78900 Federal Register / Vol. 75, No. 242 / Friday, December 17, 2010 / Rules and Regulations 

the collection of the tax may be begun 

without assessment, at any time within 

6 years after the return was filed. If a 

real estate investment trust discloses in 

its return (or in a schedule or statement 

attached thereto) the nature, source, and 

amount of any income giving rise to any 

omitted tax, the tax arising from the 

income shall be counted as reported on 

the return in computing whether the 

trust has omitted more than 25 percent 

of the tax reported on its return. 

(d) Exception. The provisions of this 

section do not limit the application of 

section 6501(c). 

(e) Effective/applicability date—(1) 

Income taxes. Paragraph (a) of this 

section applies to taxable years with 

respect to which the period for assessing 

tax was open on or after September 24, 

2009. 

(2) Estate, gift and excise taxes. 

Paragraphs (b) through (d) of this 

section continue to apply as they did 

prior to being removed inadvertently on 

September 28, 2009. Specifically, 

paragraph (b) of this section applies to 

returns filed on or after May 2, 1956, 

except for the amendment to paragraph 

(b)(1) of this section that applies to 

returns filed on or after December 29, 

1972. Paragraph (c) of this section 

applies to returns filed on or after 

October 7, 1982, except for the 

amendment to paragraph (c)(3)(ii) of this 

section that applies to returns filed on 

or after January 10, 2001. Paragraph (d) 

of this section applies to returns filed on 

or after May 2, 1956. 

§ 301.6501(e)–1T [Removed] 

■ Par. 5. Section 301.6501(e)–1T is 

removed. 

Steven T. Miller, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: December 13, 2010. 

Michael Mundaca, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 2010–31747 Filed 12–14–10; 4:15 pm] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Fiscal Service 

31 CFR Parts 357 and 363 

Regulations Governing Book-Entry 

Treasury Bonds, Notes and Bills Held 

in Legacy Treasury Direct; Regulations 

Governing Securities Held in Treasury 

Direct 

AGENCY: Bureau of the Public Debt, 

Fiscal Service, Treasury. 

ACTION: Final rule. 

SUMMARY: Treasury’s retail electronic 

systems for holding Treasury marketable 

securities began with the goal of 

permitting investors to buy and hold 

marketable Treasury securities until 

maturity. As a cost-saving measure, 

Treasury is returning the Legacy 

Treasury Direct and TreasuryDirect 

systems to this initial vision by 

eliminating the SellDirect program that 

permits investors to sell their 

marketable securities on the open 

market through a Federal Reserve Bank. 

Investors will now need to transfer a 

marketable security to a broker or 

financial institution in order to effect a 

sale of the security prior to maturity. 

DATES: Effective Date: December 17, 

2010. 

ADDRESSES: You can download this 

Final Rule at the following Internet 

addresses: http:// 

www.publicdebt.treas.gov, http:// 

www.gpo.gov, or http:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Elisha Whipkey, Director, Division of 

Program Administration, Office of Retail 

Securities, Bureau of the Public Debt, at 

(304) 480–6319 or 

elisha.whipkey@bpd.treas.gov. 

Susan Sharp, Attorney-Adviser; Ann 

Fowler, Attorney-Adviser; Dean Adams, 

Assistant Chief Counsel; Edward 

Gronseth, Deputy Chief Counsel, Office 

of the Chief Counsel, Bureau of the 

Public Debt, at (304) 480–8692 or 

susan.sharp@bpd.treas.gov. 

SUPPLEMENTARY INFORMATION: Treasury’s 

retail electronic systems for holding 

Treasury marketable securities began 

with the goal of permitting investors to 

buy and hold marketable Treasury 

securities until maturity. In 1997 

Treasury offered Legacy Treasury Direct 

investors the ability, for a fee, to sell 

their marketable securities on the 

secondary market, thus bypassing the 

need to transfer their securities to a 

broker or financial institution for sale. 

When Treasury began offering 

marketable securities in TreasuryDirect, 

its electronic, online system, the 

SellDirect service was offered to 

investors in that system as well. Because 

SellDirect was inconsistent with the 

initial vision of the marketable retail 

program, Treasury specifically reserved 

the right to end the program at any time. 

SellDirect volumes are low because 

most investors using the Legacy 

Treasury Direct and TreasuryDirect 

systems hold their securities to 

maturity. From Fiscal Year 2005 to 

Fiscal Year 2009, an annual average of 

13,000 securities worth approximately 

$800 million were sold through 

SellDirect, less than 1.5 percent of 

holdings. Alternative services by 

brokers or financial institutions are 

available to conduct sales. As a costsaving measure, Treasury is returning 

the Legacy Treasury Direct and 

TreasuryDirect systems to their initial 

vision of buy and hold to maturity by 

eliminating SellDirect. Investors will 

now need to transfer a marketable 

security to a broker or financial 

institution in order to effect a sale of the 

security before maturity. 

