66500 Federal Register / Vol. 65, No. 215 / Monday, November 6, 2000 / Rules and Regulations

349.6 Effect of revised decision.

349.7 Time and place to request a review

and/or hearing on revised decision.

349.8 Discretion of the three-member Board

to reopen or not to reopen a final

decision.

Authority: 45 U.S.C. 355 and 362(l).

§ 349.1 Reopening and revising decisions.

(a) This part sets forth the Board’s

rules governing finality of decisions

with respect to benefits under the

Railroad Unemployment Insurance Act.

After the expiration of the time limits

for review as set forth in part 320 of this

chapter, decisions may be reopened and

revised only under the conditions

described in this subpart, by the bureau,

office or entity that made the earlier

decision or by a bureau, office, or other

entity at a higher level which has the

claim properly before it. Whether a final

decision is reopened or not reopened is

solely within the discretion of the

Board.

(b) A final decision, as that term is

used in this part, means any decision

under § 320.5 of this chapter where the

time limit for review, as set forth in part

320 of this chapter or in the Railroad

Unemployment Insurance Act, has

expired.

(c) Reopening a final decision under

this part means a conscious

determination on the part of the agency

to reconsider an otherwise final

decision for purposes of revising that

decision.

(d) New and material evidence, as that

phrase is used in this part, means

evidence which was unavailable to the

agency at the time the decision was

made, and which the claimant could not

reasonably have been expected to have

submitted at that time.

§ 349.2 Conditions for reopening.

A final decision may be reopened:

(a) Within 12 months of the date of

the notice of such decision, for any

reason;

(b) Within four years of the date of the

notice of such decision:

(1) If there is new and material

evidence; or

(2) If the decision was not reasonably

consistent with the evidence of record at

the time of adjudication.

(c) At any time if:

(1) The decision was obtained by

fraud or similar fault;

(2) The decision was that the claimant

was not a qualified employee, and he or

she is now qualified because

compensation was credited to the

employee’s record of compensation in

accordance with part 211 of this

chapter:

(i) To correct errors apparent on the

face of the compensation record;

(ii) To enter items transferred by the

Social Security Administration which

were credited under the Social Security

Act when they should have been

credited to the employee’s railroad

retirement compensation record; or

(iii) To correct errors made in the

allocation of earnings to individuals or

periods which would have made him or

her a qualified employee at the time of

the decision if the earnings had been

credited to his or her earnings record at

that time;

(3) The decision is wholly or partially

unfavorable to a claimant, but only to

correct a clerical error or an error that

appears on the face of the evidence that

was considered when the decision was

made.

§ 349.3 Change of legal interpretation or

administrative ruling.

A change of legal interpretation or

administrative ruling upon which a

decision is based does not render a

decision erroneous and does not

provide a basis for reopening.

§ 349.4 Late completion of timely

investigation.

(a) A decision may be revised after the

applicable time period in §§ 349.2(a) or

(b) expires if the Board begins an

investigation into whether to revise the

decision before the applicable time

period expires and the agency diligently

pursues the investigation to the

conclusion. The investigation may be

based on a request by a claimant or on

action by the Board.

(b) Diligently pursued for purposes of

this section means that in view of the

facts and circumstances of a particular

case, the necessary action was

undertaken and carried out as promptly

as the circumstances permitted. Diligent

pursuit will be presumed to have been

met if the investigation is concluded

and, if necessary, the decision is revised

within six months from the date the

investigation began.

(c) If the investigation is not diligently

pursued to its conclusion, the decision

will be revised if a revision is applicable

and if it is favorable to the claimant. It

will not be revised if it would be

unfavorable to the claimant.

§ 349.5 Notice of revised decision.

(a) When a decision is revised, notice

of the revision will be mailed to the

parties to the decision at their last

known address. The notice will state the

basis for the revised decision and the

effect of the revision. The notice will

also inform the parties of the right to

further review.

(b) If a hearings officer or the threemember Board proposes to revise a

decision, and the revision would be

based only on evidence included in the

record on which the prior decision was

based, all parties will be notified in

writing of the proposed action. If a

revised decision is issued by a hearings

officer, any party may request that it be

reviewed by the three-member Board, or

the three-member Board may review the

decision on its own initiative.

§ 349.6 Effect of revised decision.

A revised decision is binding unless:

(a) The revised decision is being

reconsidered or appealed in accord with

part 320 of this chapter;

(b) The three-member Board reviews

the revised decision; or

(c) The revised decision is further

revised consistent with this part.

§ 349.7 Time and place to request a review

and/or hearing on revised decision.

