Federal Register / Vol. 74, No. 176 / Monday, September 14, 2009 / Rules and Regulations 46903 

Merced, CA, Castle, ILS OR LOC/DME RWY 

31, Amdt 2B 

Merced, CA, Castle, RNAV (GPS) RWY 13, 

Orig-B 

Merced, CA, Castle, RNAV (GPS) RWY 31, 

Orig-B 

Merced, CA, Castle, VOR/DME RWY 31, 

Amdt 1A 

Monterey, CA, Monterey Peninsula, Takeoff 

Minimums and Obstacle DP, Amdt 6 

San Carlos, CA, San Carlos, Takeoff 

Minimums and Obstacle DP, Amdt 1 

Annapolis, MD, Lee, RNAV (GPS) RWY 30, 

Orig-D, CANCELLED 

Annapolis, MD, Lee, RNAV (GPS)-A, Orig 

Jackson, MI, Jackson County-Reynolds Field, 

RNAV (GPS) RWY 6, Orig 

Jackson, MI, Jackson County-Reynolds Field, 

RNAV (GPS) RWY 14, Orig 

Jackson, MI, Jackson County-Reynolds Field, 

RNAV (GPS) RWY 24, Orig 

Jackson, MI, Jackson County-Reynolds Field, 

RNAV (GPS) RWY 32, Orig 

Jackson, MI, Jackson County-Reynolds Field, 

Takeoff Minimums and Obstacle DP, Amdt 

5 

Jackson, MI, Jackson County-Reynolds Field, 

VOR RWY 6, Amdt 20 

Jackson, MI, Jackson County-Reynolds Field, 

VOR RWY 14, Amdt 20 

Jackson, MI, Jackson County-Reynolds Field, 

VOR RWY 32, Amdt 18 

Jackson, MI, Jackson County-Reynolds Field, 

VOR/DME RWY 24, Orig 

Jackson, MI, Jackson County-Reynolds Field, 

VOR OR GPS RWY 24, Amdt 21, 

CANCELLED 

West Branch, MI, West Branch Community, 

NDB OR GPS RWY 27, Amdt 6C, 

CANCELLED 

West Branch, MI, West Branch Community, 

RNAV (GPS) RWY 9, Orig 

West Branch, MI, West Branch Community, 

RNAV (GPS) RWY 27, Orig 

Zanesville, OH, Zanesville Muni, ILS OR 

LOC/DME RWY 22, Amdt 1 

Pottstown, PA, Pottstown, Takeoff 

Minimums and Obstacle DP, Amdt 2A 

Covington, TN, Covington Muni, NDB OR 

GPS RWY 1, Amdt 3, CANCELLED 

Covington, TN, Covington Muni, RNAV 

(GPS) RWY 1, Orig 

Charlottesville, VA, CharlottesvilleAlbemarle, Takeoff Minimums and 

Obstacle DP, Amdt 9 

Clarksburg, WV, North Central West Virginia, 

Takeoff Minimums and Obstacle DP, Amdt 

5 

[FR Doc. E9–21036 Filed 9–11–09; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 301 

[TD 9462] 

RIN 1545–BH91 

Disregarded Entities and Excise Taxes 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final and temporary 

regulations. 

SUMMARY: This document contains final 

and temporary regulations clarifying 

that a single-owner eligible entity that is 

disregarded as an entity separate from 

its owner for any purpose, but regarded 

as a separate entity for certain excise tax 

purposes, is treated as a corporation for 

tax administration purposes related to 

those excise taxes. These regulations 

also make conforming changes to the tax 

liability rule for disregarded entities and 

the treatment of entity rule for 

disregarded entities with respect to 

employment taxes. These regulations 

affect disregarded entities in general 

and, in particular, disregarded entities 

that pay or pay over certain federal 

excise taxes or that are required to be 

registered by the IRS. The text of these 

temporary regulations serves as the text 

of proposed regulations (REG–116614– 

08) published in the Proposed Rules 

section in this issue of the Federal 

Register. 

DATES: Effective Date: These regulations 

are effective on September 14, 2009. 

Applicability Date: For dates of 

applicability, see § 301.7701–2T(e)(2), 

(e)(5), and (e)(6). 

FOR FURTHER INFORMATION CONTACT: 

Michael H. Beker, (202) 622–3070 (not 

a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background and Explanation of 

Provisions 

This document contains amendments 

to the Procedure and Administration 

Regulations (26 CFR part 301) under 

section 7701 of the Internal Revenue 

Code (Code). 

Under existing § 301.7701–2(c)(2)(iv), 

a single-owner eligible entity that is 

disregarded as an entity separate from 

its owner for Federal tax purposes is 

treated as a separate entity for purposes 

of employment taxes imposed under 

Subtitle C of the Code and related 

reporting requirements. The regulations 

treat these disregarded eligible entities 

as corporations for purposes of 

employment taxes imposed under 

Subtitle C of the Code and related 

reporting requirements. 

