Federal Register / Vol. 75, No. 163 / Tuesday, August 24, 2010 / Rules and Regulations 51931 

(2) The issuance of this order 

amending the Northeast and other 

orders is the only practical means 

pursuant to the declared policy of the 

AMAA of advancing the interests of 

producers as defined in the orders as 

hereby amended; and 

(3) The issuance of this order 

amending the Northeast and other 

orders is favored by at least two-thirds 

of the producers who were engaged in 

the production of milk for sale in the 

respective marketing areas. 

List of Subjects in 7 CFR Part 1000 

Milk marketing orders. 

Order Relative to Handling 

It is therefore ordered, that on and 

after the effective date hereof, the 

handling of milk in the Northeast and 

other marketing areas shall be in 

conformity to and in compliance with 

the terms and conditions of the orders, 

as amended, and as hereby amended, as 

follows: 

■ For reasons set forth in the preamble, 

7 CFR part 1000 is amended as follows: 

PART 1000—GENERAL PROVISIONS 

OF FEDERAL MILK MARKETING 

ORDERS 

■ 1. The authority citation for 7 CFR 

part 1000 continues to read as follows: 

Authority: 7 U.S.C. 601–674, and 7253. 

■ 2. In § 1000.15, paragraphs (a) and 

(b)(1) are revised to read as follows: 

§ 1000.15 Fluid milk product. 

(a) Except as provided in paragraph 

(b) of this section, fluid milk product 

shall mean any milk products in fluid 

or frozen form that are intended to be 

used as beverages containing less than 

9 percent butterfat and 6.5 percent or 

more nonfat solids or 2.25 percent or 

more true milk protein. Sources of such 

nonfat solids/protein include but are not 

limited to: Casein, whey protein 

concentrate, milk protein concentrate, 

dry whey, caseinates, lactose, and any 

similar dairy derived ingredient. Such 

products include, but are not limited to: 

Milk, fat-free milk, lowfat milk, light 

milk, reduced fat milk, milk drinks, 

eggnog and cultured buttermilk, 

including any such beverage products 

that are flavored, cultured, modified 

with added or reduced nonfat solids, 

sterilized, concentrated, or 

reconstituted. As used in this part, the 

term concentrated milk means milk that 

contains not less than 25.5 percent, and 

not more than 50 percent, total milk 

solids. 

(b) * * * 

(1) Any product that contains less 

than 6.5 percent nonfat milk solids and 

contains less than 2.25 percent true milk 

protein; whey; plain or sweetened 

evaporated milk/skim milk; sweetened 

condensed milk/skim milk; yogurt 

containing beverages with 20 or more 

percent yogurt by weight and kefir; 

products especially prepared for infant 

feeding or dietary use (meal 

replacement) that are packaged in 

hermetically sealed containers; and 

products that meet the compositional 

standards specified in paragraph (a) of 

this section but contain no fluid milk 

products included in paragraph (a) of 

this section. 

* * * * * 

■ 3. In § 1000.40, paragraph (b)(2)(iii) 

and (b)(2)(vi) are revised to read as 

follows: 

§ 1000.40 Classes of utilization. 

* * * * * 

(b) * * * 

(2) * * * 

(iii) Aerated cream, frozen cream, sour 

cream, sour half-and-half, sour cream 

mixtures containing non-milk items; 

yogurt, including yogurt containing 

beverages with 20 percent or more 

yogurt by weight and kefir, and any 

other semi-solid product resembling a 

Class II product; 

* * * * * 

(vi) Products especially prepared for 

infant feeding or dietary use (meal 

replacements) that are packaged in 

hermetically sealed containers and 

products that meet the compositional 

standards of § 1000.15(a) but contain no 

fluid milk products included in 

§ 1000.15(a). 

* * * * * 

■ 4. In § 1000.43, paragraph (c) is 

revised to read as follows: 

§ 1000.43 General classification rules. 

