72748 Federal Register / Vol. 81, No. 204 / Friday, October 21, 2016 / Proposed Rules 

Issued in Kansas City, Missouri, on 

October 7, 2016. 

Pat Mullen, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2016–24857 Filed 10–20–16; 8:45 am] 

BILLING CODE 4910–13–C 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2015–7526; Directorate 

Identifier 2014–NM–217–AD] 

RIN 2120–AA64 

Airworthiness Directives; Airbus 

Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Supplemental notice of 

proposed rulemaking (SNPRM); 

reopening of comment period. 

SUMMARY: We are revising an earlier 

proposed airworthiness directive (AD) 

for all Airbus Model A318, A319, A320, 

and A321 series airplanes. This action 

revises the notice of proposed 

rulemaking (NPRM) by requiring an 

additional action for sealant application 

on some nuts and bolts on the National 

Advisory Committee for Aeronautics 

(NACA) duct assembly and adding a 

grace period to the compliance time. We 

are proposing this SNPRM to detect and 

correct corroded circlips. Such 

corrosion could lead to failure of the 

circlips and consequent movement of 

the FVP and result in a reduction of the 

flame protector capability of the FVP 

cartridge. Such a condition could result 

in damage to the airplane in case of 

lightning impact or fire on the ground. 

Since the additional actions impose an 

additional burden over those proposed 

in the NPRM, we are reopening the 

comment period to allow the public the 

chance to comment on these proposed 

changes. 

DATES: The comment period for the 

NPRM published in the Federal 

Register on December 23, 2015 (80 FR 

79742), is reopened. 

We must receive comments on this 

SNPRM by December 5, 2016. 

ADDRESSES: You may send comments, 

using the procedures found in 14 CFR 

11.43 and 11.45, 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 

W12–140, 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 SNPRM, contact Airbus, 

Airworthiness Office—EIAS, 1 Rond 

Point Maurice Bellonte, 31707 Blagnac 

Cedex, France; telephone +33 5 61 93 36 

96; fax +33 5 61 93 44 51; email 

account.airworth-eas@airbus.com; 

Internet http://www.airbus.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– 

7526; 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 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: 

Sanjay Ralhan, Aerospace Engineer, 

International Branch, ANM–116, 

Transport Airplane Directorate, FAA, 

1601 Lind Avenue SW., Renton, WA 

98057–3356; telephone 425–227–1405; 

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–2015–7526; Directorate Identifier 

2014–NM–217–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 

We issued a notice of proposed 

rulemaking (NPRM) to amend 14 CFR 

part 39 by adding an AD that would 

apply to all Airbus Model A318, A319, 

A320, and A321 series airplanes. The 

NPRM published in the Federal 

Register on December 23, 2015 (80 FR 

79742) (‘‘the NPRM’’). The NPRM was 

prompted by the discovery of corroded 

circlips in FVPs having a certain part 

number. The NPRM proposed to require 

an inspection to determine the part 

number and serial number of the FVP, 

and replacement if necessary. 

Actions Since the NPRM Was Issued 

Since we issued the NPRM, Airbus 

has issued revised service information 

to include an additional action to apply 

sealant on nuts and bolts of the NACA 

duct assembly. Airplanes on which the 

installation in the original service 

information was done would be 

required to do this additional action. In 

addition, we determined that a grace 

period is needed so operators have 

sufficient time to comply with the 

requirements in this proposed AD. 

In addition, the European Aviation 

Safety Agency (EASA) superseded 

EASA Airworthiness Directive 2014– 

0234R1, dated December 11, 2014 

(which was referred to in the NPRM), 

and issued EASA Airworthiness 

Directive 2016–0114, dated June 15, 

2016; corrected June 23, 2016; which 

retains the requirements of EASA AD 

2014–0234R1 and includes an 

additional action. 

