45902 Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Proposed Rules 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

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

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by 

removing Airworthiness Directive (AD) 

2015–12–09, Amendment 39–18184 (80 

FR 34831, June 18, 2015), and adding 

the following new AD: 

Airbus Helicopters Deutschland GmbH 

(Previously Eurocopter Deutschland 

GmbH) (Airbus Helicopters): Docket No. 

FAA–2014–0577; Directorate Identifier 

2013–SW–042–AD. 

(a) Applicability 

This AD applies to Airbus Helicopters 

Model EC135P1, EC135T1, EC135P2, 

EC135T2, EC135P2+, EC135T2+, and MBB– 

BK 117 C–2 helicopters, certificated in any 

category. 

(b) Unsafe Condition 

This AD defines the unsafe condition as 

loose attachment hardware between the 

Smart Electro Mechanical Actuator (SEMA) 

and a control rod. This condition could result 

in loss of the control axis and subsequent 

loss of control of the helicopter. 

(c) Comments Due Date 

We must receive comments by August 18, 

2015. 

(d) Compliance 

You are responsible for performing each 

action required by this AD within the 

specified compliance time unless it has 

already been accomplished prior to that time. 

(e) Required Actions 

(1) Within 50 hours time-in-service (TIS), 

for Model EC135P1, EC135T1, EC135P2, 

EC135T2, EC135P2+, and EC135T2+ 

helicopters, do the following: 

(i) Using Figure 1 and Figure 2 of 

Eurocopter Alert Service Bulletin EC135– 

22A–015, Revision 1, dated January 28, 2013 

(ASB EC135–22A–015) as reference, inspect 

the attachment hardware between the SEMA 

and the longitudinal actuator control rod to 

determine whether any of the washers can be 

moved. 

(A) If no washer can be moved, no further 

action is needed. 

(B) If a washer can be moved, replace the 

four screws and install two additional 

washers, part number (P/N) EN2139–05016, 

to connect the SEMA with the control rod. 

Torque-tighten each screw to 5–6 Nm. 

(ii) Using Figure 1 and Figure 2 of ASB 

EC135–22A–015 as reference, inspect the 

attachment hardware between the SEMA and 

the lateral actuator control rod to determine 

whether any of the washers can be moved. 

(A) If no washer can be moved, no further 

action is needed. 

(B) If a washer can be moved, replace the 

four screws and install two additional 

washers, P/N EN2139–05016, to connect the 

SEMA with the control rod. Torque-tighten 

each screw to 5–6 Nm. 

(iii) Using Figure 1, Figure 3, and Figure 

4 of ASB EC135–22A–015 as reference, 

inspect the attachment hardware between the 

SEMA and the yaw actuator control rod to 

determine whether any of the washers can be 

moved. 

(A) If no washer can be moved, no further 

action is needed. 

(B) If a washer can be moved, replace the 

four screws and install two additional 

washers, P/N EN2139–05016, to connect the 

SEMA with the control rod. Torque-tighten 

each screw to 5–6 Nm. 

(2) Within 50 hours TIS, for Model MBB 

BK117 C–2 helicopters, using Figure 1 of 

Eurocopter Alert Service Bulletin MBB 

BK117 C–2–22A–009, Revision 1, dated 

August 3, 2009, as reference, inspect the 

attachment hardware between the YawSEMA and the Yaw-SEMA control rod to 

determine whether any of the washers can be 

moved. 

(i) If no washer can be moved, no further 

action is needed. 

(ii) If a washer can be moved, replace the 

four screws and install two additional 

washers, P/N EN2139–05016, to connect the 

SEMA with the control rod. Torque-tighten 

each screw to 5–6 Nm and apply 

polyurethane lacquer onto the attachment 

hardware. 

(f) Affected ADs 

This AD revises AD 2015–12–09, 

Amendment 39–18184 (80 FR 34831, June 

18, 2015). 

(g) Credit for Previous Actions 

If you performed the actions in Eurocopter 

Alert Service Bulletin EC135–22A–015, 

Revision 0, dated May 13, 2008, or 

Eurocopter Alert Service Bulletin MBB 

BK117 C–2–22A–009, Revision 0, May 13, 

2008, before the effective date of this AD, you 

met the requirements of this AD. 

