Federal Register / Vol. 74, No. 171 / Friday, September 4, 2009 / Proposed Rules 45789 

Comments Due Date 

(a) We must receive comments by October 

5, 2009. 

Affected ADs 

(b) The proposed AD supersedes AD 2009– 

12–13, Amendment 39–15936. 

Applicability 

(c) This AD applies to Bombardier Model 

DHC–8–400, DHC–8–401, and DHC–8–402 

airplanes, certificated in any category, serial 

numbers 4135 through 4149 inclusive. 

Subject 

(d) Air Transport Association (ATA) of 

America Code 27: Flight Controls. 

Reason 

(e) The mandatory continuing 

airworthiness information (MCAI) states: 

There has been one case reported of failure 

of a shaft (tailstock) on an elevator Power 

Control Unit (PCU), Part Number (P/N) 

390600–1007. Continued actuation of the 

affected PCU caused damage to the 

surrounding structure. Subsequent 

investigation determined that the failure was 

the result of a material defect and that the 

shafts installed on a total of 88 suspect PCUs 

* * * may contain a similar defect. 

Each elevator surface has three PCUs, 

powered by separate independent hydraulic 

systems, and a single elevator PCU shaft 

failure may remain dormant. Such a dormant 

loss of redundancy, coupled with the 

potential for a failed shaft to produce 

collateral damage, including damage to 

hydraulic lines, could possibly affect the 

controllability of the aircraft. 

This directive mandates an identification 

check for elevator PCU serial numbers, a 

daily check for correct operation of all 

suspect PCUs and, finally, replacement of all 

suspect PCUs. 

Restatement of Requirements of AD 2009– 

12–13, Without Optional Terminating Action 

(f) Unless already done, do the following 

actions. 

(1) Within 30 days after June 26, 2009 (the 

effective date of AD 2009–12–13), inspect the 

serial number of each of the six installed 

elevator PCUs having P/N 390600–1007. If 

one or more of the six installed elevator 

PCUs, P/N 390600–1007, have any of the 

PCU serial numbers 238, 698, 783 through 

788 inclusive, 790, 793, 795, 802, 806, 807, 

810, 820 through 823 inclusive, 826 through 

828 inclusive, 831, 835, 838, 840, 886 

through 889 inclusive, or 898 through 955 

inclusive; without a suffix ‘‘A’’ after the 

serial number: Within 30 days after June 26, 

2009, perform a check for the correct 

operation of all installed elevator PCUs in 

accordance with the procedures detailed in 

Appendix A, B, or C of Bombardier Q400 All 

Operator Message 217B, dated April 26, 

2007. Repeat the check thereafter before the 

first flight of each day until the replacement 

specified in paragraph (g) of this AD is done. 

The checks in Appendix A and B of 

Bombardier Q400 All Operator Message 

217B, dated April 26, 2007, must be 

performed by the flight crew, while the check 

specified in Appendix C of the all operator 

message must be performed by certificated 

maintenance personnel. 

Note 1: Suffix ‘‘A’’ after the serial number 

indicates that the PCU has already passed a 

magnetic particle inspection and is cleared 

for continued use. 

(2) If incorrect operation of any elevator 

PCU is found during any check required by 

paragraph (f)(1) of this AD, before further 

flight, replace the elevator PCU with a PCU, 

P/N 390600–1007, having a serial number not 

specified in paragraph (f)(1) of this AD; or 

with a PCU, P/N 390600–1007, having the 

suffix ‘‘A’’ after the serial number; in 

accordance with the Accomplishment 

Instructions of Bombardier Service Bulletin 

84–27–32, Revision A, dated January 18, 

2008. 

(3) Actions accomplished before June 26, 

2009, according to Bombardier Service 

Bulletin 84–27–32, dated May 1, 2007, are 

considered acceptable for compliance with 

the corresponding action specified in this 

AD. 

