Federal Register / Vol. 63, No. 156 /Thursday, August 13, 1998 /Rules and Regulations 43303

Administration, 12420 Parklawn Dr., rm

1–23, Rockville, MD 20857, and may be

seen by interested persons between 9

a.m. and 4 p.m., Monday through

Friday.

1. Comment No. LET19, Docket No.

81N090201, Dockets Management Branch.

2. United States Pharmacopeia 23—

National Formulary 18, United States

Pharmacopeial Convention, Inc., Rockville,

MD, p. 1345, 1994.

3. Second Supplement to USP 23 and to

NF 18, United States Pharmacopeial

Convention, Inc., Rockville, MD, p. 2671,

1995.

IV. Analysis of Impacts

FDA has examined the impacts of this

final rule under Executive Order 12866

and the Regulatory Flexibility Act (5

U.S.C. 601–612). Executive Order 12866

directs agencies to assess all costs and

benefits of available regulatory

alternatives and, when regulation is

necessary, to select regulatory

approaches that maximize net benefits

(including potential economic,

environmental, public health and safety,

and other advantages; distributive

impacts; and equity). Under the

Regulatory Flexibility Act, if a rule has

a significant impact on a substantial

number of small entities, an agency

must analyze regulatory options that

would minimize any significant impact

of a rule on small entities. This final

rule makes a minor clarification in the

concentration of an active ingredient. It

does not change the manner in which

manufacturers make these pediculicide

drug products and will not cause any

burden on small entities. The agency

certifies that this final rule will not have

a significant economic impact on a

substantial number of small entities.

This economic analysis, together with

other relevant sections of this

document, serves as the agency’s final

regulatory flexibility analysis, as

required under the Regulatory

Flexibility Act.

The Unfunded Mandates Act (2 U.S.C.

1501 et seq.) does not apply to this final

rule because it would not result in an

expenditure in any one year by State,

local, and tribal governments, in the

aggregate, or by the private sector, of

$100 million.

V. Paperwork Reduction Act of 1995

This final rule contains no collection

of information. Therefore, clearance by

the office of Management and Budget

under the Paperwork Reduction Act of

1995 is not required.

VI. Environmental Impact

The agency has determined under 21

CFR 25.30(h) that this action is of a type

that is categorically excluded from the

preparation of an environmental

assessment because these actions, as a

class, will not result in the production

or distribution of any substance and

therefore will not result in the

production of any substance into the

environment.

List of Subjects in 21 CFR Part 358

Labeling, Over-the-counter drugs.

Therefore, under the Federal Food,

Drug, and Cosmetic Act and under

authority delegated to the Commissioner

of Food and Drugs, 21 CFR part 358 is

amended as follows:

PART 358—MISCELLANEOUS

EXTERNAL DRUG PRODUCTS FOR

OVER-THE-COUNTER HUMAN USE

1. The authority citation for 21 CFR

part 358 continues to read as follows:

Authority: 21 U.S.C. 321, 351, 352, 353,

355, 360, 371.

2. Section 358.610 is revised to read

as follows:

§ 358.610 Pediculicide active ingredients.

The active ingredients of the product

consist of the combination of pyrethrum

extract (providing a concentration of

pyrethrins of 0.17 to 0.33 percent) with

piperonyl butoxide (2 to 4 percent) in a

nonaerosol dosage formulation.

Dated: August 5, 1998.

William K. Hubbard,

Associate Commissioner for Policy

Coordination.

[FR Doc. 98–21794 Filed 8–12–98; 8:45 am]

BILLING CODE 4160–01–F

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

Income Tax; Taxable Years Beginning

After December 31, 1953

CFR Correction

In Title 26 of the Code of Federal

Regulations, part 1 (§§ 1.401 to 1.440),

revised as of April 1, 1998, in

§ 1.402(a)–1, paragraphs (b)(2)(ii)(d) and

(c) were inadvertently omitted. The

reinstated text of these paragraphs and

the source note read as follows:

§ 1.402(a)–1 Taxability of beneficiary under

a trust which meets the requirements of

section 401(a).

* * * * *

(b)* * *

(2)* * *

(ii)* * *

(d)(1) In all other cases, there shall be

used the average cost (or other basis) to

the trust of all securities of the employer

corporation of the type distributed to

the distributee which the trust has on

hand at the time of the distribution, or

which the trust had on hand on a

specified inventory date which date

does not precede the date of distribution

by more than twelve calendar months.

If a distribution includes securities of

the employer corporation of more than

one type, the average cost (or other

basis) to the trust of each type of

security distributed shall be determined.

The average cost to the trust of

securities of the employer corporation

on hand on a specified inventory date

(or on hand at the time of distribution)

shall be computed on the basis of their

actual cost, considering the securities

most recently purchased to be those on

hand, or by means of a moving average

calculated by subtracting from the total

cost of securities on hand immediately

preceding a particular sale or

distribution an amount computed by

multiplying the number of securities

sold or distributed by the average cost

of all securities on hand preceding such

sale or distribution.

