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
Federal Register / Vol. 77, No. 50 / Wednesday, March 14, 2012 / Proposed Rules 15005 

Estimated number of respondents: 

1,612,708. 

Estimated frequency of responses: On 

occasion. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a valid control 

number assigned by the Office of 

Management and Budget. Books or 

records relating to a collection of 

information must be retained as long as 

their contents may become material in 

the administration of any internal 

revenue law. Generally, tax returns and 

tax return information are confidential, 

as required by section 6103 of the 

Internal Revenue Code. 

Background and Explanation of 

Provisions 

This document contains proposed 

amendments to the Procedure and 

Administration Regulations (26 CFR 

Part 301) under section 6109 relating to 

identifying numbers. In general, section 

6109(a)(1) provides that persons shall 

include taxpayer identifying numbers 

on returns, statements, or other 

documents filed with the IRS. 

Additionally, section 6109(c) authorizes 

the Secretary to require such 

information as may be necessary to 

assign an identifying number to any 

person. 

One of the principal types of taxpayer 

identifying numbers used to identify 

taxpayers is an employer identification 

number (EIN), which takes the form 00– 

0000000. See Treas. Reg. § 301.6109– 

1(a)(1); Treas. Reg. § 301.7701–12. In 

general, the IRS assigns an EIN for use 

by employers, sole proprietors, 

corporations, partnerships, non-profit 

associations, trusts, estates, government 

agencies, certain individuals, and other 

business entities for tax filing and 

reporting purposes. 

Section 301.6109–1(d)(2)(i) provides 

that any person required to furnish an 

EIN must apply for one with the IRS on 

a Form SS–4, Application for Employer 

Identification Number. The IRS accepts 

applications for EINs electronically and 

by telephone, facsimile, or mail. 

With increasing frequency, EIN 

applicants authorize certain individuals 

(sometimes referred to as ‘‘nominees’’) 

to act on the EIN applicants’ behalf. 

These nominees are listed on the EIN 

application as principal officers, general 

partners, grantors, owners, and trustors. 

The authority of these nominees to act 

on behalf of the EIN applicant is often 

temporary and expires after the 

application is processed. The listing of 

a nominee prevents the IRS from 

gathering correct ownership information 

with respect to the EIN applicant once 

the nominee is no longer authorized to 

act on behalf of the EIN applicant. In 

response to concern with this practice 

and the need for accurate records, 

effective January 2010, the IRS revised 

line 7a on the Form SS–4 requiring 

disclosure of the name of the EIN 

applicant’s ‘‘responsible party’’ and the 

responsible party’s Social Security 

Number, Individual Taxpayer 

Identification Number, or EIN. 

The Instructions for Form SS–4 

provide a definition for ‘‘responsible 

party.’’ For entities with shares or 

interests traded on a public exchange, or 

which are registered with the Securities 

and Exchange Commission, the 

instructions currently provide that a 

‘‘responsible party’’ is (a) a principal 

officer, if the business is a corporation, 

(b) a general partner, if a partnership, (c) 

the owner of an entity that is 

disregarded as separate from its owner 

(disregarded entities owned by a 

corporation enter the corporation’s 

name and EIN), or (d) a grantor, owner, 

or trustor, if a trust. 

For all other entities, the ‘‘responsible 

party’’ is the person who has a level of 

control over, or entitlement to, the funds 

or assets in the entity that, as a practical 

matter, enables the individual, directly 

or indirectly, to control, manage, or 

direct the entity and the disposition of 

its funds and assets. The ability to fund 

the entity or the entitlement to the 

property of the entity alone, however, 

without any corresponding authority to 

control, manage, or direct the entity 

(such as in the case of a minor child 

beneficiary), does not cause the 

individual to be a responsible party. 

These proposed regulations require 

any person issued an EIN to provide 

updated information to the IRS in the 

manner and frequency required by 

forms, instructions, or other appropriate 

guidance, which the IRS will issue in 

the near future. This requirement 

includes updated application 

information regarding the name and 

taxpayer identifying number of the 

responsible party. This requirement 

covers those persons who previously 

applied for an EIN by listing a person 

other than the applicant’s responsible 

party. This updated information will 

allow the IRS to ascertain correct 

ownership details for persons who have 

an EIN. In turn, the IRS can use that 

knowledge to contact the correct 

persons when resolving a tax matter 

related to a business with an EIN and to 

help combat schemes that abuse the tax 

system through the use of nominees. 

