Federal Register / Vol. 63, No. 17 /Tuesday, January 27, 1998 /Rules and Regulations 3813

example, Treasury and the IRS are

concerned that U.S. holders of foreign

securities, including American

Depositary Receipts (‘‘ADRs’’), may be

claiming foreign tax credits in situations

where an intermediary in the chain of

ownership between the holder of a

foreign security or an ADR and the

issuer of the security (or the security

underlying the ADR) has taken actions

inconsistent with the ownership of the

underlying security by the person

claiming the credit, such as a

disposition of such security. One

approach to address this issue would

involve modifying the substantiation,

documentation and reporting rules with

respect to payments on such securities

and taxes withheld therefrom. For

example, in order for a U.S. owner to be

entitled to a credit for foreign taxes

imposed on income with respect to a

security, financial intermediaries

(including custodians) could be

required to substantiate that they have

not taken any action inconsistent with

beneficial ownership of the relevant

security by such U.S. owner.

It should be noted that portfolio

investors are not necessarily entitled to

foreign tax credits for the full amount

indicated on the Form 1099 as foreign

taxes paid. Portfolio investors are only

entitled to a foreign tax credit for the

amount of tax that is legally owed,

which may not be the same as the

amount withheld. If, for example, a

portfolio investor is entitled to a refund

of foreign tax withheld because of a

reduced treaty withholding rate, the

investor is only entitled to a foreign tax

credit for the reduced amount, whether

or not the investor files a refund claim

with the foreign tax authorities. The IRS

has made changes to the Form 1116

Instructions and Publication 514 to

clarify this point and intends to make

similar changes to the Form 1118

Instructions.

Explanation of Provisions

Section 1.905–2(a)(1), 1.905–2(b)(1), (2),

and (3), and 1.905–2(c)

Sections 1.905–2(a)(1), 1.905–2(b)(1),

(2) and (3), and 1.905–2(c) are

unchanged from the current final

regulations.

Section 1.905–2(a)(2)

Under former § 1.905–2(a)(2),

taxpayers generally were required to

attach to their income tax returns either

(1) the receipt for the foreign tax

payment or (2) a foreign tax return for

accrued foreign taxes. Section 1.905–

2(a)(2) removes the requirement that the

documentation be attached to the

income tax return. The regulation now

provides that such evidence of payment

of foreign taxes must be presented to the

district director upon request.

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 Procedures

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

to this regulation, and because the

regulation does not impose a collection

of information on small entities, the

Regulatory Flexibility Act (5 U.S.C.

chapter 6) does not apply. Pursuant to

section 7805(f) of the Internal Revenue

Code, the notice of proposed rulemaking

preceding this regulation was submitted

to the Chief Counsel for Advocacy of the

Small Business Administration for

comment on its impact on small

business.

Drafting Information: The principal

author of this regulation is Joan

Thomsen of the Office of the Associate

Chief Counsel (International), IRS.

However, other personnel from the IRS

and Treasury Department participated

in their development.

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and

recordkeeping requirements.

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR part 1 is

amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation

for 26 CFR part 1 continues to read in

part as follows:

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

Par. 2. Section 1.905–2 is amended by

revising the second through fourth

sentences in paragraph (a)(2) to read as

follows:

§ 1.905–2 Conditions of allowance of

credit.

(a) * * *

(2) * * * Except where it is established

to the satisfaction of the district director

that it is impossible for the taxpayer to

furnish such evidence, the taxpayer

must provide upon request the receipt

for each such tax payment if credit is

sought for taxes already paid or the

return on which each such accrued tax

was based if credit is sought for taxes

accrued. The receipt or return must be

either the original, a duplicate original,

or a duly certified or authenticated

copy. The preceding two sentences are

applicable for returns whose original

due date falls on or after January 1,

1988. * * *

* * * * *

Michael P. Dolan,

Deputy Commissioner of Internal Revenue.

Approved: January 13, 1998.

Donald C. Lubick,

Acting Assistant Secretary of the Treasury.

