[Code of Federal Regulations]
[Title 27, Volume 2]
[Revised as of April 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 27CFR41.63]

[Page 72]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 41_IMPORTATION OF TOBACCO PRODUCTS AND CIGARETTE PAPERS AND TUBES--Table 
 
                             Subpart D_Taxes
 
Sec.  41.63  Payment of tax by electronic fund transfer.

    (a) Each importer who was liable, during a calendar year, for a 
gross amount equal to or exceeding five million dollars in taxes on 
cigars, cigarettes, cigarette papers, and cigarette tubes combining tax 
liabilities incurred under this part and part 40 of this chapter, shall 
use a commercial bank in making payment by electronic fund transfer 
(EFT) of such taxes during the succeeding calendar year. Payment of such 
taxes by cash, check, or money order is not authorized for an importer 
who is required, by this section, to make remittances by EFT. For 
purposes of this section, the dollar amount of tax liability is defined 
as the gross tax liability on all taxable withdrawals and importations 
(including similar products brought into the United States from Puerto 
Rico or the Virgin Islands) during the calendar year, without regard to 
any drawbacks, credits, or refunds, for all premises from which such 
activities are conducted by the taxpayer.
    (b) For the purposes of this section, a taxpayer includes a 
controlled group of corporations, as defined in 26 U.S.C. 1563, and 
implementing regulations in 26 CFR 1.1563-1 through 1.1563-4, except 
that the words ``at least 80 percent'' shall be replaced by the words 
``more than 50 percent'' in each place it appears in subsection (a) of 
26 U.S.C. 1563, as well as in the implementing regulations. Also, the 
rules for a ``controlled group of corporations'' apply in a similar 
fashion to groups which include partnerships and/or sole 
proprietorships. If one entity maintains more than 50% control over a 
group consisting of corporations and one, or more, partnerships and/or 
sole proprietorships, all of the members of the controlled group are one 
taxpayer for the purpose of determining who is required to make 
remittances by EFT.
    (c) For the purposes of this section, (1) electronic fund transfer 
or EFT means any transfer of funds, other than a transaction originated 
by check, draft, or similar paper instrument, which is initiated through 
an electronic terminal, telephonic instrument, or computer of magnetic 
tape, so as to order, instruct, or authorize a financial institution to 
either debit or credit an account, in accordance with procedures 
established by the U.S. Customs Service, and (2) electronic fund 
transfer or EFT does not have the meaning defined in Sec.  41.11 for use 
elswhere in this part.
    (d) An importer who is required by this section to make remittances 
by EFT, shall make the EFT remittance in accordance with the 
requirements of the U.S. Customs Service.

(Act of August 16, 1954, 68A Stat. 775, as amended (26 U.S.C. 6302); 
Sec. 202, Pub. L. 85-859, 72 Stat. 1417, as amended (26 U.S.C. 5703))

[T.D. ATF-245, 52 FR 534, Jan. 7, 1987, as amended by T.D. ATF-384, 61 
FR 54095, Oct. 17, 1996. Redesignated and amended by T.D. TTB-16, 69 FR 
52424, 52425, Aug. 26, 2004]