70940 Federal Register / Vol. 81, No. 199 / Friday, October 14, 2016 / Rules and Regulations 

in areas located throughout the United 

States, including Texas and Louisiana. 

Special Analyses 

Certain IRS regulations, including 

these, are exempt from the requirements 

of Executive Order 12866, as 

supplemented and reaffirmed by 

Executive Order 13563. Therefore, a 

regulatory impact assessment is not 

required. It also has been determined 

that section 553(b) of the Administrative 

Procedure Act (5 U.S.C. chapter 5) does 

not apply to these regulations. For 

applicability of the Regulatory 

Flexibility Act (5 U.S.C. chapter 6), 

please refer to the cross-referencing 

notice of proposed rulemaking 

published in the Proposed Rules section 

in this issue of the Federal Register. 

Pursuant to section 7805(f) of the Code, 

these temporary regulations will be 

submitted to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on their 

impact on small business. 

Drafting Information 

The principal authors of these 

regulations are Daniel Cassano and 

Christopher Wrobel of the Office of the 

Associate Chief Counsel (Income Tax & 

Accounting). However, other personnel 

from the Treasury Department and the 

IRS participated in their development. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Amendments to the Regulations 

Accordingly, 26 CFR part 1 is 

amended as follows: 

PART 1— INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 continues to read in part as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

■ Par. 2. Section 1.165–11 is revised to 

read as follows: 

§ 1.165–11 Election in respect of losses 

attributable to a disaster. 

(a) through (j) [Reserved]. For further 

guidance, see § 1.165–11T(a) through (j). 

■ Par. 3. Section 1.165–11T is added to 

read as follows: 

§ 1.165–11T Election to take disaster loss 

deduction for preceding year (temporary). 

(a) In general. Section 165(i) allows a 

taxpayer who has sustained a loss 

attributable to a federally declared 

disaster in a taxable year to elect to 

deduct that disaster loss in the 

preceding year. This section provides 

rules and procedures for making and 

revoking an election to claim a disaster 

loss in the preceding year. 

(b) Definitions. The following 

definitions apply for purposes of this 

section: 

(1) A federally declared disaster 

means any disaster subsequently 

determined by the President of the 

United States to warrant assistance by 

the Federal Government under the 

Robert T. Stafford Disaster Relief and 

Emergency Assistance Act or a 

successor enactment. 

(2) A federally declared disaster area 

is the area determined to be eligible for 

assistance pursuant to the Presidential 

declaration in paragraph (b)(1) of this 

section. 

(3) A disaster loss is a loss occurring 

in a federally declared disaster area that 

is attributable to a federally declared 

disaster and that is otherwise allowable 

as a deduction for the disaster year 

under section 165(a) and §§ 1.165–1 

through 1.165–10. 

(4) The disaster year is the taxable 

year in which a taxpayer sustains a loss 

attributable to a federally declared 

disaster. 

(5) The preceding year is the taxable 

year immediately prior to the disaster 

year. 

(c) Scope and effect of election. An 

election made pursuant to section 165(i) 

for a disaster loss attributable to a 

particular disaster applies to the entire 

loss sustained by the taxpayer from that 

disaster during the disaster year. If the 

taxpayer makes a section 165(i) election 

with respect to a particular disaster 

occurring during the disaster year, the 

disaster to which the election relates is 

deemed to have occurred, and the 

disaster loss to which the election 

applies is deemed to have been 

sustained, in the preceding year. 

(d) Requirement to file consistent 

returns. A taxpayer may not make a 

section 165(i) election for a disaster loss 

if the taxpayer claims a deduction (as a 

loss, as cost of goods sold, or otherwise) 

for the same loss for the disaster year. 

If a taxpayer has claimed a deduction 

for a disaster loss for the disaster year 

and the taxpayer wishes to make a 

section 165(i) election with respect to 

such loss, the taxpayer must file an 

amended return to remove the 

previously deducted loss on or before 

the date that the taxpayer makes the 

section 165(i) election for such loss. 

