Federal Register / Vol. 76, No. 219 / Monday, November 14, 2011 / Rules and Regulations 70337 

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 AD will not 

have federalism implications under 

Executive Order 13132. This AD will 

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 AD: 

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); and 

3. 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. 

We prepared a regulatory evaluation 

of the estimated costs to comply with 

this AD and placed it in the AD docket. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

Adoption of the Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA amends 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 adding 

the following new AD: 

2011–23–12 Rolls-Royce plc: Amendment 

39–16863; Docket No. FAA–2011–1109; 

Directorate Identifier 2011–NE–33–AD. 

Effective Date 

(a) This airworthiness directive (AD) 

becomes effective November 29, 2011. 

Affected ADs 

(b) None. 

Applicability 

(c) This AD applies to Rolls-Royce plc 

RB211–524G2–19; –524G2–T–19; –524G3– 

19; 524G3–T–19; 524H2–19; –524H2–T–19; 

–524H–36; and –524H–T–36 turbofan 

engines. 

Reason 

(d) This AD results from mandatory 

continuing airworthiness information (MCAI) 

issued by an aviation authority of another 

country to identify and correct an unsafe 

condition on an aviation product. The MCAI 

describes the unsafe condition as: 

Several instances of fan blade cracking have 

been reported. The results of the subsequent 

technical investigation concluded that the 

cracking was caused by fan blade flutter at 

certain engine settings during prolonged 

ground running. 

This condition, if not corrected, could affect 

the integrity of the fan blades, leading to 

cracking of multiple fan blades and could 

possibly result in engine failure and release 

of uncontained high energy debris. 

We are issuing this AD to prevent fan blade 

flutter, which could result in an uncontained 

engine failure and damage to the airplane. 

Actions and Compliance 

(e) Unless already done, do the following 

actions. 

(1) Within 40 months after the effective 

date of this AD, modify the engine by 

installing a full-authority fuel controller 

(FAFC) featuring software at Issue 17, in 

accordance with Accomplishment 

Instructions paragraphs 3.A. through 3.B. of 

Rolls-Royce plc Alert Service Bulletin (ASB) 

No. RB.211–73–AG054, Revision 2, dated 

June 29, 2011. 

(2) Engines which have been modified 

before the effective date of this AD, in 

accordance with previous revisions of ASB 

No. RB.211–73–AG054 are compliant with 

the requirement of paragraph (e)(1) of this 

AD. 

(3) From the effective date of this AD, do 

not install an FAFC on an engine if the FAFC 

incorporates software prior to Issue 17. 

FAA AD Differences 

(f) None. 

Alternative Methods of Compliance 

(AMOCs) 

(g) The Manager, Engine Certification 

Office, FAA, has the authority to approve 

AMOCs for this AD, if requested using the 

procedures found in 14 CFR 39.19. 

Related Information 

(h) Refer to European Aviation Safety 

Agency AD 2011–0175, dated September 8, 

2011, for related information. 

(i) Contact Alan Strom, Aerospace 

Engineer, Engine Certification Office, FAA, 

Engine & Propeller Directorate, 12 New 

England Executive Park, Burlington, MA 

01803; telephone: (781) 238–7143; fax: (781) 

238–7199; email: alan.strom@faa.gov, for 

more information about this AD. 

Material Incorporated by Reference 

(j) You must use Rolls-Royce plc Alert 

Service Bulletin No. RB.211–73–AG054, 

Revision 2, dated June 29, 2011, to do the 

actions required by this AD, unless the AD 

specifies otherwise. 

(1) The Director of the Federal Register 

approved the incorporation by reference of 

this service information under 5 U.S.C. 

552(a) and 1 CFR part 51. 

(2) For service information identified in 

this AD, contact Rolls-Royce plc, Corporate 

Communications, P.O. Box 31, Derby, 

England, DE248BJ; phone: 011–44–1332– 

242424; fax: 011–44–1332–245418 or email 

from http://www.rolls-royce.com/contact/ 

civil_team.jsp, or download the publication 

from https://www.aeromanager.com. 

