duties paid on distilled spirits, wines, rectified products, and beer previously withdrawn, which were lost, rendered unmarketable, or condemned by a duly authorized official by reason of a major disaster occurring in the United States after June 30, 1959. (h) [Reserved] (i) Low wines at vinegar plants. (j) Distilled spirits used in nonbeverage products. (k) Reopening claims. (l) Claimant's rights under law and regulations. [T.D. ATF-251, 52 FR 19325, May 22, 1987] Editorial Note: For Federal Register www.govinfo.gov. § 70.415 Offers in compromise. Procedure in the case of offers in compromise of liabilities under 26 U.S.C. chapter 51 and of penalties for violation of the Federal Alcohol Administration Act, is set forth in §§ 70.482 through 70.484. [T.D. ATF-301, 55 FR 47654, Nov. 14, 1990] § 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 TTB officer. Applications for such permission to take office must be prepared and filed in accordance with instructions available from the appropriate TTB officer. [T.D. ATF-450, 66 FR 29029, May 29, 2001] § 70.417 Rulings. The procedure for rulings in alcohol tax matters is set forth in § 70.471. [T.D. ATF-301, 55 FR 47654, Nov. 14, 1990] § 70.418 Conferences. Any person desiring a conference with TTB, 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. [T.D. ATF-450, 66 FR 29029, May 29, 2001] § 70.419 Representatives. Title 31 CFR part 8 is applicable to all representatives of the taxpayer, for any conference with TTB. [T.D. ATF-450, 66 FR 29029, May 29, 2001] § 70.420 Forms. For forms to be used, see [T.D. ATF-301, 55 FR 47654, Nov. 14, 1990] § 70.421 Alcohol dealer registration. Every person who sells, or offers for sale, any alcohol product (distilled spirits, wines, or beer) fit for beverage use must register with the Alcohol and Tobacco Tax and Trade Bureau. The specific requirements are contained in the following regulations: (a) For proprietors of distilled spirits plants, parts 19 and 31 of this chapter; (b) For bonded wineries, bonded wine cellars, bonded wine warehouses, and taxpaid wine bottling houses, parts 24 and 31 of this chapter; (c) For brewers, parts 25 and 31 of this chapter; (d) For persons bringing distilled spirits, wines, or beer from Puerto Rico and the Virgin Islands to the United States, parts 26 and 31 of this chapter; (e) For importers of distilled spirits, wines, or beer, parts 27 and 31 of this chapter; and (f) For wholesalers and retailers of distilled spirits, wines, or beer, part 31 of this chapter. [T.D. TTB-79, 74 FR 37424, July 28, 2009] § 70.422 Registration of manufacturers of nonbeverage products. For provisions regarding the registration of persons claiming drawback on distilled spirits used in the manufacture of certain nonbeverage products, see part 17 of this chapter. [T.D. TTB-79, 74 FR 37424, July 28, 2009] Provisions Relating to Tobacco Products, and Cigarette Papers and Tubes § 70.431 Imposition of taxes; regulations. (a) Taxes. (b) Regulations. (1) Part 71 of title 27 CFR relates to the procedure and practice in connection with the disapproval of applications for permits, and the suspension and revocation of permits, under chapter 52 of the Internal Revenue Code. (2) Part 40 of title 27 CFR relates to the manufacture of tobacco products, cigarette papers and tubes, and processed tobacco, the payment of internal revenue taxes imposed by chapter 52 of the Internal Revenue Code on manufacturers of tobacco products and of cigarette papers and tubes, and the qualification of and operations by manufacturers of tobacco products, cigarette papers and tubes, and processed tobacco. (3) Part 41 of title 27 CFR relates to tobacco products, cigarette papers and tubes, and processed tobacco imported into the United States from a foreign country or brought into the United States from Puerto Rico, the Virgin Islands, or a possession of the United States; the removal of cigars from a customs bonded manufacturing warehouse, Class 6; and the release of tobacco products, and cigarette papers and tubes from customs custody, without payment of internal revenue tax or customs duty attributable to the internal revenue tax. (4) [Reserved] (5) Part 44 of title 27 CFR relates to the exportation (including supplies for vessels and aircraft and transfers to a foreign-trade zone) of tobacco products, and cigarette papers and tubes, without payment of tax, or with benefit of drawback of tax, and the qualification of and operations by export warehouse proprietors. (6) Part 45 of title 27 CFR relates to the removal of tobacco products, and cigarette papers and tubes, without payment of tax, for use of the United States. (7) Part 46 of title 27 CFR relates to the provisions of a miscellaneous nature or not of continuing application. Included are regulations relating to: (i) Limitations imposed by section 6423 of the Internal Revenue Code on the refund or credit of tax paid or collected on tobacco products, and cigarette papers and tubes; (ii) Losses of tobacco products, and cigarette papers and tubes caused by disasters occurring in the United States on or after September 3, 1958; (iii) Purchase, receipt, possession, offering for sale, or sale or other disposition of tobacco products by dealers in such products; and (iv) Liability for special (occupational) tax, filing special tax returns, issuance and examination of special tax stamps, and notification of changes to special tax stamps. [T.D. ATF-251, 52 FR 19325, May 22, 1987] Editorial Note: For Federal Register www.govinfo.gov. § 70.432 Qualification and bonding requirements. (a) Manufacturers of tobacco products and proprietors of export warehouses. (b) Manufacturers of cigarette papers and tubes. (c) Puerto Rican manufacturers of tobacco products. (d) Proprietors of customs warehouses. (e) Drawback of tax. (f) General. [T.D. ATF-251, 52 FR 19325, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47654, Nov. 14, 1990; T.D. ATF-450, 66 FR 29029, May 29, 2001; T.D. ATF-464, 66 FR 43480, Aug. 20, 2001] § 70.433 Collection of taxes. (a) Tobacco products. (b) Cigarette papers and tubes. (c) Special tax. (d) General. [T.D. ATF-251, 52 FR 19325, May 22, 1987, as amended by T.D. ATF-271, 53 FR 17549, May 17, 1988. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47654, Nov. 14, 1990; T.D. ATF-450, 66 FR 29029, May 29, 2001; T.D. TTB-196, 89 FR 87952, Nov. 6, 2024] § 70.434 Assessments. When additional or delinquent tax liability on tobacco products, and cigarette papers and tubes is disclosed by an investigation or by an examination of the taxpayer's records, a notice (except where delay may jeopardize collection of the tax, or where the amount is nominal or the result of an evident mathematical error) is forwarded to the taxpayer indicating the basis for, and amount of, the liability and affording the taxpayer an opportunity to show cause, in writing, against assessment. [T.D. ATF-251, 52 FR 19325, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990] § 70.435 Claims. (a) General. (b) Abatement of assessment. (c) Allowance of tax. (d) Remission of tax liability. (e) Refund of tax. (f) Losses caused by disaster. (g) Drawback of tax. (h) Credit of tax. (i) Reopening claims. (j) Claimant's rights under law and regulations. [T.D. ATF-251, 52 FR 19325, May 22, 1987. Redesignated and amended by T.D. ATF-301, 55 FR 47606, 47654, Nov. 14, 1990] § 70.436 Offers in compromise. Procedure in the case of offers in compromise of liabilities under 26 U.S.C. chapter 52 is set forth in §§ 70.482 through 70.484. [T.D. ATF-301, 55 FR 47654, Nov. 14, 1990] § 70.437 Rulings. The procedure for rulings in tobacco tax matters is set forth in § 70.471. [T.D. ATF-301, 55 FR 47654, Nov. 14, 1990] § 70.438 Forms. Detailed information as to all forms prescribed for use in connection with tobacco taxes is contained in the regulations referred to in § 70.431(b). [T.D. ATF-251, 52 FR 19325, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47653, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29029, May 29, 2001] Provisions Relating to Firearms, Shells and Cartridges, and Explosives § 70.441 Applicable laws. (a) Chapter 53 of the Internal Revenue Code (26 U.S.C. 5801-5872), the provisions of which are derived from the National Firearms Act Amendments of 1968 (82 Stat. 1227), imposes a tax on the making and transfer in the United States of machine guns, destructive devices, and certain other types of firearms, and an occupational tax upon every importer and manufacturer of, and dealer in, such firearms. Section 1(b) (2) of the act of August 9, 1939 (52 Stat. 1291; 49 U.S.C. 781-788), makes provision for the seizure and forfeiture of vessels, vehicles, and aircraft which are used to transport, carry, or possess, or to facilitate the same, any firearms with respect to which there has been committed any violation of the National Firearms Act or any regulations issued pursuant thereto. (b) Title I, State Firearms Control Assistance (18 U.S.C., Chapter 44), of the Gun Control Act of 1968 (82 Stat. 1213), as amended by Pub. L. 99-308 (100 Stat. 449), Pub. L. 99-360 (100 Stat. 766) and Pub. L. 99-408 (100 Stat. 920), provides for the licensing of manufacturers and importers of firearms and ammunition, collectors of firearms, and dealers in firearms, and establishes controls for firearms and ammunition acquisitions and dispositions. (c) Title I, State Firearms Control Assistance (18 U.S.C. Chapter 44), of the Gun Control Act of 1968 (82 Stat. 1213) as amended by Pub. L. 99-308 (100 Stat. 449) and Pub. L. 99-360 (100 Stat. 766), provides that no person may ship or transport any firearms or ammunition in interstate or foreign commerce, or receive any firearms or ammunition which has been shipped or transported in interstate or foreign commerce, or possess any firearms or ammunition in or affecting commerce, who (1) has been convicted of a crime punishable by imprisonment for a term exceeding 1 year, (2) is a fugitive from justice, (3) is an unlawful user of or addicted to any controlled substance (as defined in section 102 of the Controlled Substances Act, 21 U.S.C. 802), (4) has been adjudicated as a mental defective or has been committed to a mental institution, (5) is an alien illegally or unlawfully in the United States, (6) has been discharged from the Armed Forces under dishonorable conditions, or (7) having been a citizen of the United States, has renounced citizenship. (d) Section 38 of the Arms Export Control Act (22 U.S.C. 2778) and regulations thereunder and 27 CFR part 447 are applicable to the registration and licensing of persons engaged in the business of manufacturing, importing or exporting arms, ammunition, or implements of war. The Secretary of the Treasury is authorized to control, in furtherance of world peace and the security and foreign policy of the United States, the import of articles enumerated on the U.S. Munitions Import List. (e) Title XI, Regulation of Explosives (18 U.S.C. chapter 40) of the Organized Crime Control Act of 1970 (84 Stat. 922) provides for the licensing of manufacturers, importers, and limited manufacturers of, and dealers in, explosives in interstate or foreign commerce, and for issuance of permits for users who buy or transport explosives in interstate or foreign commerce. (f) Chapter 32 of the Internal Revenue Code (26 U.S.C. 4181), imposes a tax upon the sale by the manufacturer, producer, or importer of pistols, revolvers, firearms (other than pistols and revolvers), and shells and cartridges. [T.D. ATF-251, 52 FR 19325, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47653, Nov. 14, 1990, as amended by T.D. ATF-331, 57 FR 40328, Sept. 3, 1992; T.D. TTB-91, 76 FR 5481, Feb. 1, 2011] § 70.442 Taxes relating to machine guns, destructive devices, and certain other firearms. Part 479 of title 27 CFR contains the regulations relative to the: (a) Payment of special (occupational) taxes by manufacturers and importers of and dealers in, machine guns, destructive devices, and certain other types of firearms, (b) Payment of the tax on the making or transfer of such firearms, (c) Registration, identification, importation, and exportation of such firearms, (d) Keeping of books and records and rendering of returns, and (e) The forfeiture and disposition of seized firearms under the provisions of the National Firearms Act. [T.D. ATF-251, 52 FR 19325, May 22, 1987. Redesignated by T.D. ATF-301, 55 FR 47653, Nov. 14, 1990, as amended by T.D. TTB-91, 76 FR 5481, Feb. 1, 2011] § 70.443 Firearms and ammunition. (a) Commerce in firearms and ammunition. (i) The licensing of importers and manufacturers of firearms and ammunition, collectors of firearms, and dealers in firearms, (ii) The identification of firearms, (iii) The acquisition and disposition of firearms and ammunition, (iv) The records required to be kept by licensees, and (v) The forfeiture and disposition of seized firearms and ammunition, under the provisions of title I of the Gun Control Act of 1968, as amended, and also (vi) The restrictions regarding the