Under existing § 301.7701–2(c)(2)(v), 

a single-owner eligible entity that is 

disregarded as an entity separate from 

its owner for Federal tax purposes is 

treated as a separate entity for purposes 

of certain excise taxes reported on Form 

720, ‘‘Quarterly Federal Excise Tax 

Return;’’ Form 730, ‘‘Monthly Tax 

Return for Wagers;’’ Form 2290, ‘‘Heavy 

Highway Vehicle Use Tax Return;’’ and 

Form 11–C, ‘‘Occupation Tax and 

Registration Return for Wagering;’’ 

excise tax refunds or payments claimed 

on Form 8849, ‘‘Claim for Refund of 

Excise Taxes;’’ and excise tax 

registrations on Form 637, ‘‘Application 

for Registration (For Certain Excise Tax 

Activities).’’ Although liability for 

excise taxes is not dependent upon an 

entity’s classification, an entity’s 

classification is relevant for certain tax 

administration purposes, such as 

determining the proper location for 

filing a notice of federal tax lien and the 

place for hand-carrying a return under 

section 6091. Therefore, these 

temporary regulations clarify that these 

disregarded eligible entities are treated 

as corporations for tax administration 

purposes. 

These temporary regulations also 

make conforming changes to the tax 

liability rule for disregarded entities in 

§ 301.7701–2(c)(2)(iii) and the treatment 

of entity rule for disregarded entities 

with respect to employment taxes in 

§ 301.7701–2(c)(2)(iv)(B). 

Effective/Applicability Date 

These regulations apply on and after 

September 14, 2009. 

Special Analyses 

It has been determined that this 

Treasury decision is not a significant 

regulatory action as defined in 

Executive Order 12866. Therefore, a 

regulatory assessment is not required. It 

has also been determined that section 

553(b) of the Administrative Procedure 

Act (5 U.S.C. chapter 5) does not apply 

to these regulations. For applicability of 

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

chapter 6), please refer to the Special 

Analyses section of the preamble to the 

cross-reference notice of proposed 

rulemaking published elsewhere in this 

issue of the Federal Register. Pursuant 

to section 7805(f) of the Code, this 

regulation has been submitted to the 

Chief Counsel for Advocacy of the Small 

Business Administration for comment 

on its impact on small business. 

Drafting Information 

The principal author of these 

regulations is Michael H. Beker, Office 

of the Associate Chief Counsel 

(Passthroughs and Special Industries). 

However, other personnel from the IRS 

and the Treasury Department 

participated in their development. 

List of Subjects in 26 CFR Part 301 

Employment taxes, Estate taxes, 

Excise taxes, Gift taxes, Income taxes, 

Penalties, Reporting and recordkeeping 

requirements. 


cprice-sewell on DSK2BSOYB1PROD with RULES
46904 Federal Register / Vol. 74, No. 176 / Monday, September 14, 2009 / Rules and Regulations 

Amendments to the Regulations 

■ Accordingly, 26 CFR part 301 is 

amended as follows: 

PART 301—PROCEDURE AND 

ADMINISTRATION 

■ Paragraph 1. The authority citation 

for part 301 continues to read in part as 

follows: 

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

■ Par. 2. Section 301.7701–2 is 

amended by: 

■ 1. Revising paragraphs (c)(2)(iii) and 

(c)(2)(iv)(B). 

■ 2. Redesignating paragraph (c)(2)(v)(B) 

as paragraph (c)(2)(v)(C) and added new 

paragraph (c)(2)(v)(B). 

■ 3. In newly-designated paragraph 

(c)(2)(v)(C), Example (iv) is added. 

■ 4. Revising paragraph (e)(2). 

The additions and revisions read as 

follows: 

§ 301.7701–2 Business entities; 

definitions. 

* * * * * 

(c) * * * 

(2) * * * 

(iii) [Reserved]. For further guidance, 

see § 301.7701–2T(c)(2)(iii). 

(iv) * * * 

(B) [Reserved]. For further guidance, 

see § 301.7701–2T(c)(2)(iv)(B). 

* * * * * 

(v) * * * 

(B) [Reserved]. For further guidance, 

see § 301.7701–2T(c)(2)(v)(B). 

(C) * * * 

(iv) [Reserved]. For further guidance, 

see § 301.7701–2T(c)(2)(v)(C) Example 

(iv). 

* * * * * 

(e) * * * 

(2) [Reserved]. For further guidance, 

see § 301.7701–2T(e)(2). 

* * * * * 

■ Par. 3. Section 301.7701–2T is added 

to read as follows: 

§ 301.7701–2T Business entities; 

definitions (temporary). 

(a) through (c)(2)(ii) [Reserved]. For 

further guidance, see § 301.7701–2(a) 

through (c)(2)(ii). 

(iii) Tax liabilities of certain 

disregarded entities—(A) In general. An 

entity that is disregarded as separate 

from its owner for any purpose under 

§ 301.7701–2 is treated as an entity 

separate from its owner for purposes 

of— 

(1) Federal tax liabilities of the entity 

with respect to any taxable period for 

which the entity was not disregarded; 

(2) Federal tax liabilities of any other 

entity for which the entity is liable; and 

(3) Refunds or credits of Federal tax. 