Similarly, if a taxpayer has claimed a 

deduction for a disaster loss for the 

preceding year based on a section 165(i) 

election and the taxpayer wishes to 

revoke that election, the taxpayer must 

file an amended return to remove the 

loss for the preceding year on or before 

the date the taxpayer files the return or 

amended return for the disaster year 

that includes the loss. 

(e) Manner of making election. An 

election under section 165(i) to deduct 

a disaster loss for the preceding year is 

made on an original federal tax return 

for the preceding year or an amended 

federal tax return for the preceding year 

in the manner specified by guidance 

issued pursuant to these regulations. 

See paragraph (h) of this section. 

(f) Due date for making election. The 

due date for making the section 165(i) 

election is six months after the due date 

for filing the taxpayer’s federal income 

tax return for the disaster year 

(determined without regard to any 

extension of time to file). 

(g) Revocation. Subject to the 

requirements in paragraph (d) of this 

section, a section 165(i) election may be 

revoked on or before the date that is 

ninety (90) days after the due date for 

making the election. 

(h) Additional guidance. The time and 

manner for making and revoking a 

section 165(i) election under paragraphs 

(d), (e), (f), and (g) of this section may 

be modified through guidance 

published in the Federal Register or in 

the Internal Revenue Bulletin (see 

§ 601.601(d) of this chapter). 

(i) Effective/applicability date. This 

section is effective October 13, 2016 and 

applies to elections, revocations, and 

any other related actions that can be 

made or taken on or after October 13, 

2016. 

(j) Expiration date. The section 

expires October 13, 2019. 

John Dalrymple, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: September 19, 2016. 

Mark J. Mazur, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 2016–24664 Filed 10–13–16; 8:45 am] 

BILLING CODE 4830–01–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Part 4022 

Benefits Payable in Terminated SingleEmployer Plans; Interest Assumptions 

for Paying Benefits 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Final rule. 

SUMMARY: This final rule amends the 

Pension Benefit Guaranty Corporation’s 

regulation on Benefits Payable in 

Terminated Single-Employer Plans to 


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Federal Register / Vol. 81, No. 199 / Friday, October 14, 2016 / Rules and Regulations 70941 

1Appendix B to PBGC’s regulation on Allocation 

of Assets in Single-Employer Plans (29 CFR part 

4044) prescribes interest assumptions for valuing 

benefits under terminating covered single-employer 

plans for purposes of allocation of assets under 

ERISA section 4044. Those assumptions are 

updated quarterly. 

prescribe interest assumptions under 

the regulation for valuation dates in 

November 2016. The interest 

assumptions are used for paying 

benefits under terminating singleemployer plans covered by the pension 

insurance system administered by 

PBGC. 

DATES: Effective November 1, 2016. 

FOR FURTHER INFORMATION CONTACT: 

Deborah C. Murphy (Murphy.Deborah@

pbgc.gov), Assistant General Counsel for 

Regulatory Affairs, Pension Benefit 

Guaranty Corporation, 1200 K Street 

NW., Washington, DC 20005, 202–326– 

4400 ext. 3451. (TTY/TDD users may 

call the Federal relay service toll-free at 

1–800–877–8339 and ask to be 

connected to 202–326–4400 ext. 3451.) 

SUPPLEMENTARY INFORMATION: PBGC’s 

regulation on Benefits Payable in 

Terminated Single-Employer Plans (29 

CFR part 4022) prescribes actuarial 

assumptions—including interest 

assumptions—for paying plan benefits 

under terminating single-employer 

plans covered by title IV of the 

Employee Retirement Income Security 

Act of 1974. The interest assumptions in 

the regulation are also published on 

PBGC’s Web site (http://www.pbgc.gov). 

PBGC uses the interest assumptions in 

Appendix B to Part 4022 to determine 

whether a benefit is payable as a lump 

sum and to determine the amount to 

pay. Appendix C to Part 4022 contains 

interest assumptions for private-sector 

pension practitioners to refer to if they 

wish to use lump-sum interest rates 

determined using PBGC’s historical 

methodology. Currently, the rates in 

Appendices B and C of the benefit 

payment regulation are the same. 

The interest assumptions are intended 

to reflect current conditions in the 

financial and annuity markets. 