(h) Alternative Methods of Compliance 

(AMOCs) 

(1) The Manager, Regulations and Policy 

Group, FAA, may approve AMOCs for this 

AD. Send your proposal to: Matt Wilbanks, 

Aviation Safety Engineer, Regulations and 

Policy Group, Rotorcraft Directorate, FAA, 

10101 Hillwood Pkwy, Fort Worth, TX 

76177; telephone (817) 222–5110; email 9- 

ASW-FTW-AMOC-Requests@faa.gov. 

(2) For operations conducted under a 14 

CFR part 119 operating certificate or under 

14 CFR part 91, subpart K, we suggest that 

you notify your principal inspector, or 

lacking a principal inspector, the manager of 

the local flight standards district office or 

certificate holding district office before 

operating any aircraft complying with this 

AD through an AMOC. 

(i) Additional Information 

The subject of this AD is addressed in the 

European Aviation Safety Agency (EASA) AD 

No. 2013–0176, dated August 7, 2013. You 

may view the EASA AD on the Internet at 

http://www.regulations.gov in Docket No. 

FAA–2014–0577. 

(j) Subject 

Joint Aircraft Service Component (JASC) 

Code: 2213, Flight Controller 

Issued in Fort Worth, Texas, on July 24, 

2015. 

Lance T. Gant, 

Acting Directorate Manager, Rotorcraft 

Directorate, Aircraft Certification Service. 

[FR Doc. 2015–18865 Filed 7–31–15; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2015–2967; Directorate 

Identifier 2014–NM–072–AD] 

RIN 2120–AA64 

Airworthiness Directives; DASSAULT 

AVIATION Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to supersede 

Airworthiness Directive (AD) 2002–23– 

20, for certain Dassault Aviation Model 

FALCON 900EX and MYSTERE– 

FALCON 900 airplanes. AD 2002–23–20 

currently requires repetitive operational 

tests of the flap asymmetry detection 

system to verify proper functioning, and 

repair if necessary; repetitive 

replacement of the inboard flap 

jackscrews with new or reconditioned 

jackscrews; and repetitive measurement 

of the screw/nut play of the jackscrews 

on the inboard and outboard flaps to 

detect discrepancies, and corrective 

action if necessary. AD 2002–23–20 

currently requires a revision of the 

airplane flight manual. Since we issued 

AD 2002–23–20, the maintenance 

manual has been revised. This proposed 

AD would require revising the 

maintenance or inspection program, as 

applicable, to include the maintenance 

tasks and airworthiness limitations 

specified in the Airworthiness 

Limitations section of the airplane 

maintenance manual. This proposed AD 

also removes the Model FALCON 900EX 

airplanes from the applicability of the 

existing AD. We are proposing this AD 

to prevent reduced structural integrity 

of the airplane. 

DATES: We must receive comments on 

this proposed AD by September 17, 

2015. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: 202–493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Proposed Rules 45903 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE., 

Washington, DC 20590. 

• Hand Delivery: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue SE., 

Washington, DC, between 9 a.m. and 5 

p.m., Monday through Friday, except 

Federal holidays. 

For service information identified in 

this proposed AD, contact Dassault 

Falcon Jet, P.O. Box 2000, South 

Hackensack, NJ 07606; telephone 201– 

440–6700; Internet http://

www.dassaultfalcon.com. You may 

view this referenced service information 

at the FAA, Transport Airplane 

Directorate, 1601 Lind Avenue SW., 

Renton, WA. For information on the 

availability of this material at the FAA, 

call 425–227–1221. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2015– 

2967; or in person at the Docket 

Management Facility between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The AD docket 

contains this proposed AD, the 

regulatory evaluation, any comments 

received, and other information. The 

street address for the Docket Operations 

office (telephone 800–647–5527) is in 

the ADDRESSES section. Comments will 

be available in the AD docket shortly 

after receipt. 

FOR FURTHER INFORMATION CONTACT: Tom 

Rodriguez, Aerospace Engineer, 

International Branch, ANM–116, 

Transport Airplane Directorate, FAA, 

1601 Lind Avenue SW., Renton, WA 

98057–3356; telephone 425–227–1137; 

fax 425–227–1149. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite you to send any written 

relevant data, views, or arguments about 

this proposed AD. Send your comments 

to an address listed under the 

ADDRESSES section. Include ‘‘Docket No. 

FAA–2015–2967; Directorate Identifier 

2014–NM–072–AD’’ at the beginning of 

your comments. We specifically invite 

comments on the overall regulatory, 

economic, environmental, and energy 

aspects of this proposed AD. We will 

consider all comments received by the 

closing date and may amend this 

proposed AD based on those comments. 