A party to a revised decision may

request, as appropriate, further review

of the decision in accordance with the

rules set forth in part 320 of this

chapter. Further review or a hearing will

be held according to the rules set forth

in part 320 of this chapter.

§ 349.8 Discretion of the three-member

Board to reopen or not to reopen a final

decision.

In any case in which the threemember Board may deem proper, the

Board may direct that any decision,

which is otherwise subject to reopening

under this part, shall not be reopened or

direct that any decision, which is

otherwise not subject to reopening

under this part, shall be reopened.

Dated: October 26, 2000.

By Authority of the Board.

Beatrice Ezerski,

Secretary to the Board.

[FR Doc. 00–28211 Filed 11–3–00; 8:45 am]

BILLING CODE 7905–01–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8862]

RIN 1545–AI32

Stock Transfer Rules

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Correcting amendment.

SUMMARY: This document contains

corrections to Treasury Decision 8862,

which was published in the Federal

Register on Monday, January 24, 2000

Federal Register / Vol. 65, No. 215 / Monday, November 6, 2000 / Rules and Regulations 66501

(65 FR 3589). The corrections relate to

the stock transfer rules under section

367(b).

DATES: Effective February 23, 2000.

FOR FURTHER INFORMATION CONTACT:

Mark D. Harris, (202) 622–3860 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The final regulations that are the

subject of these corrections are under

section 367 of the Internal Revenue

Code.

Need for Correction

As published, the final regulations

contain errors that may prove to be

misleading and are in need of

clarification.

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and

recordkeeping requirements.

PART 1—INCOME TAXES

Accordingly, 26 CFR part 1 is

corrected by making the following

correcting amendments:

Paragraph 1. The authority citation

for part 1 continues to read in part as

follows:

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

§ 1.367(b)–0 [Corrected]

Par. 2. In § 1.367(b)–0, the entry for

§ 1.367(b)–1(c)(5) is revised to read as

follows:

§ 1.367(b)–0 Table of contents.

* * * * *

§ 1.367(b)–1 * * *

(c) * * *

(5) Abbreviated notice provision for

shareholders that make the election

described in § 1.367(b)–3(c)(3).

* * * * *

§ 1.367(b)–1 [Corrected]

Par. 3. Section 1.367(b)–1, the

heading for paragraph (c)(5) is revised to

read as follows:

§ 1.367(b)–1 Other transfers.

* * * * *

(c) * * *

(5) Abbreviated notice provision for

shareholders that make the election

described in § 1.367(b)–3(c)(3). ***

* * * * *

§ 1.367(b)–2 [Corrected]

Par. 4. Section 1.367(b)–2 is amended

as follows:

1. Paragraph (c)(1)(i) is amended by

removing the language ‘‘corporation,

and’’ and adding ‘‘corporation; and’’ in

its place.

2. Paragraph (e)(4) Example 3, the

penultimate sentence, the language ‘‘56’’

is removed and ‘‘356’’ is added in its

place.

3. Revising the introductory text of

paragraph (f)(4).

4. Revising the penultimate sentence

of paragraph (j)(2)(i).

The revisions read as follows:

§ 1.367(b)–2 Definition and special rules.

* * * * *

(f) * * *

(4) Closing of taxable year. In a

reorganization described in paragraph

(f)(1) of this section, the taxable year of

the foreign transferor corporation shall

end with the close of the date of the

transfer and, except as otherwise

required under the Internal Revenue

Code (e.g. section 1502 and the

regulations thereunder), the taxable year

of the acquiring corporation shall end

with the close of the date on which the

transferor’s taxable year would have

ended but for the occurrence of the

reorganization if—

* * * * *

(j) * * *

(2) * * *

(i) * * * The exchange gain or loss

recognized under this paragraph (j)(2)(i)

will increase or decrease the exchanging

shareholder’s adjusted basis in the stock

of the foreign corporation, including for

purposes of computing gain or loss

realized with respect to the stock on the

transaction. * * *

* * * * *

§ 1.367(b)–3 [Corrected]

Par. 5. Section 1.367(b)–3 is amended

as follows:

1. Revising paragraph (b)(2).

2. In paragraph (d)(1), the first

sentence, the language ‘‘Unused foreign

tax credits allowable to the foreign

acquired corporation under section 906’’

is removed and ‘‘Excess foreign taxes

under section 904(c) allowable to the

foreign acquired corporation under

section 906’’ is added in its place.

The revision reads as follows:

§ 1.367(b)–3 Repatriation of foreign

corporate assets in certain nonrecognition

transactions.