[FR Doc. 98–1816 Filed 1–26–98; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF LABOR

Occupational Safety and Health

Administration

29 CFR Part 1926

[Docket No. S–205]

RIN 1218–AA40

Safety Standards for Scaffolds Used in

the Construction Industry (Aerial Lifts);

Effective Date and Office of

Management and Budget Control

Numbers Under Paperwork Reduction

Act

AGENCY: Occupational Safety and Health

Administration, Labor.

ACTION: Final rule; amendment;

announcement of effective date and

OMB approval of information collection

requirements.

SUMMARY: This document announces the

effective date of a provision in the

Occupational Safety and Health

Administration’s construction standard

for scaffolds that addresses

manufacturer certification of ‘‘field

modified’’ aerial lifts. The document

also adds an entry to display that the

collection of information has been

approved by the Office of Management

and Budget under the Paperwork

Reduction Act of 1995.

EFFECTIVE DATE: The amendment in this

final rule and § 1926.453(a)(2),

published at 61 FR 46026, are effective

January 27, 1998.

FOR FURTHER INFORMATION CONTACT:

Laurence Davey, Directorate of

Construction, Occupational Safety and

Health Administration, U.S. Department

of Labor, Room N–3621, 200

Constitution Avenue, NW., Washington,

DC 20210, telephone (202) 219–7198.

SUPPLEMENTARY INFORMATION: In the

August 30, 1996, Federal Register at 61

FR 46026, et seq., OSHA revised the

standards for scaffolds in construction,

codified as subpart L of 29 CFR part

1926. The effective date for the revised

subpart was November 29, 1996.

However, in that same document, at 61
3814 Federal Register / Vol. 63, No. 17 /Tuesday, January 27, 1998 /Rules and Regulations

FR 46026 and 46103–46104, the Agency

announced its intent to request Office of

Management and Budget (OMB)

approval for a provision addressing

aerial lifts in § 1926.453(a)(2). OSHA

stated that the effective date for

§ 1926.453(a)(2) would be announced in

the Federal Register at a later date, once

OSHA received approval for the

information collection requirements in

that provision from OMB. The aerial lift

provisions contain a requirement for

manufacturer certification of ‘‘field

modified’’ aerial lifts, which was

previously codified in § 1926.556, and

which was redesignated at

§ 1926.453(a)(2) in the final rule.

In accordance with the Paperwork

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

3520), OMB has approved the

information collection and assigned

OMB control number 1218–0216, which

expires on October 31, 2000. Under 5

CFR 1320.5(b), an Agency may not

conduct or sponsor a collection of

information unless: (1) The collection

displays a valid control number, and (2)

the agency informs potential persons

who may respond to the collections of

information that such persons are not

required to respond to the collection of

information unless it displays a

currently valid OMB control number.

Accordingly, now that OMB has

approved the collections in

§ 1926.453(a)(2), OSHA is codifying the

current OMB control number into

§ 1926.5, which is the central section in

which OSHA displays its approved

collections under the Paperwork

Reduction Act. The effective date of

§ 1926.453(a)(2) is January 27, 1998.

Authority and Signature

This document was prepared under

the direction of Charles N. Jeffress,

Assistant Secretary of Labor for

Occupational Safety and Health, U.S.

Department of Labor, 200 Constitution

Avenue, N.W., Washington, DC 20210.

List of Subjects in 29 CFR Part 1926

Construction; Occupational safety and

health; Reporting and recordkeeping

requirements.

Signed at Washington, D.C., this 15th day

of January, 1998.

Charles N. Jeffress,

Assistant Secretary of Labor.

Accordingly, the Occupational Safety

and Health Administration amends 29

CFR part 1926 as set forth below.

PART 1926—[AMENDED]

1. The authority citation for subpart A

of part 1926 continues to read as

follows:

Authority: Section 107, Contract Work

Hours and Safety Standards Act

(Construction Safety Act) (40 U.S.C. 333);

secs. 4, 6, 8, Occupational Safety and Health

Act of 1970 (29 U.S.C. 653, 655, 657);

Secretary of Labor’s Order 12–71 (36 FR

8754), 8–76 (41 FR 25059), or 1–90 (55 FR

9033), as applicable; 29 CFR part 1911.

