19912 Federal Register / Vol. 74, No. 82 / Thursday, April 30, 2009 / Proposed Rules 

1 73 Fed. Reg. 42,285 (July 21, 2008). 

2 73 Fed. Reg. 55,458 (Sept. 25, 2008). 

3 The comment must be accompanied by an 

explicit request for confidential treatment, 

including the factual and legal basis for the request, 

and must identify the specific portions of the 

comment to be withheld from the public record. 

The request will be granted or denied by the 

Commission’s General Counsel, consistent with 

applicable law and the public interest. See FTC 

Rule 4.9(c), 16 CFR 4.9(c). 

FEDERAL TRADE COMMISSION 

16 CFR Part 455 

[Project No. P087604] 

Used Motor Vehicle Trade Regulation 

Rule 

AGENCY: Federal Trade Commission. 

ACTION: Reopening of comment period. 

SUMMARY: On July 21, 2008, the Federal 

Trade Commission (‘‘FTC’’ or 

‘‘Commission’’) published a Federal 

Register notice soliciting public 

comments in connection with its review 

of the Used Motor Vehicle Trade 

Regulation Rule (‘‘Used Car Rule’’ or 

‘‘Rule’’).1 The notice stated that 

comments must be received by 

September 19, 2008. The Commission 

subsequently extended the time within 

which to submit comments until 

November 19, 2008.2 On March 17, 

2009, the Commission received 

supplemental comments from the 

National Automobile Dealers 

Association and the National 

Independent Dealers Association 

responding to comments made by other 

interested parties during the comment 

period. In response to those comments 

and to provide all interested parties 

with the same opportunity to comment, 

the Commission has decided to reopen 

the comment period for forty-five days. 

DATES: Comments addressing the Used 

Car Rule must be received on or before 

June 15, 2009. 

ADDRESSES: Interested parties are 

invited to submit written comments 

electronically or in paper form. 

Comments should refer to ‘‘Used Car 

Regulatory Review, Matter No. 

P087604’’ to facilitate the organization 

of comments. Please note that your 

comment—including your name and 

your state—will be placed on the public 

record of this proceeding, including on 

the publicly accessible FTC Website, at 

(http://www.ftc.gov/os/ 

publiccomments.shtm). 

Because comments will be made 

public, they should not include any 

sensitive personal information, such as 

an individual’s Social Security Number; 

date of birth; driver’s license number or 

other state identification number, or 

foreign country equivalent; passport 

number; financial account number; or 

credit or debit card number. Comments 

also should not include any sensitive 

health information, such as medical 

records or other individually 

identifiable health information. In 

addition, comments should not include 

any ‘‘[t]rade secret or any commercial or 

financial information which is obtained 

from any person and which is privileged 

or confidential. . . .,’’ as provided in 

Section 6(f) of the Federal Trade 

Commission Act (‘‘FTC Act’’), 15 U.S.C. 

46(f), and FTC Rule 4.10(a)(2), 16 CFR 

4.10(a)(2). Comments containing 

material for which confidential 

treatment is requested must be filed in 

paper form, must be clearly labeled 

‘‘Confidential,’’ and must comply with 

FTC Rule 4.9(c), 16 CFR 4.9(c).3

Because paper mail addressed to the 

FTC is subject to delay due to 

heightened security screening, please 

consider submitting your comments in 

electronic form. Comments filed in 

electronic form should be submitted by 

using the following weblink: (http:// 

secure.commentworks.com/ftcUsedCarRuleReopen) (and following the 

instructions on the web-based form). To 

ensure that the Commission considers 

an electronic comment, you must file it 

on the web-based form at the weblink 

(http://secure.commentworks.com/ftcUsedCarRuleReopen). If this Notice 

appears at (http://www.regulations.gov/ 

search/index.jsp), you may also file an 

electronic comment through that 

website. The Commission will consider 

all comments that regulations.gov 

forwards to it. You may also visit the 

FTC website at (http://www.ftc.gov/opa/ 

2008/07/ucr.shtm) to read the Federal 

Register notice announcing the request 

for public comments and the news 

release describing it. 

A comment filed in paper form 

should include the ‘‘Used Car 

Regulatory Review, Matter No. 

P087604’’ reference both in the text and 

on the envelope, and should be mailed 

or delivered to the following address: 

Federal Trade Commission, Office of the 

Secretary, Room H–135 (Annex H ), 600 

Pennsylvania Avenue, NW, Washington, 

DC 20580. The FTC is requesting that 

any comment filed in paper form be sent 

by courier or overnight service, if 

possible, because U.S. postal mail in the 

Washington area and at the Commission 

is subject to delay due to heightened 

security precautions. 

