Federal Register / Vol. 79, No. 147 / Thursday, July 31, 2014 / Proposed Rules 44321 

parties. The FAA will also reach out to 

our bilateral partners (i.e., Transport 

Canada Civil Aviation and the European 

Aviation Safety Agency) and invite their 

participation in this effort. Parties 

interested in this initiative may look 

forward to future public announcements 

on upcoming developments. 

Issued in Fort Worth, TX, on July 10, 2014. 

Kimberly K. Smith, 

Manager, Rotorcraft Directorate, Aircraft 

Certification Service. 

[FR Doc. 2014–16999 Filed 7–30–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 33 

[Docket No.FAA–2014–0376; Notice No. 33– 

14–01–SC] 

Special Conditions: SNECMA, 

Silvercrest-2 SC–2D; Rated 10-Minute 

One Engine Inoperative Takeoff Thrust 

at High Ambient Temperature 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed special 

conditions. 

SUMMARY: This action proposes special 

conditions for the SNECMA, Silvercrest2 SC–2D engine model. This engine will 

have a novel or unusual design 

feature—an additional takeoff rating that 

increases the exhaust gas temperature 

(EGT) limit to maintain takeoff thrust in 

certain high ambient temperature 

conditions with one engine inoperative 

(OEI) for a maximum of 10 minutes. The 

applicable airworthiness regulations do 

not contain adequate or appropriate 

safety standards for this design feature. 

The proposed special conditions 

contain the additional safety standards 

that the Administrator considers 

necessary to establish a level of safety 

equivalent to that established by the 

existing airworthiness standards. 

DATES: Send your comments on or 

before September 2, 2014. 

ADDRESSES: Send comments identified 

by docket number [FAA–2014–0376] 

using any of the following methods: 

• Federal eRegulations Portal: Go to 

http://www.regulations.gov and follow 

the online instructions for sending your 

comments electronically. 

• Mail: Send comments to Docket 

Operations, M–30, U.S. Department of 

Transportation (DOT), 1200 New Jersey 

Avenue SE., Room W12–140, West 

Building Ground Floor, Washington, 

DC, 20590–0001. 

• Hand Delivery of Courier: Take 

comments to Docket Operations in 

Room W12–140 of the West Building 

Ground Floor at 1200 New Jersey 

Avenue SE., Washington, DC, between 8 

a.m., and 5 p.m., Monday through 

Friday, except Federal holidays. 

• Fax: Fax comments to Docket 

Operations at 202–493–2251. 

Privacy: Docket Operations will post 

all comments it receives, without 

change, to http://regulations.gov, 

including any personal information the 

commenter provides. Using the search 

function of the docket Web site, anyone 

can find and read the electronic form of 

all comments received into any FAA 

docket, including the name of the 

individual sending the comment (or 

signing the comment for an association, 

business, labor union, etc.). DOT’s 

complete Privacy Act Statement can be 

found in the Federal Register published 

on April 11, 2000 (65 FR 19477–19478), 

as well as at http://DocketsInfo.dot.gov. 

Docket: You may read background 

documents or comments received at 

http://www.regulations.gov at any time. 

Follow the online instructions for 

accessing the docket or go to the Docket 

Operations in Room W12–140 of the 

West Building Ground Floor at 1200 

New Jersey Avenue SE., Washington, 

DC, between 9 a.m., and 5 p.m., Monday 

through Friday, except federal holidays. 

FOR FURTHER INFORMATION CONTACT: For 

technical questions concerning this 

proposed rule, contact Tara Fitzgerald, 

ANE–111, Engine and Propeller 

Directorate, Aircraft Certification 

Service, 12 New England Executive 

Park, Burlington, Massachusetts, 01803– 

5213; telephone (781) 238–7130; 

facsimile (781) 238–7199. For legal 

questions concerning this proposed 

rule, contact Vincent Bennett, ANE–7, 

Engine and Propeller Directorate, 

Aircraft Certification Service, 12 New 

England Executive Park, Burlington, 

Massachusetts, 01803–5299; telephone 

(781) 238–7044; facsimile (781) 238– 

7055; email vincent.bennett@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite interested persons to 

participate in this rulemaking by 

submitting written comments, data, or 

views. The agency also invites 

comments relating to the economic, 

environmental, energy, or federalism 

impacts that might result from adopting 

the proposals in this document. The 

most helpful comments reference a 

specific portion of the proposal, explain 

the reason for any recommended 

change, and include supporting data. To 

ensure the docket does not contain 

duplicate comments, commenters 

should send only one copy of written 

comments, or if comments are filed 

electronically, commenters should 

submit only one time. 