§ 1926.5 [Amended]

2. In § 1926.5, the table is amended by

adding the entry

‘‘§ 1926.453(a)(2)...........................1218–0216’’

in numerical order.

[FR Doc. 98–1788 Filed 1–26–98; 8:45 am]

BILLING CODE 4510–26–M

POSTAL SERVICE

39 CFR Part 20

Expansion of Global Priority Mail

AGENCY: Postal Service.

ACTION: Final rule.

SUMMARY: On March 29, 1996, the Postal

Service published in the Federal

Register, 61 FR 14025, an interim rule

with a request for comments which

expanded Global Priority Mail service

by increasing the number of acceptance

points, increasing the number of

destination countries, and adding

weight variable rates for items weighing

up to 4 pounds. The Postal Service now

adopts the interim regulations, with

amendments, as final.

EFFECTIVE DATE: January 27, 1998.

FOR FURTHER INFORMATION CONTACT: R.

Jay Thabet, (202) 268–2269.

SUPPLEMENTARY INFORMATION: On March

29, 1996, the Postal Service published

an interim rule expanding Global

Priority Mail and requesting comments,

61 FR 14025. Global Priority Mail is an

expedited airmail letter service

providing fast, reliable, and economical

delivery of all items mailable as letters

or merchandise up to 4 pounds. Global

Priority Mail items receive priority

handling in the United States and

destination countries. Service is limited

to the 34 destination countries

identified in the International Mail

Manual 226.2. Service is available from

designated post offices identified in the

International Mail Manual 226.32.

The weight limit for Global Priority

Mail items is 4 pounds. The Postal

Service offers two sizes of preprinted

flat-rate envelopes. The rates for these

envelopes are based on a geographic rate

zone regardless of the actual weight.

Although these envelopes are valid for

weights of up to 4 pounds, the practical

limitations of the envelopes limit the

weight to less than 4 pounds.

The interim rule increased the

number of post offices where Global

Priority Mail would be available,

increased the number of destination

countries, and added variable weightbased rates to increase customer

convenience.

The Postal Service received one letter

containing nine comments on the

interim rule.

Comment one suggests that, for those

states where all post offices within the

state are on the list of acceptance sites,

just the state should be listed without

showing the different facilities. This

suggestion does not take into account

that there may arise a case where a post

office within a state may not be able to

accept Global Priority Mail at some time

in the future. The present system of

listing the acceptance facilities allows

the Postal Service to delete post offices

when appropriate.

Comment two suggests that ZIP Codes

be listed in numerical order rather than

in alphabetical order of the acceptance

facility. While both numerical and

alphabetical listings are valid, neither is

more valid than the other. The Postal

Service elects to retain the alphabetical

listing.

Comment three states that, in New

York State, Postal Codes 117/118 are no

longer listed as acceptance sites,

whereas they were listed as acceptance

sites for the original test. This was a

typographical error; ZIP Codes 117/118

are acceptance sites.

Comment four asks for an explanation

of certain abnormalities in the rate

structure for variable weights and the

volume rates. The differences between

weight steps does not have to be equal

or linear or based totally on cost

changes. The competitions’ rates for

similar products are a factor. The size

and weight of the volume the USPS

most wants to attract is another factor in

the determination of weight level

increases.

Comment five asks for an explanation

for the relationship between rates for

Canadian and European destinations.

The expected traffic to each country

group, the competition that we face

going to that country group, and the cost

to get into each country group were

factors used to determine rates. In the

example cited, competitors’ rates and

delivery costs in the country were the

most influential.

Comment six states that the

relationship between the flat rate

envelopes and the variable weight rate

should be clarified and the relationship

between the flat rate envelope and the

volume rate should be clarified. The flat

rate developed for envelopes that the

Postal Service provides is independent