Federal Register / Vol. 77, No. 50 / Wednesday, March 14, 2012 / Proposed Rules 15003 

of subsidy payments other than normal 

annual adjustments under the Section 8 

program. 

(b) Exception to prohibition for 

certain interests. Nothing in this section 

prohibits the employee, or the 

employee’s spouse or minor child from 

directly or indirectly receiving, 

acquiring, or owning: 

(1) A financial interest in a publicly 

available or publicly traded investment 

fund that includes financial interests 

prohibited by paragraph (a)(2) of this 

section, so long as the employee neither 

exercises control nor has the ability to 

exercise control over the fund or the 

financial interests held in the fund; 

(2) Mortgage insurance provided 

pursuant to section 203 of the National 

Housing Act (12 U.S.C. 1709) on the 

employee’s principal residence and any 

one other single family residence. 

Employees must adhere to the 

procedures established by the Assistant 

Secretary for Housing—FHA 

Commissioner in order to obtain FHA 

insurance; 

(3) Department-owned single family 

property. Employees must adhere to the 

procedures established by the Assistant 

Secretary for Housing—FHA 

Commissioner in order to purchase a 

HUD-held property; 

(4) Employment compensation and 

benefit packages provided by the 

employer of an employee’s spouse that 

include financial interests prohibited by 

paragraph (a)(2) of this section; or 

(5) Government National Mortgage 

Association (GNMA) securities. 

(c) Reporting and divestiture. An 

employee must report, in writing, to the 

appropriate agency ethics official, any 

interest prohibited under paragraph (a) 

of this section acquired prior to the 

commencement of employment with the 

Department or without specific intent, 

as through gift, inheritance, or marriage, 

within 30 days from the date of the start 

of employment or acquisition of such 

interest. Such interest must be divested 

within 90 days from the date reported 

unless waived by the Designated 

Agency Ethics Official in accordance 

with § 7501.103. 

§ 7501.105 Outside activities. 

(a) Prohibited outside activities. 

Subject to the exceptions set forth in 

paragraph (b) of this section, HUD 

employees, except special Government 

employees, shall not engage in: 

(1) Employment with a business 

related to real estate or manufactured 

housing including, but not limited to, 

real estate brokerage, management and 

sales, architecture, engineering, 

mortgage lending, property insurance, 

appraisal services, title search services, 

construction, construction financing, 

land planning, or real estate 

development; 

(2) The operation or management of 

investment properties to the extent that 

it rises to the level of a real estaterelated business. HUD will determine 

whether an employee is operating or 

managing investment properties to an 

extent that it rises to the level of a real 

estate business based on the totality of 

the circumstances, and will consider 

whether the employee maintains an 

office; advertises or otherwise solicits 

clients or business; hires staff or 

employees; uses business stationary or 

other similar materials; files the 

business as a corporation, limited 

liability company, partnership, or other 

type of business association with a state 

government; establishes a formal or 

informal association with an existing 

business; hires a management company; 

and the nature and number of its 

investment properties; 

(3) Employment with a person or 

entity who registered as a lobbyist or 

lobbyist organization pursuant to 2 

U.S.C 1603(a) and engages in lobbying 

activity concerning the Department; 

(4) Employment as an officer or 

director with a Department-approved 

mortgagee, a lending institution, or an 

organization that services securities for 

the Department; or 

(5) Employment with the Federal 

Home Loan Bank System or any affiliate 

thereof. 

(b) Exceptions to employment 

prohibitions. The prohibitions set forth 

in paragraph (a) of this section do not 

apply to: 

(1) Serving as an officer or a member 

of the Board of Directors of: 

(i) A Federal Credit Union; 

(ii) A cooperative, condominium 

association, or homeowners association 

for a housing project that is not subject 

to regulation by the Department or, if so 

regulated, in which the employee 

personally resides; or 

(iii) An entity designated in writing 

by the Designated Agency Ethics 

Official. 

(2) Holding a real estate agent’s 

license; however, use of the license is 

limited as provided by paragraph (c) of 

this section. 