We will post all comments we 

receive, without change, to http://

www.regulations.gov, including any 

personal information you provide. We 

will also post a report summarizing each 

substantive verbal contact we receive 

about this proposed AD. 

Discussion 

On January 3, 2003, we issued AD 

2002–23–20, Amendment 39–12964 (67 

FR 71098, November 29, 2002); 

corrected May 4, 2010 (75 FR 23579). 

AD 2002–23–20 requires actions 

intended to address an unsafe condition 

on certain Dassault Aviation Model 

FALCON 900EX and MYSTERE– 

FALCON 900 airplanes. 

Since we issued AD 2002–23–20, 

Amendment 39–12964 (67 FR 71098, 

November 29, 2002); corrected May 4, 

2010 (75 FR 23579), the maintenance 

manual has been revised. In addition, 

we are removing the Model 900EX 

airplanes from the applicability of the 

existing AD and those airplanes are 

addressed through a separate AD action 

(AD 2014–16–26, Amendment 39–17950 

(79 FR 51077, August 27, 2014)). 

The European Aviation Safety Agency 

(EASA), which is the Technical Agent 

for the Member States of the European 

Union, has issued EASA Airworthiness 

Directive 2013–0053, dated March 4, 

2013 (referred to after this as the 

Mandatory Continuing Airworthiness 

Information, or ‘‘the MCAI’’), to correct 

an unsafe condition for all MYSTERE– 

FALCON 900 series airplanes. The 

MCAI states: 

The airworthiness limitations and 

maintenance requirements for the Myste`reFalcon 900 type design are included in 

Aircraft Maintenance Manual (AMM) chapter 

5–40 and are approved by the European 

Aviation Safety Agency (EASA). EASA 

issued AD 2008–0221[http://

ad.easa.europa.eu/blob/easa_ad_2008_0221_

Corrected.pdf/AD_2008–0221_1] to require 

accomplishment of the maintenance tasks, 

and implementation of the airworthiness 

limitations, as specified in Dassault Aviation 

F900 AMM chapter 5–40 referenced DGT 

113873 at revision 16. 

Since that [EASA] AD was issued, Dassault 

Aviation issued revision 20 of F900 AMM 

chapter 5–40 which contains new or more 

restrictive maintenance requirements and/or 

airworthiness limitations and introduces, 

among others, the following changes: 

—Tasks renumbering; 

—Introduction of a Corrosion Prevention 

Control Program (CPCP); 

—Upgrade of screwjack of flap actuators from 

the older to the latest -3 version; 

—Revised Time Between Overhaul for 

screwjack of flap actuators -3 version; 

—Revised interval for checking the screw/nut 

play on screwjack of flap actuators -3 

version; 

—Removal of calendar limit for checking the 

screw/nut play on screwjack of external 

flap actuators -1 and -2 versions; 

—Removal of service life limit for screwjack 

of flap actuators; 

—Test of flap asymmetry protection system. 

Compliance with this test is required by [a 

certain AD ***], but F900 AMM chapter 5– 

40 at revision 20 introduces an extended 

inspection interval; 

—Inspection procedures of fuselage and 

wings; 

—Check of overpressure tightness on 

pressurization control regulating valves. 

Compliance with this check is required by 

EASA AD 2008–0072 [http://

ad.easa.europa.eu/blob/easa_ad_2008_

0072.pdf/AD_2008–0072_1] [which 

corresponds to FAA AD 2010–26–05, 

Amendment 39–16544 (75 FR 79952, 

December 21, 2010], but F900 AMM 

chapter 5–40 at revision 20 introduces an 

extended inspection interval; 

—Check of overpressure relief valve vacuum 

supply lines. 

The maintenance tasks and airworthiness 

limitations, as specified in the F900 AMM 

chapter 5–40, have been identified as 

mandatory actions for continued 

airworthiness of the F900 type design. 

Failure to comply with AMM chapter 5–40 

at revision 20 may result in an unsafe 

condition [reduced structural integrity of the 

airplane]. 

For the reasons described above, this 

[EASA] AD requires the implementation of 

the maintenance tasks and airworthiness 

limitations, as specified in the Dassault 

Aviation F900 AMM chapter 5–40 DGT 

113873 at revision 20. 

You may examine the MCAI in the AD 

docket on the Internet at http://

www.regulations.gov by searching for 

and locating Docket No. FAA–2015– 

2967. 