The FTC Act and other laws the 

Commission administers permit the 

collection of public comments to 

consider and use in this proceeding as 

appropriate. The Commission will 

consider all timely and responsive 

public comments that it receives, 

whether filed in paper or electronic 

form. Comments received will be 

available to the public on the FTC 

Website, to the extent practicable, at 

(http://www.ftc.gov/os/ 

publiccomments.shtm). As a matter of 

discretion, the Commission makes every 

effort to remove home contact 

information for individuals from the 

public comments it receives before 

placing those comments on the FTC 

Website. More information, including 

routine uses permitted by the Privacy 

Act, may be found in the FTC’s privacy 

policy, at (http://www.ftc.gov/ftc/ 

privacy.shtm). 

FOR FURTHER INFORMATION CONTACT: John 

C. Hallerud, Attorney, Midwest Region, 

Federal Trade Commission, 55 West 

Monroe Street, Suite 1825, Chicago, 

Illinois 60603, (312) 960–5615. 

SUPPLEMENTARY INFORMATION: The 

Commission’s July 21, 2008 Federal 

Register notice sought comments on the 

Rule’s costs, benefits, and effectiveness. 

The notice also requested comments on 

whether the Rule should permit used 

car dealers to use a single bilingual 

Buyers Guide and, if so, on how to 

design a bilingual Buyers Guide. In 

addition, it asked for comments on the 

Buyers Guide’s pre-printed list of major 

defects that may occur in used motor 

vehicles. Finally, the notice solicited 

comments on whether the Rule should 

be revised to permit dealers to use 

alternative Buyers Guides intended to 

facilitate the disclosure of 

manufacturer’s warranties and other 

third-party warranties. 

The comment period closed on 

November 19, 2008. Twenty comments 

were received during the comment 

period. 

On March 17, 2009, the Commission 

received supplemental comments from 

the National Automobile Dealers 

Association and the National 

Independent Automobile Dealers 

Association responding to comments 

made by other interested parties during 

the comment period. To provide all 

interested parties with the same 

opportunity to comment further, the 

Commission has decided to reopen the 

comment period. The Commission 

believes that the benefit of enhancing 

the record by reopening the comment 

period outweighs any delay. 

Accordingly, the Commission has 

decided to reopen the comment period 

for forty-five days. 

Federal Register / Vol. 74, No. 82 / Thursday, April 30, 2009 / Proposed Rules 19913 

By direction of the Commission. 

Donald S. Clark, 

Secretary. 

[FR Doc. E9–9808 Filed 4–29–09: 8:45 am] 

BILLING CODE 6750–01–S 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 20 

[REG–119532–08] 

RIN 1545–BH94 

Section 2036—Graduated Retained 

Interests 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: This document contains 

proposed regulations that provide 

guidance on the portion of trust 

property includible in the grantor’s 

gross estate if the grantor has retained 

the use of the property, the right to an 

annuity, unitrust, graduated retained 

interest, or other payment from such 

property for life, for any period not 

ascertainable without reference to the 

grantor’s death, or for a period that does 

not in fact end before the grantor’s 

death. The proposed regulations will 

affect estates that file Form 706, United 

States Estate (and Generation-Skipping 

Transfer) Tax Return. 

DATES: Written or electronic comments 

and requests for a public hearing must 

be received by July 29, 2009. 

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–119532–08), 

Internal Revenue Service, Room 5203, 

PO Box 7604, Ben Franklin Station, 

Washington, DC 20044. 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–119532– 

08), 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–119532– 

08). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulations, 

Theresa M. Melchiorre, at (202) 622– 

3090; concerning submissions of 

comments or to request a hearing, 

Richard A. Hurst at Richard.A.Hurst 

@irscounsel.treas.gov or (202) 622–7180 

(not toll-free numbers). 

SUPPLEMENTARY INFORMATION: 

Background 

On June 7, 2007, proposed regulations 

(REG–119097–05) were published in the 

Federal Register [72 FR 31487] 

providing guidance on the portion of 

trust corpus properly includible in a 

grantor’s gross estate under sections 

2036 and 2039. The IRS and Treasury 

Department determined that certain 

comments received in response to the 

proposed regulations should be 

addressed in a separate notice of 

proposed rulemaking, instead of in the 

final regulations published on July 14, 

2008 [73 FR 40173], as TD 9414. 

