26764 Federal Register / Vol. 81, No. 86 / Wednesday, May 4, 2016 / Proposed Rules 
to the Chief Counsel for Advocacy of the 
Small Business Administration for comment on their impact on small business. 
Comments and Requests for Public 
Hearing 
Before these proposed regulations are 
adopted as final regulations, consideration will be given to any comments that are submitted timely to the IRS as prescribed in this preamble under the 
ADDRESSES heading. The 
Treasury Department and the IRS request comments on all aspects of the proposed rules. All comments will be available at www.regulations.gov or 
upon request. A public hearing will be scheduled if requested in writing by any person that timely submits written 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 Andrew Holubeck of the Office of the Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities). However, other personnel from the IRS and the 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 recordingkeeping 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 301.7701–2 is 
amended by revising paragraphs (c)(2)(iv)(C)(2) and adding paragraph (e)(8)(i) to read as follows: 
§ 301.7701–2 Business entities; definitions 
* * * * * 
(c) * * * 
(2) * * * (iv) * * * (C) * * * (2) [The text of the proposed 
amendment to § 301.7701– 
2(c)(2)(iv)(C)(2) is the same as the text of § 301.7701–2T(c)(2)(iv)(C)(2) published elsewhere in this issue of the Federal Register]. 
* * * * * 
(e) * * * 
(8)(i) [ The text of the proposed 
amendments to § 301.7701–2(e)(8)(i) is 
the same as the text of § 301.7701– 2T(e)(8)(i) published elsewhere in this issue of the Federal Register]. 
John Dalrymple, 
Deputy Commissioner for Services and 
Enforcement. 
[FR Doc. 2016–10384 Filed 5–3–16; 8:45 am] 
BILLING CODE 4830–01–P 
DEPARTMENT OF JUSTICE 
Bureau of Alcohol, Tobacco, Firearms, 
and Explosives 
27 CFR Parts 478 and 479 
[Docket No. ATF 29P] 
RIN 1140–AA33 
Identification Markings Placed on 
Firearm Silencers and Firearm Mufflers 
AGENCY : Bureau of Alcohol, Tobacco, 
Firearms, and Explosives (ATF), Department of Justice. 
ACTION : Advance notice of proposed 
rulemaking. 
SUMMARY : The Department of Justice is 
considering amending the regulations of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to require licensed manufacturers, licensed importers, and nonlicensed makers to place identification markings on the outer tube of firearm silencers and firearm mufflers. The Department wishes to gather information and comments from the public and industry concerning whether or not the regulations should be amended. 
DATES : Written comments must be 
postmarked and electronic comments must be submitted on or before August 2, 2016. Commenters should be aware that the electronic Federal Docket Management System will not accept comments after Midnight Eastern Time on the last day of the comment period. 
ADDRESSES : You may submit comments, 
identified by docket number (ATF 29P), by any of the following methods: 
•Federal eRulemaking Portal: http:// 
www.regulations.gov. Follow the 
instructions for submitting comments. 
•Fax: (202) 648–9741. 
•Mail: Shermaine Kenner, Mailstop 
6N–518, Office of Regulatory Affairs, Enforcement Programs and Services, Bureau of Alcohol, Tobacco, Firearms, and Explosives, 99 New York Avenue NE., Washington, DC 20226: ATTN: ATF29P. 
Instructions: All submissions received 
must include the agency name and docket number for this rulemaking. All comments received will be posted without change to the Federal eRulemaking portal, http://www.regulations.gov, including any 
personal information provided. For detailed instructions on submitting comments and additional information on the rulemaking process, see the ‘‘Public Participation’’ heading of the 
SUPPLEMENTARY INFORMATION section of 
this document. 
FOR FURTHER INFORMATION CONTACT : 
Shermaine Kenner, Office of Regulatory Affairs, Enforcement Programs and Services, Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Department of Justice, 99 New York Avenue NE., Washington, DC 20226; telephone: (202) 648–7070. 
SUPPLEMENTARY INFORMATION : 
I. Background 
Section 923(i) of the Gun Control Act 
of 1968 (GCA), as amended (18 U.S.C. chapter 44), requires licensed importers and licensed manufacturers to identify, by means of a serial number, each firearm imported or manufactured by such importer or manufacturer. The serial number must be engraved or cast on the receiver or frame of the weapon in such manner as the Attorney General prescribes by regulation. As defined in section 921(a)(3) of the GCA, the term ‘‘firearm’’ includes any firearm muffler or firearm silencer. The terms ‘‘firearm silencer’’ and ‘‘firearm muffler’’ are also defined in section 921(a)(24), as follows: 
[A]ny device for silencing, muffling, or 
diminishing the report of a portable firearm, 
including any combination of parts, designed or redesigned, and intended for use in assembling or fabricating a firearm silencer or firearm muffler, and any part intended only for use in such assembly or fabrication. 
