Federal Register / Vol. 72, No. 5 / Tuesday, January 9, 2007 / Rules and Regulations 905 

Example 4. The facts are the same as in 

Example 3 except that, instead of contacting 

P concerning an examination under section 

6707(a), in December 2004, the IRS served P 

with a John Doe summons described in 

section 7609(f) relating to the tax liability of 

participants in the type of transaction for 

which X claimed tax benefits on its return. 

X cannot file a qualified amended return after 

the John Doe summons has been served 

regardless of when, or whether, the 

transaction becomes a listed transaction. 

Example 5. On November 30, 2003, the IRS 

served a John Doe summons described in 

section 7609(f) on Corporation Y, a credit 

card company. The summons requested the 

identity of, and information concerning, 

United States taxpayers who, during the 

taxable years 2001 and 2002, had signature 

authority over Corporation Y’s credit cards 

issued by, through, or on behalf of certain 

offshore financial institutions. Corporation Y 

complied with the summons, and identified, 

among others, Taxpayer B. On May 31, 2004, 

before the IRS first contacted Taxpayer B 

concerning an examination of Taxpayer B’s 

Federal income tax return for the taxable year 

2002, Taxpayer B filed an amended return for 

that taxable year, that showed an increase in 

Taxpayer B’s Federal income tax liability. 

Under paragraph (c)(3)(i)(D) of this section, 

the amended return is not a qualified 

amended return because it was not filed 

before the John Doe summons was served on 

Corporation Y. 

Example 6. The facts are the same as in 

Example 5. Taxpayer B continued to 

maintain the offshore credit card account 

through 2003 and filed an original tax return 

for the 2003 taxable year claiming tax 

benefits attributable to the existence of the 

account. On March 21, 2005, Taxpayer B 

filed an amended return for the taxable year 

2003, that showed an increase in Taxpayer 

B’s Federal income tax liability. Under 

paragraph (c)(3)(i)(D) of this section, the 

amended return is not a qualified amended 

return because it was not filed before the 

John Doe summons for 2001 and 2002 was 

served on Corporation Y, and the return 

reflects benefits from the type of activity that 

is the subject of the John Doe summons. 

Example 7. (i) On November 30, 2003, the 

IRS served a John Doe summons described in 

section 7609(f) on Corporation Y, a credit 

card company. The summons requested the 

identity of, and information concerning, 

United States taxpayers who, during the 

taxable years 2001 and 2002, had signature 

authority over Corporation Y’s credit cards 

issued by, through, or on behalf of certain 

offshore financial institutions. Taxpayer C 

did not have signature authority over any of 

Corporation Y’s credit cards during either 

2001 or 2002 and, therefore, was not a person 

described in the John Doe summons. 

(ii) In 2003, Taxpayer C first acquired 

signature authority over a Corporation Y 

credit card issued by an offshore financial 

institution. Because Taxpayer C did not have 

signature authority during 2001 or 2002 over 

a Corporation Y credit card issued by an 

offshore financial institution, and was 

therefore not covered by the John Doe 

summons served on November 30, 2003, 

Taxpayer C’s ability to file a qualified 

amended return for the 2003 taxable year is 

not limited by paragraph (c)(3)(i)(D) of this 

section. 

* * * * * 

§ 1.6664–2T [Removed] 

■ Par. 6. Section 1.6664–2T is removed. 

Mark E. Matthews, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: December 21, 2006. 

Eric Solomon, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. E6–22645 Filed 1–8–07; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[CGD05–06–120] 

RIN 1625–AA87 

Security Zone; Potomac and Anacostia 

Rivers, Washington, DC and Arlington 

and Fairfax Counties, VA 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing a temporary security zone 

encompassing certain waters of the 

Potomac River and Anacostia River in 

order to safeguard high-ranking public 

officials from terrorist acts and 

incidents. This action is necessary to 

ensure the safety of persons and 

property, and prevent terrorist acts or 

incidents. This rule prohibits vessels 

and people from entering the security 

zone and requires vessels and persons 

in the security zone to depart the 

security zone, unless specifically 

exempt under the provisions in this rule 

or granted specific permission from the 

Coast Guard Captain of the Port 

Baltimore. 

