36180 Federal Register / Vol. 63, No. 127 /Thursday, July 2, 1998 /Rules and Regulations

Penicillin in grams per ton Combination in

grams per ton Indications for use Limitations Sponsor

(iii) 10 to 50 Swine; for increased rate

of weight gain and improved feed efficiency.

Do.

* * * * *

Dated: June 22, 1998.

Margaret Ann Miller,

Acting Director, Office of New Animal Drug

Evaluation, Center for Veterinary Medicine.

[FR Doc. 98–17546 Filed 7–1–98; 8:45 am]

BILLING CODE 4160–01–F

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1 and 602

[TD 8775]

RIN 1545–AV79

Election Not to Apply Look-Back

Method in De Minimis Cases

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final and temporary

regulations.

SUMMARY: This document contains

regulations explaining how a taxpayer

elects under section 460(b)(6) not to

apply the look-back method to longterm contracts in de minimis cases. The

regulations reflect changes to the law

made by the Taxpayer Relief Act of 1997

and affect manufacturers and

construction contractors whose longterm contracts otherwise are subject to

the look-back method.

DATES: Effective date: These regulations

are effective July 2, 1998.

Applicability date: These regulations

apply to long-term contracts completed

in taxable years ending after August 5,

1997.

FOR FURTHER INFORMATION CONTACT: Leo

F. Nolan II or John M. Aramburu at

(202) 622–4960 (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

The collection of information

contained in these final regulations has

been reviewed and approved by the

Office of Management and Budget in

accordance with the Paperwork

Reduction Act (44 U.S.C. 3507) under

control number 1545–1572. Responses

to this collection of information are

required for a taxpayer to elect not to

apply the look-back method to longterm contracts in de minimis cases. An

agency may not conduct or sponsor, and

a person is not required to respond to,

a collection of information unless the

collection of information displays a

valid OMB control number. The

estimated average burden per

respondent is 0.2 hours.

Comments concerning the accuracy of

this burden estimate should be sent to

the Internal Revenue Service, Attn: IRS

Reports Clearance Officer, OP:FS:FP,

Washington, DC 20224, and to the

Office of Management and Budget, Attn:

Desk Officer for the Department of the

Treasury, Office of Information and

Regulatory Affairs, Washington, DC

20503.

Books or records relating to a

collection of information must be

retained as long as their contents may

become material in the administration

of any internal revenue law. Generally,

tax returns and tax return information

are confidential, as required by 26

U.S.C. 6103.

Background

This document contains amendments

to the Income Tax Regulations (26 CFR

part 1). Section 460(b)(6) of the Internal

Revenue Code was added by section

1211 of the Taxpayer Relief Act of 1997,

Public Law 105–34, 111 Stat. 788, 998,

to provide an election not to apply the

look-back method of section 460(b)(2) to

long-term contracts in de minimis cases.

These regulations provide guidance

concerning this new election.

A notice of proposed rulemaking was

published in the Federal Register for

January 13, 1998 (63 FR 1932). No

written comments were received, and

no public hearing was requested or

held. The proposed regulations under

section 460 are adopted by this Treasury

decision with one revision. The final

regulations provide that for long-term

contracts completed in taxable years

ending after August 5, 1997, an election

not to apply the look-back method

under section 460(b)(6) automatically

revokes an election under § 1.460–6(e)

to use the delayed reapplication

method.

Special Analyses

It has been determined that this final

regulation is not a significant regulatory

action as defined in EO 12866.

Therefore, a regulatory assessment is not

required. It also has been determined

that section 553(b) of the Administrative

Procedure Act (5 U.S.C. chapter 5) does

not apply to these regulations.

Moreover, 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 the

time required to prepare and file an

election statement is minimal and will

not have a significant impact on those

small entities that choose to make the

election. In addition, the election need

only be made once by a taxpayer.

Therefore, a Regulatory Flexibility

Analysis under the Regulatory

Flexibility Act (5 U.S.C. chapter 6) is

not required.

Pursuant to section 7805(f) of the

Internal Revenue Code, the notice of

proposed rulemaking preceding these

regulations was submitted to the Chief

Counsel for Advocacy of the Small

Business Administration for comment

on the impact of the proposed

regulations on small business.

Drafting Information

The principal author of these

regulations is Leo F. Nolan II, Office of

Assistant Chief Counsel (Income Tax

and Accounting). However, other

personnel from the IRS and Treasury

Department participated in their

development.

List of Subjects

26 CFR Part 1

Income taxes, Reporting and

recordkeeping requirements.

26 CFR Part 602

Reporting and recordkeeping

requirements.

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR parts 1 and 602

are amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation

for part 1 is amended by removing the

entry for ‘‘§ 1.460–6T’’ to read in part as

follows:
Federal Register / Vol. 63, No. 127 /Thursday, July 2, 1998 /Rules and Regulations 36181

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

Par. 2. In § 1.460–0, the entry for

§ 1.460–6 is amended by adding entries

for paragraphs (i) and (j) and the entry

for § 1.460–6T is removed to read as

follows:

§ 1.460–0 Outline of regulations under

section 460.

* * * * *

§ 1.460–6 Look-back method.