With respect to certain firearms 
subject to the National Firearms Act 
(NFA) (26 U.S.C. chapter 53) (e.g., machine guns, any silencer (as defined in section 921(a)(24) of the GCA)), 26 U.S.C. 5842(a) requires each manufacturer and importer and anyone making a firearm to identify by a serial number each firearm manufactured, imported, or made. The serial number may not be readily removed, obliterated, or altered. Section 5842(a) also requires the firearm to be identified by the name of the manufacturer, importer, or maker, and such other identification as the Attorney General may prescribe by regulation. 
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Regulations that implement 18 U.S.C. 
923(i) are set forth in 27 CFR 478.92. In 
general, § 478.92(a)(1)(i) requires licensed manufacturers and licensed importers of firearms to legibly identify each firearm manufactured or imported by engraving, casting, stamping (impressing), or otherwise conspicuously placing on the frame or receiver an individual serial number. The serial number must be placed in a manner not susceptible of being readily obliterated, altered, or removed and must not duplicate any serial number placed by a licensed importer or manufacturer on any other firearm. For firearms manufactured or imported on and after January 30, 2002, the engraving, casting, or stamping (impressing) of the serial number must be to a minimum depth of .003 inch and in a print size no smaller than 
1⁄16inch. 
In addition, § 478.92(a)(1)(ii) requires 
licensed manufacturers and licensed importers to conspicuously place additional identification markings on the frame, receiver, or barrel of each firearm imported or manufactured in a manner not susceptible of being readily obliterated, altered, or removed. For firearms manufactured or imported on and after January 30, 2002, the engraving, casting, or stamping (impressing) of this information must be to a minimum depth of .003 inch. The additional information includes: 
1. The model, if such designation has 
been made; 
2. The caliber or gauge; 
3. The name of the licensed 
manufacturer or licensed importer (or 
recognized abbreviation) and, when applicable, the name of the foreign manufacturer; 
4. In the case of a domestically made 
firearm, the city and State (or recognized abbreviation thereof) where the licensed manufacturer maintains his place of business; and 
5. In the case of an imported firearm, 
the name of the country in which it was manufactured and the city and State (or recognized abbreviation thereof) where the licensed importer maintains his place of business. 
The same marking requirements apply 
to manufacturers, importers or makers of NFA firearms pursuant to 27 CFR 479.102(a). 
The current regulations do not specify 
the placement of required identification markings on firearm silencers and firearm mufflers. However, ATF has provided the industry with some guidance on this issue. In its ‘‘Frequently Asked Questions— Silencers,’’ dated April 17, 2008, ATF stated the following: The silencer must be marked in accordance 
with 27 CFR 478.92 and 479.102. The 
regulations require that the markings be conspicuous and legible, meaning that the markings may be placed on any external part, such as the outer tube or end cap. ATF strongly recommends that manufacturers place all required markings on the outer tube of the silencer, as this is the accepted industry standard. Moreover, this practice eliminates the need to remark in the event an end cap bearing the markings is damaged and requires replacement. 
II. National Firearms Act Trade and Collectors Association Petition 
On April 27, 2008, ATF received a 
petition filed on behalf of the National Firearms Act Trade and Collectors Association (NFATCA). NFATCA is a trade group representing the firearms and import community. Some of its 
members primarily manufacture, transport, and possess silencers for lawful use. 
Although in its April 2008 guidance 
ATF recommended that manufacturers place all required markings on the outer tube of the silencer, it stated that the required markings could also be placed on any external part of the silencer, including the end cap, provided the required markings are conspicuous and legible. According to the petitioner, the industry’s response to ATF’s guidance was not favorable: 
There has been an overwhelmingly 
negative response from the members of our 
trade to this particular guidance . . . there is strong policy agreement between ATF and our trade that only the silencer [outer] tube should be marked in accordance with the marking requirements of Parts 478 and 479 of Title 27 of the Code of Federal Regulations. . . . Allowing end caps to be the possible marking location for silencers does constitute a serious public safety issue in the areas of diversion, tracing, and evasion of other NFA rules. 
In addition, the petitioner stated that 
‘‘[w]e have also been further advised 
that the Bureau does not see how they would be able to take any adverse legal action against a person or entity that should decide to mark the end caps of a silencer without promulgating a change in the regulations.’’ 
