[Request for Reconsideration of Sequestration Determination]

In response to a congressional request, GAO reconsidered its determination that the Department of the Treasury's Internal Revenue Collections for Puerto Rico account was subject to sequestration under the Balanced Budget and Emergency Deficit Control Act. GAO found that: (1) the account constitutes a receipt account for excise taxes collected under the internal revenue laws of the United States on articles produced in Puerto Rico and transported to the United States or consumed in Puerto Rico; and (2) expenditures from the account are made under a permanent indefinite appropriation. Accordingly, payments to Puerto Rico from that account are subject to sequestration under the act since no exemption or limitation was found to cover the account.