(2) These methods of computing

average cost may be illustrated by the

following examples:

Example (1). A, a distributee who makes

his income tax returns on the basis of a

calendar year, receives on August 1, 1954, in

a total distribution, to which paragraph (a)(6)

of this section is applicable, ten shares of

class D stock of the employer corporation. On

July 1, 1954 (the specified inventory date of

the trust), the trust had on hand 80 shares of

class D stock. The average cost of the 10

shares distributed, on the basis of the actual

cost method, is $100 computed as follows:

Shares Purchase

date

Cost

per

share

Total

cost

20 ............ June 24,

1954.

$101 $2,020

40 ............ Jan. 10, 1953 102 4,080

20 ............ Oct. 20, 1952 95 1,900

80 ............ ...................... 8,000

Example (2). B, a distributee who makes

his income tax returns on the basis of a

calendar year, receives on October 31, 1954,

in a total distribution, to which paragraph

(a)(6) of this section is applicable, 20 shares

of class E stock of the employer corporation.

The specified inventory date of the trust is

the last day of each calendar year. The trust

had on hand on December 31, 1952, 1,000

shares of class E stock of the employer

corporation. During the calendar year 1953

the trust distributed to four distributees a

total of 100 shares of such stock and

acquired, through a number of purchases, a

total of 120 shares. The average cost of the
43304 Federal Register / Vol. 63, No. 156 /Thursday, August 13, 1998 /Rules and Regulations

20 shares distributed to B, on the basis of the

moving average method, is $52 computed as

follows:

Shares Total

cost

Average

cost

On hand Dec.

31, 1952 ..... 1,000 $50,000 $50

Distributed

during 1953

at average

cost of $50 100 5,000 (0)

900 45,000 (0)

Purchased

during 1953 120 8,000 (0)

On hand Dec.

31, 1953 ..... 1,020 53,040 52

(3) Unrealized appreciation

attributable to employee contributions.

In any case in which it is necessary to

determine the amount of net unrealized

appreciation in securities of the

employer corporation which is

attributable to contributions made by an

employee:

(i) The cost or other basis of the

securities to the trust and the amount of

net unrealized appreciation shall first be

determined in accordance with the

regulations in subparagraph (2) of this

paragraph;

(ii) The amount contributed by the

employee to the purchase of the

securities shall be solely the portion of

his actual contributions to the trust

properly allocable to such securities,

and shall not include any part of the

increment in the trust fund expended in

the purchase of the securities;

(iii) The amount of net unrealized

appreciation in the securities

distributed which is attributable to the

contributions of the employee shall be

that proportion of the net unrealized

appreciation determined under the

regulations of subparagraph (2) of this

paragraph which the contributions of

the employee properly allocable to such

securities bear to the cost or other basis

to the trust of the securities;

(iv) If a distribution consists solely of

securities of the employer corporation,

the contributions of the employee

expended in the purchase of such

securities shall be allocated to the

securities distributed in a manner

consistent with the principles set forth

in subparagraph (2)(ii) (a), (b), (c), or (d)

of this paragraph, whichever is

applicable. Thus, the amount of the

employee’s contribution which can be

identified as having been expended in

the purchase of a particular security

shall be allocated to such security, and

the amount of such contribution which

cannot be so identified shall be

allocated ratably among the securities

distributed. If a distribution consists in

part of securities of the employer

corporation and in part of cash or other

property, appropriate allocation of a

portion of the employee’s contribution

to such cash or other property shall be

made unless such a location is

inconsistent with the terms of the plan

or trust.

(v) The application of this

subparagraph may be illustrated by the

following example:

Example. A trust distributes ten shares of

stock issued by the employer corporation

each of which has an average cost to the trust

of $100, consisting of employee contributions

in the amount of $60 and employer

contributions in the amount of $40, and on

the date of distribution has a fair market

value of $180. The portion of the net

unrealized appreciation attributable to the

contributions of the employee with respect to

each of the shares of stock is $48 computed

as follows:

(1) Value of one share of stock on distribution date ..................................................... $180

(2) Employee contributions ............................ 60

(3) Employer contributions ............................ 40

(4) Total contributions .................................... 100

(5) Net unrealized appreciation ..................... 80

(6) Portion of net unrealized appreciation attributable to employee contributions 60⁄100

(amount of employee contributions (item

2) over total contributions (item 4) of $80

(item 5) ....................................................... 48

(vi) For the purpose of determining

gain or loss to the distributee in the year

or years in which any share of stock

referred to in the example in

subdivision (v) of this subparagraph is

sold or otherwise disposed of in a

taxable transaction, the basis of each

such share in the hands of the

distributee at the time of the

distribution by the trust will be $132

computed as follows:

(a) Employee contributions ............................ $60

(b) Employer contributions (taxable as ordinary income in the year the securities

were distributed) ........................................ 40

(c) Portion of net unrealized appreciation attributable to employer contributions (item

5) minus (item 6) (taxable as ordinary income in the year the securities were distributed) ...................................................... 32

(d) Basis of stock ........................................... 132

(4) Change in exempt status of trust.