New Requirements of This AD: Actions and 

Compliance 

(g) Unless already done, within 2,000 flight 

hours or 12 months after the effective date of 

this AD, whichever occurs later, replace all 

PCUs, P/N 390600–1007, having a serial 

number specified in paragraph (f)(1) of this 

AD, and not having suffix ‘‘A’’ after the serial 

number, with PCUs, P/N 390600–1007, 

having a serial number not specified in 

paragraph (f)(1) of this AD; or with PCUs, 

P/N 390600–1007, having the suffix ‘‘A’’ after 

the serial number; in accordance with the 

Accomplishment Instructions of Bombardier 

Service Bulletin 84–27–32, Revision A, dated 

January 18, 2008. This action terminates the 

requirements of paragraph (f)(1) of this AD. 

FAA AD Differences 

Note 2: This AD differs from the MCAI 

and/or service information as follows: No 

differences. 

Other FAA AD Provisions 

(h) The following provisions also apply to 

this AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, New York Aircraft 

Certification Office (ACO), FAA, has the 

authority to approve AMOCs for this AD, if 

requested using the procedures found in 14 

CFR 39.19. Send information to ATTN: Cesar 

Gomez, Aerospace Engineer, Airframe and 

Mechanical Systems Branch, ANE–171, FAA, 

New York Aircraft Certification Office, 1600 

Stewart Avenue, Suite 410, Westbury, New 

York 11590; telephone (516) 228–7318; fax 

(516) 794–5531. Before using any approved 

AMOC on any airplane to which the AMOC 

applies, notify your principal maintenance 

inspector (PMI) or principal avionics 

inspector (PAI), as appropriate, or lacking a 

principal inspector, your local Flight 

Standards District Office. The AMOC 

approval letter must specifically reference 

this AD. 

(2) Airworthy Product: For any requirement 

in this AD to obtain corrective actions from 

a manufacturer or other source, use these 

actions if they are FAA-approved. Corrective 

actions are considered FAA-approved if they 

are approved by the State of Design Authority 

(or their delegated agent). You are required 

to assure the product is airworthy before it 

is returned to service. 

(3) Reporting Requirements: For any 

reporting requirement in this AD, under the 

provisions of the Paperwork Reduction Act, 

the Office of Management and Budget (OMB) 

has approved the information collection 

requirements and has assigned OMB Control 

Number 2120–0056. 

Related Information 

(i) Refer to MCAI Canadian Airworthiness 

Directive CF–2009–16, dated April 20, 2009; 

Bombardier Service Bulletin 84–27–32, 

Revision A, dated January 18, 2008; and 

Bombardier Q400 All Operator Message 

217B, dated April 26, 2007; for related 

information. 

Issued in Renton, Washington, on August 

26, 2009. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. E9–21339 Filed 9–3–09; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–139068–08] 

RIN 1545–BI31 

Modification to Consolidated Return 

Regulation Permitting an Election To 

Treat a Liquidation of a Target, 

Followed by a Recontribution to a New 

Target, as a Cross-Chain 

Reorganization 

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 under section 1502 of the 

Internal Revenue Code (Code). The 

temporary regulations modify the 

election under which a consolidated 

group can avoid immediately taking into 

account an intercompany item after the 

liquidation of a target corporation. This 

modification was made necessary in 

light of the regulations under section 

368 that were issued in October 2007 

addressing transfers of assets or stock 

following a reorganization. The 

temporary regulations apply to 

corporations filing consolidated returns. 

The text of those temporary regulations 

also serves as the text of these proposed 

regulations. 


pwalker on DSK8KYBLC1PROD with PROPOSALS
45790 Federal Register / Vol. 74, No. 171 / Friday, September 4, 2009 / Proposed Rules 

DATES: Written comments and requests 

for a public hearing must be received by 

December 4, 2009. 