We will file in the docket all 

comments it receives, as well as a report 

summarizing each substantive public 

contact with FAA personnel concerning 

this proposed rulemaking. Before acting 

on this proposal, we will consider 

comments filed late if it is possible to 

do so without incurring expense or 

delay. We may change these special 

conditions based on the comments we 

receive. 

Background 

On April 19, 2011, SNECMA applied 

for a new type certificate (TC) for the 

Silvercrest-2 SC–2D engine model. On 

April 30, 2014, SNECMA requested an 

extension to their original TC 

application, which the FAA granted 

through June 30, 2015. 

For their Silvercrest-2 SC–2D engine 

model, SNECMA requests an additional 

takeoff rating to maintain takeoff thrust 

in certain high ambient temperature 

conditions with OEI. Therefore, the 

Silvercrest-2 SC–2D engine model 

would have two different takeoff ratings. 

The first rating corresponds with the 

rated takeoff thrust of the engine. The 

second takeoff rating maintains the 

takeoff thrust in certain high ambient 

temperature conditions for a maximum 

of 10 minutes. This additional takeoff 

rating is named, ‘‘Rated 10-Minute OEI 

Takeoff Thrust at High Ambient 

Temperature’’ (Rated 10-minute OEI 

TOTHAT). 

These special conditions are 

necessary because the applicable 

airworthiness regulations do not contain 

adequate or appropriate safety standards 

for the additional takeoff rating. 

Type Certification Basis 

Under the provisions of Title 14, Code 

of Federal Regulations (14 CFR) 21.17, 

SNECMA must show that the 

Silvercrest-2 SC–2D meets the 

applicable provisions of the applicable 

regulations in effect on the date of 

application, except as detailed in 

paragraphs 21.101(b) and (c). The FAA 

has determined the following 

certification basis for the Silvercrest-2 

SC–2D engine model: 

1. 14 CFR part 33, ‘‘Airworthiness 

Standards Aircraft Engines,’’ dated 

February 1, 1965, with Amendments 

33–1 through 33–31, dated July 18, 

2011. 

If the FAA finds that the regulations 

in effect on the date of the application 

for the change do not provide adequate 

or appropriate safety standards for the 


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44322 Federal Register / Vol. 79, No. 147 / Thursday, July 31, 2014 / Proposed Rules 

Silvercrest-2 SC–2D because of a novel 

or unusual design feature, special 

conditions are prescribed under the 

provisions of § 21.16. 

Special conditions are initially 

applicable to the model for which they 

are issued. Should the type certificate 

for that model be amended later to 

include any other model that 

incorporates the same or similar novel 

or unusual design feature, the special 

conditions would also apply to the other 

model under § 21.101. 

In addition to complying with the 

applicable product airworthiness 

regulations and the requirements of 

these special conditions, the Silvercrest2 SC–2D engine model must also 

comply with the fuel vent and exhaust 

emission requirements of 14 CFR part 

34 and the noise certification 

requirements of 14 CFR part 36 in 

accordance with the ‘‘Noise Control Act 

of 1972.’’ 

The FAA issues special conditions, as 

defined in 14 CFR 11.19, per § 11.38, 

and they become part of the type 

certification basis under § 21.17(a)(2). 

Novel or Unusual Design Features 

The Silvercrest-2 SC–2D engine 

model will incorporate the following 

novel or unusual design feature: 

The SNECMA Silvercrest-2 SC–2D 

engine model will incorporate an 

additional takeoff rating to maintain 

takeoff thrust in certain high ambient 

temperature OEI takeoff conditions for a 

maximum of 10 minutes. The result will 

be two different takeoff ratings, one for 

the rated takeoff thrust of the engine and 

the other to maintain the takeoff thrust 

in certain high ambient temperature OEI 

takeoff conditions for a maximum of 10 

minutes. The additional takeoff rating is 

referred to as ‘‘Rated 10-Minute OEI 

Takeoff Thrust at High Ambient 

Temperature’’ (Rated 10-minute OEI 

TOTHAT). 

