76632 Federal Register / Vol. 69, No. 245 / Wednesday, December 22, 2004 / Proposed Rules 

services to collect and forward 

employee contributions to a trade 

association’s SSF on the one hand, and 

providing incidental services to collect 

and forward employee contributions to 

a labor organization’s SSF on the other 

hand, is in the area of reimbursement. 

The proposed rule would not require a 

trade association or its SSF to reimburse 

the corporation for any actual expenses 

that the corporation incurs in providing 

the incidental services. As the 

Commission has stated previously, 

‘‘incidental services by corporate 

members would not require 

reimbursement by the trade association 

since, in any event, reimbursement if 

required would come from membership 

dues paid to the trade association by its 

corporate members.’’ Advisory Opinion 

1979–8 at 2, citing to Federal Election 

Regulations, Explanation and 

Justification, House Document No. 95–

44, page 114. See also Advisory Opinion 

1978–13. 

A labor organization or its SSF that 

receives incidental services from a 

corporate employer of members of the 

labor organization, by contrast, would 

be required to reimburse the corporation 

for the cost of providing those services. 

The Commission has previously found 

that a prohibited corporate contribution 

would result from a failure by a labor 

organization to reimburse a corporation 

for actual expenses incurred by the 

corporation in providing a payroll 

deduction or check-off system for 

contributions to the labor organization’s 

SSF. See Advisory Opinions 1981–39 

and 1979–21. The Commission invites 

public comments on this issue. 

2. Proposed Changes to 11 CFR 114.2(f) 

The Commission proposes making a 

conforming change to the regulation that 

currently prohibits a corporation from 

facilitating the making of contributions 

to political committees, other than to 

the corporation’s own SSF. See 11 CFR 

114.2(f)(1). The term ‘‘facilitation’’

means using corporate resources or 

facilities to engage in fundraising 

activities in connection with any federal 

election. Id. Facilitation does not 

include, however, enrollment by a 

corporation or labor organization of 

members of the corporation’s or labor 

organization’s restricted class in a 

payroll deduction plan or check-off 

system to make contributions to the 

corporation’s or labor organization’s 

SSF. See 11 CFR 114.2(f)(4)(i). 

The Commission proposes adding a 

new paragraph (5) to 11 CFR 114.2(f), to 

specify that facilitation also would not 

include the provision of incidental 

services by a corporation to collect and 

forward voluntary contributions from its 

restricted class employees to the SSF of 

a trade association of which the 

corporation is a member, pursuant to 11 

CFR 114.8(e)(4), as revised. The new 

paragraph would state that a corporation 

could collect the contributions through 

a payroll deduction or check-off system. 

The Commission invites public 

comments on this proposal. 

Certification of No Effect Pursuant to 5 

U.S.C. 605(b) (Regulatory Flexibility 

Act) 

The attached proposed rules, if 

promulgated, would not have a 

significant economic impact on a 

substantial number of small entities. 

The basis for this certification is that the 

proposed rules permit, but do not 

require, a corporation to provide 

incidental services to collect and 

forward contributions from its restricted 

class employees to the separate 

segregated fund of a trade association of 

which the corporation is a member, 

including the use of a payroll deduction 

or check-off system. Under current law, 

a corporation is permitted to collect and 

transmit contributions manually to the 

SSF of a trade association to which the 

corporation belongs. If promulgated, the 

proposed rule should enable those 

corporations that wish to transmit 

employee contributions to trade 

association SSFs to do so more 

efficiently and using fewer resources.

List of Subjects in 11 CFR Part 114 

Business and industry, elections, 

labor.

For the reasons set out in the 

preamble, the Federal Election 

Commission proposes to amend 

subchapter A of chapter 1 of title 11 of 

the Code of Federal Regulations as 

follows:

PART 114—CORPORATE AND LABOR 

ORGANIZATION ACTIVITY 

1. The authority citation for part 114 

continues to read as follows:

Authority: 2 U.S.C. 431(8)(B), 431(9)(B), 

432, 434, 437d(a)(8), 441b.