Accordingly, this notice of proposed 

rulemaking proposes additional changes 

to the regulations in response to those 

comments. 

The proposed regulations (REG– 

119097–05) addressed the amount 

includible in the gross estate under 

sections 2036 and 2039 if the grantor 

retains the right to receive an annuity, 

unitrust, or other payment from a trust 

for life, for any period not ascertainable 

without reference to the grantor’s death, 

or for a period that does not in fact end 

before the grantor’s death. The trusts 

that were the subject of the proposed 

regulations included grantor retained 

interest trusts (GRTs), such as grantor 

retained income trusts (GRITs), grantor 

retained annuity trusts (GRATs) and 

grantor retained unitrusts (GRUTs) 

described in section 2702, whether or 

not the grantor’s retained interest was a 

‘‘qualified interest’’ under section 

2702(b), as well as other trust forms, 

including charitable remainder trusts 

(CRTs), such as charitable remainder 

unitrusts (CRUTs) and charitable 

remainder annuity trusts (CRATs) 

described in section 664 whether or not 

the trust met the qualifications of 

section 664(d)(1), (2), or (3). The 

proposed regulations incorporated the 

methodology provided in Rev. Rul. 76– 

273, 1976–2 C.B. 268, and Rev. Rul. 82– 

105, 1982–1 C.B. 133. See 

§ 601.601(d)(2)(ii)(b). Under this 

methodology, the portion of the corpus 

of a GRT or a CRT includible in the 

decedent’s gross estate under section 

2036 is that portion of the trust corpus 

necessary to generate a return sufficient 

to pay the decedent’s retained annuity, 

unitrust, or other payment. 

One commentator suggested that the 

regulations address the portion of trust 

corpus of a GRAT includible in the 

grantor’s gross estate under section 2036 

if the deceased grantor retains an 

interest described in § 25.2702– 

3(b)(1)(ii)(A); that is, the annuity 

interest retained by the grantor increases 

annually during the term of the trust (a 

graduated retained interest). The 

commentator suggested two possible 

methods for determining the portion of 

GRAT corpus includible in the grantor’s 

gross estate if the grantor dies during the 

term of such a GRAT. 

Another commentator questioned the 

result in the example contained in 

§ 20.2036–1(c)(1)(ii) of the proposed 

regulations. This example considered 

the situation where the decedent (D) 

creates an irrevocable inter vivos trust, 

under the terms of which all trust 

income is to be paid to D and E, D’s 

spouse, in equal shares during their 

joint lives and, on the death of the first 

to die of D and E, all trust income is to 

be paid to the survivor. On the death of 

the survivor of D and E, the remainder 

is to be paid to another individual, F. D 

dies survived by E. The example 

concludes that, because D retained the 

right to receive 50 percent of the trust 

income for a period that did not in fact 

end before D’s death, 50 percent of the 

trust’s corpus is includible in D’s gross 

estate under section 2036. The example 

also concludes that, if instead E had 

predeceased D, D would have died 

while entitled to all of the income from 

the trust, so that the entire trust corpus 

would have been includible in D’s gross 

estate under section 2036. 

The commentator noted that, because 

E is identified as D’s spouse, the 

example unnecessarily raises issues 

under section 2523 (gift tax marital 

deduction). In addition, the 

commentator opined that, under the 

facts presented, D has retained the right 

to receive one-half of trust income 

during the joint lives of D and E, and the 

right to receive 100 percent of the trust 

income if D survives E. Thus, 50 percent 

of the trust corpus is includible in D’s 

gross estate by virtue of D’s retained 

right to receive 50 percent of the trust 

income during D’s life, and the 

remaining 50 percent of the trust corpus 

(reduced by the actuarial value of E’s 

income interest) is includible in D’s 

gross estate under section 2036 by virtue 

of D’s retained right to receive all of the 

trust income provided D survives E. 

Explanation of Provisions 

In response to the comments, these 

proposed regulations provide the 

method to be used to determine the 

portion of trust corpus includible in the 

grantor’s gross estate if the grantor 

reserves a graduated retained interest in 

a trust. This method applies to 

graduated retained interests in property 

whether or not the property is held in 

trust. 

The portion of the corpus of a GRT or 

a CRT includible in the decedent’s gross 

estate under section 2036 is that portion 

of the trust corpus necessary to generate