* * * * * 

(c) If any of the water but none of the 

nonfat solids contained in the milk from 

which a product is made is removed 

before the product is utilized or 

disposed of by the handler, the pounds 

of skim milk in such product that are to 

be considered under this part as used or 

disposed of by the handler shall be an 

amount equivalent to the nonfat milk 

solids contained in such product plus 

all of the water originally associated 

with such solids. If any of the nonfat 

solids contained in the milk from which 

a product is made are removed before 

the product is utilized or disposed of by 

the handler, the pounds of skim milk in 

such product that are to be considered 

under this part as used or disposed of 

by the handler shall be an amount 

equivalent to the nonfat milk solids 

contained in such product plus all of 

the water and nonfat solids originally 

associated with such solids determined 

on a protein equivalent basis. 

* * * * * 

Dated: August 17, 2010. 

Rayne Pegg, 

Administrator, Agricultural Marketing 

Service. 

[FR Doc. 2010–20972 Filed 8–23–10; 8:45 am] 

BILLING CODE 3410–02–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2010–0800; Directorate 

Identifier 2010–NM–162–AD; Amendment 

39–16416; AD 2010–18–03] 

RIN 2120–AA64 

Airworthiness Directives; DassaultAviation Model FALCON 7X Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Final rule; request for 

comments. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) for the 

products listed above. This AD results 

from mandatory continuing 

airworthiness information (MCAI) 

originated 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 in service events related to various 

electrical systems, have led to the discovery 

of a common root cause: A leakage failure 

mode of Transient Voltage Suppressor (TVS) 

diodes used on Power Distribution Control 

Units (PDCU) cards or Generator Control Unit 

(GCU) cards in the Primary Power 

Distribution Boxes (PPDB). Due to such TVS 

diode failure mode, operation of some 

electrical circuits is degraded and some 

control signals are set at unexpected levels. 

Further analysis indicated that combination 

of a TVS diode failure with other systems 

failures could significantly reduce flight 

safety. 

* * * * * 

The unsafe condition is a leakage 

failure mode of TVS diodes used on 

PDCU cards or GCU cards in the PPDB, 

which in combination with other system 

failures could lead to loss of 

controllability of the airplane. This AD 

requires actions that are intended to 

address the unsafe condition described 

in the MCAI. 

DATES: This AD becomes effective 

September 8, 2010. 


wwoods2 on DSK1DXX6B1PROD with RULES_PART 1
51932 Federal Register / Vol. 75, No. 163 / Tuesday, August 24, 2010 / Rules and Regulations 

We must receive comments on this 

AD by October 8, 2010. 

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– 

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 

W12–40, 1200 New Jersey Avenue, SE., 

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

p.m., Monday through Friday, except 

Federal holidays. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:// 

www.regulations.gov; or in person at the 

Docket Operations office between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The AD docket 

contains this 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, 

Washington 98057–3356; telephone 

(425) 227–1137; fax (425) 227–1149. 

SUPPLEMENTARY INFORMATION: 

Discussion 

The European Aviation Safety Agency 

(EASA), which is the Technical Agent 

for the Member States of the European 

Community, has issued EASA 

Airworthiness Directive 2010–0073, 

dated April 15, 2010 (referred to after 

this as ‘‘the MCAI’’), to correct an unsafe 

condition for the specified products. 

The MCAI states: 

Several in service events related to various 

electrical systems, have led to the discovery 

of a common root cause: A leakage failure 

mode of Transient Voltage Suppressor (TVS) 

diodes used on Power Distribution Control 

Units (PDCU) cards or Generator Control Unit 

(GCU) cards in the Primary Power 

Distribution Boxes (PPDB). Due to such TVS 

diode failure mode, operation of some 

electrical circuits is degraded and some 

control signals are set at unexpected levels. 

Further analysis indicated that combination 

of a TVS diode failure with other systems 

failures could significantly reduce flight 

safety. 