Accordingly, the petitioner requested 
that the relevant regulations be amended to require that a silencer be marked on the outer tube (as opposed to other locations), unless a variance is granted by the Director on a case-by- case basis for good cause. ATF finds that the petitioner has raised valid concerns and it believes that an amendment of the regulations is warranted. Therefore, based upon the statutory language and the facts as outlined below, ATF seeks to address the marking requirements of silencers to ensure that the serial numbers are placed on the part of the silencer that is least likely to be destroyed or removed, and therefore most likely to ensure that law enforcement are able to identify and trace a particular firearm silencer or firearm muffler. 
III. Discussion 
ATF is requesting information from 
industry members, trade associations, 
consumers, and all other interested parties to determine whether to require placement of identification markings on the outer tube of firearm silencers and firearm mufflers. Along with industry members, ATF considers the term ‘‘outer tube’’ to mean the largest external part of a silencer and is that portion of a silencer which encapsulates all components of the silencing unit and which contains and controls the expansion of the escaping gases. 
As indicated, placing all required 
markings on the outer tube of a completed firearm silencer or firearm muffler is the accepted industry standard. In addition, requiring identification markings to be placed on a single part provides consistency of markings throughout the industry and eliminates the need to remark a device in the event an end cap bearing the markings is damaged and requires replacement. If a silencer is not aligned with the barrel, the end cap might be damaged when a projectile passes through it. Outer tubes are rarely damaged in this way. Such damage often requires replacement of the end cap. Further, end caps are often removable so that processors may access the internal components within the silencer. Permitting serialization of a removable and fungible component may facilitate trafficking or illegal transfer of silencers by permitting registrants to use the serialized end cap of a registered silencer with an otherwise unregistered silencer. 
Although ATF is soliciting comments 
on the following specific questions, it is also requesting any relevant information on the subject. 
1. What percentage of manufacturers 
mark the end cap? If an outer tube is present, why do manufacturers mark the end cap instead of the outer tube of the silencer? 
2. If there is an additional cost (fixed 
or variable) between marking the end cap instead of the outer tube, how would ATF estimate such costs across the entire industry? 
3. Are there other parts or locations 
where the markings may be placed and still meet the requirements? If so, where? 
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4. Are there silencer designs for a 
completed device for which marking the 
outer tube would be impossible? If so, what are those designs? 
5. When there are multiple outer 
tubes that make up one complete device, how should they be marked? 
IV. Statutory and Executive Order 
Review 
This advance notice of proposed 
rulemaking (ANPRM) has been drafted and reviewed in accordance with Executive Order 12866, ‘‘Regulatory Planning and Review,’’ section 1(b), The Principles of Regulation, and in accordance with Executive Order 13563, ‘‘Improving Regulation and Regulatory Review,’’ section 1(b), General Principles of Regulation. 
The Department of Justice has 
determined that this ANPRM is a ‘‘significant regulatory action’’ under Executive Order 12866, section 3(f), and accordingly this ANPRM has been reviewed by the Office of Management and Budget. However, this action does not propose or impose any requirements. The ANPRM is being published to seek information from the public about the feasibility of marking silencer tubes. 
Furthermore, the requirements of 
section 603 of the Regulatory Flexibility Act do not apply to this action because, at this stage, it is an ANPRM and not a ‘‘rule’’ as defined in section 601 of the Regulatory Flexibility Act. Following review of the comments received in response to this ANPRM, if ATF promulgates a notice or notices of proposed rulemaking regarding this matter, ATF will conduct all analyses required by the Regulatory Flexibility Act, Executive Order 12866, and any other statutes or Executive Orders relevant to those rules and in effect at the time of promulgation. 
Public Participation A. Comments Sought 
ATF requests comments on this 
ANPRM from all interested persons. 
ATF specifically requests comments on the clarity of this ANPRM and how easy it is to understand. Additional comments are sought on the costs or benefits of the proposal in this ANPRM and on the appropriate methodology and data for calculating those costs and benefits. 
All comments must reference the 
docket number (ATF 29P), be legible, and include the commenter’s complete first and last name and full mailing address. ATF will not consider, or respond to, comments that do not meet these requirements or comments containing profanity. In addition, if ATF cannot read your comment due to technical difficulties and cannot contact you for clarification, ATF may not be able to consider your comment. 
ATF will carefully consider all 
comments, as appropriate, received on or before the closing date, and will give comments received after that date the same consideration if it is practical to do so, but assurance of consideration cannot be given except as to comments received on or before the closing date. 
ATF will not acknowledge receipt of 
comments. 