receipt, possession, or transportation of firearms by certain persons. (b) Firearms and ammunition excise taxes. (i) Payment of excise tax on the sale of pistols, revolvers, firearms (other than pistols and revolvers), shells and cartridges, (ii) Establishing constructive sales price, (iii) Registration for tax free sales, (iv) Keeping of records and rendering of returns, and (v) The exportation or use in further manufacture of tax-paid articles. [T.D. ATF-331, 57 FR 40328, Sept. 3, 1992, as amended by T.D. TTB-91, 76 FR 5482, Feb. 1, 2011] § 70.444 Importation of arms, ammunition, and implements of war. Part 447 of title 27 CFR implements Executive Order 11958 and supplements the import provisions contained in parts 478 and 479 of title 27 CFR. Part 447 establishes the U.S. Munitions Import List and contains the regulations relative to: (a) The registration of importers in arms, ammunition, and implements of war, (b) Import permit requirements, (c) Import certification and verification, (d) Import restrictions applicable to certain countries, and (e) The forfeiture of seized arms, ammunition, and implements of war under the Arms Export Control Act. [T.D. ATF-301, 55 FR 47616, Nov. 14, 1990, as amended by T.D. TTB-91, 76 FR 5482, Feb. 1, 2011] § 70.445 Commerce in explosives. Part 555 of title 27 CFR contains the regulations relative to: (a) Licensing of manufacturers, importers, and limited manufacturers of, and dealers in, explosives, (b) Permits for users who buy or transport explosives in interstate or foreign commerce, (c) Construction of different types of storage facilities for three classes of explosive material, (d) The identification of explosives, (e) The acquisition and disposition of explosives, (f) The records required to be kept by licensees and permittees, (g) The forfeiture and disposition of seized explosive material, under the provision of Title XI of the Organized Crime Control Act of 1970, (h) Operations by licensees or permittees and hearings procedure after denial or revocation of license or permit, and also (i) Restrictions regarding the receipt, possession, or transportation of explosives by certain persons under the provisions of Title XI of the Organized Crime Control Act of 1970. [T.D. ATF-301, 55 FR 47616, Nov. 14, 1990, as amended by T.D. TTB-91, 76 FR 5482, Feb. 1, 2011] § 70.446 Rulings. The procedure for rulings in the firearms and explosives area is set forth in § 70.471. [T.D. ATF-301, 55 FR 47654, Nov. 14, 1990] § 70.447 Assessments. Where the evidence disclosed by investigation establishes that additional or delinquent tax liability has been incurred and not paid, the appropriate TTB officer will list the tax as an assessment. Notification and demand for payment of assessed taxes will be issued to the taxpayer by the appropriate TTB officer. [T.D. ATF-301, 55 FR 47654, Nov. 14, 1990] § 70.448 Claims. (a) The procedures applicable to the filing of claims under chapter 53 of the Internal Revenue Code are set forth below: (1) Claims for refund of the making and transfer taxes, and of occupational taxes, whether paid pursuant to assessment or voluntarily paid, and claims for redemption of “National Firearms Act” stamps, are prepared and filed in accordance with the procedures set forth in 27 CFR part 479. (2) Claims for abatement of making and transfer taxes, and claims for abatement of occupational taxes and penalties erroneously assessed, are prepared and filed in accordance with the procedures set forth in § 70.413(b). (3) Claims may be reopened or amended in accordance with the provisions of § 70.414 (k) and (l). (b) The procedures applicable to the filing of claims relating to the tax imposed by section 4181 of the Internal Revenue Code are set forth below: (1) Claims for credit or refund of manufacturers taxes, whether paid pursuant to assessment of voluntarily paid, are prepared and filed in accordance with the procedures set forth in § 70.123 and 27 CFR 53.171 through 53.186. For regulations under section 6416 of the Internal Revenue Code, relating to conditions to allowance and other procedural requirements, see 27 CFR 53.172 through 53.186. (2) Claims for abatement of manufacturers taxes are to be prepared and filed in accordance with § 70.125. (3) Claims may be reopened or amended in accordance with the provisions of § 70.414 (k) and (l). [T.D. ATF-331, 57 FR 40328, Sept. 3, 1992, as amended by T.D. TTB-91, 76 FR 5482, Feb. 1, 2011] § 70.449 Offers in compromise. The procedures in the case of offers in compromise of liabilities under 26 U.S.C. 4181 and chapter 53 are set forth in §§ 70.482 and 70.484. [T.D. ATF-331, 57 FR 40329, Sept. 3, 1992] Seized Property § 70.450 Seizure and forfeiture of personal property. Part 72 of title 27 CFR contains the regulations relative to the personal property seized by officers of the Bureau of Alcohol, Tobacco and Firearms as subject to forfeiture as being used, or intended to be used, to violate certain Federal laws; the remission or mitigation of such forfeiture; and the administrative sale or other disposition, pursuant to forfeiture, of such seized property other than firearms seized under the National Firearms Act and firearms and ammunition seized under Title I of the Gun Control Act of 1968, as amended. For disposal of firearms under the National Firearms Act, see 26 U.S.C. 5872(b). For disposal of firearms and ammunition under Title I of the Gun Control Act of 1968, see 18 U.S.C. 924(d). For disposal of explosives under Title XI of Organized Crime Control Act of 1970, see 18 U.S.C. 844(c). Possessions § 70.461 Shipments to the United States. For regulations under 26 U.S.C. 7652, see 27 CFR part 26 relating to liquors and articles from Puerto Rico and the Virgin Islands; and 27 CFR part 41 relating to cigars, cigarettes, and cigarette papers and tubes. (68A Stat. 907, as amended (26 U.S.C. 7652)) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-249, 52 FR 5961, Feb. 27, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990, as amended by T.D. ATF-459, 66 FR 38550, July 25, 2001; T.D. TTB-16, 69 FR 52423, Aug. 26, 2004] § 70.462 Shipments from the United States. For regulations under 26 U.S.C. 7653, see 27 CFR part 28 relating to exportation of liquors; and 27 CFR part 44, relating to exportation of cigars, cigarettes, and cigarette papers and tubes. (68A Stat. 908, as amended; (26 U.S.C. 7653)) [T.D. ATF-6, 38 FR 32445, Nov. 26, 1973, as amended by T.D. ATF-249, 52 FR 5961, Feb. 27, 1987. Redesignated by T.D. ATF-301, 55 FR 47606, Nov. 14, 