To prevent and correct this condition, 

some Airplane Flight Manual (AFM) 

procedures have been modified to reduce the 

time of exposure to further failures whenever 

a TVS diode failure occurs. Additionally, a 

field tester has been developed to test all TVS 

diodes installed on the PDCU and GCU cards 

for the detection of components beyond 

acceptable tolerances. The criteria for PDCU 

or GCU card replacement in case of detection 

of faulty components have been identified. 

This AD requires the accomplishment of 

the revised AFM procedures, the testing and, 

as necessary, the replacement of the affected 

PDCU and GCU cards. 

Meanwhile, Dassault Aviation is 

developing a modification (M724), to 

improve PDCU and GCU cards, with TVS 

diodes having reduced susceptibility to the 

leakage failure mode. 

The unsafe condition is a leakage 

failure mode of TVS diodes used on 

PDCU cards or GCU cards in the PPDB, 

which in combination with other system 

failures could lead to loss of 

controllability of the airplane. You may 

obtain further information by examining 

the MCAI in the AD docket. 

Interim Action 

This AD does not require the 

inspection of and on-condition 

replacement of the PDCU and GCU 

cards in paragraph (3) of EASA AD 

2010–0073, dated April 15, 2010, and 

this AD does not provide credit for 

accomplishment of certain service 

bulletins in paragraph (4) of EASA AD 

2010–0073, dated April 15, 2010. The 

planned compliance time for the 

inspection of and on-condition 

replacement of the PDCU and GCU 

cards in paragraph (3) of EASA AD 

2010–0073, dated April 15, 2010, would 

allow enough time to provide notice and 

opportunity for prior public comment 

on the merits of those actions. 

Therefore, we are considering further 

rulemaking to address this issue. 

FAA’s Determination and Requirements 

of This 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 issuing this 

AD because we evaluated all pertinent 

information and determined the unsafe 

condition exists and is likely to exist or 

develop on other products of the same 

type design. 

Differences Between the AD and the 

MCAI or Service Information 

We have reviewed the MCAI and 

related service information and, in 

general, agree with their substance. But 

we might have found it necessary to use 

different words from those in the MCAI 

to ensure the AD is clear for U.S. 

operators and is enforceable. In making 

these changes, we do not intend to differ 

substantively from the information 

provided in the MCAI and related 

service information. 

We might also have required different 

actions in this AD from those in the 

MCAI in order to follow FAA policies. 

Any such differences are highlighted in 

a NOTE within the AD. 

FAA’s Determination of the Effective 

Date 

An unsafe condition exists that 

requires the immediate adoption of this 

AD. The FAA has found that the risk to 

the flying public justifies waiving notice 

and comment prior to adoption of this 

rule because a leakage failure mode of 

TVS diodes used on PDCU cards or GCU 

cards in the PPDB, combined with other 

possible systems failures, could lead to 

loss of control of the airplane. 

Therefore, we determined that notice 

and opportunity for public comment 

before issuing this AD are impracticable 

and that good cause exists for making 

this amendment effective in fewer than 

30 days. 

Comments Invited 

This AD is a final rule that involves 

requirements affecting flight safety, and 

we did not precede it by notice and 

opportunity for public comment. We 

invite you to send any written relevant 

data, views, or arguments about this AD. 

Send your comments to an address 

listed under the ADDRESSES section. 

Include ‘‘Docket No. FAA–2010–0800; 

Directorate Identifier 2010–NM–162– 

AD’’ at the beginning of your comments. 

We specifically invite comments on the 

overall regulatory, economic, 

environmental, and energy aspects of 

this AD. We will consider all comments 

received by the closing date and may 

amend this AD because of 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 AD. 

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 


wwoods2 on DSK1DXX6B1PROD with RULES_PART 1
Federal Register / Vol. 75, No. 163 / Tuesday, August 24, 2010 / Rules and Regulations 51933 

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, 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: 

2010–18–03 Dassault-Aviation: 

Amendment 39–16416. Docket No. 

FAA–2010–0800; Directorate Identifier 

2010–NM–162–AD. 