(c) Prior approval requirement. (1) 

Employees, except special Government 

employees, shall obtain the prior 

written approval of an Agency Ethics 

Official before accepting compensated 

or uncompensated employment: 

(i) As an officer, director, trustee, or 

general partner of, or in any other 

position of authority with a prohibited 

source, as defined at 5 CFR 2635.203(d); 

(ii) With a state or local government; 

(iii) In the same professional field as 

that of the employee’s official position; 

or 

(iv) As a real estate agent in relation 

to purchasing or selling a single family 

property for use as the employee’s 

primary residence, or the primary 

residence of the employee’s immediate 

family member. 

(2) Approval shall be granted unless 

the conduct is inconsistent with 5 CFR 

part 2635 or this part. 

(d) Liaison representative. An 

employee designated to serve in an 

official capacity as the Department’s 

liaison representative to an outside 

organization is not engaged in an 

outside activity to which this section 

applies. Notwithstanding, an employee 

may be designated to serve as the 

Department’s liaison representative only 

as authorized by law, and as approved 

by the Department under applicable 

procedures. 

§ 7501.106 Bureau instructions and 

designation of separate agency component. 

(a) Bureau instructions. With the 

concurrence of the Designated Agency 

Ethics Official, the Bureau Ethics 

Counselor is authorized, consistent with 

5 CFR 2635.105(c), to designate Deputy 

Bureau Ethics Counselors, to make a 

determination, issue explanatory 

guidance, and establish procedures 

necessary to implement this part, 

subpart I of 5 CFR part 2634, and 5 CFR 

part 2635 for the Bureau. 

(b) Designation of separate agency 

component. Pursuant to 5 CFR 

2635.203(a), the Office of the Inspector 

General is designated as a separate 

agency for purposes of the regulations 

contained in subpart B of 5 CFR part 

2635, governing gifts from outside 

sources; and 5 CFR 2635.807, governing 

teaching, speaking, or writing. 

Dated: February 15, 2012. 

Don W. Fox, 

Principal Deputy Director, Office of 

Government Ethics. 

[FR Doc. 2012–6177 Filed 3–13–12; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–109369–10] 

RIN 1545–BJ33 

Passive Activity Losses and Credits 

Limited; Hearing 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 


pstrozier on DSK7SPTVN1PROD with PROPOSALS
15004 Federal Register / Vol. 77, No. 50 / Wednesday, March 14, 2012 / Proposed Rules 

ACTION: Notice of public hearing on 

proposed rulemaking. 

SUMMARY: This document provides 

notice of public hearing on proposed 

rulemaking regarding the definition of 

an ‘‘interest in a limited partnership as 

a limited partner’’ for purposes of 

determining whether a taxpayer 

materially participates in an activity 

under section 469 of the Internal 

Revenue Code. These proposed 

regulations affect individuals who are 

partners in partnerships. 

DATES: The public hearing is being held 

on Monday, April 30, 2012, at 10 a.m. 

The IRS must receive outlines of the 

topics to be discussed at the public 

hearing by April 9, 2012. 

ADDRESSES: The public hearing is being 

held in the IRS Auditorium, Internal 

Revenue Service Building, 1111 

Constitution Avenue NW., Washington, 

DC 20224. Due to building security 

procedures, visitors must enter at the 

Constitution Avenue entrance. In 

addition, all visitors must present photo 

identification to enter the building. 

Mail outlines to CC:PA:LPD:PR (REG– 

109369–10), Room 5205, Internal 

Revenue Service, POB 7604, Ben 

Franklin Station, Washington, DC 

20044. Submissions may be handdelivered Monday through Friday 

between the hours of 8 a.m. and 4 p.m. 

to CC:PA:LPD:PR (REG–109369–10), 

Couriers Desk, Internal Revenue 

Service, 1111 Constitution Avenue NW., 

Washington, DC or sent electronically 

via the Federal erulemaking Portal at 

www.regulations.gov (IRS–REG– 

109369–10). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Michala Irons, (202) 622–3050; 

concerning submissions of comments, 

the hearing and/or to be placed on the 

building access list to attend the hearing 

Funmi Taylor at (202) 622–7180 (not a 

toll-free number). 