Related Service Information Under 1 

CFR Part 51 

We reviewed Chapter 5–40, 

Airworthiness Limitations, Revision 20, 

dated October 2012, of the Dassault 

Aviation Falcon 900 Maintenance 

Manual. This service information 

describes procedures, maintenance 

tasks, and airworthiness limitations 

specified in the Airworthiness 

Limitations section of the AMM. This 

service information is reasonably 

available because the interested parties 

have access to it through their normal 

course of business or by the means 

identified in the ADDRESSES section of 

this NPRM. 

FAA’s Determination and Requirements 

of This Proposed AD 

This product has been approved by 

the aviation authority of another 

country, and is approved for operation 

in the United States. Pursuant to our 

bilateral agreement with the State of 

Design Authority, we have been notified 

of the unsafe condition described in the 

MCAI and service information 

referenced above. We are proposing this 

AD because we evaluated all pertinent 

information and determined an unsafe 

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45904 Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Proposed Rules 

condition exists and is likely to exist or 

develop on other products of the same 

type design. 

Costs of Compliance 

We estimate that this proposed AD 

affects 112 airplanes of U.S. registry. 

We estimate that it would take about 

1 work-hour per product to comply with 

the basic requirements of this proposed 

AD. The average labor rate is $85 per 

work-hour. Based on these figures, we 

estimate the cost of this proposed AD on 

U.S. operators to be $9,520, or $85 per 

product. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. ‘‘Subtitle VII: 

Aviation Programs,’’ describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in ‘‘Subtitle VII, 

Part A, Subpart III, Section 44701: 

General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We determined that this proposed AD 

would not have federalism implications 

under Executive Order 13132. This 

proposed AD would not have a 

substantial direct effect on the States, on 

the relationship between the national 

Government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify this proposed regulation: 

1. Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866; 

2. Is not a ‘‘significant rule’’ under the 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979); 

3. Will not affect intrastate aviation in 

Alaska; and 

4. Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA proposes to amend 14 CFR part 

39 as follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

■ 1. The authority citation for part 39 

continues to read as follows: 

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

§ 39.13 [Amended] 

■ 2. The FAA amends § 39.13 by 

removing Airworthiness Directive (AD) 

2002–23–20, Amendment 39–12964 (67 

FR 71098, November 29, 2002); 

corrected May 4, 2010 (75 FR 23579); 

and adding the following new AD: 

DASSAULT AVIATION: Docket No. FAA– 

2015–2967; Directorate Identifier 2014– 

NM–072–AD. 

(a) Comments Due Date 

We must receive comments by September 

17, 2015. 

(b) Affected ADs 

This AD replaces AD 2002–23–20, 

Amendment 39–12964 (67 FR 71098, 

November 29, 2002); corrected May 4, 2010 

(75 FR 23579). This AD also affects AD 2010– 

26–05, Amendment 39–16544 (75 FR 79952, 

December 21, 2010). 

(c) Applicability 

This AD applies to all DASSAULT 

AVIATION Model MYSTERE–FALCON 900 

airplanes, certificated in any category. 

(d) Subject 

Air Transport Association (ATA) of 

America Code 05, Time Limits/Maintenance 

Checks. 

(e) Reason 

This AD was prompted by our 

determination of the need for a revision to 

the airplane airworthiness limitations to 

introduce a corrosion prevention control 

program, among other changes, to the 

maintenance requirements and airworthiness 

limitations. We are issuing this AD to prevent 

reduced structural integrity of the airplane. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(g) Revision of Maintenance or Inspection 

Program 

Within 30 days after the effective date of 

this AD, revise the maintenance or inspection 

program, as applicable, to incorporate the 

information specified in Chapter 5–40, 

Airworthiness Limitations, Revision 20, 

dated October 2012, of the Dassault Aviation 

Falcon 900 Maintenance Manual. The initial 

compliance time for accomplishing the 

actions specified in Chapter 5–40, 

Airworthiness Limitations, Revision 20, 

dated October 2012, of the Dassault Aviation 

Falcon 900 Maintenance Manual, is within 

the applicable times specified in the 

maintenance manual or within 30 days after 

the effective date of this AD, whichever 

occurs later, except as provided by 

paragraphs (g)(1) through (g)(4) of this AD. 

(1) The term ‘‘LDG’’ in the ‘‘First 

Inspection’’ column of any table in the 

service information means total airplane 

landings. 

(2) The term ‘‘FH’’ in the ‘‘First Inspection’’ 

column of any table in the service 

information means total flight hours. 

(3) The term ‘‘FC’’ in the ‘‘First Inspection’’ 

column of any table in the service 

information means total flight cycles. 