* * * * *

(i) [Reserved].

(j) Election not to apply look-back method

in de minimis cases.

* * * * *

Par. 3. In § 1.460–6, paragraph (i) is

added and reserved and paragraph (j) is

added to read as follows:

§ 1.460–6 Look-back method.

* * * * *

(i) [Reserved].

(j) Election not to apply look-back

method in de minimis cases. Section

460(b)(6) provides taxpayers with an

election not to apply the look-back

method to long-term contracts in de

minimis cases, effective for contracts

completed in taxable years ending after

August 5, 1997. To make an election, a

taxpayer must attach a statement to its

timely filed original federal income tax

return (including extensions) for the

taxable year the election is to become

effective or to an amended return for

that year, provided the amended return

is filed on or before March 31, 998. This

statement must have the legend

‘‘NOTIFICATION OF ELECTION

UNDER SECTION 460(b)(6)’’; provide

the taxpayer’s name and identifying

number and the effective date of the

election; and identify the trades or

businesses that involve long-term

contracts. An election applies to all

long-term contracts completed during

and after the taxable year for which the

election is effective. An election may

not be revoked without the

Commissioner’s consent. For taxpayers

who elected to use the delayed

reapplication method under paragraph

(e) of this section, an election under this

paragraph (j) automatically revokes the

election to use the delayed reapplication

method for contracts subject to section

460(b)(6). A consolidated group of

corporations, as defined in § 1.1502–

1(h), is subject to consistency rules

analogous to those in paragraph (e)(2) of

this section and in paragraph

(d)(4)(ii)(C) of this section (concerning

election to use simplified marginal

impact method).

§ 1.460–6T [Removed]

Par. 4. Section 1.460–6T is removed.

PART 602—OMB CONTROL NUMBERS

UNDER THE PAPERWORK

REDUCTION ACT

Par. 5. The authority citation for part

602 continues to read as follows:

Authority: 26 U.S.C. 7805.

Par. 6. In § 602.101, paragraph (c) is

amended by:

1. Removing the following entry from

the table:

§ 602.101 OMB Control numbers.

* * * * *

(c) * * *

CFR part or section where

identified and described

Current

OMB control No.

* * * * *

1.460–6T ................................... 1545–1572

* * * * *

2. Revising the entry for § 1.460–6 to

read as follows:

§ 602.101 OMB Control numbers.

* * * * *

(c) * * *

CFR part or section where

identified and described

Current

OMB control No.

* * * * *

1.460–6 ..................................... 1545–1031

1545–1572

* * * * *

Michael P. Dolan,

Deputy Commissioner of Internal Revenue.

Approved: June 12, 1998.

Donald C. Lubick,

Assistant Secretary of the Treasury.

[FR Doc. 98–17697 Filed 7–1–98; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 100

[CGD07–98–008]

RIN 2115–AE46

Special Local Regulations; Around

Alone Sailboat Race, Charleston, SC

AGENCY: Coast Guard, DOT.

ACTION: Temporary final rule.

SUMMARY: The Coast Guard is

establishing temporary special local

regulations creating a regulated area in

the coastal waters off Charleston, SC, for

the Around Alone single-handed

sailboat race, sponsored by Great

Adventure, Ltd. These regulations will

prohibit entry into the regulated area by

non-participating vessels during the

event. These regulations are necessary

to provide for the safety of life on

navigable waters because of the

expected presence of numerous

spectator craft.

DATES: This regulation is effective from

10 a.m. (EDT) until 2 p.m. (EDT) on

September 26, 1998.

FOR FURTHER INFORMATION CONTACT:

LTJG S. Brisco, Project Manager, Coast

Guard Group Charleston at (803) 724–

7628.

SUPPLEMENTARY INFORMATION:

Regulatory History

The Coast Guard published a Notice

of Proposed Rulemaking in the Federal

Register on March 30, 1998 (63 FR

15115). No comments were received

during the comment period.

Background and Purpose

These regulations are needed to

provide for the safety of life during the

start of the Around Alone 1998–99

sailing race. These regulations are

intended to promote safe navigation

offshore Charleston Harbor immediately

before, during, and after the start of the

race, by controlling the traffic entering,

exiting, and traveling within the

regulated area. The anticipated

concentration of commercial traffic,

spectator vessels, and participating

vessels associated with the race poses a

safety concern which is addressed in

these proposed safety regulations.

The regulated area will encompass a

trapezoidal area south of Charleston

Harbor entrance lighted buoy 7 (LLNR

2405). Four conspicuous markers will

indicate the corners of the regulated

area. These regulations prohibit the

movement of spectator vessels and other

non-participants within the regulated

area on September 26, 1998, between 10

a.m. and 2 p.m., at the discretion of the

Coast Guard Patrol Commander.

Regulatory Evaluation

This rule is not a major significant

regulatory action under section 3(f) of

executive order 12866 and does not

require an assessment of potential costs

and benefits under section 6(a)(3) of that

order. It has been exempted from review

by the Office of Management and

Budget under that order. It is not

significant under the regulatory policies

and procedures of the Department of

Transportation (DOT) (44 FR 11040;

February 26, 1979). The Coast Guard