DATES: This rule is effective from 8 a.m. 

on January 23, 2007, through 8 a.m. on 

January 24, 2007. 

ADDRESSES: Documents indicated in this 

preamble as being available in the 

docket are part of docket CGD05–06–

120 and are available for inspection or 

copying at Commander, Coast Guard 

Sector Baltimore, 2401 Hawkins Point 

Road, Baltimore, Maryland 21226–1791, 

between 8 a.m. and 3 p.m., Monday 

through Friday, except Federal holidays. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Ronald Houck, Waterways Management 

Division, at Commander, Coast Guard 

Sector Baltimore, 2401 Hawkins Point 

Road, Baltimore, Maryland 21226–1791, 

telephone number (410) 576–2674. 

SUPPLEMENTARY INFORMATION: 

Regulatory Information 

We did not publish a notice of 

proposed rulemaking (NPRM) for this 

regulation. Under 5 U.S.C. 553(b)(B), the 

Coast Guard finds that good cause exists 

for not publishing an NPRM and for 

making this rule effective less than 30 

days after publication in the Federal 

Register. The Department of Homeland 

Security designated the January 23, 

2007 State of the Union Address a 

National Special Security Event (NSSE). 

The Coast Guard is establishing this 

security zone to support the United 

States Secret Service, the designated 

lead Federal agency for an NSSE, in 

their efforts to coordinate security 

operations and establish a secure 

environment for this highly visible and 

publicized event. This temporary 

security zone of short duration is 

necessary to provide for the security of 

high-ranking United States officials and 

the public at large. Additionally, the 

publication of an NPRM is contrary to 

the public interest, as immediate action 

is required to address the ongoing threat 

to U.S. national interests. 

For the same reasons, under 5 U.S.C. 

553(d)(3), the Coast Guard finds that 

good cause exists for making this rule 

effective less than 30 days after 

publication in the Federal Register. The 

measures contemplated by the rule are 

intended to protect the public by 

preventing waterborne acts of terrorism, 

which terrorists have demonstrated a 

capability to carry out. Immediate action 

is needed to defend against and deter 

these terrorist acts. Any delay in the 

effective date of this rule is contrary to 

public and national interests. 

Background and Purpose 

The ongoing hostilities in Afghanistan 

and Iraq have made it prudent for U.S. 

ports and waterways to be on a higher 

state of alert because the al Qaeda 

organization and other similar 

organizations have declared an ongoing 

intention to conduct armed attacks on 

U.S. interests worldwide. Due to 

increased awareness that future terrorist 

attacks are possible, the Coast Guard, as 

lead Federal agency for maritime 

homeland security, has determined that 

the Coast Guard Captain of the Port 

must have the means to be aware of, 

deter, detect, intercept, and respond to 

asymmetric threats, acts of aggression, 

and attacks by terrorists on the 

American homeland while still 

maintaining our freedoms and 

sustaining the flow of commerce. This 

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906 Federal Register / Vol. 72, No. 5 / Tuesday, January 9, 2007 / Rules and Regulations 

security zone is part of a comprehensive 

port security regime designed to 

safeguard human life, vessels, and 

waterfront facilities against sabotage or 

terrorist attacks. 

The Captain of the Port Baltimore is 

establishing a security zone to address 

the aforementioned security concerns 

and to take steps to prevent the 

catastrophic impact that a terrorist 

attack against a gathering of highranking United States officials at or near 

the U.S. Capitol Building would have. 

This temporary security zone applies to 

all waters of the Potomac River, from 

the Woodrow Wilson Memorial Bridge 

upstream to the Key Bridge, including 

the waters of the Anacostia River 

downstream from the Highway 50 

Bridge to the confluence with the 

Potomac River, including the waters of 

the Georgetown Channel Tidal Basin. 

Vessels underway at the time this 

security zone is implemented will 

immediately proceed out of the zone. 

We will issue written and broadcast 

Notices to Mariners to further publicize 

the security zone and any revisions to 

the zone. 

Except for public vessels and vessels 

at berth, mooring or at anchor, this rule 

temporarily requires all vessels in the 

designated security zone as defined by 

this rule to depart the security zone. 