2. Amend § 114.2 by adding new 

paragraph (f)(5), to read as follows:

§ 114.2 Prohibitions on contributions and 

expenditures.

* * * * *

(f) * * * 

(5) Facilitating the making of 

contributions also does not include the 

provision of incidental services by a 

corporation to collect and forward 

contributions from its employee 

stockholders and executive and 

administrative personnel to the separate 

segregated fund of a trade association of 

which the corporation is a member, 

including collection through a payroll 

deduction or check-off system, pursuant 

to 11 CFR 114.8(e)(4). 

3. Amend § 114.8 by revising 

paragraph (e)(3), by redesignating 

paragraph (e)(4) as new paragraph (e)(5), 

and by adding a new paragraph (e)(4) to 

read as follows:

§ 114.8 Trade associations.

* * * * *

(e) * * * 

(3) There is no limitation on the 

method of soliciting voluntary 

contributions or the method of 

facilitating the making of voluntary 

contributions which a trade association 

may use. 

(4) A corporation may provide 

incidental services to collect and 

forward contributions from its employee 

stockholders and executive and 

administrative personnel to the separate 

segregated fund of a trade association of 

which the corporation is a member, 

including a payroll deduction or checkoff system, upon written request of the 

trade association. Any corporation that 

provides such services shall make those 

services available to a labor organization 

representing any members working for 

the corporation, upon written request of 

the labor organization and at a cost 

sufficient only to reimburse the 

corporation for the expenses incurred 

thereby.

* * * * *

Dated: December 17, 2004. 

Bradley A. Smith, 

Chairman, Federal Election Commission.

[FR Doc. 04–27971 Filed 12–21–04; 8:45 am] 

BILLING CODE 6715–01–P

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. 93–ANE–07–AD] 

RIN 2120–AA64 

Airworthiness Directives; Teledyne 

Continental Motors (Formerly Bendix) 

S–20, S–1200, D–2000, and D–3000 

Series Magnetos

AGENCY: Federal Aviation 

Administration (FAA), DOT.

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: The FAA proposes to 

supersede an existing airworthiness 

directive (AD) for Teledyne Continental

Federal Register / Vol. 69, No. 245 / Wednesday, December 22, 2004 / Proposed Rules 76633

Motors (TCM) (formerly Bendix) S–20, 

S–1200, D–2000, and D–3000 series 

magnetos equipped with impulse 

couplings. That AD currently requires 

replacing riveted-impulse coupling 

assemblies, which are worn beyond 

limits, with serviceable riveted-impulse 

couplings or snap-ring impulse 

couplings. This proposed AD would 

require a reduced inspection interval for 

magnetos with riveted-impulse 

couplings installed on certain Lycoming 

engine models. The proposed AD would 

not lower the inspection interval for 

magnetos with snap-ring impulse 

couplings. This proposed AD would 

also limit the Applicability to certain 

Lycoming engine models. This proposed 

AD results from data provided by the 

manufacturer that shows a need to 

reduce the inspection intervals for 

riveted-impulse couplings used on 

certain Lycoming engine models. We are 

proposing this AD to prevent failure of 

the magneto impulse coupling and 

possible engine failure.

DATES: We must receive any comments 

on this proposed AD by February 22, 

2005.

ADDRESSES: Use one of the following 

addresses to comment on this proposed 

AD: 

• By mail: Federal Aviation 

Administration (FAA), New England 

Region, Office of the Regional Counsel, 

Attention: Rules Docket No. 93–ANE–

07–AD, 12 New England Executive Park, 

Burlington, MA 01803–5299. 

• By fax: (781) 238–7055. 

• By e-mail: 9–ane–

adcomment@faa.gov

You can get the service information 

identified in this proposed AD from 

Teledyne Continental Motors, P.O. Box 

90, Mobile, AL 36601; telephone (334) 

438–3411. 

You may examine the AD docket, by 

appointment, at the FAA, New England 

Region, Office of the Regional Counsel, 

12 New England Executive Park, 

Burlington, MA.