ADDRESSES: Send submissions to 

CC:PA:LPD:PR (REG–139068–08), Room 

5203, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. Submissions 

may be hand-delivered Monday through 

Friday to CC:PA:LPD:PR (REG–139068– 

08), Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue, 

NW., Washington, DC or sent 

electronically via the Federal 

eRulemaking Portal at http:// 

www.regulations.gov (IRS REG–139068– 

08). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the regulations, Mary W. 

Lyons, (202) 622–7930; concerning 

submission of comments and the 

hearing, Oluwafunmilayo (Funmi) 

Taylor, (202) 622–7180 (not toll-free 

numbers). 

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act 

The collection of information 

contained in this notice of proposed 

rulemaking has been submitted to the 

Office of Management and Budget for 

review in accordance with the 

Paperwork Reduction Act of 1995 (44 

U.S.C. 3507(d)). Comments on the 

collection of information should be sent 

to the Office of Management and 

Budget, Attn: Desk Officer for the 

Department of the Treasury, Office of 

Information and Regulatory Affairs, 

Washington, DC 20503, with copies to 

the Internal Revenue Service, Attn: IRS 

Reports Clearance Officer, 

SE:W:CAR:MP:T:T:SP, Washington, DC 

20224. Comments on the collection of 

information should be received by 

December 4, 2009. Comments are 

specifically requested concerning: 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Internal Revenue Service, including 

whether the information will have 

practical utility; 

The accuracy of the estimated burden 

associated with the proposed collection 

of information (see below); 

How the quality, utility, and clarity of 

the information to be collected may be 

enhanced; 

How the burden of complying with 

the proposed collections of information 

may be minimized, including through 

the application of automated collection 

techniques or other forms of information 

technology; and 

Estimates of capital or start-up costs 

of operation, maintenance, and 

purchase of service to provide 

information. 

The collection of information in this 

proposed regulation is in § 1.1502– 

13(f)(5)(ii)(E) as contained in 26 CFR 

part 1, revised April 1, 2009, and 

proposed § 1.1502–13(f)(5)(ii)(B)(2). 

This information is required by the IRS 

to allow certain parties to make an 

election to apply § 1.1502–13(f)(5)(ii)(B). 

The likely recordkeepers are 

corporations filing consolidated income 

tax returns. No additional burden is 

anticipated with respect to these 

proposed regulations over that already 

required in the regulations currently in 

effect (CO–11–91 Final and CO–24–95 

Final). 

Estimated total annual reporting 

burden: 100 hours. 

Estimated average annual burden 

hours per respondent: 2 hours. 

Estimated number of respondents: 50. 

Estimated annual frequency of 

responses: Once. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless the collection of information 

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. Generally, 

tax returns and tax return information 

are confidential, as required by 26 

U.S.C. 6103. 

Background 

The temporary regulations published 

in the Rules and Regulations section of 

this issue of the Federal Register amend 

the Income Tax Regulations (26 CFR 

part 1) under section 1502. The 

temporary regulations provide that if the 

election to apply § 1.1502–13(f)(5)(ii)(B) 

is made for a transaction in which old 

T liquidates into B on or after the 

effective date of the regulations under 

§ 1.368–2(k), issued in October 2007, 

followed by B’s transfer of substantially 

all of old T’s assets to new T, then, for 

all Federal income tax purposes, old T’s 

liquidation into B and B’s transfer of 

substantially all of old T’s assets to new 

T will be disregarded and, instead, the 

transaction will be treated as if old T 

transferred substantially all of its assets 

to new T in exchange for new T stock 

in a reorganization described in section 

368(a). This election is available only if 

a direct transfer of the old T assets to 

new T would qualify as a 

reorganization. Thus, S’s gain from the 

sale of the T stock to B is not taken into 

account upon the liquidation of T but 

instead is taken into account with 

respect to the new T stock, the successor 

asset to the old T stock. 