Regulatory Evaluation 

This rule is not a ‘‘significant 

regulatory action’’ under section 3(f) of 

Executive Order 12866, Regulatory 

Planning and Review, and does not 

require an assessment of potential costs 

and benefits under section 6(a)(3) of that 

Order. The Office of Management and 

Budget has not reviewed it under that 

Order. It is not ‘‘significant’’ under the 

regulatory policies and procedures of 

the Department of Homeland Security 

(DHS). 

Small Entities 

Under the Regulatory Flexibility Act 

(5 U.S.C. 601–612), we have considered 

whether this rule would have a 

significant economic impact on a 

substantial number of small entities. 

The term ‘‘small entities’’ comprises 

small businesses, not-for-profit 

organizations that are independently 

owned and operated and are not 

dominant in their fields, and 

governmental jurisdictions with 

populations of less than 50,000. 

The Coast Guard certifies under 5 

U.S.C. 605(b) that this rule will not have 

a significant economic impact on a 

substantial number of small entities. 

This rule will affect the following 

entities, some of which may be small 

entities: The owners or operators of 

vessels intending to operate, transit or 

anchor on the Potomac River, from the 

Woodrow Wilson Memorial Bridge 

upstream to the Key Bridge, including 

the waters of the Anacostia River 

downstream from the Highway 50 

Bridge to the confluence with the 

Potomac River, including the waters of 

the Georgetown Channel Tidal Basin, 

from 8 a.m. on January 23, 2007 through 

8 a.m. on January 24, 2007. This 

security zone will not have a significant 

economic impact on a substantial 

number of small entities due to a lack 

of seasonal vessel traffic associated with 

recreational boating and commercial 

fishing during the effective period. 

Further, vessels with compelling 

interests that outweigh the port’s 

security needs may be granted waivers 

from the requirements of the security 

zone. 

Assistance for Small Entities 

Under section 213(a) of the Small 

Business Regulatory Enforcement 

Fairness Act of 1996 (Pub. L. 104–121), 

we offered to assist small entities in 

understanding the rule so that they 

could better evaluate its effects on them 

and participate in the rulemaking 

process. If your small business or 

organization would be affected by this 

final rule and you have questions 

concerning its provisions or options for 

compliance, please contact one of the 

points of contact listed under FOR

FURTHER INFORMATION CONTACT. 

Small businesses may send comments 

on the actions of Federal employees 

who enforce, or otherwise determine 

compliance with, Federal regulations to 

the Small Business and Agriculture 

Regulatory Enforcement Ombudsman 

and the Regional Small Business 

Regulatory Fairness Boards. The 

Ombudsman evaluates these actions 

annually and rates each agency’s 

responsiveness to small business. If you 

wish to comment on actions by 

employees of the Coast Guard, call 1–

888–REG–FAIR (1–888–734–3247). 

Collection of Information 

This rule calls for no new collection 

of information under the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501–

3520). 

Federalism 

A rule has implications for federalism 

under Executive Order 13132, 

Federalism, if it has a substantial direct 

effect on State or local governments and 

would either preempt State law or 

impose a substantial direct cost of 

compliance on them. We have analyzed 

this rule under that Order and have 

determined that it does not have 

implications for federalism. 

Unfunded Mandates Reform Act 

The Unfunded Mandates Reform Act 

of 1995 (2 U.S.C. 1531–1538) requires 

Federal agencies to assess the effects of 

their discretionary regulatory actions. In 

particular, the Act addresses actions 

that may result in the expenditure by a 

State, local, or tribal government, in the 

aggregate, or by the private sector of 

$100,000,000 or more in any one year. 

Though this rule will not result in such 

an expenditure, we do discuss the 

effects of this rule elsewhere in this 

preamble. 

Taking of Private Property 

This rule will not effect a taking of 

private property or otherwise have 

taking implications under Executive 

Order 12630, Governmental Actions and 

Interference with Constitutionally 

Protected Property Rights. 

Civil Justice Reform 

This rule meets applicable standards 

in sections 3(a) and 3(b)(2) of Executive 

Order 12988, Civil Justice Reform, to 

minimize litigation, eliminate 

ambiguity, and reduce burden. 