1990; T.D. ATF-464, 66 FR 43480, Aug. 20, 2001; T.D. TTB-8, 69 FR 3830, Jan. 27, 2004; T.D. TTB-91, 76 FR 5482, Feb. 1, 2011] Rulings § 70.471 Rulings. (a) Requests for rulings. (1) Operations or transactions in the alcohol tax area (26 U.S.C. chapter 51), the Federal Alcohol Administration Act (27 U.S.C. chapter 8, including the Alcohol Beverage Labeling Act of 1988), or the Webb-Kenyon Act (27 U.S.C. 122); (2) Operations or transactions in the tobacco tax area (26 U.S.C. chapter 52); (3) Operations or transactions in the firearms and ammunition manufacturers excise tax area (26 U.S.C. 4181-4182); (4) Subchapters F and G of chapter 32 of the IRC insofar as they relate to activities administered and enforced with respect to sections 4181 and 4182 of the IRC; and (5) Subtitle F of the IRC insofar as it relates to any of the foregoing. (b) Routine requests for information. (c) Matters under ATF jurisdiction. https://www.atf.gov/contact. [T.D. TTB-91, 76 FR 5482, Feb. 1, 2011, as amended by T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] Administrative Remedies § 70.481 Agreements for payment of liability in installments. (a) Authorization of agreements. (b) Extent to which agreements remain in effect In general. (2) Inadequate information or jeopardy. (i) Information which the taxpayer provided prior to the date such agreement was entered into was inaccurate or incomplete, or (ii) The appropriate TTB officer believes that collection of any tax to which an agreement under this section relates is in jeopardy. (3) Subsequent change in financial conditions In general. (ii) Notice. (A) Notice of such determination is provided to the taxpayer no later than 30 days prior to the date of such action, and (B) Such notice includes the reasons why the officer believes a significant change in the financial condition of the taxpayer has occurred. (4) Failure to pay an installment or any other tax liability when due or to provide requested financial information. (i) To pay an installment at the time such installment payment is due under such agreement, (ii) To pay any other tax liability at the time such liability is due, or (iii) To provide a financial condition update as requested by the appropriate TTB officer. (26 U.S.C. 6159) [T.D. ATF-301, 55 FR 47655, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29029, May 29, 2001] § 70.482 Offers in compromise of liabilities (other than forfeiture) under 26 U.S.C. (a) In general. (1) Doubt as to liability; or (2) Doubt as to collectability. No such liability will be compromised if the liability has been established by a valid judgment or is certain, and there is no doubt as to the ability of the Government to collect the amounts owing with respect to such liability. (b) Scope of compromise agreement. (c) Effect of compromise agreement. (d) Procedure with respect to offers in compromise Submission of offers. (ii) The offer should generally be accompanied by a remittance representing the amount of the compromise offer or a deposit if the offer provides for future installment payments. When final action has been taken, the proponent is notified of the acceptance or rejection of the offer. (2) Stay of collection. (3) Acceptance. (4) Withdrawal or rejection. (e) Record. (1) The amount of tax assessed, (2) The amount of interest, additional amount, addition to the tax, or assessable penalty, imposed by law on the person against whom the tax is assessed, and (3) The amount actually paid in accordance with the terms of the compromise. 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. (f) Requirement with respect to statute of limitations. (g) Inspection with respect to accepted offers in compromise. see (26 U.S.C. 7122) (Approved by the Office of Management and Budget under control number 1512-0472) [T.D. ATF-301, 55 FR 47655, Nov. 14, 1990, as amended by T.D. ATF-331, 57 FR 40329, Sept. 3, 1992; T.D. ATF-450, 66 FR 29029, May 29, 2001; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 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 TTB officer is authorized to compromise 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. [T.D. ATF-450, 66 FR 29029, May 29, 2001] § 70.484 Offers in compromise of forfeiture liabilities. The appropriate TTB officer is authorized to compromise liabilities to administrative forfeiture of personal property seized under the laws administered and enforced by the Bureau. Persons desiring to submit offers in compromise of such liabilities may submit such offers on Form 656-E to the appropriate TTB officer. 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. Acceptance of an offer in compromise of civil liabilities does not remit criminal liabilities, nor does acceptance of an offer in compromise of criminal liabilities remit civil liabilities. [T.D. ATF-301, 55 FR 47655, Nov. 14, 1990, as amended by T.D. ATF-450, 66 FR 29030, May 29, 2001] § 70.485 Closing agreements. (a) In general. (b) Scope of closing agreement In general. (2) Taxable periods ended prior to date of closing agreement. (3) Taxable periods ending subsequent to date of closing agreement. (c) Finality. (1) The case shall not be reopened as to the matters agreed upon or the agreement modified by any officer, employee, or agent of the United States, and (2) In any suit, action, or proceeding, such agreement, or any determination, assessment, collection, payment, abatement, refund, or credit made in accordance therewith, shall not be annulled, modified, set aside, or disregarded. However, a closing agreement with respect to a taxable period ending subsequent to the date of the agreement is subject to any change in, or modification of, the law enacted subsequent to the date of the agreement and made applicable to such taxable period, and each closing agreement shall so recite. (d) Procedure with respect to closing agreements Submission of request. (2) Collection, credit, or refund. (26 U.S.C. 7121) [T.D. ATF-301, 55 FR 47655, Nov. 14, 1990] § 70.486 Managerial review. If at any step in the collection process a taxpayer does not agree with a TTB employee under the authority of the appropriate TTB officer, the taxpayer has the right to discuss the matter with the employee's immediate supervisor. The TTB employee will give the taxpayer the name and telephone number of the person to be contacted. [T.D. ATF-301, 55 FR 47655, Nov. 14, 1990, as amended by T.D. TTB-91, 76 FR 5482, Feb. 1, 2011] Subpart F—Application of Section 6423, Internal Revenue Code of 1954, as Amended, to Refund or Credit of