The EASA, which is the Technical 

Agent for the Member States of the 

European Union, has issued 

Airworthiness Directive 2016–0114, 

dated June 15, 2016; corrected June 23, 

2016 (referred to after this as the 

Mandatory Continuing Airworthiness 

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

an unsafe condition for all Airbus 

Model A318, A319, A320, and A321 

series airplanes. The MCAI states: 

On each aeroplane wing, a NACA duct 

assembly is installed, including a Fuel Vent 

Protector (FVP) which is used as flame 

arrestor. This FVP is maintained in its NACA 

duct assembly by a circlip (also known as Cclip). Following a wing water pressure test, 

the FVP is removed and dried with heat. 

During an inspection after this test, several 

circlips were reported to be discoloured. 

Investigation revealed that a batch of circlips 

fitted on some FVP Part Number (P/N) 

786073–1–0 have an increased risk of 

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Federal Register / Vol. 81, No. 204 / Friday, October 21, 2016 / Proposed Rules 72749 

corrosion due to a manufacturing quality 

issue. 

This condition, if not detected and 

corrected, could lead to circlip failure and 

consequent FVP movement, reducing the 

flame protector capability of the FVP 

cartridge, possibly resulting in damage to the 

aeroplane in case of lightning impact or fire 

on ground. 

Airbus issued Service Bulletin (SB) A320– 

28–1221, providing instructions for 

identification by serial number (s/n) and 

removal from service of the affected FVP 

P/N 786073–1–0, and EASA issued AD 2014– 

0234, later revised, to require those actions 

and to implement installation requirements 

for the FVP. 

After that [EASA] AD was issued, one step 

in the FVP re-installation instructions was 

identified as missing. Consequently, Airbus 

revised SB A320–28–1221 to provide 

instructions for sealant installation on some 

nuts and bolts on the NACA duct assembly. 

For the reasons described above, this 

[EASA] AD retains the requirements of EASA 

AD 2014–0234R1, which is superseded, and 

requires additional work for aeroplanes 

already modified in accordance with Airbus 

SB A320–28–1221 original issue or Revision 

01. 

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– 

7526. 

Related Service Information Under 1 

CFR Part 51 

Airbus has issued Service Bulletin 

A320–28–1221, Revision 02, dated 

January 11, 2016. The service 

information describes procedures for 

inspecting the FVP to determine the part 

number and serial number, replacing 

any affected FVP, and applying sealant 

to the nuts and bolts of the FVP. 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. 

Comments 

We gave the public the opportunity to 

participate in developing this proposed 

AD. We considered the comments 

received. 

Request To Refer to Revised Service 

Information 

Airbus requested that the service 

information referred to in the NPRM be 

revised. Since the NPRM was published, 

Airbus issued Service Bulletin A320– 

28–1221, Revision 02, dated January 11, 

2016, which includes an additional 

action (i.e., the application of sealant to 

the nuts and bolts of a FVP after 

installation). The additional action was 

not included in the Accomplishment 

Instructions of Airbus Service Bulletin 

A320–28–1221, Revision 01, dated June 

23, 2015, which was referred to as the 

appropriate source of service 

information for accomplishing the 

required actions proposed in the NPRM. 

We agree with the commenter’s 

request to refer to the revised service 

information in this SNPRM. We have 

revised paragraphs (g) and (i) of this 

proposed AD to refer to the revised 

service information, Airbus Service 

Bulletin A320–28–1221, Revision 02, 

dated January 11, 2016. 

Request To Extend the Compliance 

Time 

American Airlines (AAL) requested 

that the compliance time in paragraph 

(h) of the proposed AD be changed from 

‘‘at the earliest of the times’’ to ‘‘at the 

latest of the times,’’ or be simplified to 

‘‘within 6 months after the effective 

date.’’ AAL stated that its 4 affected 

airplanes would be out of compliance 

when the NPRM became a final rule 

because the airplanes have already 

accumulated approximately 9,000 flight 

hours and 4,000 flight cycles, and have 

been in service for 34 months. 

We partially agree with the 

commenter’s request. We revised 

paragraph (h) of this proposed AD to 

include a grace period of 30 days from 

the effective date of the AD to 

accomplish the required actions. In 

regard to the compliance times in 

paragraphs (h)(1), (h)(2), and (h)(3) of 

this AD, we do not agree to change ‘‘at 

the earliest of the times’’ to ‘‘at the latest 

of the times,’’ or to simplify the 

compliance time to ‘‘within 6 months 

after the effective date of this AD.’’ In 

developing an appropriate compliance 

time, we considered the safety 

implications and the time necessary to 

do the inspection to determine the part 

number and serial number of the FVP, 

and any necessary replacements. In light 

of these items, we have determined that 

the compliance times specified in 

paragraphs (h)(1), (h)(2), and (h)(3) of 

this proposed AD are appropriate. 