SUPPLEMENTARY INFORMATION: The 

subject of the public hearing is the 

notice of proposed rulemaking (REG– 

109369–10) that was published in the 

Federal Register on Monday, November 

28, 2011 (76 FR 72875). The notice also 

announced that a hearing will be 

scheduled if requested by the public in 

writing by February 27, 2012. 

The rules of 26 CFR 601.601(a)(3) 

apply to the hearing. 

A period of 10 minutes is allotted to 

each person for presenting oral 

comments. After the deadline has 

passed, persons who have submitted 

written comments and wish to present 

oral comments at the hearing must 

submit an outline of the topics to be 

discussed and the amount of time to be 

devoted to each topic (a signed original 

and four copies) by April 9, 2012. 

The IRS will prepare an agenda 

containing the schedule of speakers. 

Copies of the agenda will be made 

available free of charge, at the hearing. 

Because of access restrictions, the IRS 

will not admit visitors beyond the 

immediate entrance area more than 

30 minutes before the hearing starts. For 

information about having your name 

placed on the building access list to 

attend the hearing, see the FOR FURTHER

INFORMATION CONTACT section of this 

document. 

LaNita Van Dyke, 

Branch Chief, Publications and Regulations 

Branch, Legal Processing Division, Associate 

Chief Counsel, Procedure and 

Administration. 

[FR Doc. 2012–6068 Filed 3–13–12; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 301 

[REG–135491–10] 

RIN 1545–BK02 

Updating of Employer Identification 

Numbers 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: This document contains 

proposed regulations that provide rules 

requiring any person assigned an 

employer identification number (EIN) to 

provide updated information to the IRS 

in the manner and frequency prescribed 

by forms, instructions, or other 

appropriate guidance. These proposed 

regulations affect persons with EINs and 

will enhance the IRS’s ability to 

maintain accurate information as to 

persons assigned EINs. 

DATES: Written or electronic comments 

and request for a public hearing must be 

received by June 12, 2012. 

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–135491–10), room 

5205, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20044. Submissions 

may be hand delivered Monday through 

Friday between the hours of 8 a.m. and 

4 p.m. to: CC:PA:LPD:PR (REG–135491– 

10), Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue NW., 

Washington, DC 20224 or sent 

electronically via the Federal 

eRulemaking Portal at http:// 

www.regulations.gov (IRS REG–135491– 

10). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Gregory T. Armstrong, (202) 622–4940; 

concerning submissions of comments 

and requests for a public hearing, 

Oluwafunmilayo (Funmi) Taylor of the 

Publications and Regulation Branch at 

(202) 622–7180 (not toll-free numbers). 

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act 

The collection of information 

contained in this notice of proposed 

rulemaking has been submitted to the 

Office of Management and Budget in 

accordance with the Paperwork 

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

3507(d)). Comments on the collection of 

information should be sent to the Office 

of Management and Budget, Attn: Desk 

Officer for the Department of the 

Treasury, Office of Information and 

Regulatory Affairs, Washington, DC 

20503, with copies to the Internal 

Revenue Service, Attn: IRS Reports 

Clearance Officer, 

SE:W:CAR:MP:T:T:SP, Washington, DC 

20224. Comments on the collection of 

information should be received by May 

14, 2012. Comments are specifically 

requested concerning: 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the IRS, 

including whether the information will 

have practical utility; 

The accuracy of the estimated burden 

associated with the proposed collection 

of information; 

How the quality, utility, and clarity of 

the information to be collected may be 

enhanced; 

How the burden of complying with 

the proposed collection of information 

may be minimized, including through 

the application of automated collection 

techniques or other forms of information 

technology; and 

Estimates of capital or start-up costs 

and costs of operation, maintenance, 

and purchase of services to provide 

information. 

The collection of information in this 

proposed regulation is in proposed 

§ 301.6109–1(d)(2)(ii)(A). This 

information is necessary to allow the 

IRS to gather correct ownership 

information with respect to persons that 

have an EIN. The respondents are 

persons that have an EIN. 

Estimated total annual reporting 

burden: 403,177 hours. 

Estimated average annual burden per 

respondent: varies from 10 to 20 

minutes with an estimated average of 

15 minutes. 


pstrozier on DSK7SPTVN1PROD with PROPOSALS