Tax on Distilled Spirits, Wines, and Beer Source: T.D. ATF-376, 61 FR 31031, June 19, 1996, unless otherwise noted. General § 70.501 Meaning of terms. When used in this subpart, where not otherwise distinctly expressed or manifestly incompatible with the intent thereof, terms shall have the meaning ascribed in this section. Article. Claimant. District director of customs. I.R.C. Owner. Person. Tax. § 70.502 Applicability to certain credits or refunds. The provisions of this subpart apply only where the credit or refund is claimed on the grounds that an amount of tax was assessed or collected erroneously, illegally, without authority, or in any manner wrongfully, or on the grounds that such amount was excessive. This subpart does not apply to: (a) Any claim for drawback, (b) Any claim made in accordance with any law expressly providing for credit or refund where an article is withdrawn from the market, returned to bond, or lost or destroyed, and (c) Any claim based solely on errors in computation of the quantity of an article subject to tax or on mathematical errors in computation of the amount of the tax due, or to any claim in respect of tax collected or paid on an article seized and forfeited, or destroyed, as contraband. § 70.503 Ultimate burden. For the purposes of this subpart, the claimant, or owner, shall be treated as having borne the ultimate burden of an amount of tax only if: (a) The claimant or owner has not, directly or indirectly, been relieved of such burden or shifted such burden to any other person, (b) No understanding or agreement exists for any such relief or shifting, and (c) If the claimant or owner has neither sold nor contracted to sell the articles involved in such claim, such claimant or owner agrees that there will be no such relief or shifting. § 70.504 Conditions to allowance of credit or refund. No credit or refund to which this subpart is applicable shall be allowed or made, pursuant to a court decision or otherwise, of any amount paid or collected as a tax unless a claim therefor has been filed, as provided in this subpart, by the person who paid the tax and the claimant, in addition to establishing that such claimant is otherwise legally entitled to credit or refund of the amount claimed, establishes: (a) That the claimant bore the ultimate burden of the amount claimed, or (b) That the claimant has unconditionally repaid the amount claimed to the person who bore the ultimate burden of such amount, or (c) That: (1) The owner of the article furnished the claimant the amount claimed for payment of the tax; (2) The claimant has filed with the appropriate TTB officer the written consent of such owner to the allowance to the claimant of the credit or refund; and (3) Such owner satisfies the requirements of paragraph (a) or (b) of this section. § 70.505 Requirements on persons intending to file claim. Any person who, having paid the tax with respect to an article, desires to claim refund or credit of any amount of such tax to which the provisions of this subpart are applicable must: (a) File a claim, as provided in § 70.506, and (b) Comply with any other provisions of law or regulations which may apply to the claim. Claim Procedure § 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. (For provisions relating to handcarried documents, see 27 CFR 70.304). 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 TTB 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 TTB officer of the exact basis therefor. Allegations pertaining to the bearing of the ultimate burden relate to additional conditions which must be established for a claim to be allowed and are not in themselves legal grounds for allowance of a claim. There shall also be attached to the form and made part of the claim the supporting data required by § 70.507. All evidence relied upon in support of such claim shall be clearly set forth and submitted with the claim. [T.D.ATF-376, 61 FR 31031, June 19, 1996, as amended by T.D. ATF-450, 66 FR 29030, May 29, 2001] § 70.507 Data to be shown in claim. Claims to which this subpart is applicable, in addition to the requirements of § 70.506 must set forth or contain the following: (a) A statement that the claimant paid the amount claimed as a “tax” as defined in this subpart. (b) Full identification (by specific reference to the form number, the date of filing, the place of filing, and the amount paid on the basis of the particular form or return) of the tax forms or returns covering the payments for which refund or credit is claimed. (c) The written consent of the owner to the allowance of the refund or credit to the claimant (where the owner of the article in respect of which the tax was paid furnished the claimant the amount claimed for the purpose of paying the tax). (d) If the claimant (or owner, as the case may be) has neither sold nor contracted to sell the articles involved in the claim, a statement that the claimant (or owner, as the case may be) agrees not to shift, directly or indirectly in any manner whatsoever, the burden of the tax to any other person. (e) If the claim is for refund of a floor stocks tax, or of an amount resulting from an increase in rate of tax applicable to an article, a statement as to whether the price of the article was increased on or following the effective date of such floor stocks tax or rate increase, and if so, the date of the increase, together with full information as to the amount of such price increase. (f) Specific evidence (such as relevant records, invoices, or other documents, or affidavits of individuals having personal knowledge of pertinent facts) which will satisfactorily establish the conditions to allowance set forth in § 70.504. (g) The appropriate TTB officer may require the claimant to furnish as a part of the claim such additional information as may be deemed necessary. § 70.508 Time for filing claim. No credit or refund of any amount of tax to which the provisions of this subpart apply shall be made unless the claimant files a claim therefor within the time prescribed by law and in accordance with the provisions of this subpart. Penalties § 70.509 Penalties. It is an offense punishable by fine and imprisonment for anyone to make or cause to be made any false or fraudulent claim upon the United States, or to make any false or fraudulent statements, or representations, in support of any claim, or to falsely or fraudulently execute any documents required by the provisions of the internal revenue laws, or any regulations made in pursuance