75492 Federal Register / Vol. 69, No. 242 / Friday, December 17, 2004 / Proposed Rules 

would not have significant economic 

impact on a substantial number of small 

entities under the criteria of the 

Regulatory Flexibility Act.

List of Subjects in 14 CFR Part 71

Airspace, Incorporation by reference, 

Navigation (air).

The Proposed Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

proposes to amend 14 CFR Part 71 as 

follows:

PART 71—[AMENDED] 

1. The authority citation for 14 CFR 

Part 71 continues to read as follows:

Authority: 49 U.S.C. 106(g), 40103, 40113, 

40120; E.O. 10854; 24 FR 9565, 3 CFR, 1959–

1963 Comp., p. 389.

§ 71.1 [Amended] 

2. The incorporation by reference in 

14 CFR 71.1 of Federal Aviation 

Administration Order 7400.9M, dated 

August 30, 2004, and effective 

September 16, 2004, is proposed to be 

amended as follows:

Paragraph 6005 Class E airspace areas 

extending upward from 700 feet or more 

above the surface of the earth.

* * * * *

AEA PA E5 Mifflintown, PA (NEW) 

Mifflintown Airport, Mifflintown, PA 

(Lat. 40°36′04′′ N., long. 77°24′18′′ W.)

That airspace extending upward from 700 

feet above the surface within a 7-mile radius 

of Mifflintown Airport, excluding the portion 

that coincides with the Reedsville, PA, Class 

E airspace area.

* * * * *

Issued in Jamaica, New York, on December 

10, 2004. 

John G. McCartney, 

Staff Manager of Eastern Terminal Area 

Operations.

[FR Doc. 04–27688 Filed 12–16–04; 8:45 am] 

BILLING CODE 4910–13–M

DEPARTMENT OF THE TREASURY

Internal Revenue Service 

26 CFR Part 1 

[REG–129709–03] 

RIN 1545–BC34 

Prohibited Allocations of Securities in 

an S Corporation

AGENCY: Internal Revenue Service (IRS), 

Treasury.

ACTION: Notice of proposed rulemaking 

by cross-reference to temporary 

regulations and notice of public hearing. 

SUMMARY: In the Rules and Regulations 

section of this issue of the Federal 

Register, the IRS is issuing temporary 

regulations that provide guidance on the 

definition and effects of a prohibited 

allocation under section 409(p), 

identification of disqualified persons 

and determination of a nonallocation 

year, calculation of synthetic equity 

under section 409(p)(5), and standards 

for determining whether a transaction is 

an avoidance or evasion of section 

409(p). These proposed regulations 

would generally affect plan sponsors of, 

and participants in, ESOPs holding 

stock of Subchapter S corporations. The 

text of those temporary regulations also 

serves as the text of these proposed 

regulations. This document also 

provides notice of a public hearing on 

these proposed regulations.

DATES: Written or electronic comments 

must be received by March 17, 2005. 

Requests to speak (with outlines of oral 

comments to be discussed) at the public 

hearing scheduled for April 20, 2005, at 

10 a.m. must be received by March 14, 

2005.

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–129709–03), Room 

5203, Internal Revenue Service, POB 

7604, Ben Franklin Station, Washington, 

DC 20044. Submissions may be hand 

delivered Monday through Friday 

between the hours of 8 a.m. and 4 p.m. 

to: CC:PA:LPD:PR (REG–129709–03), 

Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue, 

NW., Washington, DC. Alternatively, 

taxpayers may submit comments 

electronically via the IRS Internet site at 

http://www.irs.gov/regs or the Federal 

eRulemaking Portal at http://

www.regulations.gov (indicate IRS and 

REG–129703–03).

FOR FURTHER INFORMATION CONTACT:

Concerning the proposed regulations, 

John Ricotta at (202) 622–6060; 

concerning submissions of comments, 

contact Guy Traynor at (202) 622–7180 

(not toll-free numbers).

SUPPLEMENTARY INFORMATION: 

Background 

Temporary regulations in the Rules 

and Regulations portion of this issue of 

the Federal Register amend the Income 

Tax Regulations (26 CFR part 1) relating 

to section 409(p). The temporary 

regulations contain rules relating to the 

definition and effects of a prohibited 

allocation under section 409(p), 

identification of disqualified persons 

and determination of a nonallocation 

year, calculation of synthetic equity 

under section 409(p)(5), and standards 

for determining whether a transaction is 

an avoidance or evasion of section 

409(p). The text of those temporary 

regulations also serves as the text of 

these proposed regulations. The 

preamble to the temporary regulations 

explains the temporary regulations.