Proposed Effective/Applicability Date 

These regulations are proposed to 

apply to all persons possessing an EIN 

after the date the Treasury decision 

adopting these rules as final regulations 

is published in the Federal Register. 

Special Analyses 

It has been determined that these 

proposed regulations are not a 

significant regulatory action as defined 

in Executive Order 12866, as 

supplemented by Executive Order 

13563. 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. 

When an agency issues a rulemaking 

proposal, the Regulatory Flexibility Act 

(RFA) (5 U.S.C. chapter 6), requires the 

agency to ‘‘prepare and make available 

for public comment an initial regulatory 

flexibility analysis’’ that will ‘‘describe 

the impact of the proposed rule on small 

entities.’’ (5 U.S.C. 603(a)). Section 605 

of the RFA provides an exception to this 

requirement if the agency certifies that 

the proposed rulemaking will not have 

a significant economic impact on a 

substantial number of small entities. 

The proposed rules affect entities that 

have an EIN and the IRS has determined 

that these proposed rules will have an 

impact on a substantial number of small 

entities. The IRS has determined, 

however, that the impact on entities 

affected by the proposed rule will not be 

significant. The current Form SS–4 

already requires entities to disclose the 

name of the EIN applicant’s 

‘‘responsible party’’ and the responsible 

party’s Social Security Number, 

Individual Taxpayer Identification 

Number, or EIN. The amount of time 

necessary to submit the updated 

information required in these proposed 

regulations, therefore, should be 

minimal for these entities. 

Based on these facts, the IRS hereby 

certifies that the collection of 

information contained in this notice of 

proposed rulemaking will not have a 

significant economic impact on a 

substantial number of small entities. 

Accordingly, a Regulatory Flexibility 

Analysis is not required. 

Pursuant to section 7805(f) of the 

Code, these regulations have been 

submitted to the Chief Counsel for 

Advocacy of the Small Business 

Administration for comment on its 

impact on small business. 

Comments and Requests for a Public 

Hearing 

Before these proposed regulations are 

adopted as final regulations, 

consideration will be given to any 

written (a signed original and eight (8) 

copies) or electronic comments that are 


pstrozier on DSK7SPTVN1PROD with PROPOSALS
15006 Federal Register / Vol. 77, No. 50 / Wednesday, March 14, 2012 / Proposed Rules 

submitted timely to the IRS. Treasury 

and the IRS request comments on all 

aspects of the proposed rules. All 

comments submitted by the public will 

be made available for public inspection 

and copying. A public hearing will be 

scheduled if requested in writing by any 

person that timely submits comments. If 

a public hearing is scheduled, notice of 

the date, time, and place for the public 

hearing will be published in the Federal 

Register. 

Drafting Information 

The principal authors of these 

regulations are Tammie A. Geier and 

Gregory T. Armstrong of the Office of 

the Associate Chief Counsel (Procedure 

and Administration). 

List of Subjects in 26 CFR Part 301 

Employment taxes, Estate taxes, 

Excise taxes, Gift taxes, Income taxes, 

Penalties, Reporting and recordkeeping 

requirements. 

Proposed Amendments to the 

Regulations 

Accordingly, 26 CFR part 301 is 

proposed to be amended as follows: 

PART 301—PROCEDURE AND 

ADMINISTRATION 

Paragraph 1. The authority citation 

for part 301 continues to read as 

follows: 

Authority: 26 U.S.C. 7805 * * * 

Par. 2. Section 301.6109–1 is 

amended by adding paragraphs 

(d)(2)(ii)(A) and (d)(2)(ii)(B) to read as 

follows: 

§ 301.6109–1. Identifying numbers. 

* * * * * 

(d) * * * 

(2) * * * 

(ii) * * * 

(A) Requirement to update. Persons 

issued employer identification numbers 

in accordance with the application 

process set forth in paragraph (d)(2)(i) of 

this section shall provide to the Internal 

Revenue Service any updated 

application information in the manner 

and frequency required by forms, 

instructions, or other appropriate 

guidance. 

