17806 Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Rules and Regulations 

§ 1.1502–35T Transfers of subsidiary stock 

and deconsolidations of subsidiaries 

(temporary). 

* * * * * 

(c)(4)(ii) through (g)(2) [Reserved]. For 

further guidance, see § 1.1502–

35(c)(4)(ii) through (g)(2). 

(3) Anti-loss reimportation rule—(i) 

Conditions for application. This 

paragraph (g)(3) applies when—

(A) A member of a group (the selling 

group) recognized and was allowed a 

loss with respect to a share of stock of 

S, a subsidiary or former subsidiary of 

the selling group; 

(B) That stock loss was duplicated (in 

whole or in part) in S’s attributes 

(duplicating items) at the earlier of the 

time that the loss was recognized or that 

S ceased to be a member; and 

(C) Within ten years of the date that 

S ceased to be a member, there is a 

reimportation event. For this purpose, a 

reimportation event is any event after 

which a duplicating item is a 

reimported item. A reimported item is 

any duplicating item that is reflected in 

the attributes of any member of the 

selling group, including S, or, if not 

reflected in the attributes, would be 

properly taken into account by any 

member of the selling group (for 

example as the result of a carryback) (a 

reimported item). 

(ii) Effect of application. Immediately 

before the time that a reimported item 

(or any portion of a reimported item) 

would be properly taken into account 

(but for the application of this paragraph 

(g)(3)), such item (or such portion of the 

item) is reduced to zero and no 

deduction or loss is allowed, directly or 

indirectly, with respect to that item. 

(iii) Operating rules. For purposes of 

this paragraph (g)(3)—

(A) The terms member, subsidiary, 

and group include their predecessors 

and successors to the extent necessary 

to effectuate the purposes of this 

section; 

(B) The determination of whether a 

loss is duplicative is made under the 

principles of paragraph (d)(4) of this 

section; and 

(C) The reduction of a reimported 

item (other than duplicating items that 

are carried back to a consolidated return 

year of the selling group) is a 

noncapital, nondeductible expense 

within the meaning of § 1.1502–

32(b)(3)(iii). 

(g)(4) through (g)(5) [Reserved]. For 

further guidance, see § 1.1502–35(g)(4) 

through (g)(5). 

(6) General anti-avoidance rule 

applicable on or after April 10, 2007. If 

a taxpayer acts with a view to avoid the 

purposes of this section, appropriate 

adjustments will be made to carry out 

the purposes of this section. 

(h) Application of other rules of law. 

See § 1.1502–80(a) regarding the general 

applicability of other rules of law. 

(i) [Reserved]. For further guidance, 

see § 1.1502–35(i). 

(j)(1) [Reserved]. For further guidance, 

see § 1.1502–35(j)(1). 

(2) Transactions after April 10, 

2007—(i) Effective date. Paragraph (g)(3) 

of this section applies to reimported 

items if the related stock loss is 

recognized on or after April 10, 2007. 

Paragraph (g)(3) (other than paragraph 

(g)(3)(i)(A)) of this section also applies 

with respect to the duplication of 

subsidiary stock loss recognized in 

dispositions (described in § 1.1502–

35(g)(3)(i)(A), as contained in 26 CFR 

part 1, revised as of January 1, 2007) on 

or after March 7, 2002, if the 

reimportation event with respect to that 

loss occurs on or after April 10, 2007. 

For rules applicable to losses 

reimported before April 10, 2007, see 

§ 1.1502–35(g)(3), as contained in 26 

CFR part 1 in effect on January 1, 2007. 

Paragraphs (g)(6) and (h) of this section 

apply on or after April 10, 2007. For 

rules applicable prior to April 10, 2007, 

see § 1.1502–35 as contained in 26 CFR 

part 1 in effect on January 1, 2007. 

(ii) Expiration date. The applicability 

of paragraphs (g)(3), (g)(6), and (h) of 

this section will expire on April 9, 2010. 

* * * * * 

Linda M. Kroening, 

Acting Deputy Commissioner for Services and 

Enforcement. 

Approved: March 29, 2007. 

Eric Solomon, 

Assistant Secretary of the Treasury. 

[FR Doc. E7–6541 Filed 4–9–07; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 648 

[Docket No. 04011–2010–4114–02; I.D. 

040407D] 

Magnuson-Stevens Fishery 

Conservation and Management Act 

Provisions; Fisheries of the 

Northeastern United States; Northeast 

(NE) Multispecies Fishery; Modification 

of the Yellowtail Flounder Landing 

Limit for the U.S./Canada Management 

Area 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Temporary rule; landing limit. 