Effective Date 

(a) This airworthiness directive (AD) 

becomes effective September 8, 2010. 

Affected ADs 

(b) None. 

Applicability 

(c) This AD applies to Dassault-Aviation 

Model FALCON 7X airplanes, certificated in 

any category, all serial numbers except those 

on which Dassault-Aviation Modification 

M724 is embodied. 

Subject 

(d) Air Transport Association (ATA) of 

America Code 24: Electrical Power. 

Reason 

(e) The mandatory continued airworthiness 

information (MCAI) states: 

‘‘Several in service events related to various 

electrical systems, have led to the discovery 

of a common root cause: a leakage failure 

mode of Transient Voltage Suppressor (TVS) 

diodes used on Power Distribution Control 

Units (PDCU) cards or Generator Control Unit 

(GCU) cards in the Primary Power 

Distribution Boxes (PPDB). Due to such TVS 

diode failure mode, operation of some 

electrical circuits is degraded and some 

control signals are set at unexpected levels. 

Further analysis indicated that combination 

of a TVS diode failure with other systems 

failures could significantly reduce flight 

safety.’’ 

* * * * * 

The unsafe condition is a leakage failure 

mode of TVS diodes used on PDCU cards or 

GCU cards in the PPDB, which in 

combination with other system failures could 

lead to loss of controllability of the airplane. 

Compliance 

(f) You are responsible for having the 

actions required by this AD performed within 

the compliance times specified, unless the 

actions have already been done. 

Actions 

(g) Within 30 days after the effective date 

of this AD, revise the Abnormal Procedures 

and Limitations sections of the Dassault F7X 

Airplane Flight Manual (AFM) to include the 

following statement. This may be done by 

inserting copies of this AD into the AFM 

Limitations section and Abnormal 

Procedures section. 

‘‘Upon display of ELEC:BUS MISCONFIG 

TIED in Crew Alerting System (Abnormal 

procedure 3–190–20), land at nearest suitable 

airport 

Upon display of ELEC:LH ESS PWR LO or 

ELEC:LH ESS NO PWR (Abnormal procedure 

3–190–40), land at nearest suitable airport 

Upon display of ELEC:RH ESS PWR LO 

and ELEC:RH ESS NO PWR (Abnormal 

procedure 3–190–45), land at nearest suitable 

airport 

Upon display of HYD:BACKUP PUMP HI 

TEMP (Abnormal procedure 3–250–15), set 

off the pump and if the backup pump is still 

rotating (green) in hydraulic synoptic, 

descend to a safe altitude or below 15,000 ft 

Caution: These temporary amendments 

take precedence over the same procedures 

displayed through the Electronic Check List 

(ECL) in the aeroplane.’’ 

Note 1: When a statement identical to that 

in paragraph (g) of this AD has been included 

in the Limitations section and Abnormal 

Procedures section in the general revisions of 

the AFM, the general revisions may be 

inserted into the AFM, and the copy of this 

AD may be removed. 

FAA AD Differences 

Note 2: This AD differs from the MCAI 

and/or service information as follows: 

(1) While the European Aviation Safety 

Agency (EASA) AD 2010–0073, dated April 

15, 2010, has a compliance time of ‘‘after the 

effective date of this AD,’’ this AD requires 

that the actions be done within 30 days after 

the effective date of this AD. 

(2) This AD does not require the inspection 

of and on-condition replacement of the PDCU 

and GCU cards in paragraph (3) of EASA AD 

2010–0073, dated April 15, 2010, and this 

AD does not provide credit for 

accomplishment of certain service bulletins 

in paragraph (4) of EASA AD 2010–0073, 

dated April 15, 2010. 

Other FAA AD Provisions 

(h) 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. 