* * * * *

(b) * * *

(2) United States shareholder. For

purposes of this section (and for

purposes of the other section 367(b)

regulation provisions that specifically

refer to this paragraph (b)(2)), the term

United States shareholder means any

shareholder described in section 951(b)

(without regard to whether the foreign

corporation is a controlled foreign

corporation), and also any shareholder

described in section 953(c)(1)(A) (but

only if the foreign corporation is a

controlled foreign corporation as

defined in section 953(c)(1)(B) subject to

the rules of section 953(c)).

* * * * *

§ 1.367(b)–4 [Corrected]

Par. 6. Section 1.367(b)–4 is amended

as follows:

1. In paragraph (a) the language

‘‘another’’ is removed in the first

sentence and ‘‘a’’ is added in its place.

2. A new sentence is added after the

first sentence of paragraph (a).

3. Paragraph (b)(1)(i)(B)(2) is revised.

4. Revising the first sentence of

paragraph (d) (1).

The addition and revisions read as

follows:

§ 1.367(b)–4 Acquisition of foreign

corporate stock or assets by foreign

corporation in certain nonrecognition

transactions.

(a) * * * This section applies

notwithstanding that the foreign

acquiring corporation and the foreign

acquired corporation may be the same

corporation (such as in a section

368(a)(1)(E) reorganization). * * *

(b) * * *

(1) * * *

(i) * * *

(B) * * *

(2) Immediately after the exchange,

the foreign acquiring corporation or the

foreign acquired corporation (if any,

such as in a transaction described in

section 368(a)(1)(B) and/or section 351),

is not a controlled foreign corporation as

to which the United States person

described in paragraph (b)(1)(i)(A) of

this section is a section 1248

shareholder.

* * * * *

(d) * * * (1) In general. If income is

not required to be included under

paragraph (b) of this section in a section

367(b) exchange described in paragraph

(a) of this section (non-inclusion

exchange) then, for purposes of

applying section 367(b) or 1248 to

subsequent exchanges and subject to the

limitation of § 1.367(b)–2(d)(3)(iii) (in

the case of a transaction described in

§ 1.367(b)–3), the determination of the

earnings and profits attributable to an

exchanging shareholder’s stock received

in the non-inclusion exchange shall

include a computation that refers to the

exchanging shareholder’s pro rata

interest in the earnings and profits of

the foreign acquiring corporation (and,

in the case of a stock transfer, the

foreign acquired corporation) that

accumulate after the non-inclusion

exchange, as well as its pro rata interest

in the earnings and profits of the foreign

66502 Federal Register / Vol. 65, No. 215 / Monday, November 6, 2000 / Rules and Regulations

acquired corporation that accumulated

before the non-inclusion

exchange.***

* * * * *

§ 1.367(b)–5 [Corrected]

Par. 7. Section 1.367(b)–5 is amended

as follows:

1. Paragraph (a)(1) is amended by

revising the first sentence.

2. Paragraph (f) is revised.

3. Paragraph (g), Example 1(ii)(B), the

second sentence is amended by

removing the language ‘‘$60 and $0’’

and by adding ‘‘$0 and $60’’ in its place.

4. Revising the fourth sentence of

paragraph (g), Example 1(ii)(C) by

removing the language ‘‘from FC’’.

5. Adding two new sentences after the

fourth sentence of paragraph (g),

Example 1(ii)(C).

6. Adding a new sentence at the end

of paragraph (g), Example 2(ii)(C).

The additions and revisions read as

follows:

§ 1.367(b)–5 Distributions of stock

described in section 355.

(a) * * * (1) Scope. This section

provides rules relating to a distribution

described in section 355 (or so much of

section 356 as relates to section 355)

and to which section 367(b)

applies.***

* * * * *

(f) Exclusion of deemed dividend from

foreign personal holding company

income. In the event an amount is

included in income as a deemed

dividend by a foreign corporation under

paragraph (c) or (d) of this section

(including amounts received as an

intermediate owner under the rule of

§ 1.367(b)–2(e)(2)), such deemed

dividend shall not be included as

foreign personal holding company

income under section 954(c).

(g) * * *

Example 1. ***

(ii) * * *

(C) * * * Under § 1.367(b)–2(e)(2), the $20

deemed dividend is considered as having

been paid by FC to FD, and by FD to USS,

immediately prior to the distribution. Under

paragraph (f) of this section, the deemed

dividend is not included by FD as foreign

personal holding company income under

section 954(c). * * *

Example 2. ***

(ii) * * *

(C) * * * Under paragraph (f) of this

section, the deemed dividend is not included

by FD as foreign personal holding company

income under section 954(c).

