23388 Federal Register / Vol. 77, No. 76 / Thursday, April 19, 2012 / Rules and Regulations 

(2) For Fokker Services B.V. service 

information identified in this AD, contact 

Fokker Services B.V., Technical Services 

Dept., P.O. Box 231, 2150 AE Nieuw-Vennep, 

the Netherlands; telephone +31 (0)252–627– 

350; fax +31 (0)252–627–211; email 

technicalservices.fokkerservices@stork.com; 

Internet http://www.myfokkerfleet.com. 

(3) You may review copies of the service 

information at the FAA, Transport Airplane 

Directorate, 1601 Lind Avenue SW., Renton, 

Washington. For information on the 

availability of this material at the FAA, call 

425–227–1221. 

(4) You may also review copies of the 

service information that is incorporated by 

reference at the National Archives and 

Records Administration (NARA). For 

information on the availability of this 

material at an NARA facility, call 202–741– 

6030, or go to http://www.archives.gov/ 

federal_register/code_of_federal_regulations/ 

ibr_locations.html. 

Issued in Renton, Washington, on March 

19, 2012. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2012–9294 Filed 4–18–12; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2012–0395; Directorate 

Identifier 2012–SW–007–AD; Amendment 

39–17016; AD 2012–02–51] 

RIN 2120–AA64 

Airworthiness Directives; Bell 

Helicopter Textron Canada Limited 

Helicopters 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule; request for 

comments. 

SUMMARY: We are publishing a new 

airworthiness directive (AD) for Bell 

Helicopter Textron Canada Limited 

(Bell) Model 206L, 206L–1, 206L–3, and 

206L–4 helicopters with certain main 

rotor blades installed to reduce the life 

limit of those blades. This AD is 

prompted by two accidents and the 

subsequent investigations that revealed 

that, in each accident, a main rotor 

blade failed because of fatigue cracking. 

These actions are intended to prevent 

failure of the main rotor blade and 

subsequent loss of control of the 

helicopter. 

DATES: This AD becomes effective May 

4, 2012 to all persons except those 

persons to whom it was made 

immediately effective by Emergency AD 

No. 2012–02–51, issued on February 1, 

2012, which contained the requirements 

of this AD. 

We must receive comments on this 

AD by June 18, 2012. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Docket: Go to 

http://www.regulations.gov. Follow the 

online instructions for sending your 

comments electronically. 

• Fax: 202–493–2251. 

• Mail: Send comments to the U.S. 

Department of Transportation, Docket 

Operations, M–30, West Building 

Ground Floor, Room W12–140, 1200 

New Jersey Avenue SE., Washington, 

DC 20590–0001. 

• Hand Delivery: Deliver to the 

‘‘Mail’’ address between 9 a.m. and 

5 p.m., Monday through Friday, except 

Federal holidays. 

Examining the AD Docket: You may 

examine the AD docket on the Internet 

at http://www.regulations.gov or in 

person at the Docket Operations Office 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

The AD docket contains this AD, the 

economic evaluation, and other 

information. The street address for the 

Docket Operations Office (telephone 

800–647–5527) is in the ADDRESSES

section. Comments will be available in 

the AD docket shortly after receipt. 

For service information identified in 

this AD, contact Bell Helicopter Textron 

Canada Limited, 12,800 Rue de l’Avenir, 

Mirabel, Quebec J7J1R4, telephone (450) 

437–2862 or (800) 363–8023, fax (450) 

433–0272, or at http:// 

www.bellcustomer.com/files/. You may 

review a copy of the referenced service 

information at the FAA, Office of the 

Regional Counsel, Southwest Region, 

2601 Meacham Blvd., Room 663, Fort 

Worth, Texas 76137. 

FOR FURTHER INFORMATION CONTACT: 

Sharon Miles, Aerospace Engineer, 

FAA, Rotorcraft Directorate, Regulations 

and Policy Group, 2601 Meacham Blvd., 

Fort Worth, Texas 76137, telephone 

(817) 222–5110, email 

sharon.y.miles@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

This AD is a final rule that involves 

requirements affecting flight safety, and 

we did not provide you with notice and 

an opportunity to provide your 

comments prior to it becoming effective. 