Procedural Requirements 

Executive Order 12866. This rule is 

not a significant regulatory action 

pursuant to Executive Order 12866. 

Administrative Procedure Act (APA). 

Because this rule relates to United 

States securities, which are contracts 

between Treasury and the owner of the 

security, this rule falls within the 

contract exception to the APA, 5 U.S.C. 

553(a)(2). As a result, the notice, public 

comment, and delayed effective date 

provisions of the APA are inapplicable 

to this rule. 

Regulatory Flexibility Act. The 

provisions of the Regulatory Flexibility 

Act, 5 U.S.C. 601 et seq., do not apply 

to this rule because, pursuant to 5 

U.S.C. 553(a)(2), it is not required to be 

issued with notice and opportunity for 

public comment. 

Paperwork Reduction Act (PRA). 

There is no new collection of 

information contained in this final rule 

that would be subject to the PRA, 44 

U.S.C. 3501 et seq. Under the PRA, 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 OMB control number. 

The Office of Management and Budget 

already has approved all collections of 

information in 31 CFR Part 357 (OMB 

No. 1535–0068) and Part 363 (OMB No. 

1535–0138). 

Congressional Review Act (CRA). This 

rule is not a major rule pursuant to the 

CRA, 5 U.S.C. 801 et seq., because it is 

a minor amendment that is expected to 

decrease costs for taxpayers; therefore, 

this rule is not expected to lead to any 

of the results listed in 5 U.S.C. 804(2). 

This rule may take immediate effect 

after we submit a copy of it to Congress 

and the Comptroller General. 

List of Subjects 

31 CFR Part 357 

Banks, Banking, Bonds, Electronic 

funds transfers, Government securities, 

Reporting and recordkeeping 

requirements. 


srobinson on DSKHWCL6B1PROD with RULES
Federal Register / Vol. 75, No. 242 / Friday, December 17, 2010 / Rules and Regulations 78901 

31 CFR Part 363 

Bonds, Electronic funds transfer, 

Federal Reserve System, Government 

securities, Securities. 

■ Accordingly, for the reasons set out in 

the preamble, 31 CFR Chapter II, 

Subchapter B, is amended as follows: 

PART 357—REGULATIONS 

GOVERNING BOOK–ENTRY 

TREASURY BONDS, NOTES AND 

BILLS HELD IN TREASURY/RESERVE 

AUTOMATED DEBT ENTRY SYSTEM 

(TRADES) AND LEGACY TREASURY 

DIRECT 

■ 1. The authority citation for part 357 

continues to read as follows: 

Authority: 31 U.S.C. chapter 31; 5 U.S.C. 

301; 12 U.S.C. 391. 

■ 2. Revise the heading for Part 357 to 

read as set forth above. 

■ 3. Amend § 357.22 by removing 

paragraph (b) and redesignating 

paragraphs (c), (d), (e), and (f) as 

paragraphs (b), (c), (d), and (e). 

PART 363—REGULATIONS 

GOVERNING SECURITIES HELD IN 

TREASURYDIRECT 

■ 4. The authority citation for part 363 

continues to read as follows: 

Authority: 5 U.S.C. 301; 12 U.S.C. 391; 31 

U.S.C. 3102, et seq.; 31 U.S.C. 3121, et seq. 

§ 363.6 [Amended] 

■ 5. Remove the definition of ‘‘Sell 

Direct’’ from § 363.6. 

■ 6. Amend § 363.10 by adding 

paragraph (c) to read as follows: 

§ 363.10 What is a TreasuryDirect 

account? 

* * * * * 

(c) Closing an account. If a 

TreasuryDirect primary account and all 

associated linked accounts have had no 

holdings and no activity for a period of 

two years, we reserve the right to close 

the account, along with all linked 

accounts. 

§ 362 [Amended] 

■ 7. Amend § 363.22 by removing the 

phrase ‘‘including a transfer for a Sell 

Direct transaction,’’ from the second 

sentence in paragraph (a)(3)(ii). 

§ 363.27 [Amended] 

■ 8. Amend § 363.27 by removing the 

phrase ‘‘, and may request a Sell Direct 

transaction’’ from the second sentence in 

paragraph (e)(4). 

