52256 Federal Register / Vol. 62, No. 194 / Tuesday, October 7, 1997 / Rules and Regulations

comply with the law pending

promulgation of regulations

implementing the MCA, this action is

not a significant regulatory action and

therefore has not been reviewed by the

Office of Management and Budget

pursuant to Executive Order 12866.

Consideration of the significant and

impact of the new requirements of the

MCA will be addressed as part of a

future notice by DEA proposing

regulations to implement the MCA.

This action has been analyzed in

accordance with the principles and

criteria in Executive Order 12612, and it

has been determined that this rule does

not have sufficient federalism

implications to warrant the preparation

of Federalism Assessment.

This rule will not resulting the

expenditure by State, local, and tribal

governments, in the aggregate, or by the

private sector, of $100,000,000 or more

in any one year, and will not

significantly or uniquely affect small

governments.

Therefore, no actions were deemed

necessary under the provisions of the

Unfunded Mandates Reform Act of

1995.

This rule is not a major rule as

defined by Section 804 of the Small

Business Regulatory Enforcement

Fairness Act of 1996. This rule will not

result in an annual effect on the

economy of $100,000,000 or more; a

major increase in costs or prices; or

significant adverse effects on

competition, employment, investment,

productivity, innovation, or on the

ability of United States-based

companies to compete with foreignbased companies in domestic and

export markets.

Accordingly, the interim rule

amending 21 CFR parts 1309, 1310, and

1313, which was published at 62 FR

5914 on February 10, 1997, and

amended at 62 FR 27693 on May 21,

1997, is adopted as a final rule.

Dated: September 29, 1997.

John H. King,

Deputy Assistant Administrator, Office of

Diversion Control.

[FR Doc. 97–26177 Filed 10–6–97; 8:45 am]

BILLING CODE 4410–09–M

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 53

[TD 8736]

RIN 1545–AU66

Time for Filing Form 4720 Return

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final and temporary

regulations.

SUMMARY: This document contains a

regulation that specifies the filing date

by which Form 4720 returns must be

filed by disqualified persons and

organization managers liable for Internal

Revenue Code section 4958 excise taxes.

These excise taxes are imposed on

excess benefit transactions between

disqualified persons and section

501(c)(3) organizations (except for

private foundations) or section 501(c)(4)

organizations.

DATES: This regulation is effective

October 7, 1997.

For dates of applicability, see

§ 53.6071–1(f).

FOR FURTHER INFORMATION CONTACT:

Phyllis Haney, (202) 622–4290 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Background

This document contains amendments

to the Foundation and Similar Excise

Taxes regulations (26 CFR part 53)

under Internal Revenue Code (Code)

section 6071. Those amendments

provide guidance on the time for filing

the return that is required to accompany

payment of section 4958 excise taxes.

This rule was first published in Notice

96–46 (1996–39 I.R.B. 7) (September 23,

1996). A notice of proposed rulemaking

(NPRM) of that rule was published at 62

FR 84, by cross reference to a temporary

regulation, (TD 8705, 62 FR 25), on

January 2, 1997. The deadline for

comments on the NPRM was April 2,

1997; no comments were received.

Taxpayer Bill of Rights 2, Public Law

104–168, 110 Stat. 1452 (TBOR2),

enacted July 30, 1996, added section

4958 to the Code, which imposes excise

taxes on excess benefit transactions.

Section 4958 taxes apply retroactively to

excess benefit transactions occurring on

or after September 14, 1995. The taxes

do not, however, apply to any benefit

arising from a transaction pursuant to

any written contract which was binding

on September 13, 1995, and at all times

thereafter before such transaction

occurred.

An ‘‘excess benefit transaction’’

subject to tax under section 4958 is any

transaction in which an economic

benefit is provided by an organization

described in Code section 501(c)(3)

(except for a private foundation) or

501(c)(4) directly or indirectly to, or for

the use of, any disqualified person if the

value of the economic benefit provided

exceeds the value of the consideration

(including the performance of services)

received for providing the benefit. A

‘‘disqualified person’’ is any person who

was, at any time during the 5-year

period ending on the date of the excess

benefit transaction, in a position to

exercise substantial influence over the

affairs of the organization. Disqualified

persons also include family members

and certain entities in which at least 35

percent of the control or beneficial

interest are held by persons described in

the preceding sentence.

Code section 4958 imposes three

taxes. The first tax is equal to 25 percent

of the excess benefit amount, and is to

be paid by any disqualified person who

engages in an excess benefit transaction.

The second tax is equal to 200 percent

of the excess benefit amount, and is to

be paid by any disqualified person if the

excess benefit transaction is not

corrected within the taxable period. The

third tax is equal to 10 percent of the

excess benefit amount, and is to be paid

generally by any organization manager

who knowingly participates in an excess

benefit transaction. The maximum

amount of this third tax with respect to

any one excess benefit transaction may

not exceed $10,000. An ‘‘organization

manager’’ is any officer, director,

trustee, or any individual having powers

or responsibilities similar to those of

any officer, director, or trustee. Final

regulations under Code section 6011

were published on January 2, 1997, at

TD 8705 (62 FR 25), prescribing Form

4720 for calculating and paying the first

and third taxes described above.

TBOR2 also amended Code section

6033(b) to require section 501(c)(3)

organizations to report the amounts of

the taxes paid under section 4958 with

respect to excess benefit transactions

involving the organization, as well as

any other information the Secretary may

require concerning those transactions.

Section 6033(f) also was amended to

impose the same reporting requirements

on section 501(c)(4) organizations.