(3) You may review copies at the FAA, 

New England Region, 12 New England 

Executive Park, Burlington, MA; or at the 

National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, call 

(202) 741–6030, or go to: http:// 

www.archives.gov/federal-register/cfr/ibrlocations.html. For information on the 

availability of this material at the FAA, call 

(781) 238–7125. 

Issued in Burlington, Massachusetts, on 

November 2, 2011. 

Peter A. White, 

Manager, Engine and Propeller Directorate, 

Aircraft Certification Service. 

[FR Doc. 2011–29208 Filed 11–10–11; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Parts 738, 740 and 748 

[Docket No. 110818514–1531–01] 

RIN 0694–AF33 

Exports and Reexports to the 

Principality of Liechtenstein 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: The Bureau of Industry and 

Security (BIS) publishes this final rule 

to amend certain requirements in the 

Export Administration Regulations 

(EAR) that apply to the Principality of 

Liechtenstein (Liechtenstein). In this 

final rule, BIS aligns license 

requirements and licensing policy under 

the EAR for Liechtenstein with those for 

Switzerland. As a result, for purposes of 

the EAR, Liechtenstein will be treated 

the same as Switzerland. 

By virtue of a Customs Union Treaty 

with Switzerland, Liechtenstein has 

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70338 Federal Register / Vol. 76, No. 219 / Monday, November 14, 2011 / Rules and Regulations 

1Customs Union Treaty of 29 March 1923 

between the Principality of Liechtenstein and 

Switzerland, 21 League of Nations Treaty Series 233 

(1924). 

adopted the export controls 

implemented under Swiss law, 

including controls equivalent to those 

prescribed under multilateral regimes, 

and has authorized Switzerland to 

administer and enforce export controls 

within Liechtenstein’s territory. As a 

result of this arrangement, Liechtenstein 

and Switzerland serve as one territory 

for customs and export purposes. 

Having recently been made aware of the 

full scope of this arrangement and its 

consequences on export controls, BIS 

has determined that it is appropriate to 

codify the treatment of Liechtenstein 

and Switzerland as one territory for 

purposes of the EAR. This treatment of 

Liechtenstein is consistent with the 

effort of the United States to streamline 

licensing requirements where export 

controls prescribed by the multilateral 

regimes are implemented. 

DATES: This rule is effective November 

14, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Sheila Quarterman, Regulatory Policy 

Division, Office of Exporter Services, 

Bureau of Industry and Security, U.S. 

Department of Commerce at (202) 482– 

2440 or by email 

Sheila.Quarterman@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

By virtue of a Customs Union Treaty 

with Switzerland, Liechtenstein has 

adopted the export controls 

implemented under Swiss law, and has 

authorized Switzerland to administer 

and enforce export controls within 

Liechtenstein’s territory. The Bureau of 

Industry and Security (BIS) recognizes 

that this arrangement results in the 

implementation of export controls in 

Liechtenstein that are equivalent to 

those in Switzerland, and in accordance 

with the multilateral export control 

regimes. By virtue of the Customs Union 

Treaty of 1923 between Switzerland and 

Liechtenstein (Customs Union Treaty),1

Liechtenstein is a part of the ‘‘Swiss 

customs territory’’ and Switzerland acts 

on behalf of Liechtenstein regarding 

issues of trade in goods. The Customs 

Union Treaty empowers Switzerland to 

conclude and incur undertakings that 

apply automatically and directly to 

Liechtenstein. As a result of this 

arrangement, Swiss export control law 

applies equally to exporters from 

Switzerland and Liechtenstein. Further, 

Switzerland is responsible for 

administering export controls and 

enforcing export controls in 

Liechtenstein. Consequently, in this 

final rule, BIS aligns its treatment of 

Liechtenstein with that of Switzerland, 

resulting in the treatment of 

Liechtenstein and Switzerland as one 

territory for purposes of the Export 

Administration Regulations (EAR). 

Therefore, license requirements and 

licensing policy under the EAR for 

Liechtenstein are effectively the same as 

those for Switzerland. This treatment of 

Liechtenstein is consistent with the 

effort of the United States to streamline 

licensing requirements where export 

controls prescribed by the multilateral 

regimes are implemented. 