However, under the provisions of 

paragraph (k)(1) of this proposed AD, 

we will consider requests for approval 

of an extension of the compliance time 

if sufficient data are submitted to 

substantiate that the extension would 

provide an acceptable level of safety. 

We have not changed this AD regarding 

this issue. 

Request To Revise Costs of Compliance 

AAL requested that the ‘‘Costs of 

Compliance’’ section of the NPRM be 

revised to increase the number of workhours from 5 to 12. AAL stated that 

there are multiple positions on each 

airplane that need to be inspected and 

may need corrective actions. 

We agree with the commenter’s 

request. Based on the reason provided 

by the commenter, and the new 

additional action included in this 

SNPRM, we have revised the ‘‘Costs of 

Compliance’’ section to increase the 

work-hours from 5 to 19. 

FAA’s Determination and Requirements 

of This SNPRM 

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 

condition exists and is likely to exist or 

develop on other products of these same 

type designs. 

Certain changes described above 

expand the scope of the NPRM. As a 

result, we have determined that it is 

necessary to reopen the comment period 

to provide additional opportunity for 

the public to comment on this SNPRM. 

Costs of Compliance 

We estimate that this SNPRM affects 

7 airplanes of U.S. registry. 

We also estimate that it would take 

about 19 work-hours per product to 

comply with the new basic 

requirements of this SNPRM. The 

average labor rate is $85 per work-hour. 

Required parts would cost about 

$25,640 per product. Based on these 

figures, we estimate the cost of this 

SNPRM on U.S. operators to be 

$190,785, or $27,255 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. 

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72750 Federal Register / Vol. 81, No. 204 / Friday, October 21, 2016 / Proposed Rules 

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 adding 

the following new airworthiness 

directive (AD): 

Airbus: Docket No. FAA–2015–7526; 

Directorate Identifier 2014–NM–217–AD. 

(a) Comments Due Date 

We must receive comments by December 5, 

2016. 

(b) Affected ADs 

None. 

(c) Applicability 

This AD applies to the airplanes specified 

in paragraphs (c)(1), (c)(2), (c)(3), and (c)(4) 

of this AD, certificated in any category, all 

manufacturer serial numbers. 

(1) Airbus Model A318–111, –112, –121, 

and –122 airplanes. 

(2) Airbus Model A319–111, –112, –113, 

–114, –115, –131, –132, and –133 airplanes. 

(3) Airbus Model A320–211, –212, –214, 

–231, –232, and –233 airplanes. 

(4) Airbus Model A321–111, –112, –131, 

–211, –212, –213, –231, and –232 airplanes. 

(d) Subject 

Air Transport Association (ATA) of 

America Code 28, Fuel. 

(e) Reason 

This AD was prompted by the discovery of 

corroded circlips in fuel vent protectors 

(FVP) having a certain part number. We are 

issuing this AD to detect and correct 

corroded circlips. Such corrosion could lead 

to failure of the circlips and consequent 

movement of the FVP and result in a 

reduction of the flame protector capability of 

the FVP cartridge, which could result in 

damage to the airplane in case of lightning 

impact or fire on the ground. 

(f) Compliance 

Comply with this AD within the 

compliance times specified, unless already 

done. 

(g) Inspection of FVP and Corrective Action 

For airplanes having a manufacturer serial 

number specified in figure 1 to paragraphs (g) 

and (i) of this AD: At the time specified in 

paragraph (h) of this AD, do an inspection to 

determine the part number and serial number 

of the FVP. If the FVP has part number (P/ 

N) 786073–1–0 with a serial number that is 

specified in figure 2 to paragraphs (g) and (i) 

of this AD, and the FVP is not marked ‘‘Amdt 

B,’’ replace the FVP with a serviceable part, 

at the time specified in paragraph (h) of this 

AD, in accordance with the Accomplishment 

Instructions of Airbus Service Bulletin A320– 

28–1221, Revision 02, dated January 11, 

2016. A review of airplane maintenance 

records is acceptable in lieu of this 

inspection if the part number and serial 

number of the FVP can be conclusively 

determined from that review. 

