18388 Federal Register / Vol. 72, No. 70 / Thursday, April 12, 2007 / Rules and Regulations 

determination of whether a nonresident 

alien individual or foreign corporation 

that is a partner in a partnership is a 10- 

percent shareholder under the rules of 

section 871(h)(3), section 881(c)(3), and 

this paragraph (g) with respect to 

interest paid to such partnership shall 

be made at the time that the 

withholding agent, absent the 

provisions of section 871(h), 881(c) and 

the rules of this paragraph, would 

otherwise be required to withhold under 

sections 1441 and 1442 with respect to 

such interest. For example, in the case 

of U.S. source interest paid by a 

domestic corporation to a domestic 

partnership or withholding foreign 

partnership (as defined in § 1.1441–

5(c)(2)), the 10-percent shareholder test 

is applied when any distributions that 

include the interest are made to a 

foreign partner and, to the extent that a 

foreign partner’s distributive share of 

the interest has not actually been 

distributed, on the earlier of the date 

that the statement required under 

section 6031(c) is mailed or otherwise 

provided to such partner, or the due 

date for furnishing such statement. See 

§ 1.1441–5(b)(2) and (c)(2)(iii). 

(4) Application of 10-percent 

shareholder test to interest paid to a 

simple trust or grantor trust. Whether 

interest paid to a simple trust or grantor 

trust and distributed to or included in 

the gross income of a nonresident alien 

individual or foreign corporation that is 

a beneficiary or owner of such trust, as 

the case may be, is received by a 10- 

percent shareholder shall be determined 

by applying the rules of this paragraph 

(g) only at the beneficiary or owner 

level. The 10-percent shareholder test is 

applied with respect to a nonresident 

alien individual or foreign corporation 

that is a beneficiary of a simple trust or 

an owner of a grantor trust at the time 

that a withholding agent, absent any 

exceptions, would otherwise be 

required to withhold under sections 

1441 and 1442 with respect to such 

interest. 

* * * * * 

(i) * * * (1) * * * The rules of 

paragraph (g) apply to interest paid after 

April 12, 2007. Taxpayers may choose 

to apply the rules of paragraph (g) to 

interest paid in any taxable year not 

closed by the period of limitations as of 

April 12, 2007, provided they do so 

consistently for all relevant partnerships 

during such years. 

■ Par. 3. Section 1.881–2 (a)(6) is added 

to read as follows: 

§ 1.881–2 Taxation of foreign corporations 

not engaged in U.S. business. 

(a) * * * 

(6) Interest received by a foreign 

corporation pursuant to certain portfolio 

debt instruments is not subject to the 

flat tax of 30 percent described in 

paragraph (a)(1) of this section. For rules 

applicable to a foreign corporation’s 

receipt of interest on certain portfolio 

debt instruments, see sections 871(h), 

881(c), and § 1.871–14. 

* * * * * 

■ Par. 4. Section 1.1441–1(b)(7) is 

amended as follows: 

■ 1. Paragraph (b)(7)(iii) is revised. 

■ 2. Paragraph (b)(7)(v) is removed. 

The revision reads as follows: 

§ 1.1441–1 Requirement for the deduction 

and withholding of tax on payments to 

foreign persons. 

* * * * * 

(b) * * * 

(7) * * * 

(iii) Liability for interest and 

penalties. For payments made after 

December 31, 2000, if a withholding 

agent fails to deduct and withhold any 

tax imposed under sections 1441 or 

1442, and the tax against which such tax 

may be credited under section 1462 is 

paid, then the amount of tax required to 

be deducted and withheld shall not be 

collected from the withholding agent. 

However, the withholding agent is not 

relieved from liability for interest or any 

penalties or additions to the tax 

otherwise applicable in respect of the 

failure to deduct and withhold. See 

section 1463. Further, in the event that 

a tax liability is assessed against the 

beneficial owner under section 871, 881, 

or 882 and interest under section 

6601(a) is assessed against, and 

collected from, the beneficial owner, the 

interest charge imposed on the 

withholding agent shall be abated to 

that extent so as to avoid the imposition 

of a double interest charge. 

* * * * * 

Kevin M. Brown, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: March 30, 2007. 

Eric Solomon, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. E7–6766 Filed 4–11–07; 8:45 am] 

BILLING CODE 4830–01–P 

POSTAL SERVICE 

39 CFR Part 111 

New Standards for Mailing Adult Fowl 

AGENCY: Postal Service 

ACTION: Final rule. 