However, we invite you to participate in 

this rulemaking by submitting written 

comments, data, or views. We also 

invite comments relating to the 

economic, environmental, energy, or 

federalism impacts that resulted from 

adopting this AD. The most helpful 

comments reference a specific portion of 

the AD, explain the reason for any 

recommended change, and include 

supporting data. To ensure the docket 

does not contain duplicate comments, 

commenters should send only one copy 

of written comments, or if comments are 

filed electronically, commenters should 

submit them only one time. 

We will file in the docket all 

comments that we receive, as well as a 

report summarizing each substantive 

public contact with FAA personnel 

concerning this rulemaking during the 

comment period. We will consider all 

the comments we receive and may 

conduct additional rulemaking based on 

those comments. 

Discussion 

Transport Canada Civil Aviation 

(TCCA) issued TCCA AD No. CF–2011– 

44R1, on February 1, 2012, to correct 

this same unsafe condition on the Bell 

Model 206 L, L–1, L–3, and L–4 

helicopters. TCCA advises that there is 

no reliable inspection method to detect 

the cracks on these blades before blade 

failure and has reduced the life limit on 

all affected blades from 3,600 hours 

time-in-service (TIS) to 1,400 hours TIS 

and mandated removal from service of 

those blades that exceed the new life 

limit. Bell has determined that the 

fatigue cracks occurred as a result of the 

use by a Bell supplier of unapproved 

manufacturing processes, which have 

since been corrected, and are limited to 

a specific range of part numbers and 

serial numbers. 

We issued EAD 2012–02–51 also on 

February 1, 2012, for Bell Model 206L, 

206L–1, 206L–3, and 206L–4 helicopters 

with certain main rotor blades installed 

and reduced the life limit on these 

blades to correct the unsafe condition 

caused by this fatigue cracking. 

FAA’s Determination 

These helicopters have been approved 

by the aviation authority of Canada and 

are approved for operation in the United 

States. Pursuant to our bilateral 

agreement with Canada, TCCA, its 

technical representative, has notified us 

of the unsafe condition described in the 

TCCA AD. We are issuing this AD 

because we evaluated all information 

provided by the TCCA and determined 

the unsafe condition exists and is likely 

to exist or develop on other helicopters 

of these same type designs. 

Related Service Information 

Bell Helicopter Alert Service Bulletin 

No. 206L–09–159 Revision A, dated 

November 13, 2009, describes 


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Federal Register / Vol. 77, No. 76 / Thursday, April 19, 2012 / Rules and Regulations 23389 

procedures to identify and mark the 

affected main rotor blades, requires a 

‘‘recurring wipe check,’’ and requires 

performing a one-time radiographic 

inspection with the results to be 

determined by Bell. 

AD Requirements 

This AD requires reducing the life 

limit from 3,600 hours time-in-service 

(TIS) to 1,400 hours TIS for certain partnumbered and serial-numbered main 

rotor blades, revising the life limit in the 

Airworthiness Limitations section of the 

Instructions for Continued 

Airworthiness or maintenance manual, 

and recording the revised life limit on 

the component history card or 

equivalent record. 

Costs of Compliance 

We estimate that this AD will affect 

697 helicopters of U.S. Registry. At an 

average labor rate of $85 per work-hour, 

we estimate the following costs: 

• Determining the main rotor blades’ 

part and serial numbers will require 

about 1 work-hour for a cost per 

helicopter of $85, or $59,245 for the U.S. 

fleet. 

• Replacing an affected main rotor 

blade will require about 8 work-hours 

for labor cost of $680 per helicopter and 

parts costs of about $44,958 per 

helicopter, for a total cost per helicopter 

of $45,638. 

FAA’s Justification and Determination 

of the Effective Date 

Providing an opportunity for public 

comments prior to adopting these AD 

requirements would delay 

implementing the safety actions needed 

to correct this known unsafe condition. 

Therefore, we find that the risk to the 

flying public justifies waiving notice 

and comment prior to the adoption of 

this rule because the required corrective 

actions must be accomplished before 

further flight, a very short period of 

time. 

Since an unsafe condition exists that 

requires the immediate adoption of this 

AD, we determined that notice and 

opportunity for public comment before 

issuing this AD are impracticable and 

contrary to the public interest and that 

good cause exists for making this 

amendment effective in less than 30 

days. 