Specific Amendments to the EAR That 

Align Liechtenstein With Switzerland 

for Purposes of Licensing Requirements 

In this rule, BIS amends the EAR by 

adding a sentence to paragraph (b) 

(Countries) of Section 738.3 (Commerce 

Country Chart Structure) that states that 

Liechtenstein, which serves as one 

territory with Switzerland for customs 

and export purposes, will be accorded 

the same licensing treatment as 

Switzerland under the EAR. 

In addition and consistent with the 

purpose of this rule, BIS amends the 

EAR by adding a footnote for 

‘‘Liechtenstein’’ on the Commerce 

Country Chart in Supplement No. 1 to 

Part 738 that states, ‘‘Refer to 

Switzerland for licensing requirements 

for Liechtenstein under the EAR.’’; and 

by removing the ‘‘X’’ in chemical and 

biological weapons column 2, nuclear 

nonproliferation column 1, national 

security column 2, and regional stability 

column 2. BIS also amends the EAR by 

removing Liechtenstein from the group 

of Computer Tier 1 Destinations in 

paragraph (c)(1) of Section 740.7 

(License Exception Computers (APP)); 

Country Group B in Supplement No. 1 

to Part 740; the group of countries for 

which an Import Certificate or End-User 

Statement may be required in paragraph 

(b)(2) of Section 748.9 (Support 

Documents for License Applications); 

and the Authorities Administering 

Import Certificate/Delivery Verification 

and End-User Statement Systems in 

Foreign Countries in Supplement No. 4 

to part 748. Finally, in this rule, BIS 

removes and reserves paragraph (g), 

which expressly permitted reexports 

between Liechtenstein and Switzerland, 

in License Exception Additional 

Permissive Reexports (APR). 

Since August 21, 2001, the Export 

Administration Act (the Act) has been 

in lapse and the President, through 

Executive Order 13222 of August 17, 

2001 (3 CFR, 2001 Comp., p. 783 

(2002)), as extended most recently by 

the Notice of August 12, 2011, 76 FR 

50661 (August 16, 2011), has continued 

the EAR in effect under the 

International Emergency Economic 

Powers Act. BIS continues to carry out 

the provisions of the Act, as appropriate 

and to the extent permitted by law, 

pursuant to Executive Order 13222. 

Rulemaking Requirements 

1. Executive Orders 13563 and 12866 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. This rule 

has been designated a ‘‘significant 

regulatory action’’ although not 

economically significant, under section 

3(f) of Executive Order 12866. 

Accordingly, the rule has been reviewed 

by the Office of Management and 

Budget (OMB). 

2. Notwithstanding any other 

provisions of law, no person is required 

to respond to nor be subject to a penalty 

for failure to comply with a collection 

of information, subject to the 

requirements of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.) (PRA), unless that collection of 

information displays a currently valid 

OMB Control Number. This rule 

involves two collections of information 

subject to the PRA. This collection has 

been approved by OMB under control 

number 0694–0088, ‘‘Multi-Purpose 

Application,’’ which carries a burden 

hour estimate of 43.8 minutes to prepare 

and submit form BIS–748. The other 

collection has been approved by OMB 

under control number 0694–0106, 

‘‘Reporting and Recordkeeping 

Requirements under the Wassenaar 

Arrangement,’’ and carries a burden 

hour estimate of 21 minutes for a 

manual or electronic submission. Total 

burden hours associated with the PRA 

and OMB control numbers 0694–0088 

and 0694–0106 are not expected to 

increase as a result of this rule. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined under Executive Order 

13132. 

4. Pursuant to 5 U.S.C. 553(a)(1), the 

provisions of the Administrative 

Procedure Act requiring notice of 

proposed rulemaking, the opportunity 

for public participation, and a delay in 

effective date, are inapplicable because 

this regulation involves a military or 

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Federal Register / Vol. 76, No. 219 / Monday, November 14, 2011 / Rules and Regulations 70339 

foreign affairs function of the United 

States. (See 5 U.S.C. 553(a)(1)). 