Those amendments to section 6033 only

apply to organizations’ returns for

taxable years beginning after July 30,

1996. These and other TBOR2

amendments to the reporting

requirements for section 501(c)(3) and

section 501(c)(4) organizations are
Federal Register / Vol. 62, No. 194 / Tuesday, October 7, 1997 / Rules and Regulations 52257

reflected on IRS Forms 990 and 990–EZ

beginning with the 1996 versions.

Explanation of Provisions

This regulation provides the general

rule that Form 4720 returns will be due

on or before the 15th day of the fifth

month following the close of the taxable

year of any disqualified person or

organization manager who is liable for

section 4958 excise taxes on excess

benefit transactions. The regulations

also provide that returns on Form 4720

for taxable years ending after September

13, 1995, and on or before July 30, 1996,

will be due on or before December 15,

1996. See also Notice 96–46 (1996–39

I.R.B. 7) (September 23, 1996), and 62

FR 25, 84 (January 2, 1997).

Special Analyses

It has been determined that this

Treasury decision is not a significant

regulatory action as defined in EO

12866. Therefore, a regulatory

assessment is not required. It also has

been determined that section 553(b) of

the Administrative Procedure Act (5

U.S.C. chapter 5) does not apply to these

regulations, and because the regulation

does not impose a collection of

information on small entities, the

Regulatory Flexibility Act (5 U.S.C.

chapter 6) does not apply. Pursuant to

section 7805(f) of the Internal Revenue

Code, these regulations will be

submitted to the Chief Counsel for

Advocacy of the Small Business

Administration for comment on their

impact on small business.

Drafting Information

The principal author of these

regulations is Phyllis Haney, Office of

Associate Chief Counsel (Employee

Benefits and Exempt Organizations).

However, other personnel from the IRS

and Treasury Department participated

in their development.

List of Subjects in 26 CFR Part 53

Excise taxes, Foundations,

Investments, Lobbying, Reporting and

recordkeeping requirements.

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR part 53 is

amended as follows:

PART 53—FOUNDATION AND SIMILAR

EXCISE TAXES

Paragraph 1. The authority citation

for part 53 continues to read as follows:

Authority: 26 U.S.C. 7805.

§ 53.6071–1T and § 53.6071–1 [Amended]

Par 2. In § 53.6071–1T, paragraph (f)

is redesignated as paragraph (f) of

§ 53.6071–1.

§ 53.6071–1T [Removed]

Par 3. § 53.6071–1T is removed.

Michael P. Dolan,

Acting Commissioner of Internal Revenue.

Approved: August 27, 1997.

Donald C. Lubick,

Acting Assistant Secretary of the Treasury.

[FR Doc. 97–26556 Filed 10–6–97; 8:45 am]

BILLING CODE 4830–01–U

FEDERAL COMMUNICATIONS

COMMISSION

47 CFR Part 0

[DA 97–2110]

List of Office of Management and

Budget Approved Information

Collections Requirements

AGENCY: Federal Communications

Commission.

ACTION: Final rule.

SUMMARY: This action revises the

Commission’s list of Office of

Management and Budget (OMB)

approved public information collection

requirements with expiration dates.

This list will provide the public with a

current list of public information

collection requirements approved by

OMB and their associated control

numbers and expiration dates.

EFFECTIVE DATE: October 7, 1997.

FOR FURTHER INFORMATION CONTACT: Judy

Boley, Office of the Managing Director,

(202) 418–0214.

SUPPLEMENTARY INFORMATION:

Order

By the Managing Director:

Adopted: September 30, 1997.

Released: October 2, 1997.

1. Section 3507(a)(3) of the Paperwork

Reduction Act of 1995, 44 U.S.C.

3507(a)(3), requires agencies to display

a current control number assigned by

the Director of the Office of

Management and Budget (‘‘OMB’’) for

each agency information collection

requirement.

2. Section 0.408 of the Commission’s

Rules displays the OMB control

numbers assigned to the Commission’s

public information collection

requirements that have been reviewed

and approved by OMB.

3. Authority for this action is

contained in Section 4(i) of the

Communications Act of 1934 (47 U.S.C.

154(i)), as amended, and Section

0.231(b) of the Commission’s Rules.

Since this amendment is a matter of

agency organization procedure or

practice, the notice and comment and

effective date provisions of the

Administrative Procedure Act do not

apply. See 5 U.S.C. Section 553(b)(A)(d).

4. Accordingly, it is ordered, that

Section 0.408 of the Rules is revised as

set forth in the revised text, effective on

the date of publication in the Federal

Register.

5. Persons having questions on this

matter should contact Judy Boley at

(202) 418–0214.

List of Subjects in 47 CFR Part 0

Reporting and recordkeeping

requirements.

Andrew S. Fishel,

Managing Director.

1. Part 0—The authority citation for

Part 0 continues to read:

Authority: Secs. 4, 303, 48 Stat. 1066,

1082, as revised; 47 U.S.C. 154, 303 unless

otherwise noted.

2. Section 0.408 is revised to read as

follows:

§ 0.408 OMB control numbers and

expiration dates assigned pursuant to the

Paperwork Reduction Act.

(a) Purpose. This section collects and

displays the control numbers and

expiration dates for the Commission

information collection requirements

assigned by the Office of Management

and Budget (‘‘OMB’’) pursuant to the

Paperwork Reduction Act of 1995,

Public Law 104–13. The Commission

intends that this section comply with

the requirement that agencies display

current control numbers and expiration

dates assigned by the Director of OMB

for each approved information

collection requirement. Not

withstanding any other provisions of

law, no person shall be subject to any

penalty for failing to comply with a

collection of information subject to the

Paperwork Reduction Act (PRA) that

does not display a valid control number.

Questions concerning the OMB control

numbers and expiration dates should be

directed to the Associate Managing

Director—Performance Evaluation and

Records Management, Federal

Communications Commission,

Washington, DC 20554.

(b) Display.