(B) Effective/applicability date. 

Paragraph (d)(2)(ii)(A) of this section 

applies to all persons possessing an 

employer identification number after 

the date of publication of the Treasury 

decision adopting these rules as final 

regulations in the Federal Register. 

* * * * * 

Steven T. Miller, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. 2012–6072 Filed 3–13–12; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 100 

[Docket No. USCG–2012–0070] 

RIN 1625–AA08 

Special Local Regulations; Third 

Annual Space Coast Super Boat Grand 

Prix, Atlantic Ocean, Cocoa Beach, FL 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Coast Guard proposes to 

establish special local regulations on the 

waters of the Atlantic Ocean east of 

Cocoa Beach, Florida during the Third 

Annual Space Coast Super Boat Grand 

Prix, a series of high-speed boat races. 

The event is scheduled to take place on 

Sunday, May 20, 2012. Approximately 

30 high-speed race boats are anticipated 

to participate in the races, and 

approximately 200 spectator vessels are 

expected to attend the event. These 

special local regulations are necessary to 

provide for the safety of life on 

navigable waters of the United States 

during the races. The special local 

regulations would consist of the 

following areas: (1) A race area, where 

all persons and vessels, except those 

persons and vessels participating in the 

high-speed boat races, are prohibited 

from entering, transiting, anchoring, or 

remaining; and (2) a buffer zone around 

the race area, where all persons and 

vessels, except those persons and 

vessels enforcing the buffer zone, are 

prohibited from entering, transiting, 

anchoring, or remaining. 

DATES: Comments and related material 

must be received by the Coast Guard on 

or before April 3, 2012. Requests for 

public meetings must be received by the 

Coast Guard on or before March 26, 

2012. 

ADDRESSES: You may submit comments 

identified by docket number USCG– 

2012–0070 using any one of the 

following methods: 

(1) Federal eRulemaking Portal: 

http://www.regulations.gov. 

(2) Fax: 202–493–2251. 

(3) Mail or Delivery: Docket 

Management Facility (M–30), U.S. 

Department of Transportation, West 

Building Ground Floor, Room W12–140, 

1200 New Jersey Avenue SE., 

Washington, DC 20590–0001. Deliveries 

accepted between 9 a.m. and 5 p.m., 

Monday through Friday, except federal 

holidays. The telephone number is 202– 

366–9329. 

See the ‘‘Public Participation and 

Request for Comments’’ portion of the 

SUPPLEMENTARY INFORMATION section 

below for further instructions on 

submitting comments. To avoid 

duplication, please use only one of 

these three methods. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this proposed 

rule, call or email Lieutenant 

Commander Robert Butts, Sector 

Jacksonville Office of Waterways 

Management, Coast Guard; telephone 

(904) 564–7563, email 

Robert.S.Butts@uscg.mil. If you have 

questions on viewing or submitting 

material to the docket, call Renee V. 

Wright, Program Manager, Docket 

Operations, telephone (202) 366–9826. 

SUPPLEMENTARY INFORMATION: 

Public Participation and Request for 

Comments 

We encourage you to participate in 

this rulemaking by submitting 

comments and related materials. All 

comments received will be posted 

without change to http:// 

www.regulations.gov and will include 

any personal information you have 

provided. 

Submitting Comments 

If you submit a comment, please 

include the docket number for this 

rulemaking (USCG–2012–0070), 

indicate the specific section of this 

document to which each comment 

applies, and provide a reason for each 

suggestion or recommendation. You 

may submit your comments and 

material online (via http:// 

www.regulations.gov) or by fax, mail, or 

hand delivery, but please use only one 

of these means. If you submit a 

comment online via 

www.regulations.gov, it will be 

considered received by the Coast Guard 

when you successfully transmit the 

comment. If you fax, hand deliver, or 

mail your comment, it will be 

considered as having been received by 

the Coast Guard when it is received at 

the Docket Management Facility. We 

recommend that you include your name 

and a mailing address, an email address, 

or a telephone number in the body of 

your document so that we can contact 


pstrozier on DSK7SPTVN1PROD with PROPOSALS