Send information to ATTN: Tom Rodriguez, 

Aerospace Engineer, International Branch, 

ANM–116, Transport Airplane Directorate, 

FAA, 1601 Lind Avenue, SW., Renton, 

Washington 98057–3356; telephone (425) 

227–1137; fax (425) 227–1149. Before using 

any approved AMOC on any airplane to 

which the AMOC applies, notify your 

principal maintenance inspector (PMI) or 

principal avionics inspector (PAI), as 

appropriate, or lacking a principal inspector, 

your local Flight Standards District Office. 

The AMOC approval letter must specifically 

reference this AD. 

(2) Airworthy Product: For any requirement 

in this AD to obtain corrective actions from 

a manufacturer or other source, use these 

actions if they are FAA-approved. Corrective 

actions are considered FAA-approved if they 

are approved by the State of Design Authority 

(or their delegated agent). You are required 

to assure the product is airworthy before it 

is returned to service. 

(3) Reporting Requirements: For any 

reporting requirement in this AD, under the 

provisions of the Paperwork Reduction Act 

(44 U.S.C. 3501 et seq.), the Office of 

Management and Budget (OMB) has 

approved the information collection 

requirements and has assigned OMB Control 

Number 2120–0056. 

Related Information 

(i) Refer to MCAI European Aviation Safety 

Agency Airworthiness Directive 2010–0073, 

dated April 15, 2010, for related information. 

Material Incorporated by Reference 

(j) None. 


wwoods2 on DSK1DXX6B1PROD with RULES_PART 1
51934 Federal Register / Vol. 75, No. 163 / Tuesday, August 24, 2010 / Rules and Regulations 

Issued in Renton, Washington, on August 

11, 2010. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2010–20839 Filed 8–23–10; 8:45 am] 

BILLING CODE 4910–13–P 

FEDERAL TRADE COMMISSION 

16 CFR Part 310 

Telemarketing Sales Rule 

AGENCY: Federal Trade Commission. 

ACTION: Final rule; correction. 

SUMMARY: The Federal Trade 

Commission (‘‘Commission’’) published 

a final rule on August 10, 2010, 

adopting amendments to the 

Telemarketing Sales Rule that address 

the telemarketing of debt relief services. 

This document makes technical 

corrections to that final rule. 

DATES: Effective Date: September 27, 

2010. 

FOR FURTHER INFORMATION CONTACT: 

Allison Brown, Attorney, Division of 

Financial Practices, Bureau of Consumer 

Protection, Federal Trade Commission, 

Washington, DC 20580 (202–326–3224). 

SUPPLEMENTARY INFORMATION: In FR Doc. 

2010–19412 appearing on page 48458 in 

the Federal Register of Tuesday, August 

10, 2010, the following corrections are 

made: 

§ 310.8 [Corrected] 

■ 1. On page 48523, in the first column, 

in § 310.8 (c), ‘‘$54’’ is corrected to read 

‘‘$55’’ and, ‘‘$14,580’’ is corrected to read 

‘‘$15,058’’. 

§ 310.8 [Corrected] 

■ 2. On the same page, in the second 

column, in § 310.8 (d), in the fourth 

line, ‘‘$54’’ is corrected to read ‘‘$55’’. 

Donald S. Clark, 

Secretary. 

[FR Doc. 2010–20680 Filed 8–23–10; 8:45 am] 

BILLING CODE 6750–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9499] 

RIN 1545–BF65 

Clarification to Section 6411 

Regulations 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations and removal of 

temporary regulations. 

SUMMARY: This document contains final 

regulations amending existing 

regulations under section 6411 of the 

Internal Revenue Code (Code) relating to 

the computation and allowance of the 

tentative carryback adjustment. These 

regulations adopt without change the 

rules of the temporary regulations, 

which clarify that, for purposes of 

allowing a tentative adjustment, the IRS 

may credit or reduce the tentative 

adjustment by both assessed and certain 

unassessed tax liabilities. These final 

regulations affect taxpayers that file an 

application for a tentative carryback 

allowance. 

DATES: Effective Date: These regulations 

are effective on August 24, 2010. 