Special Analyses 

It has been determined that this notice 

of proposed rulemaking is not a 

significant regulatory action as defined 

in Executive Order 12866. Therefore, a 

regulatory 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. Because § 1.409(p)–

1 imposes no new collection of 

information on small entities, a 

Regulatory Flexibility Analysis under 

the Regulatory Flexibility Act (5 U.S.C. 

chapter 6) is not required. Pursuant to 

section 7805(f) of the Internal Revenue 

Code, this notice of proposed 

rulemaking will be submitted to the 

Chief Counsel for Advocacy of the Small 

Business Administration for comment 

on its impact on small business. 

Comments and Requests for a Public 

Hearing 

Before these proposed regulations are 

adopted as final regulations, 

consideration will be given to any 

written (a signed original and 8 copies) 

or electronic comments that are 

submitted timely to the IRS. All 

comments will be available for public 

inspection and copying. 

A public hearing has been scheduled 

for April 20, 2005, at 10 a.m. in the IRS 

Auditorium, Internal Revenue Building, 

1111 Constitution Avenue NW., 

Washington, DC. All visitors must 

present photo identification to enter the 

building. Because of access restrictions, 

visitors will not be admitted beyond the 

immediate entrance area more than 30 

minutes before the hearing starts at the 

Constitution Avenue entrance. For 

information about having your name 

placed on the building access list to 

attend the hearing, see the FOR FURTHER

INFORMATION CONTACT section of this 

preamble. 

The rules of 26 CFR 601.601(a)(3) 

apply to the hearing. Persons who wish 

to present oral comments at the hearing 

must submit written comments and an 

outline of the topics to be discussed and 

the time to be devoted to each topic 

(signed original and eight (8) copies) by 

March 14, 2005. A period of 10 minutes 

will be allotted to each person for 

making comments. An agenda showing 

the scheduling of the speakers will be 

prepared after the deadline for receiving 

outlines has passed. Copies of the 

agenda will be available free of charge 

at the hearing. 

Federal Register / Vol. 69, No. 242 / Friday, December 17, 2004 / Proposed Rules 75493

Drafting Information 

The principal author of these 

regulations is John Ricotta of the Office 

of the Division Counsel/Associate Chief 

Counsel (Tax Exempt and Government 

Entities). However, other personnel 

from the IRS and Treasury participated 

in their development.

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements.

Proposed Amendments to the 

Regulations 

Accordingly, 26 CFR part 1 is 

proposed to be amended as follows:

PART 1—INCOME TAXES 

Paragraph 1. The authority citation for 

part 1 is amended by adding an entry in 

numerical order to read, in part, as 

follows:

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

Section 1.409(p)–1 also issued under 26 

U.S.C. 409(p)(7)(A). * * *

Par. 2. Section 1.409(p)–1 is added to 

read as follows:

§ 1.409(p)–1 Prohibited allocation of 

securities in an S corporation.

[The text of proposed § 1.409(p)–1 is the 

same as the text of § 1.409(p)–1T published 

elsewhere in this issue of the Federal 

Register].

Mark E. Matthews, 

Deputy Commissioner for Services and 

Enforcement.

[FR Doc. 04–27295 Filed 12–16–04; 8:45 am] 

BILLING CODE 4830–01–P

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 117 

[CGD01–04–126] 

RIN 1625–AA09 

Drawbridge Operation Regulations; 

Cheesequake Creek, NJ.

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Coast Guard proposes to 

change the drawbridge operating 

regulations governing the operation of 

the S35 Bridge, mile 0.0, across 

Cheesequake Creek at Morgan, South 

Amboy, New Jersey. This proposed rule 

would allow the bridge to open on the 

hour only from 7 a.m. to 8 p.m., May 1 

through October 30. In addition, this 

proposed rule would also allow the 

bridge owner to require a 4-hour 

advance notice for openings from 11 

p.m. to 7 a.m., all year, and all day from 

November 1 through April 30. This rule 

is expected to relieve the bridge owner 

of the burden of crewing the bridge at 

all times while still providing for the 

reasonable needs of navigation.