thereof. Subpart G—Losses Resulting From Disaster, Vandalism, or Malicious Mischief Definitions Source: T.D. ATF-376, 61 FR 31033, June 19, 1996, unless otherwise noted. § 70.601 Meaning of terms. When used in this subpart, terms are defined as follows in this section. Words in the plural shall include the singular, and vice versa, and words indicating the masculine gender shall include the feminine. The terms “includes” and “including” do not exclude other things not named which are in the same general class or are otherwise within the scope of the term defined. Alcoholic liquors or liquors. Beer. Claimant. Commissioner of Customs. Distilled spirits, or spirits. Duly authorized official. Duty or duties. Major Disaster. Tax. (2) With respect to wines, “tax” means the internal revenue tax that is paid or determined on the wine. (3) With respect to beer, “tax” means the internal revenue tax that is paid or determined on the beer. United States. Wines. [T.D. ATF-376, 61 FR 31033, June 19, 1996, as amended by T.D. ATF-450, 66 FR 29030, May 29, 2001; T.D. TTB-196, 89 FR 87952, Nov. 6, 2024] Payments § 70.602 Circumstances under which payment may be made. (a) Major disasters. (b) Other causes of loss Payment. (i) Fire, flood, casualty, or other disaster; or (ii) Breakage, destruction, or other damage (excluding theft) resulting from vandalism or malicious mischief. (2) Minimum claim. (c) General. (1) The disaster or other specified cause of loss occurred in the United States; (2) At the time of the disaster or other specified cause of loss, the liquors were being held for sale by the claimant; (3) Refund or credit of the amount claimed, or any part of the amount claimed, has not or will not be claimed for the same liquors under any other law or regulations; and (4) The claimant was not indemnified by any valid claim of insurance or otherwise for the tax and/or duty on the liquors covered by the claim. Claims Procedures § 70.603 Execution and filing of claim. (a) General. (2) The claim shall include all the facts on which the claim is based, and be accompanied by a record of inventory of the liquors lost, made unmarketable, or condemned. (See § 70.604.) (3) The claim shall contain a statement that no other claim for refund or credit of the amount claimed, or for any part of the amount claimed, has been or will be filed under any other law or regulations. (b) Major disasters. (c) Other causes of loss. (i) Fire, flood, casualty, or other disaster; or (ii) Damage (excluding theft) resulting from vandalism or malicious mischief, must be filed within 6 months after the date on which the disaster or damage occurred. (2) Claims for amounts less than $250 will not be allowed. [T.D. ATF-376, 61 FR 31033, June 19, 1996, as amended by T.D. ATF-450, 66 FR 29030, May 29, 2001] § 70.604 Record of inventory to support claims. (a) Claims relating to distilled spirits. (1) Name and business address of claimant (as shown on claim, Form 2635 (5620.8)). (2) Address where the spirits were lost, became unmarketable, or were condemned, if different from the business address. (3) Kind of spirits. (4) Brand name. (5) For full cases, show: (i) Number of cases; (ii) Serial numbers; (iii) Bottles per case; (iv) Size of bottles; (v) Wine gallons per case; (vi) Proof; and (vii) Proof gallons. (6) For bottles not in cases, show: (i) Total number; (ii) Size of bottles; (iii) Wine gallons; (iv) Proof; and (v) Total proof gallons. (7) Total proof gallons for all items. (b) Claims relating to wines. (1) Name and business address of claimant (as shown on claim, Form 2635 (5620.8)). (2) Address where the wines were lost, became unmarketable, or were condemned, if different from the business address. (3) Kind of wine. (4) Percent of alcohol by volume. (5) Number of barrels or kegs. (6) Kind and number of other bulk containers. (7) Number of full cases and bottles per case. (8) Size of bottles. (9) Number of bottles not in cases and wine gallons. (10) Total wine gallons. (c) Claims relating to beer. (1) Name and business address of claimant (as shown on claim, Form 2635 (5620.8)). (2) Address where the beer was lost, became unmarketable, or was condemned, if different from the business address. (3) Number and size of barrels. (4) For full cases, show: (i) Number of cases; (ii) Bottles or cans per case; and (iii) Size (in ounces) of bottles or cans. (5) Number and size of bottles and cans not in cases. (6) Quantity in terms of 31-gallon barrels. (7) Total quantity. (d) Special instructions. (2) Liquors manufactured in Puerto Rico may not be included in claims filed under this subpart. Claims for losses of Puerto Rican liquors shall be filed with the Secretary of the Treasury of Puerto Rico under the laws of Puerto Rico. § 70.605 Claims relating to imported, domestic, and Virgin Islands liquors. (a) Claims involving taxes on domestic liquors, imported liquors, and liquors manufactured in the Virgin Islands must show the quantities of each separately in the claim. (b) A separate claim on Form 2635 (5620.8) must be filed for customs duties. § 70.606 Claimant to furnish proof. The claimant shall furnish proof to the satisfaction of the appropriate TTB officer regarding the following: (a) That the tax on the liquors, or the tax and duty if imported, was fully paid; or the tax, if not paid, was fully determined. (b) That the liquors were lost, made unmarketable, or condemned by a duly authorized official, by reason of damage sustained as a result of a disaster or other cause of loss specified in this subpart. (c) The type and date of occurrence of the disaster or other specified cause of loss, and the location of the liquors at the time. (d) That the claimant was not indemnified by a valid claim of insurance or otherwise for the tax, or tax and duty, on the liquors covered by the claim. (e) That the claimant is entitled to payment under this subpart. § 70.607 Supporting evidence. (a) The claimant shall support the claim with any evidence (such as inventories, statements, invoices, bills, records, labels, formulas, stamps) that is available to submit, relating to the quantities and identities of the liquors, on which duty has been paid or tax has been paid or determined, that were on hand at the time of the disaster or other specified cause of loss and alleged to have been lost, made unmarketable, or condemned as a result of it. (b) If the claim is for refund of duty, the claimant shall furnish, if possible: (1) The customs number; (2) The date of entry; and (3) The name of the