SUMMARY: NMFS announces that the 

Administrator, Northeast (NE) Region, 

NMFS (Regional Administrator), is 

increasing the Georges Bank (GB) 

yellowtail flounder trip limit to 25,000 

lb (11,340 kg) for NE multispecies daysat-sea (DAS) vessels fishing in the U.S./ 

Canada Management Area. This action 

is authorized by the regulations 

implementing Amendment 13 to the NE 

Multispecies Fishery Management Plan 

and is intended to prevent underharvesting of the Total Allowable Catch 

(TAC) for GB yellowtail flounder while 

ensuring that the TAC will not be 

exceeded during the 2006 fishing year. 

This action is being taken to provide 

additional opportunities for vessels to 

fully harvest the GB yellowtail flounder 

TAC under the authority of the 

Magnuson-Stevens Fishery 

Conservation and Management Act 

(Magnuson-Stevens Act). 

DATES: Effective April 5, 2007, through 

April 30, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Tobey Curtis, Fishery Management 

Specialist, (978) 281–9273, fax (978) 

281–9135. 

SUPPLEMENTARY INFORMATION: 

Regulations governing the GB yellowtail 

flounder landing limit within the U.S./ 

Canada Management Area are found at 

§ 648.85(a)(3)(iv)(C) and (D). The 

regulations authorize vessels issued a 

valid limited access NE multispecies 

permit and fishing under a NE 

multispecies DAS to fish in the U.S./ 

Canada Management Area, as defined at 

§ 648.85(a)(1), under specific 

conditions. The TAC for GB yellowtail 

flounder for the 2006 fishing year (May 

1, 2006 - April 30, 2007) is 2,070 mt. 

The regulations at § 648.85(a)(3)(iv)(D) 

authorize the Regional Administrator to 

increase or decrease the trip limits in 

the U.S./Canada Management Area to 

prevent over-harvesting or underharvesting the TAC allocation. On 

March 8, 2007, the 10,000–lb (4,536–kg) 

trip limit for GB yellowtail flounder was 

reduced to 5,000 lb (2,268 kg) in the 

Eastern U.S./Canada Area to prevent 

over-harvesting the TAC (72 FR 10426), 

and the requirement to only use a 

haddock separator trawl in the Eastern 

U.S./Canada Area was removed. 

Currently, NE multispecies vessels 

fishing in the Eastern U.S./Canada Area 

under a NE multispecies day-at-sea 

(DAS) with trawl gear must use either a 

haddock separator trawl or a flounder 

trawl net, as specified at 

§ 648.85(a)(3)(iii). Based upon the most 


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Federal Register / Vol. 72, No. 68 / Tuesday, April 10, 2007 / Rules and Regulations 17807 

recent Vessel Monitoring System (VMS) 

reports and other available information, 

the Regional Administrator has 

determined that the current rate of 

harvest will result in the under-harvest 

of the GB yellowtail flounder TAC 

during the 2006 fishing year. Based on 

this information, the Regional 

Administrator is increasing the current 

10,000–lb (4,536–kg) trip limit in the 

Western U.S./Canada Area, and the 

5,000–lb (2,268–kg) trip limit in the 

Eastern U.S./Canada Area to 25,000 lb 

(11,340 kg) in both areas, effective April 

5, 2007, through April 30, 2007. 

Accordingly, there is a 25,000–lb 

(11,340–kg) trip limit on the amount of 

GB yellowtail flounder that can be 

harvested or landed for the remainder of 

the fishing year for vessels subject to 

these regulations. GB yellowtail 

flounder landings will be closely 

monitored through VMS and other 

available information. Should 100 

percent of the TAC allocation for GB 

yellowtail flounder be projected to be 

harvested, the Eastern U.S./Canada Area 

will close to all groundfish DAS vessels, 

and all vessels will be prohibited from 

harvesting, possessing, or landing 

yellowtail flounder from the U.S./ 

Canada Management Area for the 

remainder of the fishing year. 

Additionally, the Eastern GB cod TAC 

will also be closely monitored, and 

should 100 percent of its TAC allocation 

be projected to be harvested, groundfish 

DAS vessels will be prohibited from 

entering the Eastern U.S./Canada Area 

for the remainder of the fishing year, as 

required by the regulations at 

§ 648.85(a)(3)(iv). 

Classification 

This action is authorized by 50 CFR 

part 648 and is exempt from review 

under Executive Order 12866. 

Pursuant to 5 U.S.C. 553(b)(B), the 

Assistant Administrator (AA) finds good 

cause to waive prior notice and 

opportunity for public comment for this 

action, because notice and comment 

would be impracticable and contrary to 

the public interest. The regulations at 

§ 648.85(a)(3)(iv)(D) grant the Regional 

Administrator the authority to adjust the 

GB yellowtail flounder trip limits to 

prevent over-harvesting or underharvesting the TAC allocation. Given 

that approximately 20 percent of the GB 

yellowtail flounder TAC remains 

unharvested and the 2006 fishing year 

ends on April 30, 2007, the time 

necessary to provide for prior notice, 

opportunity for public comment, or 

delayed effectiveness would prevent the 

agency from ensuring that the 2006 TAC 

for GB yellowtail flounder will be fully 

harvested. If implementation of this 

action is delayed, the NE multispecies 

fishery could be prevented from fully 

harvesting the TAC for GB yellowtail 

flounder during the 2006 fishing year. 