Assumptions under the benefit 

payments regulation are updated 

monthly. This final rule updates the 

benefit payments interest assumptions 

for November 2016.1

The November 2016 interest 

assumptions under the benefit payments 

regulation will be 0.50 percent for the 

period during which a benefit is in pay 

status and 4.00 percent during any years 

preceding the benefit’s placement in pay 

status. In comparison with the interest 

assumptions in effect for October 2016, 

these interest assumptions are 

unchanged. 

PBGC has determined that notice and 

public comment on this amendment are 

impracticable and contrary to the public 

interest. This finding is based on the 

need to determine and issue new 

interest assumptions promptly so that 

the assumptions can reflect current 

market conditions as accurately as 

possible. 

Because of the need to provide 

immediate guidance for the payment of 

benefits under plans with valuation 

dates during November 2016, PBGC 

finds that good cause exists for making 

the assumptions set forth in this 

amendment effective less than 30 days 

after publication. 

PBGC has determined that this action 

is not a ‘‘significant regulatory action’’ 

under the criteria set forth in Executive 

Order 12866. 

Because no general notice of proposed 

rulemaking is required for this 

amendment, the Regulatory Flexibility 

Act of 1980 does not apply. See 5 U.S.C. 

601(2). 

List of Subjects in 29 CFR Part 4022 

Employee benefit plans, Pension 

insurance, Pensions, Reporting and 

recordkeeping requirements. 

In consideration of the foregoing, 29 

CFR part 4022 is amended as follows: 

PART 4022—BENEFITS PAYABLE IN 

TERMINATED SINGLE–EMPLOYER 

PLANS 

■ 1. The authority citation for part 4022 

continues to read as follows: 

Authority: 29 U.S.C. 1302, 1322, 1322b, 

1341(c)(3)(D), and 1344. 

■ 2. In appendix B to part 4022, Rate Set 

277 is added to the table to read as 

follows: 

Appendix B to Part 4022—Lump Sum 

Interest Rates For PBGC Payments 

* * * * * 

Rate set 

For plans with a valuation 

date 

Immediate 

annuity 

rate 

(percent) 

Deferred annuities (percent) 

On or after Before i1 i2 i3 n1 n2

*******

277 11–1–16 12–1–16 0.50 4.00 4.00 4.00 7 8 

■ 3. In appendix C to part 4022, Rate Set 

277 is added to the table to read as 

follows: 

Appendix C to Part 4022—Lump Sum 

Interest Rates for Private-Sector 

Payments 

* * * * * 

Rate set 

For plans with a valuation 

date 

Immediate 

annuity 

rate 

(percent) 

Deferred annuities (percent) 

On or after Before i1 i2 i3 n1 n2

*******

277 11–1–16 12–1–16 0.50 4.00 4.00 4.00 7 8 


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70942 Federal Register / Vol. 81, No. 199 / Friday, October 14, 2016 / Rules and Regulations 

Judith Starr, 

General Counsel, Pension Benefit Guaranty 

Corporation. 

[FR Doc. 2016–24811 Filed 10–13–16; 8:45 am] 

BILLING CODE 7709–02–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket Number USCG–2016–0154] 

RIN 1625–AA00 

Safety Zones; San Francisco, CA 

AGENCY: Coast Guard, DHS. 

ACTION: Final rule. 

SUMMARY: The Coast Guard is amending 

several permanent safety zones located 

in the Captain of the Port San Francisco 

zone that are established to protect 

public safety during annual firework 

displays. These amendments are 

necessary to update listed events to 

accurately reflect the firework display 

locations. This regulation prohibits the 

movement of vessels within the 

established firework display areas 

unless authorized by the Captain of the 

Port (COTP) San Francisco or a 

designated representative. 

DATES: This rule is effective November 

14, 2016. 

ADDRESSES: To view documents 

mentioned in this preamble as being 

available in the docket, go to http://

www.regulations.gov, type USCG–2016– 

0154 in the ‘‘SEARCH’’ box and click 

‘‘SEARCH.’’ Click on Open Docket 

Folder on the line associated with this 

rule. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call or 

email Lieutenant Junior Grade Christina 

Ramirez, U.S. Coast Guard Sector San 

Francisco; telephone 415–399–3585, 

email D11-PF-MarineEvents@uscg.mil. 