FOR FURTHER INFORMATION CONTACT: Jerry 

Robinette, Senior Aerospace Engineer, 

Propulsion, Atlanta Certification Office, 

FAA, Small Airplane Directorate, 1 

Crown Center, 1895 Phoenix Blvd., 

Suite 450, Atlanta, GA, 30349; 

telephone (770) 703–6096, fax (770) 

703–6097.

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite you to provide any written 

relevant data, views, or arguments on 

this proposal. Send your comments to 

an address listed under ADDRESSES.

Include ‘‘AD Docket No. 93–ANE–07–

AD’’ in the subject line of your 

comments. If you want us to 

acknowledge receipt of your mailed 

comments, send us a self-addressed, 

stamped postcard with the docket 

number written on it; we will datestamp your postcard and mail it back to 

you. We specifically invite comments 

on the overall regulatory, economic, 

environmental, and energy aspects of 

the proposed AD. If a person contacts us 

verbally, and that contact relates to a 

substantive part of this proposed AD, 

we will summarize the contact and 

place the summary in the docket. We 

will consider all comments received by 

the closing date and may amend the 

proposed AD in light of those 

comments. 

Examining the AD Docket 

You may examine the AD Docket 

(including any comments and service 

information), by appointment, between 

8 a.m. and 4:30 p.m., Monday through 

Friday, except Federal holidays. See

ADDRESSES for the location. 

Discussion 

On May 29, 1996, the FAA issued AD 

96–12–07, Amendment 39–9649 (61 FR 

29934, June 13, 1996). That AD requires: 

• An initial inspection of riveted and 

snap-ring impulse couplings before 

accumulating 500 hours time-since-new 

or overhauled (TSN) or time-since-last 

inspection (TSLI) on impulse couplings 

that have fewer than 450 hours TSN or 

TSLI on the effective date of that AD. 

• An initial inspection of riveted and 

snap-ring impulse couplings before 

accumulating 50 hours time-in-service 

(TIS) after the effective date of that AD 

on impulse couplings that have 450 or 

more hours TSN or TSLI on the effective 

date of that AD. 

• Repetitive inspections within 500 

hours TSLI. 

• Replacing impulse couplings that 

fail the inspection.

That AD was the result of redesigning 

the impulse coupling assembly to 

include snap-ring fastening technology, 

which strengthens the cam axle and 

reduces wear and reports of impulse 

couplings with the snap-ring design that 

were worn beyond limits. That 

condition, if not corrected, could result 

in failure of the magneto impulse 

coupling and possible engine failure. 

Actions Since AD 96–12–07 Was Issued 

Since we issued that AD, the 

manufacturer has added procedures and 

requirements for inspecting impulse 

couplings that have snap rings to the 

applicable Service Support Documents. 

Relevant Service Information 

We have reviewed and approved the 

technical contents of TCM Mandatory 

Service Bulletin (MSB) MSB645, dated 

April 4, 1994, that describes procedures 

for: 

• Inspecting the impulse coupling 

assemblies for wear and, if necessary, 

replacing the riveted assembly with a 

snap-ring impulse coupling, and 

• Marking the magneto data plate 

with a letter ‘‘A’’ after installing a snapring impulse coupling. 

FAA’s Determination and Requirements 

of the Proposed AD 

We have evaluated all pertinent 

information and identified an unsafe 

condition that is likely to exist or 

develop on other products of this same 

type design. Therefore, we are 

proposing this AD, which would 

require: 

• An initial visual inspection of 

riveted-impulse couplings that have 100 

or more hours TSN or TSLI on the 

effective date of the proposed AD, 

within 10 hours TIS after the effective 

date of this AD, or 

• An initial visual inspection of 

riveted-impulse couplings that have 

fewer than 100 hours TSN or TSLI on 

the effective date of the proposed AD, 

before accumulating 100 hours TSN or 

TSLI, and 

• Repetitive inspections of rivetedimpulse couplings within intervals of 

100 hours TSLI. 

• An initial visual inspection of snapring impulse couplings that have 450 or 

more hours TSN or TSLI on the effective 

date of the proposed AD, within 50 

hours TIS after the effective date of the 

AD, or 

• An initial visual inspection of snapring impulse couplings that have fewer 

than 450 hours TSN or TSLI before 

accumulating 500 hours TSN or TSLI, 

and 

• Repetitive inspections of snap-ring 

impulse couplings within intervals of 

500 hours TSLI. 