FIGURE 1 TO PARAGRAPHS (g) AND (i) 

OF THIS AD—AFFECTED AIRPLANE

MANUFACTURER SERIAL NUMBERS

5438 

5441 

5444 

5445 

5447 

5457 

5459 

5460 

5461 

5463 

5464 

5469 

5473 through 5478 inclusive 

5481 

5482 

5483 

5485 through 5488 inclusive 

5490 through 5493 inclusive 

5495 through 5505 inclusive 

5507 through 5515 inclusive 

5517 

5518 

5520 through 5527 inclusive 

5530 

5536 

5539 

5541 

5544 

5547 

5551 

5553 

5556 

FIGURE 2 TO PARAGRAPHS (g) AND (i) OF THIS AD—AFFECTED SERIAL NUMBERS FOR PART NUMBER 786073–1–0 

[Manufactured during August 2012] 

Serial number 786073IN0xxxx (xxxx indicates the last four digits) 

3752 3821 3868 3911 3966 4010 

3753 3826 3871 3914 3967 4011 

3754 3827 3874 3922 3969 4013 

3755 3829 3877 3925 3971 4017 

3756 3830 3878 3927 3972 4019 

3757 3833 3882 3930 3977 4023 

3758 3834 3893 3937 3978 4024 

3759 3836 3897 3938 3980 4025 

3760 3839 3898 3940 3981 4026 

3761 3840 3899 3945 3982 4039 

3787 3848 3900 3946 3983 4048 

3788 3849 3901 3947 3984 4065 

3810 3850 3904 3948 3985 4066 

3812 3851 3905 3951 3986 4068 

3814 3853 3906 3961 3987 4070 

3817 3859 3907 3962 3996 4184 

3819 3860 3908 3964 3997 4187 

3820 3867 3910 3965 4009 None 

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Federal Register / Vol. 81, No. 204 / Friday, October 21, 2016 / Proposed Rules 72751 

(h) Compliance Times for the Requirements 

of Paragraph (g) of This AD 

Do the actions required by paragraph (g) of 

this AD at the earliest of the times specified 

in paragraphs (h)(1), (h)(2), and (h)(3) of this 

AD, or within 30 days after the effective date 

of this AD, whichever occurs later. 

(1) Before the accumulation of 5,000 total 

flight cycles after the date of manufacture of 

the airplane. 

(2) Before the accumulation of 7,500 total 

flight hours after the date of manufacture of 

the airplane. 

(3) Within 30 months after the date of 

manufacture of the airplane. 

(i) Exclusion From Actions Required by 

Paragraph (g) of This AD 

An airplane that does not have a 

manufacturer serial number specified in 

figure 1 to paragraphs (g) and (i) of this AD 

is excluded from the requirements of 

paragraph (g) of this AD, provided that, a 

FVP having P/N 786073–1–0 with a serial 

number specified in figure 2 to paragraphs (g) 

and (i) of this AD has not been installed on 

that airplane after July 2012. If a FVP having 

P/N 786073–1–0 with a serial number 

specified in figure 2 to paragraphs (g) and (i) 

of this AD is installed, or the serial number 

cannot be identified: Within 12 months after 

the effective date of this AD, replace the FVP 

with a serviceable part, in accordance with 

the Accomplishment Instructions of Airbus 

Service Bulletin A320–28–1221, Revision 02, 

dated January 11, 2016. A review of airplane 

maintenance records is acceptable if it can be 

conclusively determined from that review 

that a FVP having a serial number specified 

in figure 2 to paragraphs (g) and (i) of this 

AD has not been installed on that airplane 

after July 2012. 