SUPPLEMENTARY INFORMATION: 

I. Table of Abbreviations 

CFR Code of Federal Regulations 

COTP Captain of the Port 

DHS Department of Homeland Security 

FR Federal Register 

NPRM Notice of proposed rulemaking 

§ Section 

U.S.C. United States Code 

II. Background Information and 

Regulatory History 

On April 19, 2016 we published a 

notice of proposed rulemaking (NPRM) 

entitled Safety Zones; San Francisco, 

CA, in the Federal Register (81 FR 

22946), to amend several permanent 

safety zones located in the Captain of 

the Port San Francisco zone that are 

established to protect public safety 

during annual firework displays. There 

we stated why we issued the NPRM, 

and invited comments on our proposed 

regulatory action related to the amended 

fireworks safety zones. We received no 

comments on the NPRM nor did we 

receive a request for public meeting. A 

public meeting was not held. 

III. Legal Authority and Need for Rule 

The Coast Guard is issuing this rule 

under authority in 33 U.S.C. 1231. The 

Captain of the Port San Francisco 

(COTP) has determined that potential 

hazards associated with the current 

outdated fireworks locations, if not 

updated, pose safety concerns for event 

crew, spectators, participants of the 

event, participating vessels, and other 

users and vessels of the waterway. 

IV. Discussion of Comments, Changes, 

and the Rule 

As noted above, we received no 

comments on our NPRM published on 

April 19, 2016. There are no changes in 

the regulatory text of this rule from the 

proposed rule in the NPRM. 

This rule amends Table 1 in 

§ 165.1191 to update three events to 

reflect the current event locations. 

These events are listed numerically in 

Table 1 of this section: (7), (8), (22). 

V. Regulatory Analyses 

We developed this 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 each safety zone. 

Vessel traffic would be able to safely 

transit around each safety zone which 

would impact a small designated area of 

the COTP San Francisco zone for less 

than 1 hour during the evening when 

vessel traffic is normally low. Moreover, 

the Coast Guard would issue a Local 

Notice to Mariner and Broadcast Notice 

to Mariners via VHF–FM marine 

channel 16 about the zone, and the rule 

would allow vessels to seek permission 

to enter the zones. 

B. Impact on Small Entities 

The Regulatory Flexibility Act of 

1980, 5 U.S.C. 601–612, as amended, 

requires Federal agencies to consider 

the potential impact of regulations on 

small entities during rulemaking. The 

term ‘‘small entities’’ comprises small 

businesses, not-for-profit organizations 

that are independently owned and 

operated and are not dominant in their 

fields, and governmental jurisdictions 

with populations of less than 50,000. 

The Coast Guard certifies under 5 U.S.C. 

605(b) that this rule would not have a 

significant economic impact on a 

substantial number of small entities. 

While some owners or operators of 

vessels intending to transit the safety 

zone may be small entities, for the 

reasons stated in section V.A above this 

rule would not have a significant 

economic impact on any vessel owner 

or operator. 

If you think that your business, 

organization, or governmental 

jurisdiction qualifies as a small entity 

and that this rule would have a 

significant economic impact on it, 

please submit a comment (see 

ADDRESSES) explaining why you think it 

qualifies and how and to what degree 

this rule would economically affect it. 

Under section 213(a) of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 (Pub. L. 104–121), 

we want to assist small entities in 

understanding this rule. If the rule 

would affect your small business, 

organization, or governmental 

jurisdiction and you have questions 

concerning its provisions or options for 

compliance, please contact the person 

listed in the FOR FURTHER INFORMATION

CONTACT section. The Coast Guard will 

not retaliate against small entities that 

question or complain about this rule or 

any policy or action of the Coast Guard. 

C. Collection of Information 

This rule would not call for a new 

collection of information under the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3501–3520). 

D. Federalism and Indian Tribal 

Governments 

A rule has implications for federalism 

under Executive Order 13132, 


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