[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR301.6361-3]

[Page 317-318]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 301_PROCEDURE AND ADMINISTRATION--Table of Contents
 
               Seizure of Property for Collection of Taxes
 
Sec. 301.6361-3  Transfers to States.

    (a) Periodic transfers. In general, amounts collected by the Federal 
Government which are allocable to qualified taxes (including criminal 
fines which are required to be paid to a State, as determined under 
paragraph (f)(3) of Sec. 301.6361-1) shall be promptly transferred to 
each State imposing such a tax. Transfers of such amounts, based on 
percentages of estimated Federal collections, shall be made not less 
frequently than every third business day unless the State agrees to 
accept transfers at less frequent intervals.

[[Page 318]]

    (b) Determination of amounts of transfers. The amounts allocable to 
the qualified taxes of each State for purposes of periodic transfer 
shall be determined as a percentage of the estimated aggregate net 
individual income tax collections made by the Federal Government. For 
purposes of this paragraph, the ``aggregate net individual income tax 
collections'' shall include amounts collected on account of the Federal 
individual income tax and all qualified taxes by all means (including 
withholding, tax returns, and declarations of estimated tax), and shall 
be reduced to the extent of any liability to taxpayers for credits or 
refunds by reason of overpayments of such taxes. The percentage of the 
estimated amount of such collections which is allocated to each State 
shall be based on an estimate which is to be made by the Office of Tax 
Analysis prior to the beginning of each calendar year as to what portion 
of the estimated aggregate net individual income tax collections for the 
forthcoming year will be attributable to the qualified taxes of that 
State. Each State will be notified prior to the beginning of each 
calendar year of the amount which it is estimated that the State will 
receive by application of that percentage for the year. However, the 
Office of Tax Analysis shall, from time to time throughout the calendar 
year, revise the percentage estimates when such a revision is, in the 
opinion of that office necessary to conform such estimates to the actual 
receipts. When such a revision is made, the payments to the State will 
be adjusted accordingly.
    (c) Adjustment of difference between actual collections and periodic 
transfers. At least once annually the Secretary or his delegate shall 
determine the difference between the aggregate amount of the actual net 
collections made (taking into account credits, refunds, and amounts 
received by withholding with respect to which a tax return is not filed) 
which is attributable to each State's qualified taxes during the 
preceding year and the aggregate amount actually transferred to such 
State based on estimates during such year. The amount of such 
difference, as so determined, shall be a charge against, or an addition 
to, the amounts otherwise determined to be payable to the State.
    (d) Recipient of transferred funds. All funds transferred pursuant 
to section 6361(c) and paragraph (a) of this section shall be 
transferred by the Federal Government to the State official designated 
by the Governor to receive such funds in the State agreement pursuant to 
paragraph (d)(5) of Sec. 301.6363-1, unless the Governor notifies the 
Secretary or his delegate in writing of the designation of a different 
State official to receive the funds.

[T.D. 7577, 43 FR 59365, Dec. 20, 1978]