The text of those temporary 

regulations also serves as the text of 

these proposed regulations. The 

preamble to the temporary regulations 

explains the reasons for the 

modifications to the final regulations 

contained in the temporary regulations. 

Special Analyses 

It has been determined that this notice 

of proposed rulemaking is not a 

significant regulatory action as defined 

in Executive Order 12866. Therefore, a 

regulatory assessment is not required. 

Further, it is hereby certified that these 

proposed regulations will not have a 

significant economic impact on a 

substantial number of small entities. 

This certification is based on the fact 

that these regulations do not have a 

substantial economic impact because 

they merely provide for an election in 

the context of a taxpayer that has 

triggered deferred gain on subsidiary 

stock upon the liquidation of the 

subsidiary. Moreover, the regulations 

apply only to transactions involving 

consolidated groups which tend to be 

larger businesses. Accordingly, a 

Regulatory Flexibility Analysis under 

the Regulatory Flexibility Act (5 U.S.C. 

chapter 6) is not required. Pursuant to 

section 7805(f) of the Code, this notice 

of proposed rulemaking has been 

submitted to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on its 

impact on small business. 

Comments and Requests for 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. In 

addition to the specific requests for 

comments made elsewhere in this 

preamble or the preamble to the 

temporary regulations, the IRS and 

Treasury Department request comments 

on the clarity of the proposed rules and 

how they can 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 who timely submits written 

comments. If a public hearing is 

scheduled, notice of the date, time and 

place of the hearing will be published 

in the Federal Register. 


pwalker on DSK8KYBLC1PROD with PROPOSALS
Federal Register / Vol. 74, No. 171 / Friday, September 4, 2009 / Proposed Rules 45791 

1Pursuant to Reorganization Plan No. 4 of 1978, 

43 FR 47713 (Oct. 17, 1978), the Department of the 

Treasury has interpretive authority over the 

minimum funding rules of Title I of ERISA, 

including section 305 of ERISA. 

2Pursuant to section 305(b)(3)(D)(iii) of ERISA, 

the Department of Labor issued proposed 29 CFR 

2540.305–1, which includes a model notice for 

plans in critical status. See 73 FR 15688 (Mar. 25, 

2008). However, section 102(b)(1)(C) of the Worker, 

Retiree, and Employer Recovery Act of 2008, Public 

Law 110–458, signed into law on December 23, 

2008, transferred the Secretary of Labor’s obligation 

to prescribe a model notice to the Secretary of the 

Treasury, in consultation with the Secretary of 

Labor. 

Drafting Information 

The principal author of these 

proposed regulations is Mary W. Lyons 

of the Office of Associate Chief Counsel 

(Corporate). However, other personnel 

from the IRS and Treasury Department 

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 * * * 

Section 1.1502–13 also issued under 26 

U.S.C. 1502 * * * 

Par. 2. Section 1.1502–13 is amended 

by revising paragraphs (f)(5)(ii)(B) and 

adding paragraph (f)(5)(ii)(F) to read as 

follows: 

§ 1.1502–13 Intercompany transactions. 

* * * * * 

(f) * * * 

(5) * * * 

(ii) * * * 

(B)(1) [The text of the proposed 

amendments to § 1.1502–13(B)(1) is the 

same as the text of § 1.1502–13T(B)(1) 

published elsewhere in this issue of the 

Federal Register. 

(2) [The text of the proposed 

amendments to § 1.1502–13(B)(2) is the 

same as the text of § 1.1502–13T(B)(2) 

published elsewhere in this issue of the 

Federal Register. 

* * * * * 

(F) [The text of the proposed 

amendments to § 1.1502–13(F) is the 

same as the text of § 1.1502–13T(F) 

published elsewhere in this issue of the 

Federal Register. 

* * * * * 

Linda E. Stiff, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. E9–21323 Filed 9–3–09; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

29 CFR Part 2560 

RIN 1210–AB31 

Civil Penalties Under ERISA Section 

502(c)(8) 

AGENCY: Employee Benefits Security 

Administration, Labor. 