Under-harvesting the GB yellowtail TAC 

would result in increased economic 

impacts to the industry and social 

impacts beyond those analyzed for 

Amendment 13, as the full potential 

revenue from the available GB 

yellowtail flounder TAC in the U.S./ 

Canada Management Area would not be 

realized. This action also relieves a 

restriction placed on the NE 

multispecies fishing industry by 

liberalizing the trip limits for GB 

yellowtail flounder. 

For the reasons specified above and 

because this action relieves a restriction, 

the AA finds good cause, pursuant to 5 

U.S.C. 553(d)(3), to waive the entire 30- 

day delayed effectiveness period for this 

action. A delay in the effectiveness of 

the trip limit modification in this rule 

would prevent the agency from meeting 

its management obligation and ensuring 

the opportunity for the 2006 TAC for GB 

yellowtail flounder specified for the 

U.S./Canada Management Area to be 

harvested at a level that approaches 

optimum yield. Any such delay could 

lead to the negative impacts to the 

fishing industry described above. 

The rate of harvest of the GB 

yellowtail flounder TAC in the U.S./ 

Canada Management Area is updated 

weekly on the internet at http:// 

www.nero.noaa.gov. Accordingly, the 

public is able to obtain information that 

would provide at least some advanced 

notice of a potential action to provide 

additional opportunities to the NE 

multispecies industry to fully harvest 

the TAC for GB yellowtail flounder 

during the 2006 fishing year. Further, 

the potential for this action was 

considered and open to public comment 

during the development of Amendment 

13 and Framework 42. Therefore, any 

negative effect the waiving of public 

comment and delayed effectiveness may 

have on the public is mitigated by these 

factors. 

Authority: 16 U.S.C. 1801 et seq. 

Dated: April 5, 2007. 

James P. Burgess 

Acting Director, Office of Sustainable 

Fisheries, National Marine Fisheries Service. 

[FR Doc. 07–1764 Filed 4–5–07; 1:36 pm] 

BILLING CODE 3510–22–S 

DEPARTMENT OF COMMERCE 

National Oceanic and Atmospheric 

Administration 

50 CFR Part 648 

[Docket No. 061228342–7068–02; I.D. 

122206A] 

RIN 0648–AT66 

Fisheries of the Northeastern United 

States; Atlantic Herring Fishery; 2007–

2009 Specifications 

AGENCY: National Marine Fisheries 

Service (NMFS), National Oceanic and 

Atmospheric Administration (NOAA), 

Commerce. 

ACTION: Final rule. 

SUMMARY: NMFS announces final 

specifications for the 2007–2009 fishing 

years for the Atlantic herring (herring) 

fishery. The intent of this final rule is 

to conserve and manage the herring 

resource and provide for a sustainable 

fishery. 

DATES: Effective May 10, 2007, through 

December 31, 2009. 

ADDRESSES: Copies of supporting 

documents, including the 

Environmental Assessment, Regulatory 

Impact Review, Initial Regulatory 

Flexibility Analysis (EA/RIR/IRFA), and 

Essential Fish Habitat Assessment are 

available from Paul J. Howard, 

Executive Director, New England 

Fishery Management Council, 50 Water 

Street, Mill 2, Newburyport, MA 01950. 

The EA/RIR/IRFA is also accessible via 

the Internet at http://www.nero.gov. 

NMFS prepared a Final Final Regulatory 

Flexibility Analysis (FRFA), a summary 

of which is contained in the 

Classification section of the preamble of 

this final rule. Copies of the FRFA and 

the Small Entity Compliance Guide are 

available from Patricia A. Kurkul, 

Regional Administrator, Northeast 

Region, National Marine Fisheries 

Service, One Blackburn Drive, 

Gloucester, MA 01930–2298. 

FOR FURTHER INFORMATION CONTACT: Eric 

Jay Dolin, Fishery Policy Analyst, 978–

281–9259, e-mail at 

eric.dolin@noaa.gov, fax at 978–281–

9135. 

SUPPLEMENTARY INFORMATION: 

Background 

Proposed 2007–2009 specifications 

were published on January 10, 2007 (72 

FR 1206 ), with public comment 

accepted through February 9, 2007. 

These final specifications are 

unchanged from those that were 

proposed. A complete discussion of the 


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