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 determined that this AD will not 

have federalism implications under 

Executive Order 13132. This AD will 

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, I certify 

that this AD: 

1. Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866; 

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

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979); 

3. Will not affect intrastate aviation in 

Alaska to the extent that it justifies 

making a regulatory distinction; and 

4. Will 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 an economic evaluation 

of the estimated costs to comply with 

this AD and placed it in the AD docket. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

Adoption of the Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 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 adding 

the following new airworthiness 

directive (AD): 

2012–02–51 Bell Helicopter Textron 

Canada Limited: Amendment 39–17016; 

Docket No. FAA–2012–0395; Directorate 

Identifier 2012–SW–007–AD. 

(a) Applicability 

This AD applies to Bell Helicopter Textron 

Canada Limited (Bell) Model 206L, 206L–1, 

206L–3, and 206L–4 helicopters, certificated 

in any category, with a main rotor blade part 

number (P/N) 206–015–001–107, 206–015– 

001–109, 206–015–001–111, 206–015–001– 

115, 206–015–001–117, 206–015–001–119, or 

206–015–001–121, and a main rotor blade 

serial number listed in Table 1 of this AD. 

TABLE 1 

Affected Main Rotor Blade Serial Numbers 

(All blade serial numbers listed in Table 1 of this AD have the prefix ‘‘A-.’’) 

901 through 928 .................. 2285, 2286 ....................... 2787, 2788 ....................... 4293 through 4298 ........... 4684. 

930 through 935 .................. 2290 .................................. 2808 through 2817 ........... 4301 .................................. 4686 through 4708. 

937, 938 .............................. 2292 through 2294 ........... 2819 through 2822 ........... 4305 .................................. 4710. 

941 ...................................... 2297 .................................. 2824 .................................. 4308 .................................. 4713 through 4716. 

943 through 994 .................. 2301, 2302 ....................... 2826 through 2828 ........... 4314, 4315 ....................... 4719 through 4722. 

996 through 1000 ................ 2304, 2305 ....................... 2832 .................................. 4318 .................................. 4725. 

1002 through 1020 .............. 2308 .................................. 2835 .................................. 4330 .................................. 4728, 4729. 

1022 through 1032 .............. 2311 .................................. 2840 through 2842 ........... 4334 through 4336 ........... 4731. 

1034 through 1047 .............. 2313, 2314 ....................... 2844 .................................. 4381, 4382 ....................... 4734 through 4737. 

1049 through 1134 .............. 2316 .................................. 2848 through 2850 ........... 4392 .................................. 4739 through 4742. 

1136 through 1140 .............. 2318, 2319 ....................... 2852, 2853 ....................... 4394, 4395 ....................... 4744 through 4751. 

1142 through 1157 .............. 2322 through 2324 ........... 2855 .................................. 4405 through 4409 ........... 4753 through 4757. 

1159 through 1166 .............. 2328 through 2331 ........... 2858 .................................. 4416 .................................. 4759. 


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TABLE 1—Continued 

1168 through 1182 .............. 2357 .................................. 2862 through 2864 ........... 4418 .................................. 4762. 

1184 through 1351 .............. 2374 .................................. 2900 .................................. 4423 through 4426 ........... 4764. 

1353 through 1363 .............. 2379 .................................. 2996 .................................. 4433 .................................. 4774. 

1365 through 1382 .............. 2515 .................................. 3212 .................................. 4445 .................................. 4778 through 4780. 

1384 through 1401 .............. 2553, 2554 ....................... 3219 .................................. 4448 .................................. 4784. 

1403 through 1519 .............. 2561, 2562 ....................... 3339 .................................. 4462, 4463 ....................... 4786 through 4825. 

1521 through 1590 .............. 2564 through 2570 ........... 3369 .................................. 4484 .................................. 4827 through 4840. 

1593 through 1646 .............. 2573 .................................. 3381 .................................. 4500 .................................. 4842 through 4863. 

1648 through 1718 .............. 2576 .................................. 3447 .................................. 4508 .................................. 4865 through 4905. 

1720 through 1798 .............. 2580 .................................. 3571, 3572 ....................... 4512 .................................. 4907 through 4948. 

1800 through 1821 .............. 2583 .................................. 3622 .................................. 4517 .................................. 4950 through 4957. 

1824 through 1829 .............. 2585, 2586 ....................... 3705 .................................. 4522 .................................. 4959 through 4963. 

1832 through 2060 .............. 2588, 2589 ....................... 3831 .................................. 4528, 4529 ....................... 4965. 

2062 through 2072 .............. 2593, 2594 ....................... 3971, 3972 ....................... 4532 .................................. 4969 through 4973. 

