17128 Federal Register / Vol. 74, No. 70 / Tuesday, April 14, 2009 / Proposed Rules 

(4) Example. PRS is a partnership that was 

formed in 2004. It has three partners, P, R, 

and S, who each own a one-third interest in 

the partnership. PRS owns and operates a 

skiing enterprise, and under section 

706(b)(1)(C), has adopted a calendar year end 

of June 30th. Each partner is an individual 

who is on the calendar year. On December 

31, 2010, S sold her entire interest in PRS to 

Y. PRS, for its fiscal year ending June 30, 

2010, earned $150,000 of income. The 

partnership has a specific provision in the 

partnership agreement agreeing to use the 

proration method when accounting for 

varying interests in the partnership. (See 

§ 1.706–4(a)(1)). Using the proration method, 

$75,000 of income is included in the first 

segment of the year that begins July 1, 2010 

and ends December 31, 2010, and $75,000 is 

included in the second segment of the year 

that begins January 1, 2011 and ends June 30, 

2011. For the first segment, S’s distributive 

share of partnership income is one-third of 

$75,000, or $25,000. For the second segment, 

Y’s distributive share of partnership income 

is one-third of $75,000, or $25,000. Because 

S sold her entire interest in PRS, the 

partnership taxable year closes with respect 

to her pursuant to § 1.706–1(c)(2)(i). Thus, 

she must include her distributive share of 

PRS’s income, or $25,000, on her 2010 

Federal income tax return. 

(e) Conventions—(1) Calendar day 

convention. Under the calendar day 

convention, the first segment of the 

partnership’s taxable year commences 

with the beginning of the partnership’s 

taxable year and ends at the close of any 

day on which the variation occurs in the 

partner’s interest in the partnership. 

Any additional segment shall 

commence with the beginning of the 

day following a prior variation in a 

partner’s interest and end on the earlier 

of the close of the day on which an 

additional variation occurs in the 

partner’s interest or the close of the 

partnership’s taxable year, as applicable. 

(2) Semi-monthly convention. Under 

the semi-monthly convention, the first 

segment of the partnership’s taxable 

year commences with the beginning of 

the partnership’s taxable year, and with 

respect to a partner’s variation in 

interest occurring on the first through 

the 15th day of a calendar month, is 

deemed to close at the end of the last 

day of the immediately preceding 

calendar month, and with respect to any 

variation in interest occurring on the 

16th through the last day of a calendar 

month, is deemed to close at the end of 

the 15th calendar day of that month. 

Any additional segment of the 

partnership taxable year shall 

commence with beginning of the first 

day, or 16th day of the month of the last 

segment, as the case may be, as 

determined for a prior change and shall 

close at the earlier of the close of the 

partnership’s taxable year, or with 

respect to a partner’s variation in 

interest occurring on the first through 

15th day of a calendar month, is deemed 

to close at the end of the last day of the 

immediately preceding calendar month, 

and with respect to any variation in 

interest occurring on the 16th through 

the last day of a calendar month, is 

deemed to close at the end of the 15th 

calendar day of that month. 

(f) Effective/applicability date. Except 

with respect to paragraphs (c)(2) and 

(d)(2) of this section, this section is 

applicable for partnership taxable years 

that begin the day after the date final 

regulations are published in the Federal 

Register, but not before taxable years 

beginning after December 31, 2009. The 

rules of paragraphs (c)(2) and (d)(2) of 

this section are applicable for the 

taxable year of partnerships other than 

existing publicly traded partnerships 

that begin after the date the final 

regulations are published in the Federal 

Register, but not before taxable years 

beginning after December 31, 2009. For 

purposes of the immediately preceding 

sentence, an existing publicly traded 

partnership is a partnership described 

in section 7704(b) of the Internal 

Revenue Code that was formed on a date 

before these proposed regulations are 

published in the Federal Register. 

However, existing publicly traded 

partnerships may rely on the provisions 

of this section. 

Par. 7. Section 1.706–5 is added to 

read as follows: 

§ 1.706–5 Taxable year determination. 

(a) In general. For purposes of 

§ 1.706–4, the taxable year of a 

partnership shall be determined without 

regard to section 706(c)(2)(A) and the 

regulations promulgated under that 

Internal Revenue Code section. 