Immediate implementation of these 

amendments furthers United States 

policies and goals toward allies and 

cooperating and like-minded countries 

with regard to export controls and 

reduces the burden on exporters in 

relation to licensing obligations. This 

rule will positively impact regional 

stability by promoting greater 

responsibility in the transfer of dual-use 

goods, technologies, thus preventing 

destabilizing effects. This action also 

reconciles any inconsistencies in the 

treatment of Liechtenstein in light of its 

Treaty and export control arrangement 

with Switzerland and therefore is 

consistent with the effort of the United 

States to streamline licensing 

requirements where export controls 

prescribed by the multilateral regimes 

are implemented. Failure to 

immediately implement this rule would 

result in an unnecessary licensing 

burden on businesses, especially small 

businesses. Thus, in light of the United 

States’ understanding of how export 

controls are administered in 

Liechtenstein, the United States seeks to 

assist businesses and prevent confusion 

by immediately removing licensing 

requirements that are unnecessary in 

light of the fact the international regime 

requirements are otherwise being met. 

No other law requires that a notice of 

proposed rulemaking and an 

opportunity for public comment be 

given for this rule. Because a notice of 

proposed rulemaking and an 

opportunity for public comment are not 

required to be given for this rule by 5 

U.S.C. 553, or by any other law, the 

analytical requirements of the 

Regulatory Flexibility Act, 5 U.S.C. 601 

et seq., are not applicable. Therefore, 

this regulation is issued in final form. In 

addition, the Department finds good 

cause under 5 U.S.C. 553(d)(3) to waive 

the 30-day delay in effectiveness for the 

reasons provided above. Accordingly, 

this regulation is made effective 

immediately upon publication. 

List of Subjects 

15 CFR Part 738 

Exports. 

15 CFR Part 740 

Administrative practice and 

procedure, Exports, Reporting and 

recordkeeping requirements. 

15 CFR Part 748 

Administrative practice and 

procedure, Exports, Reporting and 

recordkeeping requirements. 

Accordingly, parts 738, 740 and 748 

of the Export Administration 

Regulations (15 CFR parts 730 through 

774) are amended as follows: 

PART 738—[AMENDED] 

■ 1. The authority citation for Part 738 

continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; 10 U.S.C. 7420; 10 U.S.C. 

7430(e); 22 U.S.C. 287c; 22 U.S.C. 3201 et 

seq.; 22 U.S.C. 6004; 30 U.S.C. 185(s), 185(u); 

42 U.S.C. 2139a; 42 U.S.C. 6212; 43 U.S.C. 

1354; 15 U.S.C. 1824a; 50 U.S.C. app. 5; 22 

U.S.C. 7201 et seq.; 22 U.S.C. 7210; E.O. 

13026, 61 FR 58767, 3 CFR, 1996 Comp., p. 

228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 

Comp., p. 783; Notice of August 12, 2011, 76 

FR 50661 (August 16, 2011). 

■ 2. Amend § 738.3 by revising 

paragraph (b) to read as follows: 

§ 738.3 Commerce Country Chart 

structure. 

* * * * * 

(b) Countries. The first column of the 

Country Chart lists countries in 

alphabetical order. There are a number 

of destinations that are not listed in the 

Country Chart contained in Supplement 

No. 1 to part 738. If your destination is 

not listed on the Country Chart and 

such destination is a territory, 

possession, dependency or department 

of a country included on the Country 

Chart, the EAR accords your destination 

the same licensing treatment as the 

country of which it is a territory, 

possession, dependency or department. 

For example, if your destination is the 

Cayman Islands, a dependent territory 

of the United Kingdom, refer to the 

United Kingdom on the Country Chart 

for licensing requirements. In addition, 

if your destination is Liechtenstein, 

which serves as one territory with 

Switzerland for purposes of the EAR, 

refer to Switzerland on the Country 

Chart for licensing requirements. 

* * * * * 

■ 3. Amend Supplement No. 1 to part 

738 by 

■ a. Revising the entry for 

‘‘Liechtenstein’’ to read as set forth 

below; and 

■ c. Adding footnote 5 to read as set 

forth below. 