2074 .................................... 2596, 2597 ....................... 4025 through 4030 ........... 4534 .................................. 4975. 

2077 through 2081 .............. 2599 .................................. 4117 .................................. 4547 .................................. 4979, 4980. 

2092 through 2095 .............. 2602 .................................. 4143 .................................. 4550 .................................. 4983, 4984. 

2098, 2099 .......................... 2604, 2605 ....................... 4201 through 4205 ........... 4567 .................................. 4987. 

2101 through 2104 .............. 2607 through 2610 ........... 4209 .................................. 4573 .................................. 4989. 

2107, 2108 .......................... 2621 .................................. 4214 through 4217 ........... 4590 .................................. 4992. 

2110 through 2124 .............. 2623, 2624 ....................... 4248 .................................. 4604, 4605 ....................... 4994 through 5006. 

2126 through 2145 .............. 2638 .................................. 4250, 4251 ....................... 4608, 4609 ....................... 5010. 

2147 through 2158 .............. 2640 through 2672 ........... 4253, 4254 ....................... 4612 through 4621 ........... 5015. 

2161 through 2163 .............. 2674 through 2701 ........... 4256 through 4260 ........... 4624 through 4629 ........... 5018. 

2165, 2166 .......................... 2706 through 2708 ........... 4262 through 4267 ........... 4631, 4632 ....................... 5023. 

2169 through 2175 .............. 2727, 2728 ....................... 4269 .................................. 4638, 4639 ....................... 5036. 

2177 through 2183 .............. 2730 through 2742 ........... 4271, 4272 ....................... 4652 .................................. 5047. 

2185 through 2192 .............. 2744 through 2764 ........... 4274 through 4276 ........... 4654 .................................. 5054. 

2220, 2221 .......................... 2766, 2767 ....................... 4278 .................................. 4657 .................................. 5066, 5067. 

2248 .................................... 2769 .................................. 4280 through 4284 ........... 4659 .................................. 5071, 5072. 

2257 through 2267 .............. 2771, 2772 ....................... 4286, 4287 ....................... 4662 .................................. 5075, 5076. 

2272 through 2283 .............. 2775 through 2777 ........... 4290, 4291 ....................... 4666 through 4682 ........... 5081. 

5087 .................................... 5397 .................................. 5535 through 5537 ........... 5679 through 5686 ........... 5851. 

5094 .................................... 5399 through 5400 ........... 5539, 5540 ....................... 5688 .................................. 5856. 

5152 .................................... 5402 through 5411 ........... 5542 .................................. 5690 through 5705 ........... 5861 through 5865. 

5155 .................................... 5413, 5414 ....................... 5546 through 5549 ........... 5707 through 5709 ........... 5870. 

5158, 5159 .......................... 5416 through 5439 ........... 5552, 5553 ....................... 5711, 5712 ....................... 5882. 

5163, 5164 .......................... 5441 .................................. 5556 through 5561 ........... 5716 through 5721 ........... 5884 through 5886. 

5166 through 5171 .............. 5443 through 5445 ........... 5566 through 5568 ........... 5723 through 5726 ........... 5889 through 5891. 

5176 through 5178 .............. 5447 .................................. 5570 through 5574 ........... 5729 through 5734 ........... 5899 through 5901. 

5180 through 5182 .............. 5450 .................................. 5576 through 5583 ........... 5736 through 5745 ........... 5903 through 5905. 

5186 through 5191 .............. 5459 .................................. 5588 through 5591 ........... 5747 through 5752 ........... 5912. 

5193 through 5199 .............. 5465 through 5468 ........... 5594 .................................. 5757 .................................. 5915. 

5201 through 5205 .............. 5472 .................................. 5598 through 5600 ........... 5762 .................................. 5921. 

5207 .................................... 5475 .................................. 5602 through 5605 ........... 5766 through 5769 ........... 5925, 5926. 

5209 through 5212 .............. 5481 .................................. 5608, 5609 ....................... 5771 .................................. 5929 through 5951. 

5218 through 5253 .............. 5483 .................................. 5612 .................................. 5781, 5782 ....................... 5992. 

5255 through 5273 .............. 5488 .................................. 5616 through 5623 ........... 5791 .................................. 6216. 

5275 through 5288 .............. 5491, 5492 ....................... 5625, 5626 ....................... 5793 through 5800 ........... 6247. 