(4) The term ‘‘M’’ in the ‘‘First Inspection’’ 

column of any table in the service 

information means months. 

(h) Terminating Action 

Accomplishing paragraph (g) of this AD 

terminates the requirements of paragraph 

(g)(1) of AD 2010–26–05, Amendment 39– 

16544 (75 FR 79952, December 21, 2010), for 

DASSAULT AVIATION Model MYSTERE– 

FALCON 900 airplanes. 

(i) No Alternative Actions and Intervals 

After accomplishing the revision required 

by paragraph (g) of this AD, no alternative 

actions (e.g., inspections) or intervals may be 

used unless the actions or intervals are 

approved as an alternative method of 

compliance (AMOC) in accordance with the 

procedures specified in paragraph (j)(1) of 

this AD. 

(j) Other FAA AD Provisions 

The following provisions also apply to this 

AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, International 

Branch, ANM–116, Transport Airplane 

Directorate, FAA, has the authority to 

approve AMOCs for this AD, if requested 

using the procedures found in 14 CFR 39.19. 

In accordance with 14 CFR 39.19, send your 

request to your principal inspector or local 

Flight Standards District Office, as 

appropriate. If sending information directly 

to the International Branch, send it to ATTN: 

Tom Rodriguez, Aerospace Engineer, 

International Branch, ANM–116, Transport 

Airplane Directorate, FAA, 1601 Lind 

Avenue SW., Renton, WA 98057–3356; 

telephone 425–227–1137; fax 425–227–1149. 

Information may be emailed to: 9-ANM-116- 

AMOC-REQUESTS@faa.gov. Before using 

any approved AMOC, notify your appropriate 

principal inspector, or lacking a principal 

inspector, the manager of the local flight 

standards district office/certificate holding 

district office. The AMOC approval letter 

must specifically reference this AD. 

(2) Contacting the Manufacturer: For any 

requirement in this AD to obtain corrective 

actions from a manufacturer, the action must 

be accomplished using a method approved 

by the Manager, International Branch, ANM– 

116, Transport Airplane Directorate, FAA; or 

the European Aviation Safety Agency 

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Federal Register / Vol. 80, No. 148 / Monday, August 3, 2015 / Proposed Rules 45905 

(EASA); or Dassault Aviation’s EASA Design 

Organization Approval (DOA). If approved by 

the DOA, the approval must include the 

DOA-authorized signature. 

(k) Related Information 

(1) Refer to Mandatory Continuing 

Airworthiness Information (MCAI) EASA 

Airworthiness Directive 2013–0053, dated 

March 4, 2013, for related information. This 

MCAI may be found in the AD docket on the 

Internet at http://www.regulations.gov by 

searching for and locating Docket No. FAA– 

2015–2967. 

(2) For service information identified in 

this AD, contact Dassault Falcon Jet, P.O. Box 

2000, South Hackensack, NJ 07606; 

telephone 201–440–6700; Internet http://

www.dassaultfalcon.com. You may view this 

service information at the FAA, Transport 

Airplane Directorate, 1601 Lind Avenue SW., 

Renton, WA. For information on the 

availability of this material at the FAA, call 

425–227–1221. 

Issued in Renton, Washington, on July 23, 

2015. 

Victor Wicklund, 

Acting Manager, Transport Airplane 

Directorate, Aircraft Certification Service. 

[FR Doc. 2015–18689 Filed 7–31–15; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–109370–10] 

RIN 1545–BJ34 

Allocable Cash Basis and Tiered 

Partnership Items 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Partial withdrawal of notice of 

proposed rulemaking and notice of 

proposed rulemaking. 

SUMMARY: This document contains 

proposed regulations regarding the 

determination of a partner’s distributive 

share of certain allocable cash basis 

items and items attributable to an 

interest in a lower-tier partnership 

during a partnership taxable year in 

which a partner’s interest changes. 

These proposed regulations affect 

partnerships and their partners. 

DATES: Written or electronic comments 

and requests for a public hearing must 

be received by November 2, 2015. As of 

August 3, 2015, the notice of proposed 

rulemaking that was published in the 

Federal Register on May 24, 2005 (70 

FR 29675), is partially withdrawn. 

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–109370–10), Room 

5203, Internal Revenue Service, PO Box 

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–109370–10), 

Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue NW., 

Washington, DC, or sent electronically, 

via the Federal eRulemaking Portal at 

http://www.regulations.gov/(IRSREG109370-10). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Benjamin H. Weaver, (202) 317–6850; 

concerning submissions of comments 

and requests for public hearing, Regina 

Johnson, (202) 317–6901 (not toll free 

numbers). 