port of entry. § 70.608 Action on claims. The appropriate TTB officer shall date stamp and examine each claim filed under this subpart and will determine the validity of the claim. Claims and supporting data involving customs duties will be forwarded to the Commissioner of Customs with a summary statement by the appropriate TTB officer regarding his or her findings. Destruction of Liquors § 70.609 Supervision. When allowance has been made under this subpart for the tax and/or duty on liquors condemned by a duly authorized official or made unmarketable, the liquors shall be destroyed by suitable means under supervision satisfactory to the appropriate TTB officer, unless the liquors were previously destroyed under supervision satisfactory to the appropriate TTB officer. The Commissioner of Customs will notify the appropriate TTB officer as to allowance under this subpart of claims for duty on unmarketable or condemned liquors. Penalties § 70.610 Penalties. (a) Penalties are provided in 26 U.S.C. 7206 for making any false or fraudulent statement under the penalties of perjury in support of any claim. (b) Penalties are provided in 26 U.S.C. 7207 for filing any false or fraudulent document under this subpart. (c) All laws and regulations, including penalties, which apply to internal revenue taxes on liquors shall, when appropriate, apply to payments made under this subpart the same as if the payments were actual refunds of internal taxes on liquors. Subpart H—Rules, Regulations and Forms § 70.701 Rules and regulations. (a) Formulation. (2) Where required by 5 U.S.C. 553, the Administrator publishes in the Federal Register Federal Register (3) If the Bureau determines that the public good will be served thereby, it may hold a public hearing for discussion of the issues raised by the proposed regulations. Such a hearing is announced by a notice in the Federal Register, (i) A person wishing to make oral comments at a public hearing shall submit, within the time prescribed in the notice of hearing, an outline of the topics he wishes to discuss, and the time he wishes to devote to each topic. Ordinarily, a period of 10 minutes is the time allotted to each person for making his oral comments. (ii) A person making oral comments should be prepared to answer questions not only on the topics listed in his outline but also on matters relating to any written comments which he has submitted. (iii) At the conclusion of the presentation of comments of persons listed in the agenda, to the extent time permits, other comments will be received. (iv) Written comments submitted prior to the hearing shall be available at the hearing for inspection. Any request for copies of such written comments is treated as a request for records under 27 CFR 70.802(g). (v) To the extent resources permit, the public hearings to which this paragraph applies may be transcribed. (vi) In unusual circumstances or for good cause shown, the application of rules contained in this paragraph may be waived. (b) Comments on proposed rules. (c) Petition to change rules. (d) Publication of rules and regulations General. Federal Register, (2) Objectives and standards for publication of TTB Rulings and TTB Procedures in the Alcohol, Tobacco and Firearms Bulletin. (B) A “TTB Procedure” is a statement of procedure that affects the rights or duties of taxpayers or other members of the public under law and regulations administered by the Bureau or information that, although not necessarily affecting the rights and duties of the public, should be a matter of public knowledge. TTB Procedures establish methods for performing operations in compliance with the requirements of law and regulations. It is Bureau practice to publish as much of the internal management document or communication as is necessary for an understanding of the procedure. TTB Procedures may also be based on internal management documents which should be a matter of public knowledge even though not necessarily affecting the rights or duties of the public. (ii) It is the policy of the Bureau to publish in the Bulletin all rulings and other communications to members of the public or to Bureau field offices involving substantive law, procedures affecting taxpayer's rights or duties, or industry regulations, except those involving: (A) Issues specifically and clearly covered by statute or regulations; (B) Issues specifically covered by rulings, procedures, opinions, or court decisions previously published in the Bulletin; (C) Issues not likely to arise again because of unique or specific facts; (D) Determinations of fact rather than interpretations of law; (E) Acceptability under the law and regulations of containers, labels, and advertising involving alcoholic beverages; (F) Tobacco operations, such as the disposition of abandoned, seized, or condemned tobacco products; (G) Informers and informers' rewards; or (H) Disclosure of secret formulas, processes, business practices, and other similar information. (iii)(A) It is the practice of the Bureau to publish as much of the ruling or communication as is necessary for an understanding of the position stated. However, in order to prevent unwarranted invasions of personal privacy and to comply with statutory provisions, such as 18 U.S.C. 1905 and 26 U.S.C 6103 and 7213, dealing with disclosure of information obtained from members of the public, identifying details, including the names and addresses of persons involved, and information of a confidential nature are deleted from the ruling. (B) TTB Rulings published in the Bulletin do not have the force and effect of Department of the Treasury Regulations (including amendatory Treasury decisions) but are published to provide precedents to be used in the disposition of other cases, and may be cited and relied upon for that purpose. No unpublished ruling or decision may be relied on, used, or cited by any officer or employee of the Bureau as a precedent in the disposition of other cases. (C) Concerned persons generally may rely upon TTB Rulings published in the Bulletin in determining the Bureau treatment of their own transactions and need not request specific rulings applying the principles of a published TTB Ruling to the facts of their particular cases. However, since each TTB Ruling represents the conclusion of the Bureau as to the application of the law to the entire state of facts involved, taxpayers, Bureau personnel, and others concerned are cautioned against reaching the same conclusion in other cases unless the facts and