Protection of Children 

We have analyzed this rule under 

Executive Order 13045, Protection of 

Children from Environmental Health 

Risks and Safety Risks. This rule is not 

an economically significant rule and 

does not create an environmental risk to 

health or risk to safety that may 

disproportionately affect children. 

Indian Tribal Governments 

This rule does not have tribal 

implications under Executive Order 

13175, Consultation and Coordination 

with Indian Tribal Governments, 

because it does not have a substantial 

direct effect on one or more Indian 

tribes, on the relationship between the 

Federal Government and Indian tribes, 

or on the distribution of power and 

responsibilities between the Federal 

Government and Indian tribes. 

Energy Effects 

We have analyzed this rule under 

Executive Order 13211, Actions 

Concerning Regulations That 

Significantly Affect Energy Supply, 

Distribution, or Use. We have 

determined that it is not a ‘‘significant 

energy action’’ under that order because 

it is not a ‘‘significant regulatory action’’

under Executive Order 12866 and is not 

likely to have a significant adverse effect 

on the supply, distribution, or use of 

energy. The Administrator of the Office 

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Federal Register / Vol. 72, No. 5 / Tuesday, January 9, 2007 / Rules and Regulations 907 

of Information and Regulatory Affairs 

has not designated it as a significant 

energy action. Therefore, it does not 

require a Statement of Energy Effects 

under Executive Order 13211. 

Technical Standards 

The National Technology Transfer 

and Advancement Act (NTTAA) (15 

U.S.C. 272 note) directs agencies to use 

voluntary consensus standards in their 

regulatory activities unless the agency 

provides Congress, through the Office of 

Management and Budget, with an 

explanation of why using these 

standards would be inconsistent with 

applicable law or otherwise impractical. 

Voluntary consensus standards are 

technical standards (e.g., specifications 

of materials, performance, design, or 

operation; test methods; sampling 

procedures; and related management 

systems practices) that are developed or 

adopted by voluntary consensus 

standards bodies. 

This rule does not use technical 

standards. Therefore, we did not 

consider the use of voluntary consensus 

standards. 

Environment 

We have analyzed this rule under 

Commandant Instruction M16475.lD 

and Department of Homeland Security 

Management Directive 5100.1, which 

guide the Coast Guard in complying 

with the National Environmental Policy 

Act of 1969 (NEPA) (42 U.S.C. 4321–

4370f), and have concluded that there 

are no factors in this case that would 

limit the use of a categorical exclusion 

under section 2.B.2 of the Instruction. 

Therefore, this rule is categorically 

excluded, under figure 2–1, paragraph 

(34)(g), of the Instruction, from further 

environmental documentation. This rule 

establishes a security zone. 

Under figure 2–1, paragraph (34)(g), of 

the Instruction, an ‘‘Environmental 

Analysis Check List’’ and a ‘‘Categorical 

Exclusion Determination’’ are available 

in the docket. 

List of Subjects in 33 CFR Part 165 

Harbors, Marine safety, Navigation 

(water), Reporting and recordkeeping 

requirements, Security measures, 

Vessels, Waterways. 

■ For the reasons discussed in the 

preamble, the Coast Guard amends 33 

CFR part 165 as follows: 

PART 165—REGULATED NAVIGATION 

AREAS AND LIMITED ACCESS AREAS 

■ 1. The authority citation for part 165 

continues to read as follows: 

Authority: 33 U.S.C. 1226, 1231; 46 U.S.C. 

Chapter 701; 50 U.S.C. 191, 195; 33 CFR 

1.05–1(g), 6.04–1, 6.04–6, and 160.5; Pub. L. 

107–295, 116 Stat. 2064; Department of 

Homeland Security Delegation No. 0170.1. 

■ 2. Add temporary § 165.T05–120 to 

read as follows: 

§ 165.T05–120 Security Zone; Potomac 

and Anacostia Rivers, Washington, DC and 

Arlington and Fairfax Counties, VA. 

(a) Definitions. For the purposes of 

this section, Captain of the Port 

Baltimore means the Commander, U.S. 