SUMMARY: The Postal Service revises the 

requirements for containers used for 

mailing adult chickens. The new 

standards require all mailable adult 

fowl, including chickens, to be mailed 

in containers approved by the manager 

of Mailing Standards. 

EFFECTIVE DATES: April 12, 2007. 

FOR FURTHER INFORMATION CONTACT: Bert 

Olsen, 202–268–7276. 

SUPPLEMENTARY INFORMATION: The Postal 

Service published a proposal in the 

Federal Register (71 FR 32, February 16, 

2007) to revise the standards for mailing 

containers when shipping chickens. The 

revised mailing standards would 

promote the safety of our employees, 

customers, and all mailed adult fowl. 

Comments Received 

We received one comment. The 

commenter stated that no birds should 

be mailed in the United States because 

of a chance of spreading bird diseases. 

We have accepted birds in the mail 

for many years without incident, and we 

are comfortable in continuing to provide 

service to bird industries as well as 

individual customers. We are aware of 

concerns associated with handling bird 

containers in transit, and we will 

continually monitor and revise our 

mailing requirements to mitigate 

potential risk. 

We adopt the following amendments 

to Mailing Standards of the United 

States Postal Service, Domestic Mail 

Manual (DMM), incorporated by 

reference in the Code of Federal 

Regulations. See 39 CFR 111.1. 

List of Subjects in 39 CFR Part 111 

Administrative practice and 

procedure, Postal Service. 

■ Accordingly, 39 CFR part 111 is 

amended as follows: 

PART 111—[AMENDED] 

■ 1. The authority citation for 39 CFR 

part 111 continues to read as follows: 

Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 

401, 403, 404, 414, 416, 3001–3011, 3201–

3219, 3403–3406, 3621, 3626, 5001. 

■ 2. Revise the following sections of 

Mailing Standards of the United States 

Postal Service, Domestic Mail Manual 

(DMM), as follows: 

600 Basic Standards for All Mailing 

Services 

601 Mailability 

* * * * * 

9.0 Perishables 

* * * * * 


rmajette on PROD1PC67 with RULES
Federal Register / Vol. 72, No. 70 / Thursday, April 12, 2007 / Rules and Regulations 18389 

9.3 Live Animals 

* * * * * 

9.3.4 Adult Fowl 

[Revise 9.3.4 as follows:] 

Disease-free adult fowl may be mailed 

domestically when shipped under 

applicable law in accordance with 

601.1.7. Adult chickens, turkeys, guinea 

fowl, doves, pigeons, pheasants, 

partridges, and quail as well as ducks, 

geese, and swans are mailable as 

follows: 

a. The mailer must send adult fowl by 

Express Mail in secure containers 

approved by the manager of Mailing 

Standards (see 608.8.0 for address). 

b. The number of birds per parcel 

must follow the container manufacturer 

limits and each bird must weigh more 

than 6 ounces. 

c. Indemnity may be paid only for 

loss, damage, or rifling, and not for 

death of the birds in transit if there is 

no visible damage to the mailing 

container. 

[Delete 9.3.5, Adult Chickens, and 

renumber 9.3.6 through 9.3.13 as new 

9.3.5 through 9.3.12.] 

* * * * * 

Neva R. Watson, 

Attorney, Legislative. 

[FR Doc. E7–6529 Filed 4–11–07; 8:45 am] 

BILLING CODE 7710–12–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R04–OAR–2006–0787–200621(a); 

FRL–8297–4] 

Approval and Promulgation of 

Implementation Plans; Tennessee: 

Approval of Revisions to the Knox 

County Portion of the Tennessee State 

Implementation Plan 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Direct final rule. 

SUMMARY: EPA is approving revisions to 

the State Implementation Plan (SIP) 

submitted by the State of Tennessee, 

through Tennessee Department of 

Environment and Conservation (TDEC), 

on August 18, 1999 and July 16, 2001. 

The revisions pertain to the Knox 

County portion of the Tennessee SIP 

and include changes to the Knox County 

Air Quality Regulations (KCAQR) 

Section 51.0—Standards for Cement 

Kilns. These standards set nitrogen 

oxides (NOX) emissions control, 

compliance demonstration, certification, 

record keeping, and reporting 

requirements for Portland cement kilns 

in the County. The revisions were 

initially reviewed by TDEC, which 

found them to be as stringent as the 

State’s requirements. The proposed 

changes are part of the Knox County 

strategy to meet the national ambient air 

quality standards (NAAQS) by reducing 

the emissions of NOX, a precursor of 

ozone formation. Because of the harmful 

health effects of ozone, EPA limits the 

amount of volatile organic compounds 

and NOX that can be released into the 

atmosphere. This action is being taken 

pursuant to section 110 of the Clean Air 

Act (CAA). 

