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, 

76636 Federal Register / Vol. 69, No. 245 / Wednesday, December 22, 2004 / Proposed Rules 

time, and place for the public hearing 

will be published in the Federal 

Register. 

Drafting Information 

The principal author of these 

regulations is Stephen R. Cleary of the 

Office of Associate Chief Counsel 

(Corporate). Other personnel from 

Treasury and the IRS 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 continues to read, in part, as 

follows:

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

Par. 2. Section 1.1374–8 is amended 

by redesignating paragraph (a) as 

paragraph (a)(1) and adding paragraph 

(a)(2) to read as follows:

§ 1.1374–8 Section 1374(d)(8) transactions. 

(a) (1) * * * 

(2) [The text of the proposed 

amendment to § 1.1374–8(a)(2) is the 

same as the text of § 1.1374–8T(a)(2) 

published elsewhere in this issue of the 

Federal Register.].

* * * * *

Par. 3. In § 1.1374–10, paragraph (c) is 

added to read as follows:

§ 1.1374–10 Effective date and additional 

rules

* * * * *

(c) The text of proposed § 1.1374–

10(c) is the same as the text of § 1.1374–

10T(c) published elsewhere in this issue 

of the Federal Register].

Mark E. Matthews, 

Deputy Commissioner for Services and 

Enforcement.

[FR Doc. 04–28012 Filed 12–21–04; 8:45 am] 

BILLING CODE 4820–01–P

DEPARTMENT OF EDUCATION

34 CFR Parts 606, 607, 611, 637, 648, 

656, 657, 658, 660, 661, 662, 663, 664, 

and 669 

Higher Education Programs

AGENCY: Office of Postsecondary 

Education, Department of Education.

ACTION: Notice of proposed rulemaking.

SUMMARY: The proposed regulations will 

remove all references to points in the 

selection criteria the Department of 

Education (Department) uses to evaluate 

applications submitted under the higher 

education discretionary grant programs. 

We are proposing this action because 

the current point assignments are 

outdated and do not permit sufficient 

flexibility to establish important 

program objectives. Taking this action 

will allow us that flexibility and ensure 

grant awards are made to high quality 

applicants. 

The proposed regulations also would 

remove the requirement that in 

competitions for grants under the 

Partnership and Teacher-Recruitment 

components of the Teacher Quality 

Enhancement Grants Program, the 

Secretary hold a two-stage competition 

in which applicants must submit a preapplication and a full application. The 

current structure has not proven 

effective in producing high quality 

applications for this program. Removing 

the requirement for a pre-application 

will reduce burden on applicants and 

the Department and allow both to target 

their resources on the full application 

stage. 

There are some amendments in the 

proposed regulations that are purely 

technical corrections to the regulations.

DATES: We must receive your comments 

on or before January 21, 2005.

ADDRESSES: Address all comments about 

these proposed regulations to Lorraine 

Kennedy, U.S. Department of Education, 

PO Box 33553, Washington, DC 20033 

or by e-mail at the following address: 

DiscretionaryGrantcomments@ed.gov.

You may also send your comments to us 

through the Internet at the U.S. 

Government Web site: http://

www.regulations.gov.

If you want to comment on the 

information collection requirements, 

you must send your comments to the 

Office of Management and Budget at the 

address listed in the Paperwork 

Reduction Act section of this preamble. 

You may also send a copy of these 

comments to the Department 

representative named in this section.

FOR FURTHER INFORMATION CONTACT:

Lorraine Kennedy, U.S. Department of 

Education, 1990 K Street, NW., room 

8018, Washington, DC 20006–8544. 

Telephone: (202) 502–7762. Pamela 

Maimer, U.S. Department of Education, 

1990 K Street, NW., room 8014, 

Washington, DC 20006–8544. 

Telephone: (202) 502–7704. 

If you use a telecommunications 

device for the deaf (TDD), you may call 

the Federal Information Relay Service 

(FIRS) at 1–800–877–8339. 

Individuals with disabilities may 

obtain this document in an alternative 

format (e.g., Braille, large print, 

audiotape, or computer diskette) on 

request to the contact person listed 

under FOR FURTHER INFORMATION

CONTACT. 

Invitation To Comment 

We invite you to submit comments 

regarding these proposed regulations. 

We invite you to assist us in 

complying with the specific 

requirements of Executive Order 12866 

and its overall requirement of reducing 

regulatory burden that might result from 

these proposed regulations. Please let us 

know of any further opportunities we 

should take to reduce potential costs or 

increase potential benefits while 

preserving the effective and efficient 

administration of the program. 

During and after the comment period, 

you may inspect all public comments 

about these proposed regulations in 

room 8054, 1990 K Street, NW., 

Washington, DC, between the hours of 

8:30 a.m. and 4 p.m., Eastern time, 

Monday through Friday of each week 

except Federal holidays. 

Assistance to Individuals With 

Disabilities in Reviewing the 

Rulemaking Record 

On request, we will supply an 

appropriate aid, such as a reader or 

print magnifier, to an individual with a 

disability who needs assistance to 

review the comments or other 

documents in the public rulemaking 

record for these proposed regulations. If 

you want to schedule an appointment 

for this type of aid, please contact one 

of the individuals listed under FOR

FURTHER INFORMATION CONTACT.

SUPPLEMENTARY INFORMATION: The 

Secretary proposes to amend 34 CFR 

parts 606, 607, 637, 648, 656, 657, 658, 

660, 661, 662, 663, 664, and 669 by 

removing the mandatory point values 

from the selection criteria in the 

regulations associated with the 

application process for discretionary 

grant programs. The current regulations 

that mandate specific point values to the 

selection criteria in these discretionary 

grant programs are out-of-date. The 

proposed regulations would give the 

Secretary the flexibility to select specific 

point values from year to year to address 

current priorities for the programs. The 

removal of the mandatory point values 

from the selection criteria for these grant 

programs is also consistent with the 

manner in which the Department 

assigns points to selection criteria for 

many other discretionary grant 

programs.