• Replacing impulse couplings that 

fail the inspection. 

The proposed AD would require that 

you do these actions using the service 

information described previously. 

Costs of Compliance 

We estimate that this proposed AD 

would affect about 4,200 magnetos 

installed on airplanes of U.S. registry. 

We also estimate that it would take 

about 1 work hour per magneto to 

perform the proposed actions, and that 

the average labor rate is $65 per work 

hour. The reduced inspection interval 

would require doing the inspections 

76634 Federal Register / Vol. 69, No. 245 / Wednesday, December 22, 2004 / Proposed Rules 

about four times more often. Based on 

these figures, we estimate the total cost 

of the proposed AD to U.S. operators to 

be $1,092,000.

Authority for this Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

Section 106, describes the authority of 

the FAA Administrator. Subtitle VII, 

Aviation Programs, describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in Subtitle VII, 

Part A, Subpart III, Section 44701, 

‘‘General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We have determined that this 

proposed AD would not have federalism 

implications under Executive Order 

13132. This proposed AD would not 

have a substantial direct effect on the 

States, on the relationship between the 

national Government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify that the proposed regulation: 

1. Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866; 

2. Is not a ‘‘significant rule’’ under the 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979); and 

3. Would not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

We prepared a summary of the costs 

to comply with this proposal and placed 

it in the AD Docket. You may get a copy 

of this summary by sending a request to 

us at the address listed under 

ADDRESSES. Include ‘‘AD Docket No. 93–

ANE–07–AD’’ in your request.

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Safety.

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the Federal Aviation Administration 

proposes to amend 14 CFR part 39 as 

follows:

PART 39—AIRWORTHINESS 

DIRECTIVES 

1. The authority citation for part 39 

continues to read as follows:

Authority: 49 U.S.C. 106(g), 40113, 44701.

§ 39.13 [Amended] 

2. The FAA amends § 39.13 by 

removing Amendment 39–9649 (61 FR 

29934, June 13, 1996) and by adding a 

new airworthiness directive to read as 

follows:

Teledyne Continental Motors: Docket No. 

93–ANE–07–AD. Supersedes AD 96–12–

07, Amendment 39–9649. 

Comments Due Date 

(a) The Federal Aviation Administration 

(FAA) must receive comments on this 

airworthiness directive (AD) action by 

February 22, 2005.

Affected ADs 

(b) This AD supersedes AD 96–12–07, 

Amendment 39–9649. 

Applicability 

(c) This AD applies to Teledyne 

Continental Motors (TCM) (formerly Bendix) 

magnetos that have a magneto part number 

(P/N) listed in Table 1 of TCM Mandatory 

Service Bulletin (MSB) No. MSB645, dated 

April 4, 1994, installed on Lycoming AEIO–

540, HIO–540, IO–540, 0–540, and TIO–540 

series engines. These engines are installed 

on, but not limited to, airplanes 

manufactured by the Cessna Aircraft 

Company, Maule Aerospace Technology 

Corporation, Mooney Aircraft Corporation, 

The New Piper Aircraft Inc., and Raytheon 

Aircraft Company (Formerly Beech Aircraft 

Company). 

Unsafe Condition 

(d) This AD results from data provided by 

the manufacturer that indicates a need to 

reduce the inspection intervals for rivetedimpulse couplings used on certain Lycoming 

engine models. We are issuing this AD to 

prevent failure of the magneto impulse 

coupling and possible engine failure. 

Compliance 

(e) You are responsible for having the 

actions required by this AD performed within 

the compliance times specified unless the 

actions have already been done. 

Initial Inspections of Impulse Couplings 

(f) For all magnetos that have a P/N listed 

in Table 1 of TCM MSB No. MSB645, dated 

April 4, 1994, that have never been 

inspected, perform an initial inspection of 

the impulse coupling for wear using 

paragraphs 1.2 through 1.4.5 of the Detailed 

Instructions of TCM MSB No. MSB645, dated 

April 4, 1994. Use the following Table 1 for 

the compliance times. Snap-ring impulse 

couplings will have an ‘‘A’’ stamped in the 

lower-right quarter of the magneto data plate.