DATES: This direct final rule is effective 

June 11, 2007 without further notice, 

unless EPA receives adverse comment 

by May 14, 2007. If adverse comment is 

received, EPA will publish a timely 

withdrawal of the direct final rule in the 

Federal Register and inform the public 

that the rule will not take effect. 

ADDRESSES: Submit your comments, 

identified by Docket ID No. EPA–R04–

OAR–2006–0787 by one of the following 

methods: 

1. www.regulations.gov: Follow the 

online instructions for submitting 

comments. 

2. E-mail: louis.egide@epa.gov. 

3. Fax: (404) 562–9019. 

4. Mail: ‘‘EPA–R04–OAR–2006–

0787,’’ Regulatory Development Section, 

Air Planning Branch, Air, Pesticides and 

Toxics Management Division, U.S. 

Environmental Protection Agency, 

Region 4, 61 Forsyth Street, SW, 

Atlanta, Georgia 30303–8960. 

5. Hand Delivery or Courier: Dr. Egide 

Louis, Regulatory Development Section, 

Air Planning Branch, Air, Pesticides and 

Toxics Management Division 12 floor 

U.S. Environmental Protection Agency, 

Region 4, 61 Forsyth Street, SW., 

Atlanta, Georgia 30303–8960. Such 

deliveries are only accepted during the 

Regional Office’s normal hours of 

operation. The Regional Office’s official 

hours of business are Monday through 

Friday, 8:30 a.m. to 4:30 p.m., excluding 

Federal holidays. 

Instructions: Direct your comments to 

Docket ID No. EPA–R04–OAR–2006–

0787. EPA’s policy is that all comments 

received will be included in the public 

docket without change and may be 

made available online at 

www.regulations.gov, including any 

personal information provided, unless 

the comment includes information 

claimed to be Confidential Business 

Information (CBI) or other information 

whose disclosure is restricted by statute. 

Do not submit through 

www.regulations.gov or e-mail, 

information that you consider to be CBI 

or otherwise protected. The 

www.regulations.gov Web site is an 

‘‘anonymous access’’ systems, which 

means EPA will not know your identity 

or contact information unless you 

provide it in the body of your comment. 

If you send an e-mail comment directly 

to EPA without going through 

www.regulations.gov, your e-mail 

address will be automatically captured 

and included as part of the comment 

that is placed in the public docket and 

made available on the Internet. If you 

submit an electronic comment, EPA 

recommends that you include your 

name and other contact information in 

the body of your comment and with any 

disk or CD–ROM you submit. If EPA 

cannot read your comment due to 

technical difficulties and cannot contact 

you for clarification, EPA may not be 

able to consider your comment. 

Electronic files should avoid the use of 

special characters, any form of 

encryption, and be free of any defects or 

viruses. For additional information 

about EPA’s public docket visit the EPA 

Docket Center homepage at http:// 

www.epa.gov/epahome/dockets.htm. 

Docket: All documents in the 

electronic docket are listed in the 

www.regulations.gov index. Although 

listed in the index, some information is 

not publicly available, i.e., CBI or other 

information whose disclosure is 

restricted by statute. Certain other 

material, such as copyrighted material, 

is not placed on the Internet and will be 

publicly available only in hard copy 

form. Publicly available docket 

materials are available either 

electronically in www.regulations.gov or 

in hard copy at the Regulatory 

Development Section, Air Planning 

Branch, Air, Pesticides and Toxics 

Management Division, U.S. 

Environmental Protection Agency, 

Region 4, 61 Forsyth Street, SW., 

Atlanta, Georgia 30303–8960. EPA 

requests that if at all possible, you 

contact the person listed in the FOR

FURTHER INFORMATION CONTACT section to 

schedule your inspection. The Regional 

Office’s official hours of business are 

Monday through Friday, 8:30 a.m. to 

4:30 p.m. excluding Federal holidays. 

FOR FURTHER INFORMATION CONTACT: Dr. 

Egide Louis, Regulatory Development 

Section, Air Planning Branch, Air, 

Pesticides and Toxics Management 

Division, U.S. Environmental Protection 

Agency, Region 4, 61 Forsyth Street, 

SW., Atlanta, Georgia 30303–8960. The 

telephone number is (404) 562–9240. 

Dr. Louis can also be reached via 

electronic mail at louis.egide@epa.gov. 

SUPPLEMENTARY INFORMATION: 


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