(b) Effective/applicability date. This 

section is applicable for partnership 

taxable years that begin the day after the 

date final regulations are published in 

the Federal Register, but not before 

taxable years beginning after December 

31, 2009. 

Linda E. Stiff, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. E9–8438 Filed 4–13–09; 8:45 am] 

BILLING CODE 4830–01–P 

POSTAL SERVICE 

39 CFR Part 111 

Express Mail Refunds for Shipments of 

Live Animals 

AGENCY: Postal Service. 

ACTION: Proposed rule. 

SUMMARY: The Postal Service proposes 

to revise its refund guarantees for 

Express Mail® shipments of live animals 

in an effort to maintain the economic 

viability of shipping animals as a 

service. 

DATES: Submit comments on or before 

May 14, 2009. 

ADDRESSES: Mail or deliver written 

comments to the Manager, Mailing 

Standards, U.S. Postal Service, 475 

L’Enfant Plaza, SW., Room 3436, 

Washington, DC 20260–3436. You may 

inspect and photocopy all written 

comments at USPS Headquarters 

Library, 475 L’Enfant Plaza, SW., 11th 

Floor N, Washington, DC between 9 a.m. 

and 4 p.m., Monday through Friday. 

E-mail comments, containing the name 

and address of the commenter, may be 

sent to MailingStandards@usps.gov, 

with a subject line of ‘‘Express Mail 

Refunds for Shipments of Lives 

Comments.’’ Faxed comments will not 

be accepted. 

FOR FURTHER INFORMATION CONTACT: Joel 

Rosen, 202–268–4329 or Monica Grein, 

202–268–8411. 

SUPPLEMENTARY INFORMATION: The Postal 

Service proposes to revise the Mailing 

Standards of the United States Postal 

Service, Domestic Mail Manual (DMM®) 

by changing the refund guarantees for 

Express Mail shipments of live animals 

delivered within 3 days of the date of 

mailing. In some instances, the Postal 

Service must reroute Express Mail 

shipments of live animals to alternative 

flights or routes in order to protect the 

well-being of the live animals. This is 

particularly necessary if other 

shipments on the same flight contain 

dry ice or solid carbon dioxide, which 

will evaporate en route and may 

displace oxygen. If live animals were 

shipped in the same cargo hold, the 

carbon dioxide could cause 

asphyxiation. The use of alternative 

flights and rerouting to protect the wellbeing of the live animals can delay 

shipments. Therefore, even though the 

live animals arrive as promptly as 

possible and in good health, these 

shipments may not meet normal Express 

Mail service guarantees. In those 

instances, some mailers then apply for 

full postage refunds. 

Currently, postage refunds for Express 

Mail shipments of live animals are 

granted based on the next day or second 

day delivery guarantee provided at the 

time of mailing. This current postage 

refund policy does not account for the 

flight changes that may occur to protect 

the well-being of the animals. Therefore, 

the Postal Service is proposing that 

Federal Register / Vol. 74, No. 70 / Tuesday, April 14, 2009 / Proposed Rules 17129 

Express Mail shipments containing live 

animals be exempt from the next day or 

second day delivery guarantee and that 

the delivery commitment for Express 

Mail of live animals be extended to 

within 3 days of the date of mailing. 

Postage refund requests for Express Mail 

shipments of live animals delivered 

after 3 days of the date of mailing would 

still be granted. 

Although we are exempt from the 

notice and comment requirements of the 

Administrative Procedure Act [5 U.S.C. 

553(b), (c)], regarding proposed 

rulemaking by 39 U.S.C. 410(a), the 

Postal Service invites comments on the 

following proposed revision of the 

Mailing Standards of the United States 

Postal Service, Domestic Mail Manual, 

incorporated by reference in the Code of 

Federal Regulations. See 39 CFR part 

111. 

List of Subjects in 39 CFR Part 111 

Administrative practice and 

procedure, Postal Service. 

Accordingly, 39 CFR is proposed to be 

amended as follows: 

PART 111—[AMENDED] 

1. The authority citation for 39 CFR 

Part 111 continues to read as follows: 

Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 

401, 403, 404, 414, 416, 3001–3011, 3201– 

3219, 3403–3406, 3621, 3622, 3626, 3632, 

3633, and 5001. 