SUPPLEMENT NO. 1 TO PART 738—COMMERCE COUNTRY CHART

[Reason for control] 

Countries 

Chemical & biological 

weapons 

Nuclear 

nonproliferation National security 

Missile 

tech Regional stability 

Firearms 

convention Crime control Anti-terrorism 

CB 

1 

CB 

2 

CB 

3 

NP 

1 

NP 

2 

NS 

1 

NS 

2 

MT 

1 

RS 

1 

RS 

2 

EC 

1 

CC 

1 

CC 

2 

CC 

3 

AT 

1 

AT 

2 

Liechtenstein 5 .......................... X ............ ............ ............ ............ X ............ X X ............ .................... X ............ X ............ ............

* * * * * * * 

5 Refer to Switzerland for licensing requirements for Liechtenstein under the EAR. 

PART 740—[AMENDED] 

■ 4. The authority citation for Part 740 

continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; 22 U.S.C. 7201 et seq.; 

E.O. 13026, 61 FR 58767, 3 CFR, 1996 Comp., 

p. 228; E.O. 13222, 66 FR 44025, 3 CFR, 2001 

Comp., p. 783; Notice of August 12, 2011, 76 

FR 50661 (August 16, 2011). 

§ 740.7 [Amended] 

■ 5. Amend § 740.7 by removing 

‘‘Liechtenstein,’’ from the group of 

countries in paragraph (c)(1). 

§ 740.16 [Amended] 

■ 6. Amend § 740.16 by removing and 

reserving paragraph (g). 

Supplement No. 1 to Part 740 [Amended] 

■ 7. Amend Country Group B of 

Supplement No. 1 to Part 740 by 

removing ‘‘Liechtenstein’’. 

PART 748—[AMENDED] 

■ 8. The authority citation for Part 748 

continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; E.O. 13026, 61 FR 58767, 

3 CFR, 1996 Comp., p. 228; E.O. 13222, 66 

FR 44025, 3 CFR, 2001 Comp., p. 783; Notice 

of August 12, 2011, 76 FR 50661 (August 16, 

2011). 

§ 748.9 [Amended] 

■ 9. Amend § 748.9 by removing 

‘‘Liechtenstein’’ from the group of 

countries listed in alphabetical order in 

paragraph (b)(2). 

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70340 Federal Register / Vol. 76, No. 219 / Monday, November 14, 2011 / Rules and Regulations 

Supplement No. 4 to Part 748 [Amended] 

■ 10. Amend Supplement No. 4 to Part 

748 by removing the entire entry for 

‘‘Liechtenstein’’. 

Dated: November 7, 2011. 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2011–29357 Filed 11–10–11; 8:45 am] 

BILLING CODE 3510–33–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Parts 26 and 301 

[TD 9556] 

RIN 1545–BG89 

Generation-Skipping Transfers (GST) 

Section 6011 Regulations and 

Amendments to the Section 6112 

Regulations 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations. 

SUMMARY: This document contains final 

regulations that provide rules relating to 

the disclosure of listed transactions and 

transactions of interest with respect to 

the generation-skipping transfer tax 

under section 6011 of the Internal 

Revenue Code (Code), conforming 

amendments under sections 6111 and 

6112, and rules relating to the 

preparation and maintenance of lists 

with respect to reportable transactions 

under section 6112. The regulations 

affect taxpayers participating in listed 

transactions and transactions of interest 

and material advisors to such 

transactions. The final regulations also 

contain rules under section 6112 that 

affect material advisors to reportable 

transactions. These regulations provide 

guidance regarding the length of time a 

material advisor has to prepare the list 

that must be maintained after the list 

maintenance requirement first arises 

with respect to a reportable transaction. 

These regulations also clarify guidance 

regarding designation agreements. 

DATES: These regulations are effective 

November 14, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Charles D. Wien, (202) 622–3070 (not a 

toll-free number). 

Background 

This document contains final 

regulations that amend 26 CFR part 26 

to provide rules for purposes of the 

generation-skipping transfer tax that 

require the disclosure of listed 

transactions and transactions of interest 

by certain taxpayers on their Federal tax 

returns under section 6011. This 

document also contains final regulations 

that modify and clarify some of the rules 

under 26 CFR part 301 relating to the 

disclosure obligations of material 

advisors under section 6111 and the list 

maintenance requirements of material 

advisors with respect to reportable 

transactions under section 6112. 