TABLE 1.—INITIAL INSPECTION COMPLIANCE TIMES

Engine model Type of impulse coupling assembly 

Time on coupling on the effective 

date of this AD Inspect 

Lycoming AEIO–540, HIO–540, 

IO–540, 0–540, and TIO–540 

series engines..

(1) Riveted .................................... (i) 100 or more hours time-sincenew or overhaul (TSN) or if the 

TSN is unknown.

Within 10 hours time-in-service 

(TIS) after the effective date of 

this AD. 

(ii) Fewer than 100 hours TSN ..... Before accumulating 100 hours 

TSN. 

(2) Snap ring ................................. (i) 450 or more hours TSN ........... Within 50 hours TIS after the effective date of this AD. 

(ii) Fewer than 450 hours TSN ..... Before accumulating 500 hours. 

(g) Replace any impulse coupling that fails 

the inspection with a serviceable riveted or 

snap-ring impulse coupling. Paragraphs 2 

through 2.6 of the Detailed Instructions of 

TCM MSB No. MSB645, dated April 4, 1994 

contain information on replacing the impulse 

coupling. 

(h) If you replace a snap-ring impulse 

coupling with a riveted-impulse coupling, 

strike out the ‘‘A’’ on the magneto data plate. 

Repetitive Inspections of Impulse Couplings 

(i) For all magnetos that have a P/N listed 

in Table 1 of TCM MSB No. MSB645, dated 

April 4, 1994, that have had an initial 

inspection as specified in paragraph (f) of 

this AD, perform a repetitive inspection of 

the impulse coupling for wear using 

paragraphs 1.2 through 1.4.5 of the Detailed 

Instructions of TCM MSB No. MSB645, dated 

April 4, 1994. Use the following Table 2 for 

the compliance times. Snap-ring impulse 

couplings will have an ‘‘A’’ stamped in the 

lower-right quarter of the magneto data plate.

Federal Register / Vol. 69, No. 245 / Wednesday, December 22, 2004 / Proposed Rules 76635

TABLE 2.—REPETITIVE INSPECTION COMPLIANCE TIMES

Engine model Type of impulse coupling assembly Inspect 

Lycoming AEIO–540, HIO–540, 1o–540, 0–540, and TIO–

540 series engines.

(1) Riveted ................. Within 100 hours time-since-last inspection (TSLI). 

(2) Snap ring ............. Within 500 hours TSLI. 

(j) Replace any impulse coupling that fails 

the inspection with a serviceable riveted or 

snap-ring impulse coupling. Paragraphs 2 

through 2.6 of the Detailed Instructions of 

TCM MSB No. MSB645, dated April 4, 1994 

contain information on replacing the impulse 

coupling. 

(k) If you replace a snap-ring impulse 

coupling with a riveted-impulse coupling, 

strike out the ‘‘A’’ on the magneto data plate. 

Optional Terminating Action 

(1) Installing a ‘‘Shower-of-Sparks’’

ignition system in place of a magneto system 

that has a riveted-impulse coupling or a 

snap-ring impulse coupling ends the 

repetitive inspection requirements specified 

in paragraph (i) of this AD. You can find 

more information on installing a ‘‘Shower-ofSparks’’ ignition system in TCM Service 

Information Letter No. SIL648, dated October 

18, 1994. 

Alternative Methods of Compliance 

(m) The Manager, Atlanta Aircraft 

Certification Office, has the authority to 

approve alternative methods of compliance 

for this AD if requested using the procedures 

found in 14 CFR 39.19. 

Related Information 

(n) TCM SB No. 639, dated March 1993, 

contains additional information for replacing 

impulse couplings on a TCM magneto. TCM 

Service Information Letter No. SIL648, dated 

October 18, 1994, contains information for 

converting an engine to a ‘‘Shower-ofSparks’’ ignition system.