B. Confidentiality 
ATF will make all comments meeting 
the requirements of this section 
available for public viewing at ATF and on the Internet as part of the eRulemaking initiative, and subject to the Freedom of Information Act. ATF will not redact personal identifying information that appears within the comment and it will appear on the Internet. 
The commenter should not include 
material that is considered confidential or inappropriate for disclosure to the public. Any person submitting a comment containing confidential material shall specifically designate that portion of the comment that contains material that is confidential under law (e.g., trade secrets, processes). The 
commenter shall place any portion of a comment that is confidential under law on pages separate from the balance of the comment with each page prominently marked ‘‘confidential’’ at the top of the page. 
Confidential information will be 
included in the rulemaking administrative record but will not be disclosed to the public. Any comments containing material that is not confidential under law may be disclosed to the public. In any event, a commenter’s full first and last name and complete mailing address are not exempt from disclosure. 
C. Submitting Comments 
Submit comments in any of three 
ways (but do not submit the same 
comments multiple times or by more than one method). 
•Federal eRulemaking Portal: We 
strongly recommend that you submit your comments to ATF via the Federal eRulemaking portal. Visit http://www.regulations.gov and follow the 
instructions for submitting comments. Comments will be posted within a few days of being submitted. However, if large volumes of comments are being processed simultaneously, your comment may not be viewable for up to several weeks. Please keep the comment tracking number that regulations.gov provides after you have successfully uploaded your comment. 
•Mail: Send written comments to the 
address listed in the 
ADDRESSES section 
of this document. Written comments must appear in minimum 12 point font size (.17 inches), include the commenter’s complete first and last name and full mailing address, be signed, and may be of any length. 
•Facsimile: Submit comments by 
facsimile transmission to (202) 648– 9741. Faxed comments must: 
(1) Be legible and appear in minimum 
12-point font size (.17 inches); 
(2) Be on 8
1⁄2″ x 11″ paper; 
(3) Be signed and contain the 
commenter’s complete first and last name and full mailing address; and 
(4) Be no more than five pages long. 
D. Request for Hearing 
Any interested person who desires an 
opportunity to comment orally at a public hearing should submit his or her request, in writing, to the Director of ATF within the 90-day comment period. The Director, however, reserves the right to determine, in light of all circumstances, whether a public hearing is necessary. 
Disclosure 
Copies of the petition, this advance 
notice, and the comments received will 
be available at http://www.regulations.gov (search for Docket 
No. ATF 29P) and for public inspection by appointment during normal business hours at: ATF Reading Room, Room 1E– 063, 99 New York Avenue NE., Washington, DC 20226; telephone: (202) 648–8740. 
Drafting Information 
The author of this document is 
Shermaine Kenner, Office of Regulatory 
Affairs, Enforcement Programs and Service; Bureau of Alcohol, Tobacco, Firearms, and Explosives. 
List of Subjects 27 CFR Part 478 
Administrative practice and 
procedure, Arms and munitions, 
Customs duties and inspection, Exports, Imports, Intergovernmental relations, Law enforcement officers, Military personnel, Penalties, Reporting and recordkeeping requirements, Research, Seizures and forfeitures, Transportation. 
27 CFR Part 479 
Administrative practice and 
procedure, Arms and munitions, 
Customs duties and inspection, Excise taxes, Exports, Imports, Military 
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personnel, Penalties, Reporting and 
recordkeeping requirements, Seizures and forfeitures, Transportation. 
Authority and Issuance 
This notice is issued under the 
authority of 5 U.S.C. 552(a); 18 U.S.C. 
847, 921–931; and 44 U.S.C. 3504(h). 
Dated: April 28, 2016. 
Thomas E. Brandon, 
Deputy Director. 
[FR Doc. 2016–10382 Filed 5–3–16; 8:45 am] 
BILLING CODE 4410–FY–P 
DEPARTMENT OF HOMELAND 
SECURITY 
Coast Guard 
33 CFR Part 165 
[Docket Number USCG–2016–0267] 
RIN 1625–AA00 
Safety Zone; Tall Ships Challenge 
Great Lakes 2016, Fairport Harbor, OH, Bay City, MI, Chicago, IL, Green Bay, WI, Duluth, MN, Erie, PA 
AGENCY : Coast Guard, DHS. 
ACTION : Notice of proposed rulemaking. 
SUMMARY : The Coast Guard proposes to 
create safety zones around each tall ship visiting the Great Lakes during the Tall Ships Challenge 2016 race series. These safety zones will provide for the regulation of vessel traffic in the vicinity of each tall ship in the navigable waters of the United States. The Coast Guard is taking this action to safeguard participants and spectators from the hazards associated with the limited maneuverability of these tall ships and to ensure public safety during tall ships events. We invite your comments on this proposed rulemaking. 