(j) Parts Installation Limitation 

As of the effective date of this AD, a FVP 

having P/N 786073–1–0 and a serial number 

listed in figure 2 to paragraphs (g) and (i) of 

this AD may be installed on any airplane, 

provided the FVP is marked with ‘‘Amdt B.’’ 

(k) 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: 

Sanjay Ralhan, Aerospace Engineer, 

International Branch, ANM–116, Transport 

Airplane Directorate, FAA, 1601 Lind 

Avenue SW., Renton, WA 98057–3356; 

telephone 425–227–1405; 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. 

(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 

(EASA); or Airbus’s EASA Design 

Organization Approval (DOA). If approved by 

the DOA, the approval must include the 

DOA-authorized signature. 

(3) Required for Compliance (RC): If any 

service information contains procedures or 

tests that are identified as RC, those 

procedures and tests must be done to comply 

with this AD; any procedures or tests that are 

not identified as RC are recommended. Those 

procedures and tests that are not identified 

as RC may be deviated from using accepted 

methods in accordance with the operator’s 

maintenance or inspection program without 

obtaining approval of an AMOC, provided 

the procedures and tests identified as RC can 

be done and the airplane can be put back in 

an airworthy condition. Any substitutions or 

changes to procedures or tests identified as 

RC require approval of an AMOC. 

(l) Related Information 

(1) Refer to Mandatory Continuing 

Airworthiness Information (MCAI) EASA 

Airworthiness Directive 2016–0114, dated 

June 15, 2016; corrected June 23, 2016; 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–2015–7526. 

(2) For service information identified in 

this AD, contact Airbus, Airworthiness 

Office—EIAS, 1 Rond Point Maurice 

Bellonte, 31707 Blagnac Cedex, France; 

telephone +33 5 61 93 36 96; fax +33 5 61 

93 44 51; email account.airworth-eas@

airbus.com; Internet http://www.airbus.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. 

Issued in Renton, Washington, on 

September 26, 2016. 

Dionne Palermo, 

Acting Manager, Transport Airplane 

Directorate, Aircraft Certification Service. 

[FR Doc. 2016–23787 Filed 10–20–16; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–130314–16] 

RIN 1545–BN68 

Treatment of Certain Interests in 

Corporations as Stock or Indebtedness 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking 

by cross-reference to temporary 

regulation. 

SUMMARY: The Department of the 

Treasury (Treasury Department) and the 

IRS are issuing temporary regulations 

that affect corporations and partnerships 

that issue purported indebtedness to 

related corporations or partnerships in 

the Rules and Regulations section of this 

issue of the Federal Register. The 

temporary regulations provide rules 

addressing the treatment of instruments 

issued by partnerships, consolidated 

groups, and certain transactions 

involving qualified cash-management 

arrangements. The text of the temporary 

regulations also serves as the text of 

these proposed regulations. 

DATES: Written or electronic comments 

and requests for a public hearing must 

be received by January 19, 2017. 

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–130314–16), Room 

5203, Internal Revenue Service, P.O. 

Box 7604, Ben Franklin Station, 

Washington, DC 20224. Submissions 

may be hand-delivered Monday through 

Friday between the hours of 8 a.m. and 

4 p.m. to CC:PA:LPD:PR (REG–130314– 

16), Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue NW., 

Washington, DC 20224, or sent 

electronically via the Federal 

eRulemaking Portal at 

http://www.regulations.gov (IRS REG– 

130314–16). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Austin M. Diamond-Jones, (202) 317– 

5363, or Joshua G. Rabon, (202) 317– 

6937; concerning submissions of 

comments or requests for a public 

hearing, Regina Johnson, (202) 317– 

5177 (not toll-free numbers). 

SUPPLEMENTARY INFORMATION: 

Background 

The temporary regulations in the 

Rules and Regulations section of this 

issue of the Federal Register contain 

rules under sections 385 and 752 of the 

Internal Revenue Code (Code) that 

establish requirements that ordinarily 

must be satisfied in order for certain 

related-party interests in a corporation 

to be treated as indebtedness for federal 

tax purposes. The text of the temporary 

regulations also serves as the text of the 

proposed regulations herein. The 

preamble to the temporary regulations 

explains the temporary regulations and 

the corresponding proposed regulations. 

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