5291, 5292 .......................... 5495 .................................. 5628 .................................. 5808 .................................. 6270. 

5297, 5298 .......................... 5497 through 5507 ........... 5637 through 5641 ........... 5815 through 5817 ........... 6597. 

5301 through 5321 .............. 5509 through 5512 ........... 5643 .................................. 5822 through 5826 ........... 6611, 6612. 

5323 through 5331 .............. 5516 .................................. 5645 through 5653 ........... 5828, 5829 ....................... 6661. 

5333 through 5340 .............. 5518 through 5521 ........... 5655 through 5666 ........... 5833 .................................. 6714. 

5343 .................................... 5526 through 5530 ........... 5668, 5669 ....................... 5837. 

5345 through 5395 .............. 5533 .................................. 5671 through 5677 ........... 5844, 5845. 

(b) Unsafe Condition 

This AD defines the unsafe condition as 

fatigue cracking of a main rotor blade. This 

condition could result in failure of the main 

rotor blade and subsequent loss of control of 

the helicopter. 

(c) Effective Date 

This AD becomes effective May 4, 2012 to 

all persons except those persons to whom it 

was made immediately effective by 

Emergency AD No. 2012–02–51, issued on 

February 1, 2012. 

(d) Compliance 

You are responsible for performing each 

action required by this AD within the 

specified compliance time unless it has 

already been accomplished prior to that time. 

(e) Required Actions 

(1) Before further flight, reduce the life 

limit of the main rotor blades with a serial 

number listed in Table 1 of this AD from 

3,600 hours time-in-service (TIS) to 1,400 

hours TIS; revise the life limit in the 

Airworthiness Limitations section of the 

Instruction for Continued Airworthiness or 

maintenance manual; and record the revised 

life limit on the component history card or 

equivalent record. 

(2) Before further flight, remove from 

service any main rotor blade which has 

accumulated 1,400 or more hours TIS. 

(f) Special Flight Permits 

Special flight permits are prohibited. 

(g) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, Safety Management 

Group, FAA, may approve AMOCs for this 

AD. Send your proposal to: Sharon Miles, 

Aerospace Engineer, FAA, Rotorcraft 


srobinson on DSK4SPTVN1PROD with RULES
Federal Register / Vol. 77, No. 76 / Thursday, April 19, 2012 / Rules and Regulations 23391 

Directorate, Regulations and Policy Group, 

2601 Meacham Blvd., Fort Worth, Texas 

76137, telephone (817) 222 5110, email 

sharon.y.miles@faa.gov. 

(2) For operations conducted under a Part 

119 operating certificate or under Part 91, 

Subpart K, we suggest that you notify your 

principal inspector, or lacking a principal 

inspector, the manager of the local flight 

standards district office or certificate holding 

district office, before operating any aircraft 

complying with this AD through an AMOC. 

(h) Additional Information 

(1) Bell Helicopter Alert Service Bulletin 

(ASB) No. 206L–09–159 Revision A, dated 

November 13, 2009, which is not 

incorporated by reference, contains 

additional information about the subject of 

this AD. For this service information, contact 

Bell Helicopter Textron Canada Limited, 

12,800 Rue de l’Avenir, Mirabel, Quebec 

J7J1R4, telephone (450) 437–2862 or (800) 

363–8023, fax (450) 433–0272, or at http:// 

www.bellcustomer.com/files/. You may 

review a copy of this service information at 

the FAA, Office of the Regional Counsel, 

Southwest Region, 2601 Meacham Blvd., 

Room 663, Fort Worth, Texas 76137. 

(2) The subject of this AD is addressed in 

Transport Canada Civil Aviation AD No. CF– 

2011–44R1, dated February 1, 2012. 

(i) Subject 

Joint Aircraft Service Component (JASC) 

Code: 6210, Main rotor blades. 

Issued in Fort Worth, Texas, on April 3, 

2012. 

Kim Smith, 

Manager, Rotorcraft Directorate, Aircraft 

Certification Service. 

[FR Doc. 2012–9314 Filed 4–18–12; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Parts 1 and 31 

[TD 9584] 

RIN 1545–BJ01 

Guidance on Reporting Interest Paid to 

Nonresident Aliens 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations. 

SUMMARY: This document contains final 

regulations regarding the reporting 

requirements for interest that relates to 

deposits maintained at U.S. offices of 

certain financial institutions and is paid 

to certain nonresident alien individuals. 