On July 31, 2007, the IRS and 

Treasury Department issued final 

regulations under section 6011 (TD 

9350; 72 FR 43146), 6111 (TD 9351; 72 

FR 43157) and 6112 (TD 9352; 72 FR 

43154) (the July 2007 regulations) that 

were published in the Federal Register 

on August 3, 2007. In the July 2007 

regulations, the IRS and Treasury 

Department amended 26 CFR parts 20, 

25, 31, 53, 54, and 56 to provide that 

certain taxpayers would be required to 

disclose transactions of interest, in 

addition to listed transactions, on their 

Federal tax returns under section 6011. 

On September 10, 2009, the IRS and 

Treasury Department issued a notice of 

proposed rulemaking under sections 

6011, 6111, and 6112 (REG–136563–07) 

(the September 2009 proposed 

regulations). The September 2009 

proposed regulations were published in 

the Federal Register (74 FR 46705) on 

September 11, 2009. 

In response to the September 2009 

proposed regulations, the IRS and 

Treasury Department received two 

written public comments. A public 

hearing was not requested. After 

consideration of the comments received, 

the IRS and Treasury Department are 

adopting the proposed regulations 

without change. 

Explanation of Comments 

Two commentators expressed concern 

that if the IRS and Treasury Department 

designate a transaction involving gift, 

estate, or generation-skipping transfer 

taxes as a listed transaction or 

transaction of interest, that a corporate 

fiduciary, merely by acting as an 

executor or trustee with respect to an 

estate or trust that is incidental to the 

transaction, would be treated as a 

material advisor under section 6112 and 

the regulations thereunder. One of the 

commentators proposed that the 

September 2009 proposed regulations 

and existing final regulations under 

sections 6011, 6111, and 6112 be 

amended to require public comment 

before a transaction involving Chapters 

11, 12, and 13 of the Code can be 

designated as a listed transaction or 

transaction of interest. 

The IRS and Treasury Department 

believe that in the situation described 

by the commentators the existing 

regulations under sections 6111 and 

6112 properly address which parties are 

material advisors, and transactions 

involving gift, estate, or generationskipping transfer taxes should not be 

treated differently than other 

transactions. A fiduciary will not be 

treated as a material advisor merely by 

acting as an executor or trustee with 

respect to an estate or trust that is 

incidental to a transaction. A fiduciary 

will be treated as a material advisor only 

if the fiduciary provides material aid, 

assistance or advice as described in 

§ 301.6111–3(b)(2), the fiduciary 

directly or indirectly derives gross 

income in excess of the threshold 

amount as described in § 301.6111– 

3(b)(3), and the transaction is entered 

into by the taxpayer. 

In addition, the regulations are not 

amended to require advance notice 

before designating a transaction as a 

transaction of interest or as a listed 

transaction as suggested by a 

commentator. In appropriate 

circumstances, the IRS and Treasury 

Department may choose to publish 

advance notice of a transaction of 

interest and request comments in 

certain circumstances. The IRS and 

Treasury Department will determine 

whether to provide advance notice and 

a request for comments on a transaction 

by transaction basis. Accordingly, the 

proposed regulations will be adopted 

without change. 

Special Analyses 

It has been determined that this 

Treasury decision is not a significant 

regulatory action as defined in 

Executive Order 12866. Therefore, a 

regulatory assessment is not required. It 

has also been determined that section 

553(b) of the Administrative Procedure 

Act (5 U.S.C. chapter 5) does not apply 

to these regulations. It is hereby 

certified that the collection of 

information in these regulations will not 

have a significant economic impact on 

a substantial number of small entities. 

This certification is based on the fact 

that most of the material advisors 

affected by these regulations are not 

small entities and for those material 

advisors that are small entities most of 

the information is already required 

under the current regulations. Any 

additional recordkeeping burdens on 

material advisors that result from this 

regulation are insubstantial. Also, the 

collection of information referenced in 

these regulations has been approved 

under OMB control number 1545–1686. 

The clarification and new information 

required by these final regulations add 

little or no new burden to those existing 

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