The Rated 10-minute OEI TOTHAT is 

a novel and unusual design feature that 

requires additional airworthiness 

standards for type certification of the 

SNECMA Silvercrest-2 SC–2D engine 

model. 

Discussion 

These proposed special conditions are 

necessary because current part 33 

regulations do not contain airworthiness 

standards for airplane applications of 

OEI ratings. For an airplane application, 

the OEI rating is the same as the rated 

thrust of the engine. All OEI ratings in 

current part 33 regulations are only 

applicable to rotorcraft applications. 

These proposed special conditions 

were modeled based on the rotorcraft 

requirements for the 30-second and 2- 

minute OEI ratings, and modified to 

represent the airplane application. The 

Rated 10-minute OEI TOTHAT is 

similar to the 30-second and 2-minute 

OEI ratings available in part 33 for 

rotorcraft engines. The Rated 10-minute 

OEI TOTHAT shares common features, 

such as the need to notify the pilot and 

maintenance personnel about the 

rating’s use, provides data needed for 

power assurance check, and continued 

validation of the related maintenance 

procedures. 

The Rated 10-minute OEI TOTHAT is 

for use during OEI events that occur 

during takeoff in high ambient 

temperature conditions, up to 5 degrees 

Celsius hotter than the rated takeoff 

thrust corner point. Under these unique 

conditions (extreme hot day and OEI), 

the Rated 10-minute OEI TOTHAT leads 

to an increase in EGT to maintain the 

takeoff thrust of the engine. These 

proposed special conditions contain 

additional mandatory post-flight 

inspection and maintenance action 

requirements associated with any use of 

the Rated 10-minute OEI TOTHAT. 

These requirements add a rating 

definition in part 1.1 and mandates 

mandatory inspections in the ICA; 

instructions for installing and operating 

the engine; engine rating and operating 

limitations; instrument connection; and 

endurance testing. 

The current requirements of the 

endurance test under § 33.87 represent a 

typical airplane flight profile and the 

severity of the takeoff rating. Therefore, 

the endurance test under § 33.87 covers 

normal all-engines-operating takeoff 

conditions for which the engine control 

system limits the engine to the takeoff 

thrust rating. The proposed special 

conditions for the endurance testing 

requirements are intended to represent 

the airplane flight profile when an OEI 

event occurs during takeoff under 

specified ambient temperatures, and 

until the mandatory inspection and 

maintenance actions can be performed. 

These proposed special conditions 

require endurance testing that is not less 

than 135 minutes in duration and 

demonstrates the engine is capable of 

the additional Rated 10-minute OEI 

TOTHAT rating at the higher EGT limit 

following completion of the tests 

required by § 33.87(b), without 

disassembly or modification. 

The associated engine deterioration 

after use of the Rated 10-minute OEI 

TOTHAT is not known without the 

intervening mandatory inspections in 

these special conditions. The mandatory 

inspections ensure the engine will 

continue to comply with its certification 

basis after any use of the Rated 10- 

minute OEI TOTHAT. The applicant is 

expected to assess the deterioration 

from use of the Rated 10-minute OEI 

TOTHAT. The Airworthiness 

Limitations section must prescribe the 

mandatory post-flight inspections and 

maintenance actions associated with 

any use of the Rated 10-minute OEI 

TOTHAT. 

These requirements maintain a level 

of safety equivalent to the level 

intended by the applicable 

airworthiness standards in effect on the 

date of application. 

Applicability 

As discussed above, these special 

conditions are applicable to the 

Silvercrest-2 SC–2D engine model. 

Should SNECMA apply at a later date 

for a change to the type certificate to 

include another engine model 

incorporating the same novel or unusual 

design feature, these special conditions 

would apply to that model as well. 

Conclusion 

This action affects only the Rated 10- 

minute OEI TOTHAT features on the 

Silvercrest-2 SC–2D engine model. It is 

not a rule of general applicability and 

applies only to SNECMA, who 

requested FAA approval of this engine 

feature. 

List of Subjects in 14 CFR Part 33 

Air Transportation, Aircraft, Aviation, 

Aviation safety, Safety. 

The authority citation for these 

special conditions is as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701, 

44702, 44704. 