These regulations will affect commercial 

banks, savings institutions, credit 

unions, securities brokerages, and 

insurance companies that pay interest 

on deposits. 

DATES: Effective Date: These regulations 

are effective April 19, 2012. 

Applicability Date: These regulations 

apply to payments of interest made on 

or after January 1, 2013. 

FOR FURTHER INFORMATION CONTACT: 

Kathryn Holman, (202) 622–3840 (not a 

toll free number). 

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act 

The collection of information 

contained in these final regulations has 

been reviewed and approved by the 

Office of Management and Budget for 

review in accordance with the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3507(d)) under control number 

1545–1725. The collection of 

information in these proposed 

regulations is in § 1.6049–4(b)(5)(i) and 

§ 1.6049–6(e)(4)(i) and (ii). The 

collection of information is mandatory 

and the respondents are commercial 

banks, savings institutions, credit 

unions, securities brokerages, and 

insurance companies that maintain 

deposit accounts for nonresident alien 

individuals. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a valid control 

number assigned by the Office of 

Management and Budget. 

Books or records relating to a 

collection of information must be 

retained as long as their contents may 

become material in the administration 

of any internal revenue law. Information 

collected under these regulations will be 

return information as defined in 26 

U.S.C. 6103. Tax returns and return 

information are confidential as required 

by 26 U.S.C. 6103. 

Background 

On January 7, 2011, the Treasury 

Department and the IRS published a 

notice of proposed rulemaking (REG 

146097–09) (the 2011 proposed 

regulations) in the Federal Register (76 

FR 1105, corrected by 76 FR 2852, 76 FR 

20595, and 76 FR 22064) under section 

6049 of the Internal Revenue Code 

(Code). The 2011 proposed regulations 

withdrew proposed regulations that had 

been issued on August 2, 2002 (67 FR 

50386) (the 2002 proposed regulations). 

The 2002 proposed regulations would 

have required reporting of interest 

payments to nonresident alien 

individuals that are residents of certain 

specified countries. The 2011 proposed 

regulations provide that payments of 

interest aggregating $10 or more on a 

deposit maintained at a U.S. office of a 

financial institution and paid to any 

nonresident alien individual are subject 

to information reporting. 

Written comments were received by 

the Treasury Department and the IRS in 

response to the 2011 proposed 

regulations. A public hearing on the 

2011 proposed regulations was held on 

May 18, 2011, at which further 

comments were received. All comments 

were considered and are available for 

public inspection at http:// 

www.regulations.gov or upon request. 

After consideration of the written 

comments and the comments provided 

at the public hearing, the 2011 proposed 

regulations are adopted as revised by 

this Treasury decision. 

Explanation and Summary of 

Comments 

Objectives of This Regulatory Action 

The reporting required by these 

regulations is essential to the U.S. 

Government’s efforts to combat offshore 

tax evasion for several reasons. First, it 

ensures that the IRS can, in appropriate 

circumstances, exchange information 

relating to tax enforcement with other 

jurisdictions. In order to ensure that 

U.S. taxpayers cannot evade U.S. tax by 

hiding income and assets offshore, the 

United States must be able to obtain 

information from other countries 

regarding income earned and assets held 

in those countries by U.S. taxpayers. 

Under present law, the measures 

available to assist the United States in 

obtaining this information include both 

treaty relationships and statutory 

provisions. The effectiveness of these 

measures depends significantly, 

however, on the United States’ ability to 

reciprocate. 

The United States has constructed an 

expansive network of international 

agreements, including income tax or 

other conventions and bilateral 

agreements relating to the exchange of 

tax information (collectively referred to 

as information exchange agreements), 

which provide for the exchange of 

information related to tax enforcement 

under appropriate circumstances. These 

information exchange relationships are 

based on cooperation and reciprocity. A 

jurisdiction’s willingness to share 

information with the IRS to combat 

offshore tax evasion by U.S. taxpayers 

depends, in large part, on the ability of 

the IRS to exchange information that 

will assist that jurisdiction in combating 

offshore tax evasion by its own 

residents. These regulations, by 

requiring reporting of deposit interest to 

the IRS, will ensure that the IRS is in 

a position to exchange such information 

reciprocally with a treaty partner when 

it is appropriate to do so. 


srobinson on DSK4SPTVN1PROD with RULES