DATES : Comments and related material 
must be received by the Coast Guard on or before June 3, 2016. 
ADDRESSES : You may submit comments 
identified by docket number USCG– 2016–0267 using the Federal eRulemaking Portal at http://www.regulations.gov. See the ‘‘Public 
Participation and Request for Comments’’ portion of the 
SUPPLEMENTARY INFORMATION section for 
further instructions on submitting comments. 
FOR FURTHER INFORMATION CONTACT : If 
you have questions about this proposed rulemaking, call or email Mark Bobal, Ninth District Inspections and Investigations Branch, Passenger Vessel Safety Specialist, U.S. Coast Guard; telephone 216–902–6052, email Mark.D.Bobal@uscg.mil. 
SUPPLEMENTARY INFORMATION : 
I. Table of Abbreviations 
CFR Code of Federal Regulations 
DHS Department of Homeland Security FR Federal Register NPRM Notice of proposed rulemaking § Section U.S.C. United States Code 
II. Background, Purpose, and Legal 
Basis 
During the Tall Ships Challenge Great 
Lakes 2016, tall ships will be participating in parades and then mooring in the harbors of Fairport Harbor, OH, Bay City, MI, Chicago, IL, Green Bay, WI, Duluth, MN, and Erie, PA. This is a tri-annual event that teaches character building and leadership through sail training. The Tall Ships event seeks to educate the public about both the historical aspects of sailing ships as well as their current use as training vessels for students. Tall ships are large, traditionally-rigged sailing vessels. The event will consist of festivals at each port of call, sail training cruises, tall ship parades, and races between the ports. More information regarding the Tall Ships Challenge 2016 and the participating vessels can be found at http://www.sailtraining.org/tallships/2016greatlakes/TSC2016index.php. 
At 12:01 a.m. July 6, 2016, a safety 
zone will be established around each tall ship participating in this event. The safety zone around each ship will remain in effect as the tall ships travel throughout the Great Lakes. The safety zones will terminate at 12:01 a.m. on September 12, 2016. 
These safety zones are necessary to 
protect the tall ships from potential harm and to protect the public from the hazards associated with the limited maneuverability of tall sailing ships. When operating under sail they require a substantial crew to manually turn the rudder and adjust the sails, therefore they cannot react as quickly as modern ships. Additionally, during parades of sail the tall ships will be following a set course through a crowded harbor, it is imperative that spectator craft stay clear since maneuvering the tall ships to avoid large crowds of spectator craft would not be possible. Due to the high profile nature and extensive publicity associated with this event, each Captain of the Port (COTP) expects a large number of spectators in confined areas adjacent to the tall ships. The combination of large numbers of recreational boaters, congested waterways, boaters crossing commercially transited waterways and 
low maneuverability of the tall ships could easily result in serious injuries or fatalities. Therefore, the Coast Guard will enforce a safety zone around each ship to ensure the safety of both participants and spectators in these areas. The Coast Guard proposes this rulemaking under authority in 33 U.S.C. 1231. 
III. Discussion of Proposed Rule 
The Coast Guard proposes to establish 
safety zones from 12:01 a.m. on July 6, 
2016 until 12:01 a.m. on September 12, 2016. The safety zones would cover all 
navigable waters within 100 yards of a tall ship in the Great Lakes. The duration of the zone is intended to ensure the safety of vessels and these navigable waters during the 2016 Tall Ships Challenge. No vessel or person would be permitted to enter the safety zone without obtaining permission from the COTP or a designated representative. If the tall ships are operating in a confined area such as a small harbor and there is not adequate room for vessels to stay out of the safety zone because of a lack of navigable water, then vessels will be permitted to operate within the safety zone and shall travel at the minimum speed necessary to maintain a safe course. The navigation rules shall apply at all times within the safety zone. The regulatory text we are proposing appears at the end of this document. 
IV. Regulatory Analyses 
We developed this proposed rule after 
considering numerous statutes and 
Executive orders related to rulemaking. Below we summarize our analyses based on a number of these statutes and Executive orders and we discuss First Amendment rights of protestors. 
A. Regulatory Planning and Review 
Executive Orders 12866 and 13563 
direct agencies to assess the costs and 
benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits. Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This NPRM has not been designated a ‘‘significant regulatory action,’’ under Executive Order 12866. Accordingly, the NPRM has not been reviewed by the Office of Management and Budget. 
This regulatory action determination 
is based on the size, location, duration, and time-of-day of the safety zone. Vessel traffic would be able to safely 
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