The Proposed Special Conditions 

Accordingly, the FAA proposes the 

following special conditions as part of 

the type certification basis for the 

SNECMA Silvercrest-2 SC–2D engine 

model. 

1. Part 1.1 Definitions. 

‘‘Rated 10-Minute One Engine 

Inoperative Take-off Thrust at High 

Ambient Temperature’’ (Rated 10- 

minute OEI TOTHAT) means the 

approved engine thrust developed 

under specified altitudes and 

temperatures within the operating 

limitations established for the engine, 

and for continuation of flight operation 

after failure or shutdown of one engine 

in a multi-engine airplane during takeoff 

operation. Use is limited to two periods, 

no longer than 10 minutes each in any 

one flight, and followed by mandatory 

inspection and maintenance actions. 

2. Part 33 Requirements. 

In addition to the airworthiness 

standards in 14 CFR part 33, effective 


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Federal Register / Vol. 79, No. 147 / Thursday, July 31, 2014 / Proposed Rules 44323 

February 1, 1965, Amendments 33–1 

through 33–31 applicable to the engine 

and the Rated 10-minute OEI TOTHAT, 

the following special conditions apply: 

§ 33.4 Instructions for Continued 

Airworthiness. 

(a) The Airworthiness Limitations 

section must prescribe the mandatory 

post-flight inspections and maintenance 

actions associated with any use of the 

Rated 10-minute OEI TOTHAT. 

(b) The applicant must validate the 

adequacy of the inspections and 

maintenance actions required under 

paragraph § 33.4(a) of these special 

conditions. 

(c) The applicant must establish an inservice engine evaluation program to 

ensure the continued adequacy of the 

instructions for mandatory post-flight 

inspections and maintenance actions 

prescribed under paragraph § 33.4(a) of 

these special conditions, and of the data 

for thrust assurance procedures required 

by § 33.5(b)(1) of these special 

conditions. The program must include 

service engine tests or equivalent 

service engine test experience on 

engines of similar design and 

evaluations of service use of the Rated 

10-minute OEI TOTHAT. 

§ 33.5 Instruction manual for installing and 

operating the engine. 

(a) Installation Instructions: 

(1) The applicant must identify the 

means, or provisions for means, 

provided in compliance with the 

requirements of § 33.29 of these special 

conditions. 

(2) The applicant must specify that 

the engine thrust control system 

automatically resets the thrust on the 

operating engine to the Rated 10-minute 

OEI TOTHAT level when one engine 

fails during takeoff at specified altitudes 

and temperatures, and that the Rated 10- 

minute OEI TOTHAT is not available 

when all engines are operational. 

(b) Operating Instructions: 

(1) The applicant must provide data 

on engine performance characteristics 

and variability to enable the airplane 

manufacturer to establish airplane 

thrust assurance procedures. 

§ 33.7 Engine ratings and operating 

limitations. 

(a) The Rated 10-minute OEI 

TOTHAT and the associated operating 

limitations are established as follows: 

(1) The thrust is the same as the 

engine takeoff rated thrust with 

extended flat rating corner point, 

(2) The rotational speed limits are the 

same as those associated with the 

engine takeoff rated thrust, 

(3) The applicant must establish a gas 

temperature steady-state limit and, if 

necessary, a transient gas 

overtemperature limit for which the 

time duration is no longer than 30 

seconds, and 

(4) The use is limited to two periods 

of no longer than 10 minutes each in 

any one flight, and followed by 

mandatory inspection and maintenance 

actions prescribed by § 33.4(a) of these 

special conditions. 

(b) The applicant must propose 

language to include in the type 

certificate data sheet specified in § 21.41 

for the following: 

(1) The Rated 10-minute OEI 

TOTHAT and associated limitations. 

(2) As required by § 33.5(b), Operating 

instructions, include a note stating that 

‘‘Rated 10-Minute One Engine 

Inoperative Take-off Thrust at High 

Ambient Temperature’’ (Rated 10- 

minute OEI TOTHAT) means the 

approved engine thrust developed 

under specified altitudes and 

temperatures within the operating 

limitations established for the engine, 

and for continuation of flight operation 

after failure or shutdown of one engine 

in multi-engine airplane during takeoff 

operation. Use is limited to two periods, 

no longer than 10 minutes each in any 

one flight, and followed by mandatory 

inspection and maintenance actions. 