ACTION: Proposed regulation. 

SUMMARY: This document contains a 

proposed regulation that, upon 

adoption, would establish procedures 

relating to the assessment of civil 

penalties by the Department of Labor 

under section 502(c)(8) of the Employee 

Retirement Income Security Act of 1974 

(ERISA or the Act). Under section 

502(c)(8) of ERISA, which was added by 

the Pension Protection Act of 2006, the 

Secretary of Labor is granted authority 

to assess civil penalties not to exceed 

$1,100 per day against any plan sponsor 

of a multiemployer plan for certain 

violations of section 305 of ERISA. The 

regulation would affect multiemployer 

plans that are in either endangered or 

critical status. 

DATES: Written comments on the 

proposed regulation should be received 

by the Department of Labor no later than 

November 3, 2009. 

ADDRESSES: You may submit comments, 

identified by RIN 1210–AB31, by one of 

the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• E-mail: e-ORI@dol.gov. Include RIN 

1210–AB31 in the subject line of the 

message. 

• Mail: Office of Regulations and 

Interpretations, Employee Benefits 

Security Administration, Room N–5655, 

U.S. Department of Labor, 200 

Constitution Avenue, NW., Washington, 

DC 20210, Attention: Civil Penalties 

Under 502(c)(8). 

Instructions: All submissions received 

must include the agency name and 

Regulatory Information Number (RIN) 

for this rulemaking. Comments received 

will be posted without change to 

http://www.regulations.gov and http:// 

www.dol.gov/ebsa, and made available 

for public inspection at the Public 

Disclosure Room, N–1513, Employee 

Benefits Security Administration, 200 

Constitution Avenue, NW., Washington, 

DC 20210, including any personal 

information provided. Persons 

submitting comments electronically are 

encouraged not to submit paper copies. 

FOR FURTHER INFORMATION CONTACT: 

Michael Del Conte, Office of Regulations 

and Interpretations, Employee Benefits 

Security Administration, (202) 693– 

8500. This is not a toll-free number. 

SUPPLEMENTARY INFORMATION: 

A. Background 

Section 202 and section 212 of the 

Pension Protection Act of 2006 (PPA), 

Public Law 109–280, respectively, 

amended ERISA by adding section 305 

and amended the Internal Revenue Code 

(Code) by adding section 432, to provide 

additional rules for multiemployer 

defined benefit pension plans in 

endangered status or critical status. All 

references in this document to section 

305 of ERISA should be read to include 

section 432 of the Code.1

In general, section 305(b)(3)(A) of 

ERISA provides that not later than the 

90th day of each plan year, the actuary 

of a multiemployer defined benefit 

pension plan shall certify to the 

Secretary of the Treasury and to the 

plan sponsor—(i) Whether or not the 

plan is in endangered status for such 

plan year and whether or not the plan 

is or will be in critical status for such 

plan year, and (ii) in the case of a plan 

which is in a funding improvement or 

rehabilitation period, whether or not the 

plan is making the scheduled progress 

in meeting the requirements of its 

funding improvement or rehabilitation 

plan. 

Section 305(b)(3)(D)(i) of ERISA 

provides that, in any case in which it is 

certified under section 305(b)(3)(A) that 

a multiemployer plan is or will be in 

endangered or critical status for a plan 

year, the plan sponsor shall, not later 

than 30 days after the date of the 

certification, provide notification of the 

endangered or critical status to 

participants and beneficiaries, the 

bargaining parties, the Pension Benefit 

Guaranty Corporation, and the Secretary 

of Labor.2

Section 305(c)(1)(A) and section 

305(e)(1)(A) provide that in the first year 

that a plan is certified to be in 

endangered or critical status, the plan 

sponsor generally has a 240-day period 


pwalker on DSK8KYBLC1PROD with PROPOSALS