(B) Examples. The following 

examples illustrate the application of 

paragraph (c)(2)(iii)(A) of this section: 

Example 1. In 2006, X, a domestic 

corporation that reports its taxes on a 

calendar year basis, merges into Z, a 

domestic LLC wholly owned by Y that is 

disregarded as an entity separate from Y, in 

a state law merger. X was not a member of 

a consolidated group at any time during its 

taxable year ending in December 2005. Under 

the applicable state law, Z is the successor 

to X and is liable for all of X’s debts. In 2009, 

the Internal Revenue Service (IRS) seeks to 

extend the period of limitations on 

assessment for X’s 2005 taxable year. Because 

Z is the successor to X and is liable for X’s 

2005 taxes that remain unpaid, Z is the 

proper party to sign the consent to extend the 

period of limitations. 

Example 2. The facts are the same as in 

Example 1, except that in 2007, the IRS 

determines that X miscalculated and 

underreported its income tax liability for 

2005. Because Z is the successor to X and is 

liable for X’s 2005 taxes that remain unpaid, 

the deficiency may be assessed against Z and, 

in the event that Z fails to pay the liability 

after notice and demand, a general tax lien 

will arise against all of Z’s property and 

rights to property. 

(c)(2)(iv)(A) [Reserved]. For further 

guidance, see § 301.7701–2(c)(2)(iv)(A). 

(B) Treatment of entity. An entity that 

is disregarded as an entity separate from 

its owner for any purpose under 

§ 301.7701–2 is treated as a corporation 

with respect to taxes imposed under 

Subtitle C—Employment Taxes and 

Collection of Income Tax (Chapters 21, 

22, 23, 23A, 24, and 25 of the Internal 

Revenue Code). 

(C) through (c)(2)(v)(A) [Reserved]. 

For further guidance, see § 301.7701– 

2(c)(2)(iv)(C) through (c)(2)(v)(A). 

(B) Treatment of entity. An entity that 

is disregarded as an entity separate from 

its owner for any purpose under 

§ 301.7701–2 is treated as a corporation 

with respect to items described in 

§ 301.7701–2(c)(2)(v)(A). 

(C) Example. (i) through (iii) 

[Reserved]. For further guidance, see 

§ 301.7701–2(c)(2)(v)(C) Example (i) 

through (iii). 

(iv) Assume the same facts as in 

§ 301.7701–2(c)(2)(v)(C) Example (i) and 

(ii). If LLCB does not pay the tax on its 

sale of coal under chapter 32 of the 

Internal Revenue Code, any notice of 

lien the Internal Revenue Service files 

will be filed as if LLCB were a 

corporation. 

(d) through (e)(1) [Reserved]. For 

further guidance, see § 301.7701–2(d) 

through (e)(1). 

(e)(2) Paragraph (c)(2)(iii) of this 

section applies on and after September 

14, 2009. For rules that apply before 

September 14, 2009, see 26 CFR part 

301 revised as of April 1, 2009. 

(e)(3) through (e)(4) [Reserved]. For 

further guidance, see § 301.7701–2(e)(3) 

through (e)(4). 

(e)(5) Paragraph (c)(2)(iv)(B) of this 

section applies with respect to wages 

paid on or after September 14, 2009. For 

rules that apply before September 14, 

2009, see 26 CFR part 301 revised as of 

April 1, 2009. 

(e)(6) Paragraphs (c)(2)(v)(B) and 

(c)(2)(v)(C) Example (iv) of this section 

apply on and after September 14, 2009. 

(7) [Reserved]. For further guidance, 

see § 301.7701–2(e)(7). 

(8) Expiration Date. The applicability 

of paragraphs (c)(2)(iii), (c)(2)(iv)(B), 

(c)(2)(v)(B), (c)(2)(v)(C) Example (iv), 

(e)(2), (e)(5) and (e)(6) of this section 

expires on or before September 11, 

2012. 

L.E. Stiff, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: August 31, 2009. 

Michael F. Mundace, 

Acting Assistant Secretary of the Treasury 

(Tax Policy). 

[FR Doc. E9–21987 Filed 9–11–09; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE INTERIOR 

Minerals Management Service 

30 CFR Parts 203, 210, 250, 251, 253, 

254, 256, 280, and 291 

[Docket No. MMS–OMM–2009–0008] 

RIN 1010–AD52 

Outer Continental Shelf—Technical 

Corrections 

AGENCY: Minerals Management Service 

(MMS), Interior. 

ACTION: Final rule; technical corrections 

and announcement of effective dates. 

SUMMARY: This document makes 

technical changes to regulations that 

were published in various Federal 

Register documents and are codified in 

the Code of Federal Regulations, as well 

as announcing the approval by the 

Office of Management and Budget of 

information collection requirements 

contained in two previously published 

regulations. 

DATES: This rule is effective on 

September 14, 2009. The information 

collection requirements contained in the 

rulemaking (63 FR 42699, published 

August 11, 1998) for 30 CFR part 253, 

were approved by the Office of 

Management and Budget (OMB) on 

October 7, 1998, and the information 

collection requirements contained in the 


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