(3) As required by § 33.5(b), Operating 

instructions, include a note stating that 

the engine thrust control system 

automatically resets the thrust on the 

operating engine to the Rated 10-minute 

OEI TOTHAT level when one engine 

fails during takeoff at specified altitudes 

and temperatures, and that the Rated 10- 

minute OEI TOTHAT is not available 

when all engines are operational. 

§ 33.28 Engine control systems. 

(a) The engine must incorporate a 

means, or a provision for a means, for 

automatic availability and automatic 

control of the Rated 10-minute OEI 

TOTHAT. 

(b) The engine controls managing the 

OEI takeoff thrust for all ambient 

conditions must assure that: 

(1) The approved rated takeoff thrust 

is available to the pilot at all times by 

throttle selection, and 

(2) The Rated 10-minute OEI 

TOTHAT is only available in an OEI 

condition at specified altitudes and 

temperatures. 

§ 33.29 Instrument connection. 

(a) The engine must: 

(1) Have means or provisions for 

means, to alert the pilot when the Rated 

10-minute OEI TOTHAT is in use, when 

the event begins, and when the time 

interval expires. 

(2) Have means, or provision for 

means, which cannot be reset in flight, 

to: 

(i) Automatically record each use and 

duration of the Rated 10-minute OEI 

TOTHAT, and 

(ii) Alert maintenance personnel that 

the engine has been operated at the 

Rated 10-minute OEI TOTHAT, and 

permit retrieval of recorded data. 

(iii) Have means, or provision for 

means, to enable routine verification of 

the proper operation of the means in 

§§ 33.29(1) and (2) of these special 

conditions. 

§ 33.85(b) Calibration tests. 

The applicant must base the 

calibration test on the thrust check at 

the end of the endurance test required 

by § 33.87 of these special conditions. 

§ 33.87 Endurance test. 

(a) Following completion of the tests 

required by § 33.87(b), and without 

intervening disassembly, except as 

needed to replace those parts described 

as consumables in the ICA, the 

applicant must conduct the following 

test sequence for a total time of not less 

than 135 minutes: 

(1) Ten minutes at Rated 10-minute 

OEI TOTHAT, 

(2) Sixty-five minutes at maximum 

continuous thrust, 

(3) One minute at 50 percent of 

takeoff thrust, 

(4) Ten minutes at Rated 10-minute 

OEI TOTHAT, 

(5) One minute at flight idle, 

(6) Ten minutes at Rated 10-minute 

OEI TOTHAT, 

(7) Five minutes at maximum 

continuous thrust, 

(8) One minute at 50 percent of 

takeoff thrust, 

(9) Five minutes at Rated 10-minute 

OEI TOTHAT, 

(10) One minute at flight idle, 

(11) Ten minutes at Rated 10-minute 

OEI TOTHAT, 

(12) Five minutes at maximum 

continuous thrust, 

(13) One minute at 50 percent of 

takeoff thrust, 

(14) Nine minutes at Rated 10-minute 

OEI TOTHAT, and 

(15) One minute at flight idle 

(b) The test sequence of §§ 33.87(a)(1) 

through (a)(15) of these special 

conditions must be run continuously. If 

a stop occurs during these tests, the 

interrupted sequence must be repeated 

unless the applicant shows that the 

severity of the test would not be 

reduced if the current tests were 

continued. 

(c) Where the engine characteristics 

are such that acceleration to the Rated 


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44324 Federal Register / Vol. 79, No. 147 / Thursday, July 31, 2014 / Proposed Rules 

10-minute OEI TOTHAT results in a 

transient overtemperature in excess of 

the steady-state temperature limit 

identified in § 33.7(a)(3) of these special 

conditions, the transient gas 

overtemperature must be applied to 

each acceleration to the Rated 10- 

minute OEI TOTHAT of the test 

sequence in § 33.87(a) of these special 

conditions. 

§ 33.93 Teardown inspection. 

The applicant must perform the 

teardown inspection required by 

§ 33.93(a) after completing the 

endurance test prescribed by § 33.87 of 

these special conditions. 

§ 33.201 Design and test requirements for 

Early ETOPS eligibility. 

