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Rule

Removal of Federal Reserve Banks as Federal Depositaries

Document Details

Information about this document as published in the Federal Register.

Published Document

This document has been published in the Federal Register. Use the PDF linked in the document sidebar for the official electronic format.

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AGENCY:

Internal Revenue Service (IRS), Treasury.

ACTION:

Final regulations and removal of temporary regulations.

SUMMARY:

This document contains final regulations which remove the Federal Reserve banks as authorized depositaries for Federal tax deposits. The regulations affect taxpayers who make Federal tax deposits using paper Federal Tax Deposit (FTD) coupons (Form 8109) at Federal Reserve banks.

DATES:

Effective Date: These regulations are effective June 26, 2001.

Applicability Date: These regulations apply to deposits made after December 31, 2000.

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FOR FURTHER INFORMATION CONTACT:

Brinton T. Warren, (202) 622-4940 (not a toll-free number).

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SUPPLEMENTARY INFORMATION:

Background

This document contains amendments to 26 CFR parts 1, 31, 35, 36, 40, 301, and 601 relating to Federal tax deposits under section 6302(c) of the Internal Revenue Code (Code). On December 26, 2000, temporary regulations (TD 8918) relating to the removal of Federal Reserve Banks as federal depositaries were published in the Federal Register (65 FR 81356). A notice of proposed rulemaking that proposed the removal of Federal Reserve Banks as federal depositaries was published in the Federal Register for the same day (65 FR 81453). No comments were received from the public in response to the notice of proposed rulemaking. Start Printed Page 33831

Explanation of Provisions

These final regulations, which permanently remove Federal Reserve Banks as authorized depositaries for Federal tax deposits, adopt the rules of the proposed regulations and remove the corresponding temporary regulations. The term Federal Reserve Bank includes twelve banks and their approximately two dozen branches that constitute the nation's central banking system. The term does not include the thousands of federally and state chartered banks that are recognized as members of the Federal Reserve System. Accordingly, these final regulations do not affect Federal Tax Deposits (FTDs) made with paper coupons at any of the more than 10,000 financial institutions nationwide that serve as Treasury Tax and Loan (TT&L) depositaries. Deposits made through the Electronic Federal Tax Payment System (EFTPS) are also not affected.

Special Analyses

It has been determined that this Treasury decision is not a significant regulatory action as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. It also has been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations, and because the regulations do not impose a collection of information on small entities, the Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. Pursuant to section 7805(f) of the Internal Revenue Code, the notice of proposed rulemaking preceding these regulations was submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business.

Drafting Information

The principal author of these regulations is Brinton T. Warren of the Office of Associate Chief Counsel, Procedure and Administration (Administrative Provisions and Judicial Practice Division). However, other personnel from the IRS and Treasury Department participated in their development.

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List of Subjects

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Adoption of Amendments to the Regulations

Accordingly, and under the authority of 26 U.S.C. 7805 and 5 U.S.C. 301, 26 CFR parts 1, 31, 35, 36, 40, 301 and 601 are amended as follows:

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PART 1—INCOME TAXES

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Authority: 26 U.S.C. 7805 * * *

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[Amended]
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[Amended]
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PART 31—EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE

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Authority: 26 U.S.C. 7805 * * *

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[Amended]
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PART 301—PROCEDURE AND ADMINISTRATION

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Authority: 26 U.S.C. 7805 * * *

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PARTS 1, 31, 35, 36, 40, 301, 601 [AMENDED]

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SectionRemoveAdd
1.1461-1(a)(1), first sentencea Federal Reserve Bank oran
1.1502-5(a)(1), fourth sentencecommercial dispositary or Federal Reserve Bankfinancial institution
1.6151-1(d)(1)Federal Reserve Banks or
1.6302-1(b)(1), fourth sentence214 or, at the election of the corporation, to a Federal Reserve Bank203
1.6302-1(b)(1), fifth sentencethe Federal Reserve Bank or
1.6302-2(a)(1)(i), first sentencea Federal Reserve Bank oran
1.6302-2(a)(1)(ii), first sentencea Federal Reserve Bank oran
1.6302-2(a)(1)(iv), first sentencea Federal Reserve Bank oran
1.6302-2(b)(1), second sentence214 or, at the election of the withholding agent, to a Federal Reserve Bank203
1.6302-2(b)(1), third sentencethe Federal Reserve Bank or
1.6302-3(a)or with a Federal Reserve Bank
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31.6071(a)-1(a)(1), last sentenceor by a Federal Reserve Bank
31.6071(a)-1(c), last sentencea Federal Reserve Bank or by
31.6151-1(b), first sentenceFederal Reserve Banks and
31.6302-1(c)(1), first sentencea Federal Reserve Bank oran
31.6302-1(c)(2)(i) introductory texta Federal Reserve Bank oran
31.6302-1(c)(3) introductory text, first sentencea Federal Reserve Bank oran
31.6302-1(i)(3), third sentence214 or, at the election of the employer, to a Federal Reserve Bank203
31.6302-1(i)(5)the Federal Reserve Bank or
31.6302(c)-2A(b)(1)(i)with a Federal Reserve Bank or
31.6302(c)-2A(b)(3)with a Federal Reserve Bank or
31.6302(c)-3(a)(1)(i)with a Federal Reserve Bank or
31.6302(c)-3(a)(1)(ii)with a Federal Reserve Bank or
31.6302(c)-3(a)(3)with a Federal Reserve Bank or
31.6302(c)-3(b)(2), second sentence214 or, at the election of the employer, to a Federal Reserve Bank203
31.6302(c)-3(b)(2), third sentencethe Federal Reserve Bank or
35.3405-1T,e-10A., first sentencea Federal Reserve Bank or
36.3121(l)(10)-4a Federal Reserve Bank oran
40.6302(c)-1(d)(1)214 or to a Federal Reserve Bank203
301.6302-1(a)Federal Reserve Banks and authorized commercial banksauthorized financial institutions
301.6302-1(b)(1)Federal Reserve Banks or authorized commercial banksauthorized financial institutions
301.6302-1(b)(2)Federal Reserve Banks or authorized commercial banksauthorized financial institutions
301.9100-5T(c) concluding textFederal Reserve Banks and
601.401(a)(5) headingFederal Reserve Banks and
601.401(a)(5)(iii), first sentencea Federal Reserve Bank oran
601.401(a)(5)(iii), second sentencea Federal Reserve Bank oran
601.401(a)(5)(iv), first sentencea Federal Reserve Bank or a financial institution authorized in accordance with Treasury Department Circular No. 1079, revised, to accept remittances of these taxes for transmission to a Federal Reserve Bankan authorized financial institution
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Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

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Approved: June 15, 2001.

Mark A. Weinberger,

Assistant Secretary of the Treasury (Tax Policy).

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[FR Doc. 01-15747 Filed 6-25-01; 8:45 am]

BILLING CODE 4830-01-P