DATES: Comments must reach the Coast 

Guard on or before February 15, 2005.

ADDRESSES: You may mail comments 

and related material to Commander 

(obr), First Coast Guard District Bridge 

Branch, One South Street, Battery Park 

Building, New York, New York 10004, 

or deliver them to the same address 

between 7 a.m. and 3 p.m., Monday 

through Friday, except Federal holidays. 

The telephone number is (212) 668–

7165. The First Coast Guard District, 

Bridge Branch, maintains the public 

docket for this rulemaking. Comments 

and material received from the public, 

as well as documents indicated in this 

preamble as being available in the 

docket, will become part of this docket 

and will be available for inspection or 

copying at the First Coast Guard 

District, Bridge Branch, 7 a.m. to 3 p.m., 

Monday through Friday, except Federal 

holidays.

FOR FURTHER INFORMATION CONTACT: Joe 

Arca, Project Officer, First Coast Guard 

District, (212) 668–7069.

SUPPLEMENTARY INFORMATION: 

Request for Comments 

We encourage you to participate in 

this rulemaking by submitting 

comments or related material. If you do 

so, please include your name and 

address, identify the docket number for 

this rulemaking (CGD01–04–126), 

indicate the specific section of this 

document to which each comment 

applies, and give the reason for each 

comment. Please submit all comments 

and related material in an unbound 

format, no larger than 81⁄2 by 11 inches, 

suitable for copying. If you would like 

to know if they reached us, please 

enclose a stamped, self-addressed 

postcard or envelope. We will consider 

all comments and material received 

during the comment period. We may 

change this proposed rule in view of 

them. 

Public Meeting 

We do not now plan to hold a public 

meeting. But you may submit a request 

for a meeting by writing to the First 

Coast Guard District, Bridge Branch, at 

the address under ADDRESSES explaining 

why one would be beneficial. If we 

determine that one would aid this 

rulemaking, we will hold one at a time 

and place announced by a later notice 

in the Federal Register. 

Background and Purpose 

The S35 Bridge has a vertical 

clearance of 25 feet at mean high water 

and 30 feet at mean low water in the 

closed position. The existing 

drawbridge operation regulations listed 

at 33 CFR 117.709(a), require the bridge 

to open on signal; except that, from May 

15 through October 15 from 7 a.m. to 7 

p.m., the draw need only open on the 

hour. From December 1 through March 

31 from 11 p.m. to 7 a.m., the draw need 

not be opened for the passage of vessels. 

Cheesequake Creek is navigated 

predominately by small recreational 

vessels between April and November 

only. The bridge seldom opens during 

the winter months December through 

March.

The bridge owner, New Jersey 

Department of Transportation (NJDOT), 

requested that the drawbridge operation 

regulations for the S35 Bridge be 

changed to allow the bridge to open 

only on the hour 7 a.m. to 8 p.m., from 

May 1 through October 31. The hourly 

openings are currently in effect from 7 

a.m. to 7 p.m. from May 15 through 

October 15. 

In addition, this proposal would also 

allow the bridge owner to require a 4-

hour advance notice for bridge openings 

from 11 p.m. to 7 a.m., all year round, 

and all day from November 1 through 

April 30. 

Discussion of Proposal 

This proposed rule would amend 33 

CFR 117.709 by revising paragraph (a) 

extending the hourly bridge opening 

time period by 1 hour each day from 

May 1 through October 31. In addition, 

this proposed rule would allow the 

bridge owner to require a 4-hour 

advance notice for bridge openings from 

11 p.m. to 7 a.m., all year round and all 

day from November 1 through April 30. 

Regulatory Evaluation 

This proposed rule is not a 

‘‘significant regulatory action’’ under 

section 3(f) of Executive Order 12866, 

Regulatory Planning and Review, and 

does not require an assessment of 

potential costs and benefits under 

6(a)(3) of that Order. The Office of 

Management and Budget has not 

reviewed it under that Order. It is not 

‘‘significant’’ under the regulatory 

policies and procedures of the 

Department of Homeland Security. 

We expect the economic impact of 

this proposed rule to be so minimal that 

a full Regulatory Evaluation, under the 

regulatory policies and procedures of 

DHS, is unnecessary.