In addition to the requirements of 

§ 33.201(c)(1), the simulated ETOPS 

mission cyclic endurance test must 

include two cycles of 10 minute 

duration, each at the Rated 10-minute 

OEI TOTHAT; one before the last 

diversion cycle and one at the end of the 

ETOPS test. 

Issued in Burlington, Massachusetts, on 

July 11, 2014. 

Kimberly K. Smith, 

Acting Manager, Engine and Propeller 

Directorate, Aircraft Certification Service. 

[FR Doc. 2014–18074 Filed 7–30–14; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–105067–14] 

RIN 1545–BM17 

Segregation Rule Effective Date 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking 

by cross-reference to temporary 

regulations. 

SUMMARY: In the Rules and Regulations 

section of this issue of the Federal 

Register, the IRS is issuing temporary 

regulations that modify the effective 

date provision of recently published 

final regulations under Section 382 of 

the Internal Revenue Code. The 

temporary regulations affect 

corporations whose stock is or was 

acquired by the Department of the 

Treasury (Treasury) pursuant to certain 

programs under the Emergency 

Economic Stabilization Act of 2008 

(EESA). The text of those temporary 

regulations published in this issue of 

the Federal Register also serves as the 

text of these proposed regulations. 

DATES: Written or electronic comments 

and requests for a public hearing must 

be submitted by October 29, 2014. 

ADDRESSES: Send submissions to 

CC:PA:LPD:PR (REG–105067–14), Room 

5203, 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–105067– 

14), Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue NW., 

Washington, DC 20224, or sent 

electronically via the Federal 

eRulemaking Portal at 

www.regulations.gov (IRS REG–105067– 

14). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Stephen R. Cleary, (202) 317–5353; 

concerning submission of comments 

and requests for a public hearing, 

Oluwafumnilayo Taylor, (202) 317–6901 

(not toll-free numbers). 

SUPPLEMENTARY INFORMATION: 

Background and Explanation of 

Provisions 

Temporary regulations in the Rules 

and Regulations section of this issue of 

the Federal Register amend 26 CFR Part 

1. The temporary regulations modify the 

effective date provision for TD 9638 [78 

FR 62418], published on October 22, 

2013, which provided final regulations 

that altered the operation of certain of 

the public group segregation rules under 

section 382. The temporary regulations 

apply to stock acquired by Treasury 

pursuant to certain programs under 

EESA (Programs). In particular, the 

temporary regulations apply to the 

subsequent sale by Treasury of that 

stock. The text of those regulations also 

serves as the text of these proposed 

regulations. The preamble to the 

temporary regulations explains the 

amendments. 

Special Analyses 

It has been determined that this notice 

of proposed rulemaking is 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 is hereby 

certified that these regulations will not 

have a significant economic impact on 

a substantial number of small entities. 

This certification is based on the fact 

that, if the regulations apply to any 

small entities, the effect will not be to 

increase their tax liability, but to 

prevent a potential increase in tax 

liability that might otherwise occur. 

Therefore, a Regulatory Flexibility 

Analysis under the Regulatory 

Flexibility Act (5 U.S.C. chapter 6) 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 their 

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 copies that are 

submitted timely to the IRS. The IRS 

and the Treasury Department request 

comments on the clarity of the proposed 

rules and how they can be made easier 

to understand. All comments will be 

made available for public inspection 

and copying at www.regulations.gov or 

upon request. A public hearing will be 

scheduled if requested in writing by any 

person that timely submits written 

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 author of these 

regulations is Stephen R. Cleary, Office 

of Associate Chief Counsel (Corporate). 

However, other personnel from the IRS 

and the Treasury Department 

participated in their development. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Proposed Amendments to the 

Regulations 

Accordingly, 26 CFR part 1 is 

proposed to be amended as follows: 

PART 1—INCOME TAXES 

■ Paragraph 1. The authority citation 

for part 1 continues to read in part as 

follows: 

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

Section 1.382–3 also issued under 26 

U.S.C. 382(g)(4)(C) and 26 U.S.C. 382(m). 

* * * 

■ Par. 2. Section 1.382–3 is amended by 

revising paragraph (j)(17) to read as 

follows: 

§ 1.382–3 Definitions and Rules Relating to 

a 5-percent Shareholder. 

* * * * * 

(j) * * * 

(17) Effective/applicability date. [The 

text of the proposed amendment to 


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