2. Revise the following sections of 

Mailing Standards of the United States 

Postal Service, Domestic Mail Manual 

(DMM) as follows: 

100 Retail Mail Letters, Cards, Flats, 

and Parcels 

* * * * * 

110 Retail Mail Express Mail 

* * * * * 

114 Postage Payment Methods 

* * * * * 

3.0 Postage Refunds 

3.1 Postage Not Refunded 

[Revise the introductory paragraph of 

3.1 to read as follows:] 

Postage refunds may not be available 

if delivery was attempted within the 

times required for the specific service, 

or for any of the following reasons: 

[Revise the first sentence of item a, and 

add a new item c as follows:] 

a. If the item was properly detained 

for law enforcement purpose; strike or 

work stoppage; delayed because of an 

incorrect ZIP Code or address; 

forwarding or return service was 

provided after the item was made 

available for claim; delay or cancellation 

of flights. * * * 

* * * * * 

c. The shipment contained live 

animals and was delivered or delivery 

was attempted within three days of the 

date of mailing as shown in the ‘‘Date 

In’’ box on Label 11. 

* * * * * 

400 Commercial Mail Parcels 

* * * * * 

410 Commercial Parcels Express Mail 

* * * * * 

414 Postage Payment and 

Documentation 

* * * * * 

3.0 Postage Refunds 

[Revise the introductory paragraph of 

3.0 to read as follows:] 

Postage refunds may not be available 

if delivery was attempted within the 

times required for the specific service, 

or for any of the following reasons: 

[Revise the first sentence of item a and 

add a new item c as follows:] 

a. If the item was properly detained 

for law enforcement purpose; strike or 

work stoppage; delayed because of an 

incorrect ZIP Code or address; 

forwarding or return service was 

provided after the item was made 

available for claim; delay or cancellation 

of flights. * * * 

* * * * * 

c. The shipment contained live 

animals and was delivered or delivery 

was attempted within three days of the 

date of mailing as shown in the ‘‘Date 

In’’ box on Label 11. 

* * * * * 

600 Basic Standards For All Mailing 

Services 

601 Mailability 

* * * * * 

9.0 Perishables 

* * * * * 

9.3 Live Animals 

* * * * * 

9.3.4 Adult Fowl 

* * * * * 

[Add a new item d to read as follows:] 

d. Postage refunds may not be 

available if the Express Mail shipment 

was delivered or delivery was attempted 

within three days of the date of mailing 

as shown in the ‘‘Date In’’ box on Label 

11. 

* * * * * 

604 Postage Payment Methods 

* * * * * 

9.0 Refunds and Exchanges 

* * * * * 

9.2 Postage and Fee Refunds 

* * * * * 

9.2.4 Full Refund 

A full refund (100%) may be made 

when: 

[Revise item l to read as follows:] 

l. Express Mail is not delivered 

according to the applicable service 

standard, except as provided in 114.3.1 

and 414.3.0. * * * 

* * * * * 

We will publish an appropriate 

amendment to 39 CFR 111 to reflect 

these changes if our proposal is 

adopted. 

Stanley F. Mires, 

Chief Counsel, Legislative. 

[FR Doc. E9–8531 Filed 4–13–09; 8:45 am] 

BILLING CODE 7710–12–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Parts 52 and 70 

[EPA–R07–OAR–2008–0793; FRL–8791–7] 

Approval and Promulgation of 

Implementation Plans and Operating 

Permits Program; State of Missouri 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: EPA proposes to approve the 

State Implementation Plan (SIP) and 

Operating Permits Program to amend 

the definitions provisions of the rules by 

adding definitions for stage I/II vapor 

recovery systems and outstate area, 

updating the lists of volatile organic 

compounds and hazardous air 

pollutants for consistency with the 

Environmental Protection Agency (EPA) 

lists, removing unnecessary definitions, 

and making typographical corrections 

and clarifications. This revision will 

ensure consistency between the State 

and the Federally-approved rules. 

DATES: Comments on this proposed 

action must be received in writing by 

May 14, 2009. 

ADDRESSES: Submit your comments, 

identified by Docket ID No. EPA–R07– 

OAR–2008–0793, by mail to Amy 

Bhesania, Environmental Protection 

Agency, Air Planning and Development 

Branch, 901 North 5th Street, Kansas 

City, Kansas 66101. Comments may also