[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: 27CFR70.41]

[Page 238-239]
 
            TITLE 27--ALCOHOL, TOBACCO PRODUCTS AND FIREARMS
 
 CHAPTER I--ALCOHOL AND TOBACCO TAX AND TRADE BUREAU, DEPARTMENT OF THE 
                                TREASURY
 
PART 70_PROCEDURE AND ADMINISTRATION--Table of Contents
 
        Subpart C_Discovery of Liability and Enforcement of Laws
 
Sec.  70.41  Rewards for information relating to violations of tax laws 

administered by the Bureau.

    (a) In general. An appropriate TTB officer may approve such reward 
as he or she deems suitable for information that leads to the detection 
and punishment of any person guilty of violating any tax law 
administered by the Bureau or conniving at the same. The rewards 
provided for by 26 U.S.C. 7623 are limited in their aggregate to the sum 
appropriated therefor and shall be paid only in cases not otherwise 
provided for by law.
    (b) Eligibility to file claim for reward--(1) In general. Any 
person, other than certain present or former federal employees (see 
paragraph (b)(2) of this section), who submits, in the manner set forth 
in paragraph (d) of this section, information relating to the violation 
of tax laws administered and enforced by the Bureau, is eligible to file 
a claim for reward under 26 U.S.C. 7623.
    (2) Federal employees. No person who was an officer or employee of 
the Department of the Treasury at the time he came into possession of 
information relating to violations of tax laws administered by the 
Bureau, or at the time he divulged such information, shall be eligible 
for reward under 26 U.S.C. 7623 and this section. Any other federal 
employee, or former federal employee, is eligible to file a claim for 
reward if the information submitted came to his knowledge other than in 
the course of his official duties.
    (3) Deceased informants. A claim for reward may be filed by an 
executor, administrator, or other legal representative on behalf of a 
deceased informant if, prior to his death, the informant was eligible to 
file a claim for such reward under 26 U.S.C. 7623 and this section. 
Certified copies of the letters testamentary, letters of administration, 
or other similar evidence must be annexed to such a claim for reward on 
behalf of a deceased informant in order to show the authority of the 
legal representative to file the claim for reward.
    (c) Amount and payment of reward. All relevant factors, including 
the value of the information furnished in relation to the facts 
developed by the investigation of the violation, must be taken

[[Page 239]]

into account in determining whether a reward must be paid, and, if so, 
the amount thereof. The amount of a reward shall represent what the 
appropriate TTB officer deems to be adequate compensation in the 
particular case, normally not to exceed 10 percent of the additional 
taxes, penalties, and fines which are recovered as a result of the 
information. No reward, however, shall be paid with respect to any 
additional interest that may be collected. Payment of a reward will be 
made as promptly as the circumstances of the case permit, but generally 
not until the taxes, penalties, or fines involved have been collected. 
However, the informant may waive any claim for reward with respect to an 
uncollected portion of the taxes, penalties, or fines involved, in which 
case the claim may be immediately processed. No person is authorized 
under these regulations to make any offer, or promise, or otherwise to 
bind the appropriate TTB officer with respect to the payment of any 
reward or the amount thereof.
    (d) Submission of information. Persons desiring to claim rewards 
under the provisions of 26 U.S.C. 7623 and this section may submit 
information relating to violations of tax laws administered by the 
Bureau to an appropriate TTB officer. If the information is submitted in 
person, either orally or in writing, the name and official title of the 
person to whom it is submitted and the date on which it is submitted 
must be included in the formal claim for reward.
    (e) Anonymity. No unauthorized person shall be advised of the 
identity of an informant.
    (f) Filing claim for reward. An informant who intends to claim a 
reward under 26 U.S.C. 7623 should notify the person to whom he submits 
his information of such intention, and must file a formal claim, signed 
with his true name, as soon after submission of the information as 
practicable. If other than the informant's true name was used in 
furnishing the information, the claimant must include with his claim 
satisfactory proof of his identity as that of the informant. Claim for 
reward under the provisions of 26 U.S.C. 7623 must be made on TTB Form 
3200.13. TTB Form 3200.13 should be obtained from the office where the 
information is filed.

(68A Stat. 904 (26 U.S.C. 7623); 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; 44 FR 55841, Sept. 28, 1979. Redesignated by 
T.D. ATF-301, 55 FR 47606, Nov. 14, 1990; T.D. ATF-312, 56 FR 31085, 
July 9, 1991; T.D. ATF-450, 66 FR 29024, May 29, 2001]