Applicability Date: These regulations 

apply with respect to applications for 

tentative refund filed on or after August 

24, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Contact Elizabeth Mezheritsky at (202) 

622–3600 (not a toll-free number). 

SUPPLEMENTARY INFORMATION: 

Background and Explanation of 

Revisions 

This document contains final 

regulations amending the Income Tax 

Regulations (26 CFR part 1) under 

section 6411 relating to the computation 

and allowance of the tentative carryback 

adjustment. 

On August 24, 2007, temporary 

regulations (TD 9355), 2007–37 IRB 577 

(72 FR 48933) and a notice of proposed 

rulemaking by cross-reference to 

temporary regulations (REG–118886– 

06), 2007–37 IRB 591 (72 FR 48952) 

were published in the Federal Register. 

On October 4, 2007, corrections to the 

temporary regulations were published 

in the Federal Register (72 FR 56619). 

Only one set of written comments 

responding to the notice of proposed 

rulemaking was received, and the same 

commenter was the sole speaker at a 

public hearing on the notice of proposed 

rulemaking, which was held on 

February 5, 2008. After consideration of 

the comments, the temporary 

regulations are adopted without change 

by this Treasury decision. The 

comments are discussed in the 

preamble. 

Explanation of Provisions and 

Summary of Comments 

In general, section 6411(a) provides 

that, in the case of certain loss or credit 

carrybacks, a taxpayer may file an 

application for a tentative carryback 

adjustment of the tax for a prior taxable 

year. Under section 6411(b), any 

resulting decrease in tax attributable to 

the carryback must be credited against 

any tax or installment ‘‘then due’’ from 

the taxpayer, or refunded to the 

taxpayer. Existing regulations at section 

1.6411–3(d)(1)(iii) further provide that 

the decrease in tax is first applied 

against any unpaid amount of tax that 

is ‘‘due and payable’’ on the date the 

decrease is allowed. 

These regulations amend existing 

regulations under section 6411 to clarify 

the computation and allowance of the 

tentative carryback adjustment. The 

tentative allowance is computed 

pursuant to § 1.6411–2 but applied 

pursuant to § 1.6411–3. The regulations 

provide that, for purposes of computing 

the tentative allowance under section 

6411, the Commissioner will not 

consider amounts to which the taxpayer 

and the Commissioner are in 

disagreement. For purposes of applying 

the tentative allowance, however, the 

regulations provide that the 

Commissioner may credit or reduce the 

tentative adjustment by any assessed tax 

liabilities, unassessed liabilities 

determined in a statutory notice of 

deficiency, unassessed liabilities 

identified in a proof of claim filed in a 

bankruptcy proceeding, and other 

unassessed liabilities in rare and 

unusual circumstances. Regarding 

unassessed liabilities determined in a 

statutory notice of deficiency, see Rev. 

Rul. 2007–51. Regarding unassessed 

liabilities identified in a proof of claim 

filed in a bankruptcy proceeding, see 

Rev. Rul. 2007–52. See also 

§ 601.601(d)(2). 

The sole commenter asserted that the 

IRS lacks the authority to credit a tax 

decrease due to a tentative carryback 

adjustment against a tax liability unless 

the liability has been assessed against 

the taxpayer. According to the 

commenter, an assessed liability is the 

only proper interpretation of the terms 

‘‘due and payable’’ and ‘‘then due’’ for 

purposes of section 6411(b). The 

Treasury Department and the IRS 

disagree with this position. The general 

authority to apply credits is provided by 

section 6402, which permits the IRS to 

credit the amount of any overpayment, 

including interest, against any tax 

liability of the person who made the 

overpayment. Nothing in section 6402 

or the applicable regulations specifies 

when a liability arises for purposes of 

crediting overpayments. The Treasury 

Department and IRS have determined 

that both assessed and certain 

unassessed liabilities are appropriately 

considered ‘‘then due’’ for purposes of 

section 6411. Accordingly, the 


wwoods2 on DSK1DXX6B1PROD with RULES_PART 1