[Federal Register Volume 63, Number 240 (Tuesday, December 15, 1998)]
[Proposed Rules]
[Pages 69031-69032]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-32927]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG-111435-98]
RIN 1545-AW37


Payment by Check or Money Order; Payment by Credit Card and Debit 
Card

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking and notice of proposed rulemaking 
by cross-reference to temporary regulations.

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SUMMARY: In the Rules and Regulations portion of this issue of the 
Federal Register, the IRS is issuing temporary regulations relating to 
payment of internal revenue taxes by credit card or debit card. The 
text of the temporary regulations also serves as the text of these 
proposed regulations. This document also contains proposed regulations 
that provide that payments of tax by check or money order should be 
made payable to the United States Treasury, in order to implement 
changes to the law made by the Internal Revenue Service Restructuring 
and Reform Act of 1998. These proposed regulations will affect all 
persons who pay taxes by check or money order.

DATES: Written or electronically generated comments and requests for a 
hearing must be received by March 15, 1999.

ADDRESSES: Send submissions to: CC:DOM:CORP:R (REG-111435-98), room 
5226, Internal Revenue Service, POB 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand delivered Monday through 
Friday between the hours of 8 a.m. and 5 p.m. to: CC:DOM:CORP:R (REG-
111435-98), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue, NW., Washington, DC. Alternatively, taxpayers may submit 
comments electronically via the Internet by selecting the ``Tax Regs'' 
option on the IRS Home Page, or by submitting comments directly to the 
IRS Internet site at http://www.irs.ustreas.gov/prod/tax__regs/
comments.html.

FOR FURTHER INFORMATION CONTACT: Concerning the regulations, Mitchel S. 
Hyman, (202) 622-3620; concerning submissions, Michael Slaughter, (202) 
622-7190 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

    This document contains a proposed amendment to the Procedure and 
Administration Regulations (26 CFR Part 301) amending Sec. 301.6311-1 
to reflect the enactment of section 3703 of the Internal Revenue 
Service Restructuring and Reform Act of 1998 (Public Law 105-206, 112 
Stat. 685)(1998 Act). Section 301.6311-1 currently states that checks 
or money orders should be made payable to the Internal Revenue Service. 
Section 3703 of the 1998 Act states that the Secretary of the Treasury 
shall establish such rules, regulations, and procedures as are 
necessary to allow payment of taxes by check or money order to be made 
payable to the United States Treasury. The amendment accordingly 
provides that checks and money orders should be made payable to the 
United States Treasury. However, checks and money orders made payable 
to the Internal Revenue Service pursuant to the current regulation and 
prior instructions will continue to be accepted.
    Additionally, the temporary regulations in the Rules and 
Regulations portion of this issue of the Federal Register amend the 
Procedure and Administration Regulations (26 CFR part 301) to add new 
Secs. 301.6103(k)(9)-1T and 301.6311-2T, providing for payment of 
internal revenue taxes by credit card or debit card. The temporary 
regulations reflect the amendment of sections 6103 and 6311 by section 
1205 of the Taxpayer Relief Act of 1997 (Public Law 105-34, 111 Stat. 
788, 995) and section 4003(k) of the Tax and Trade Relief Extension Act 
of 1998 (Public Law 105-277, 112 Stat. 2681). The text of the temporary 
regulations serves as the text of these proposed regulations. The 
preamble to the temporary regulations explains the regulations.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in EO 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 
regulation does not impose a collection of information on small 
entities, the Regulatory Flexibility Act (5 U.S.C.

[[Page 69032]]

chapter 6) does not apply. Pursuant to section 7805(f) of the Internal 
Revenue Code, this notice of proposed rulemaking will be submitted to 
the Chief Counsel for Advocacy of the Small Business Administration for 
comment on its impact on small business.

Comments and Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written comments (a signed original 
and eight (8) copies) or electronically generated comments that are 
submitted timely to the IRS. All comments will be available for public 
inspection and copying.
    A public hearing may be scheduled if requested by a person that 
timely submits comments. If a public hearing is scheduled, notice of 
the date, time, and place for the hearing will be published in the 
Federal Register.

Drafting Information

    The principal author of these regulations is Mitchel S. Hyman, 
Office of Assistant Chief Counsel (General Litigation) CC:EL:GL, IRS. 
However, other personnel from the IRS and Treasury Department 
participated in their development.

List of Subjects in 26 CFR Part 301

    Employment taxes, Estate taxes, Excise taxes, Gift taxes, Income 
taxes, Penalties, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR Part 301 is proposed to be amended as follows:

PART 301--PROCEDURE AND ADMINISTRATION

    Paragraph 1. The authority citation for part 301 continues to read 
in part as follows:

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

    Par. 2. Section 301.6103(k)(9)-1 is added to read as follows:


Sec. 301.6103(k)(9)-1  Disclosure of returns and return information 
relating to payment of tax by credit card and debit card.

[The text of this proposed section is the same as the text of 
Sec. 301.6103(k)(9)-1T published elsewhere in this issue of the 
Federal Register.]


Sec. 301.6311-1  [Amended]

    Par. 3. Section 301.6311-1(a)(1)(i) is amended by removing the 
language ``Internal Revenue Service'' from the third sentence and 
adding the language ``United States Treasury'' in its place.
    Par. 4. Section 301.6311-2 is added to read as follows:


Sec. 301.6311-2  Payment by credit card and debit card.

(The text of this proposed section is the same as the text of 
Sec. 301.6311-2T published elsewhere in this issue of the Federal 
Register.]
Michael P. Dolan,
Deputy Commissioner of Internal Revenue.
[FR Doc. 98-32927 Filed 12-14-98; 8:45 am]
BILLING CODE 4830-01-U