Dale D. Goode,

Federal Register Liaison, Office of Special

Counsel (Modernization and Strategic

Planning).

[FR Doc. 00–28433 Filed 11–3–00; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF COMMERCE

United States Patent and Trademark

Office

37 CFR Part 1

RIN 0651–AB05

Changes To Implement EighteenMonth Publication of Patent

Applications; Correction

AGENCY: United States Patent and

Trademark Office, Commerce.

ACTION: Final rule; correction.

SUMMARY: The United States Patent and

Trademark Office (Office) published a

final rule in the Federal Register of

September 20, 2000, revising the rules

of practice in patent cases to implement

the eighteen-month publication

provisions of the American Inventors

Protection Act of 1999. This document

corrects two errors in that final rule.

EFFECTIVE DATE: November 29, 2000.

FOR FURTHER INFORMATION CONTACT:

Concerning this rule: Robert W. Bahr by

telephone at (703) 308–6906, or by mail

addressed to: Box Comments—Patents,

Assistant Commissioner for Patents,

Washington, D.C. 20231, or by facsimile

to (703) 872–9411, marked to the

attention of Robert W. Bahr.

SUPPLEMENTARY INFORMATION: The Office

published a final rule in the Federal

Register of September 20, 2000 (65 FR

57023), entitled ‘‘Changes to Implement

Eighteen-Month Publication of Patent

Applications.’’ This document corrects

errors in § 1.55 and § 1.99 as discussed

below.

Section 1.55(a) should refer to ‘‘35

U.S.C. 119(a) through (d) and (f), 172,

and 365(a) and (b)’’ rather than ‘‘35

U.S.C. 119(a) through (d), 172, and

365(a)’’ (references to 35 U.S.C. 119(f)

and 365(b) were inadvertently omitted).

Section 1.55(c) should refer to ‘‘35

U.S.C. 119(a) through (d) and (f), and

365(a)’’ rather than ‘‘35 U.S.C. 119(a)

through (d) and 365(a)’’ (a reference to

35 U.S.C. 119(f) was inadvertently

omitted).

Section 1.99(f) should not include its

last sentence (‘‘[N]o further submission

on behalf of the member of the public

will be considered, unless such

submission raises new issues which

could not have been earlier

presented.’’).

In rule FR Doc. 00–23822, published

on September 20, 2000 (65 FR 57023),

make the following corrections:

§ 1.55 [Corrected]

1. On page 57053, in the third

column, in § 1.55, in paragraph (a)

introductory text, in lines 5 and 6,

correct ‘‘119(a) through (d), 172, and

365(a)’’ to read ‘‘119(a) through (d) and

(f), 172, and 365(a) and (b);’’ and on

page 57054, in the first column, in

§ 1.55, in paragraph (c) introductory

text, in each of lines 4, 9, and 19, correct

‘‘119(a)–(d) or 365(a)’’ to read ‘‘119(a)

through (d) and (f), or 365(a)’’.

§ 1.99 [Corrected]

2. On page 57056, in the second

column, in § 1.99, in paragraph (f), in

lines 14 through 19, remove the

sentence ‘‘No further submission on

behalf of the member of the public will

be considered, unless such submission

raises new issues which could not have

been earlier presented.’’

Dated: October 30, 2000.

Albin F. Drost,

Acting General Counsel.

[FR Doc. 00–28315 Filed 11–3–00; 8:45 am]

BILLING CODE 3510–16–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 132

[FRL–6896–9]

RIN 2040–AD66

Identification of Approved and

Disapproved Elements of the Great

Lakes Guidance Submission From the

State of Wisconsin, and Final Rule

AGENCY: Environmental Protection

Agency (EPA).

ACTION: Final rule.

SUMMARY: EPA published the final

Water Quality Guidance for the Great

Lakes System (the Guidance) on March

23, 1995. Section 118(c) of the Clean

Water Act (CWA) requires the Great

Lakes States of Illinois, Indiana,

Michigan, Minnesota, New York, Ohio,

Pennsylvania and Wisconsin to adopt

within two years of publication of the

final Guidance (i.e., March 23, 1997)

minimum water quality standards,

antidegradation policies and

implementation procedures that are

consistent with the Guidance, and to

submit them to EPA for review and

approval. Each of the Great Lakes States

made those submissions.

Today, EPA is taking final action on

the Guidance submission of the State of

Wisconsin. EPA’s final action consists

of approving those elements of the

State’s submission that are consistent

with the Guidance, disapproving those

elements that are not consistent with the

Guidance, and specifying in a final rule

the elements of the Guidance that apply