Coast Guard Sector Baltimore, Maryland 

and any Coast Guard commissioned, 

warrant, or petty officer who has been 

authorized by the Commander, U.S. 

Coast Guard Sector Baltimore, Maryland 

to act as a designated representative on 

his behalf. 

(b) Location. The following area is a 

security zone: All waters of the Potomac 

River, from shoreline to shoreline, 

bounded by the Woodrow Wilson 

Memorial Bridge upstream to the Key 

Bridge, and all waters of the Anacostia 

River, from shoreline to shoreline, 

downstream from the Highway 50 

Bridge to the confluence with the 

Potomac River, including the waters of 

the Georgetown Channel Tidal Basin. 

(c) Regulations. (1) The general 

regulations governing security zones 

found in § 165.33 apply to the security 

zone described in paragraph (b) of this 

temporary section. 

(2) Entry into or remaining in this 

zone is prohibited unless authorized by 

the Captain of the Port Baltimore or his 

designated representative. Except for 

Public vessels and vessels at berth, 

mooring or at anchor, all vessels in this 

zone are to depart the security zone. 

(3) Persons desiring to transit the area 

of the security zone must first obtain 

authorization from the Captain of the 

Port Baltimore. To seek permission to 

transit the area, the Captain of the Port 

Baltimore can be contacted at telephone 

number (410) 576–2693. The Coast 

Guard vessels enforcing this section can 

be contacted on Marine Band Radio, 

VHF–FM channel 16 (156.8 MHz). Upon 

being hailed by a U.S. Coast Guard 

vessel by siren, radio, flashing light, or 

other means, the operator of a vessel 

shall proceed as directed. If permission 

is granted, all persons and vessels must 

comply with the instructions of the 

Captain of the Port Baltimore and 

proceed at the minimum speed 

necessary to maintain a safe course 

while within the zone. 

(d) Enforcement. The U.S. Coast 

Guard may be assisted in the patrol and 

enforcement of the zone by Federal, 

State, and local agencies. 

(e) Enforcement period. This section 

will be enforced from 8 a.m. on January 

23, 2007, through 8 a.m. on January 24, 

2007. 

Dated: December 18, 2006. 

Brian D. Kelley, 

Captain, U.S. Coast Guard, Captain of the 

Port, Baltimore, Maryland. 

[FR Doc. E7–58 Filed 1–8–07; 8:45 am] 

BILLING CODE 4910–15–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[COTP SAVANNAH 06–160] 

RIN 1625–AA87 

Security Zone, Elba Island LNG 

mooring Slip, Savannah River, 

Savannah, GA 

AGENCY: Coast Guard, DHS. 

ACTION: Interim rule with request for 

comments. 

SUMMARY: The Coast Guard is 

establishing a permanent security zone 

due to changes in Liquefied Natural Gas 

(LNG) tankship mooring arrangements 

following the activation of two new 

berths within a slip at the Southern LNG 

Facility on the Savannah River. The 

security zone includes all the waters 

from surface to bottom of the 

northeastern most mooring dolphin to 

the southeastern most mooring dolphin 

and continues west along the North and 

South shoreline of the mooring slip to 

the shoreline of the right descending 

bank of the Savannah River. This 

regulation is necessary to protect life 

and property on the navigable waters of 

the Savannah River and within the LNG 

slip due to potential security risks 

associated with the LNG Facility. 

DATES: This interim rule is effective 

January 9, 2007. Comments and related 

material must reach the Coast Guard on 

or before March 12, 2007. 

ADDRESSES: Comments and material 

received from the public, as well as 

documents indicated in this preamble as 

being available in the docket [COTP 

Savannah 06–160], will become part of 

this docket and will be available for 

inspection or copying at Marine Safety 

Unit Savannah, Juliette Gordon Low 

Federal Building, Suite 1017, 100 W. 

Oglethorpe, Savannah, Georgia 31401, 

between 7:30 a.m. and 4:30 p.m., 

Monday through Friday, except Federal 

holidays. 

FOR FURTHER INFORMATION CONTACT: 

Lieutenant Robert Webb, Waterways 

Management Officer, Marine Safety Unit 

Savannah; (912) 652–4353. 

bajohnson on PROD1PC69 with RULES