Issued in Burlington, Massachusetts, on 

December 15, 2004. 

Francis A. Favara, 

Acting Manager, Engine and Propeller 

Directorate, Aircraft Certification Service.

[FR Doc. 04–27955 Filed 12–21–04; 8:45 am] 

BILLING CODE 4910–13–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service 

26 CFR Part 1 

[REG–139683–04] 

RIN 1545–BD95 

Section 1374 Effective Dates

AGENCY: Internal Revenue Service (IRS), 

Treasury.

ACTION: Notice of proposed rulemaking 

by cross-reference to temporary 

regulations. 

SUMMARY: In the Rules and Regulations 

section of this issue of the Federal 

Register, the IRS is issuing temporary 

regulations that provide guidance 

concerning the applicability of section 

1374 to S corporations that acquire 

assets in carryover basis transactions 

from C corporations on or after 

December 27, 1994, and to certain 

corporations that terminate S 

corporation status and later elect again 

to become S corporations. The text of 

these regulations also serves as the text 

of these proposed regulations.

DATES: Written or electronic comments, 

and a request for a public hearing, must 

be received by March 22, 2005.

ADDRESSES: Send submissions to: 

CC:PA:LPD:sPR (REG–139683–04), room 

5203, Internal Revenue Service, PO Box 

7604, Ben Franklin Station, Washington, 

DC 20044. Submissions may be handdelivered Monday through Friday 

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

to CC:PA:LPD:PR (REG–139683–04), 

Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue, 

NW., Washington, DC, or sent 

electronically, via the IRS Internet site 

at http://www.irs.gov/regs or via the 

Federal eRulemaking Portal at http://

www.regulations.gov (indicate IRS and 

REG–139683–04).

FOR FURTHER INFORMATION CONTACT:

Concerning the proposed regulations, 

Stephen R. Cleary; (202) 622–7750, 

concerning submissions of comments, 

Sonya Cruse, (202) 622–4693 (not tollfree numbers).

SUPPLEMENTARY INFORMATION

Background and Explanation of 

Provisions 

Temporary Regulations in the Rules 

and Regulations section of this issue of 

the Federal Register amend 26 CFR part 

1 relating to section 1374. The 

temporary regulations provide that (a) 

section 1374(d)(8) applies to any 

transaction described in that section 

that occurs on or after December 27, 

1994, regardless of the date of the S 

corporation’s election under section 

1362, and (b) for purposes of section 

633(d)(8) of the Tax Reform Act of 1986, 

as amended by the Technical and 

Miscellaneous Revenue Act of 1988, a 

corporation’s most recent S election, not 

an earlier election that has been revoked 

or terminated, determines whether or 

not it is subject to current section 1374. 

The text of those regulations also serves 

as the text of these proposed 

regulations. The preamble to the 

temporary regulations explains the 

amendments. 

Special Analysis 

It has been determined that this 

proposed regulation 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 § 1.1374–8(a)(2) of these regulations. 

Because § 1.1374–8(a)(2) does not 

impose a collection of information on 

small entities, it is not subject to the 

provisions of the Regulatory Flexibility 

Act (5 U.S.C. chapter 6). It is hereby 

certified that § 1.1374–10(c) of this 

regulation will not have a significant 

economic impact on a substantial 

number of small entities. This 

certification is based on the fact that 

§ 1.1374–10(c) of this regulation 

addresses an uncommon fact situation 

not likely to affect a significant number 

of small entities. Therefore, a regulatory 

flexibility analysis is not required. 

Pursuant to section 7805(f) of the 

Internal Revenue Code, these proposed 

regulations have been submitted to the 

Chief Counsel for Advocacy of the Small 

Business Administration for comment 

on their 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 comments (a signed original and 

eight (8) copies) or electronic comments 

that are submitted timely to the IRS. The 

IRS and Treasury Department 

specifically request comments on the 

clarity of the proposed rules and how 

they may be made easier to understand. 

All comments will be available for 

public inspection and copying. A public 

hearing may be scheduled if requested 

in writing by any person that timely 

submits written comments. If a public 

hearing is scheduled, notice of the date,