Federal Register / Vol. 75, No. 248 / Tuesday, December 28, 2010 / Rules and Regulations 81457 

are age 55 or over is expressed under the 

terms of the plan as a life annuity 

payable at normal retirement age (or 

current age, if later) as described in 

paragraph (b)(1)(i)(A) of this section and 

the plan provides that the accumulated 

benefit of participants who are younger 

than age 55 is expressed as the current 

balance of a hypothetical account as 

described in paragraph (b)(1)(i)(B) of 

this section, then the safe harbor 

described in section 411(b)(5)(A) and 

paragraph (b)(1)(i) of this section does 

not apply to individuals who are or 

could be participants who are age 55 or 

over. 

(iv) * * * 

Example 4. * * * 

(iii) * * * If, instead of the facts in 

paragraph (i) of this Example 4, the plan had 

been amended to provide only participants 

who have not yet attained age 55 by January 

1, 2012, with a benefit that is the greater of 

the benefit under the average annual 

compensation formula and a benefit that is 

based on the balance of a hypothetical 

account, then the safe harbor would not be 

satisfied with respect to individuals who 

have attained age 55 by January 1, 2012. 

* * * 

* * * * * 

(c) * * * 

(5) * * * 

Example 2. * * * 

(iv) * * * The plan provides that, as of a 

participant’s annuity starting date, the plan 

will determine whether the benefit 

attributable to the opening hypothetical 

account balance payable in the particular 

optional form of benefit selected is equal to 

or greater than the benefit accrued under the 

plan through the date of conversion and 

payable in the same generalized optional 

form of benefit with the same annuity 

starting date. * * * 

Example 3. * * * (i) * * * Under the 

terms of Plan E, the benefit attributable to A’s 

opening hypothetical account balance is 

increased so that A’s straight life annuity 

commencing on January 1, 2015, is $1,000 

per month. * * * 

* * * * * 

(d) * * * 

(1) * * * 

(iii) Market rate of return for single 

rates. Except as otherwise provided in 

this paragraph (d)(1), an interest 

crediting rate is not in excess of a 

market rate of return only if the plan 

terms provide that the interest credit for 

each plan year is determined using one 

of the following specified interest 

crediting rates: 

* * * * * 

(f) * * * 

(2) * * * 

(iii) * * * For the periods after the 

statutory effective date set forth in 

paragraph (f)(1) of this section and 

before the regulatory effective date set 

forth in paragraph (f)(2)(i) of this 

section, the safe harbor and other relief 

of section 411(b)(5) apply and the 

market rate of return and other 

requirements of section 411(b)(5) must 

be satisfied. * * * 

Guy R. Traynor 

Acting Chief, Publications and Regulations 

Branch, Legal Processing Division, Associate 

Chief Counsel, Procedure and 

Administration. 

[FR Doc. 2010–32539 Filed 12–27–10; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9508] 

RIN 1545–BJ85 

Source of Income From Qualified Fails 

Charges; Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Correcting amendment. 

SUMMARY: This document contains a 

correction to temporary regulations (TD 

9508) thatwere published in the Federal 

Register on Wednesday, December 8, 

2010 (75 FR 76262)providing guidance 

about the treatment of fails charges for 

purposes of sections 871 and 881, which 

generally require gross-basis taxation of 

foreign persons not otherwise subject to 

U.S. net-basis taxation and the 

withholding of such tax under sections 

1441 and 1442. 

DATES: This correction is effective on 

December 28, 2010, and is applicable 

beginning December 8, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Sheila Ramaswamy or Anthony J. Marra 

at (202) 622–3870 (not a toll-free 

number). 

SUPPLEMENTARY INFORMATION: 

Background 

The temporary regulations (TD 9508) 

that are the subject of this document are 

under section 863 of the Internal 

Revenue Code. 

Need for Correction 

As published, the temporary 

regulations (TD 9508) contain an error 

that may prove to be misleading and is 

in need of clarification. 

List of Subject in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Correction of Publication 

■ Accordingly, 26 CFR part 1 is 

corrected by making the following 

correcting amendment: 

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 1.863–10T is amended 

by revising the paragraph (f) to read as 

follows: 

§ 1.863–10T Source of income from a 

qualified fails charge (temporary). 

* * * * * 

(f) Expiration date. This section 

expires on December 6, 2013. 

Guy R. Traynor, 

Acting Chief, Publications and Regulations 

Branch, Legal Processing Division, Associate 

Chief Counsel, Procedure and 

Administration. 

[FR Doc. 2010–32536 Filed 12–27–10; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF JUSTICE 

[Docket No. USPC–2010–04] 

28 CFR Part 2 

Paroling, Recommitting, and 

Supervising Federal Prisoners: 

Prisoners Serving Sentences Under 

the United States and District of 

Columbia Codes 

AGENCY: United States Parole 

Commission, Justice. 

ACTION: Final rules. 

SUMMARY: The U.S. Parole Commission 

is revising its rule on original 

jurisdiction cases. The revision adds as 

a criterion for original jurisdiction 

designation a case in which the offender 

caused the death of a law enforcement 

officer while the officer was performing 

his duty. In the rule on the quorum of 

Commissioners needed for agency 

action, the Commission is adding 

provisions that describe the 

consequence of a vote in which the 

Commission members are equally 

divided in their decisions. 

DATES: Effective date: January 31, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Rockne Chickinell, Office of General 

Counsel, U. S. Parole Commission, 5550 

Friendship Blvd., Chevy Chase, 

Maryland 20815, telephone (301) 492– 

5959. Questions about this publication 

are welcome, but inquiries concerning 

individual cases cannot be answered 

over the telephone. 


srobinson on DSKHWCL6B1PROD with RULES