§ 363.209 [Removed and reserved] 

■ 9. Remove and reserve § 363.209. 

§ 363.210 [Amended] 

■ 10. Amend § 363.210 by removing the 

phrase ‘‘initiate a SellDirect 

transaction,’’ from the second sentence 

and removing the fourth and fifth 

sentences. 

Richard L. Gregg, 

Fiscal Assistant Secretary. 

[FR Doc. 2010–31489 Filed 12–16–10; 8:45 am] 

BILLING CODE 4810–39–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 17 

RIN 2900–AN37 

Payment for Inpatient and Outpatient 

Health Care Professional Services at 

Non-Departmental Facilities and Other 

Medical Charges Associated With NonVA Outpatient Care 

AGENCY: Department of Veterans Affairs. 

ACTION: Final rule. 

SUMMARY: This document affirms as 

final, with changes, a proposed rule that 

updates the Department of Veterans 

Affairs (VA) medical regulations 

concerning the payment methodology 

used to calculate VA payments for 

inpatient and outpatient health care 

professional services and other medical 

services associated with non-VA 

outpatient care. The rule has been 

designed to ensure that it will not have 

adverse effects on access to care. 

DATES: This final rule is effective 

February 15, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Holley Niethammer, Supervisory Policy 

Specialist, National Fee Program Office, 

Department of Veterans Affairs, 3773 

Cherry Creek North Dr., Suite 450, 

Denver, CO 80209, telephone (303) 370– 

5062. (This is not a toll-free number.) 

SUPPLEMENTARY INFORMATION: Under 38 

U.S.C. 1703(a), ‘‘[w]hen [VA] facilities 

are not capable of furnishing 

economical hospital care or medical 

services because of geographical 

inaccessibility or are not capable of 

furnishing the care or services required, 

the Secretary, as authorized in [38 

U.S.C. 1710], may contract with non- 

[VA] facilities in order to furnish’’ 

certain hospital care and medical 

services to veterans who qualify under 

38 U.S.C. 1703. VA implemented this 

authority in 38 CFR 17.52. Also, under 

38 U.S.C. 1728, VA may authorize 

payment for emergency care in a nonVA facility in limited situations, 

primarily where the care is needed for 

the treatment of a service-connected 

disability or related condition. Under 

that authority, as implemented in 38 

CFR 17.120, VA reimburses either the 

veteran who made payments for 

hospital care or medical services, the 

person or organization making such 

expenditure on behalf of such veteran, 

or the hospital or other health facility 

furnishing the care or services if such 

care or services were provided in a 

medical emergency and VA or other 

Federal facilities were not feasibly 

available, and an attempt to use them 

beforehand would not have been 

reasonable. 

Payment methodology for health care 

professional services associated with 

outpatient and inpatient care that are 

payable under either 38 U.S.C. 1703 or 

1728 is currently set forth in 38 CFR 

17.56. 

Current § 17.56(a) adopted the 

Medicare Participating Physician Fee 

Schedule for the payment of 

professional services. For services not 

covered by the Medicare Participating 

Physician Fee Schedule, VA pays the 

lesser of the actual amount billed or the 

amount calculated using the 75th 

percentile methodology set forth in 

current § 17.56(c) (or the usual and 

customary rate if there are fewer than 8 

treatment occurrences for a procedure 

during the previous fiscal year). We 

cannot predict whether there will be 8 

treatment occurrences during an 

upcoming fiscal year, or the precise 

charges of such treatment occurrences, 

because these depend upon the billing 

practices of the non-VA facilities 

involved. In the majority of these cases, 

the non-VA facilities’ charges are far 

greater than the allowable Medicare 

charges for the same treatment. As a 

result, VA’s expenditures can be 

unpredictable and, in some cases, can 

greatly exceed the costs VA would incur 

using the Medicare payment systems or 

fee schedules. 

In a proposed rule published on 

February 18, 2010 (75 FR 7218), we 

proposed to amend § 17.56 to apply 

Medicare payment methodologies to all 

non-VA inpatient and outpatient health 

care professional services and other 

medical charges associated with non-VA 

outpatient care. We explained that such 

charges would include ancillary and 

facility costs such as those that are 

reimbursed using the following 

Medicare payment systems or fee 

schedules: Ambulatory Surgical Center 

Payment, Clinical Laboratory Fee 

Schedule, Home Health Prospective 

Payment System (PPS), Hospice, 

Hospital Outpatient PPS, and End Stage 

Renal Disease (ESRD) composite rate 

payment method (NOTE: Beginning 

January 1, 2011, Medicare will pay for 


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