circumstances are substantially the same. They should consider the effect of subsequent legislation, regulations, court decisions and TTB Rulings. (D) Comments and suggestions from taxpayers or other concerned persons on TTB Rulings being prepared for publication in the Bulletin may be solicited, if justified by special circumstances. Conferences on TTB Rulings being prepared for publication will not be granted except where the Bureau determines that such action is justified by special circumstances. (iv)(A) The appropriate TTB officer is responsible for administering the program for the publication of TTB Rulings and TTB Procedures in the Bulletin including the standards for style and format. (B) In accordance with the standards set forth in paragraph (d)(2)(ii) of this section, each appropriate TTB officer is responsible for the preparation and appropriate referral for publication of TTB Rulings reflecting interpretations of substantive law made by her or his office and communicated in writing to members of the public or field offices. In this connection, the Chief Counsel is responsible for the referral to the appropriate TTB officer, for consideration for publication as TTB rulings, of interpretations of substantive law made by her or his office. (C) In accordance with the standards set forth in paragraph (d)(2)(ii) of this section, the appropriate TTB officers and the Chief Counsel are responsible for determining whether procedures established by an office under their jurisdiction should be published as TTB Procedures and for the initiation, content, and appropriate referral for publication of such TTB Procedures. [T.D. ATF-47, 43 FR 10687, Mar. 15, 1978, as amended by T.D. ATF-201, 50 FR 12533, Mar. 29, 1985; T.D. ATF-249, 52 FR 5962, Feb. 27, 1987; Redesignated and amended by T.D. ATF-378, 61 FR 29955, June 13, 1996; T.D. ATF-432, 65 FR 69253, Nov. 16, 2000; T.D. ATF-450, 66 FR 29030, May 29, 2001; TTB-90, 76 FR 3502, Jan. 20, 2011; T.D. TTB-91, 76 FR 5482, Feb. 1, 2011; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024] § 70.702 Forms and instructions. (a) Tax return forms and instructions. (b) Other forms and instructions. (c) Procurement of forms and instructions. [T.D. ATF-47, 43 FR 10687, Mar. 15, 1978, as amended by T.D. ATF-92, 46 FR 46914, Sept. 23, 1981; T.D. ATF-249, 52 FR 5962, Feb. 27, 1987; T.D. 372, 61 FR 20724, May 8, 1996. Redesignated and amended by T.D. ATF-378, 61 FR 29955, June 13, 1996] Subpart I—Disclosure § 70.801 Publicity of information. For information relating to the disclosure of records that is not contained in this subpart, see 31 CFR part 1 and the appendix of that part relating to the Alcohol and Tobacco Tax and Trade Bureau. Direct further questions to the Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street, Box 12, Washington, DC 20005; telephone (202) 453-2265. [T.D. TTB-196, 89 FR 87952, Nov. 6, 2024] § 70.802 Rules for disclosure of certain specified matters. (a) Accepted offers in compromise. (b) Information regarding liquor permits Applications for permits. (c) List of plants and permittees. (d) Information relating to certificates of label approval for distilled spirits, wine, and malt beverages. (e) True identity of companies authorized to use trade names. (f) Information relating to the tax classification of a roll of tobacco wrapped in reconstituted tobacco. (g) Comments received in response to a notice of proposed rulemaking. https://www.regulations.gov. (2) All comments and attachments received in response to a notice of proposed rulemaking may be inspected by any person in the Bureau's public reading room by appointment during normal business hours. Copies of comments (or portions therefore) also may be obtained. Appointment and copy requests may be addressed to the appropriate TTB officer in writing to the Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW, Box 12, Washington, DC 20005 or by telephone at 202-453-2265. A person requesting copies should allow a reasonable time for processing the request. The provisions of 31 CFR 1.7, relating to fees, apply to requests made in accordance with this paragraph. [T.D. ATF-47, 43 FR 10687, Mar. 15, 1978, as amended by T.D. ATF-57, 44 FR 20794, May 9, 1979; T.D. ATF-201, 50 FR 12533, Mar. 29, 1985; T.D. ATF-249, 52 FR 5961, Feb. 27, 1987. Redesignated and amended by T.D. ATF-378, 61 FR 29955, 29956, June 13, 1996; T.D. ATF-450, 66 FR 29030, May 29, 2001; T.D. TTB-91, 76 FR 5482, Feb. 1, 2011; T.D. TTB-196, 89 FR 87952, Nov. 6, 2024] § 70.803 Requests or demands for disclosure in testimony and in related matters. (a) Authority. (b) Definitions. (1) TTB officer or employee. TTB officer TTB employee (2) TTB records or information. TTB records TTB information (3) Demand. demand (c) Disclosure of TTB records or information prohibited without prior approval of the appropriate TTB officer. (d) Delegation of authority to determine disclosure and establish procedures. (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 Administrator is also authorized to establish such other procedures as he or she may deem necessary with respect to the disclosure of TTB records or information by TTB officers and employees. Any determination by the appropriate TTB officer as to whether TTB records or information will be disclosed, or any procedure established by the Administrator 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 TTB officer shall, where either the Secretary or such officer deems it appropriate, refer the opposing of a request or demand for disclosure of TTB records or information to the Secretary. (e) Procedure in the event of a request or demand for TTB records or information Request procedure. (2) Demand procedure. (3) Affidavit required for testimony. (4) Time limit for serving request or demand. (5) Factors to be considered in determining whether a request or demand will be granted. (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 TTB 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 TTB 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 TTB has no interest, records or other official information. (f) State cases. (g) Penalties. [T.D ATF-57, 44 FR 27094, May 9, 1979, as amended by T.D. ATF-302, 55 FR 47325, Nov. 13, 1990. Redesignated by T.D. ATF-378, 61 FR 29955, June 13, 1996, as amended by T.D. ATF-446a, 66 FR 19089, Apr. 13, 2001; T.D. ATF-450, 66 FR 29030, May 29, 2001; T.D. TTB-91, 76 FR 5482, Feb. 1, 2011; T.D. TTB-196, 89 FR 87951, Nov. 6, 2024]

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