SUPPLEMENTARY INFORMATION: 

Background 

Section 706 of the Internal Revenue 

Code (the Code) generally provides rules 

for the taxable years of partners and 

partnerships. Section 72 of the Deficit 

Reduction Act of 1984, Public Law 98– 

369 (98 Stat. 494 (1984)) added section 

706(d) to the Code to prevent a partner 

who acquires an interest in the 

partnership late in the taxable year from 

deducting partnership expenses 

incurred prior to the partner’s entry into 

the partnership (retroactive allocations). 

Section 706(d)(1) provides that, except 

as provided in section 706(d)(2) and 

(d)(3), if during any taxable year of the 

partnership there is a change in any 

partner’s interest in the partnership, 

each partner’s distributive share of any 

item of income, gain, loss, deduction, or 

credit of the partnership for such 

taxable year shall be determined by the 

use of any method prescribed by 

regulations which takes into account the 

varying interests of the partners in the 

partnership during such taxable year. 

On April 14, 2009, the Treasury 

Department and the IRS published a 

notice of proposed rulemaking (REG– 

144689–04) (the 2009 proposed 

regulations) in the Federal Register to 

provide guidance under section 

706(d)(1) and to conform the Income 

Tax Regulations for certain provisions of 

section 1246 of the Taxpayer Relief Act 

of 1997, Public Law 105–34 (111 Stat. 

788 (1997)) and section 72 of the Deficit 

Reduction Act of 1984, Public Law 98– 

369 (98 Stat. 494 (1984)). The Treasury 

Department and the IRS are publishing 

final regulations under section 706(d)(1) 

(the final regulations) 

contemporaneously with these proposed 

regulations. However, the Treasury 

Department and the IRS have decided to 

propose an amendment to the final 

regulations expanding the list of 

extraordinary items to include two new 

items: (1) For publicly traded 

partnerships, any item of income that is 

an amount subject to withholding as 

defined in § 1.1441–2(a) (excluding 

amounts effectively connected with the 

conduct of a trade or business within 

the United States) or a withholdable 

payment under § 1.1473–1(a) occurring 

during a taxable year if, for that taxable 

year, the partners agree to treat all such 

items as extraordinary items, and (2) for 

any partnership, deductions for the 

transfer of partnership equity in 

connection with the performance of 

services. In addition, these proposed 

regulations provide guidance under 

sections 706(d)(2) and (3). 

1. Allocable Cash Basis Items 

Section 706(d)(2) provides rules for 

certain allocable cash basis items. 

Section 706(d)(2)(A) provides that if 

during any taxable year of the 

partnership there is a change in any 

partner’s interest in the partnership, 

then (except to the extent provided in 

regulations) each partner’s distributive 

share of any allocable cash basis item 

shall be determined (i) by assigning the 

appropriate portion of such item to each 

day in the period to which it is 

attributable, and (ii) by allocating the 

portion assigned to any such day among 

the partners in proportion to their 

interests in the partnership at the close 

of such day. Section 706(d)(2)(B) defines 

‘‘allocable cash basis item’’ as any of the 

following items with respect to which 

the partnership uses the cash receipts 

and disbursements method of 

accounting (cash method): (i) Interest, 

(ii) taxes, (iii) payments for services or 

for the use of property, or (iv) any other 

item of a kind specified in regulations 

prescribed by the Secretary as being an 

item with respect to which the 

application of section 706(d)(2) is 

appropriate to avoid significant 

misstatements of the income of the 

partners. Section 706(d)(2)(C) further 

provides that if any portion of any 

allocable cash basis item is attributable 

to (i) any period before the beginning of 

the taxable year, such portion shall be 

assigned under section 706(d)(2)(A)(i) to 

the first day of the taxable year, or (ii) 

any period after the close of the taxable 

year, such portion shall be assigned 

under section 706(d)(2)(A)(i) to the last 

day of the taxable year. Finally, section 

706(d)(2)(D) provides that if any portion 

of a deductible cash basis item is 

assigned under section 706(d)(2)(C)(i) to 

the first day of any taxable year, (i) such 

portion shall be allocated among 

persons who are partners in the 

partnership during the period to which 

such portion is attributable in 

accordance with their varying interests 

mstockstill on DSK4VPTVN1PROD with PROPOSALS