For principles applicable in making

appropriate adjustments if the trust was

not exempt for one or more years before

the year of distribution, see paragraph

(a) of this section.

(c) Certain distributions by United

States to nonresident alien individuals.

(1) This paragraph applies to a

distribution—

(i) Which is made by the United

States under a pension plan described

in section 401(a);

(ii) Which is made in respect of

services performed by an employee of

the United States; and

(iii) Which is received by, or made

available to, a nonresident alien

individual (including a nonresident

alien individual who is a beneficiary of

a deceased employee) during a taxable

year beginning after December 31, 1959.

The amount of such a distribution that

is includible in the gross income of the

nonresident alien individual under

section 402(a) (1) or (2) shall not exceed

an amount which bears the same ratio

to the amount which would be

includible in gross income if it were not

for this paragraph, as—

(a) The aggregate basic salary paid by

the United States to the employee for

his services in respect of which the

distribution is being made, reduced by

the amount of such basic salary which

was not includible in the employee’s

gross income by reason of being from

sources without the United States, bears

to

(b) The aggregate basic salary paid by

the United States to the employee for

his services in respect of which the

distribution is being made.

See section 402(a)(4). See, also,

paragraph (a) of this section for rules

relating to the amount that is includible

in gross income under section 402(a) (1)

or (2) in the case of a distribution under

a pension plan described in section

401(a).

(2) For purposes of applying section

402(a)(4) and this paragraph to

distributions under the Civil Service

Retirement Act (5 U.S.C. 2251), the term

‘‘basic salary’’ shall have the meaning

provided in section 1(d) of such Act. In

applying section 402(a)(4) and this

paragraph to distributions under any

other qualified pension plan of the

United States, such term shall have a

similar meaning. Thus, for example,

‘‘basic salary’’ does not, in any case,

include bonuses, allowances, or

overtime pay.

(3) The rules in this paragraph may be

illustrated by the following examples:

Example (1). A, a retired employee of

the United States who performed all of

his services for the United States in a

foreign country, receives, in respect of

such services, a monthly pension of

$200 under the Civil Service Retirement

Act (a pension plan described in section

410(a)). A received an aggregate basic

salary for his services for the United

States of $100,000. A was a nonresident

alien individual during the whole of his

employment with the United States and,
Federal Register / Vol. 63, No. 156 /Thursday, August 13, 1998 /Rules and Regulations 43305

therefore, his basic salary from the

United States was not includible in his

gross income by reason of being from

sources without the United States. A

would be requited, under section 72 but

without regard to section 402(a)(4) and

this paragraph, to include $60 of each

monthly pension payment in his gross

income. The amount that is includible

in A’s gross income under section

402(a)(1) with respect to the monthly

payments received during taxable years

beginning after December 31, 1959, and

while A is a nonresident alien

individual, is computed as follows:

(i) Amount of distribution includible in

gross income under section 72 without

regard to section 402(a)(4) .................... $60

(ii) Aggregate basic salary for services for

United States ......................................... 100,000

(iii) Aggregate basic salary for services for

United States reduced by amount of

such salary not includible in A’s gross

income by reason of being from

sources without the United States ......... 0

(iv) Amount includible in A’s gross income

under section 402(a)(1) ((iii)÷(ii)×(i), or

$0/$100,000×$60) .................................. 0

Example (2). B, a retired employee of the

United States who performed services for the

United States both in a foreign country and

in the United States, receives, in respect of

such services, a monthly pension of $240

under the Civil Service Retirement Act. B

received an aggregate basic salary for his

services for the United States of $120,000;

$80,000 of which was for his services

performed in the United States, and $40,000

of which was for his services performed in

the foreign country. B was a nonresident

alien individual during the whole of his

employment with the United States and,

consequently, the $40,000 basic salary for his

services performed in the foreign country

was not includible in his gross income by

reason of being from sources without the

United States. B would be required, under

section 72 but without regard to section

402(a)(4) and this paragraph, to include $165

of each monthly pension in his gross income.

The amount that is includible in B’s gross

income under section 402(a)(1) with respect

to the monthly payments received during

taxable years beginning after December 31,

1959, and while B is a nonresident alien

individual, is computed as follows:

(i) Amount of distribution includible in

gross income under section 72 without

regard to section 402(a)(4) .................... $165

(ii) Aggregate basic salary for services for

United States ......................................... 120,000

(iii) Aggregate basic salary for services for

United States reduced by amount of

such salary not includible in B’s gross

income by reason of being from

sources without the United States

($120,000¥$40,000) ............................. 80,000

(iv) Amount includible in B’s gross income

under section 402(a)(1)(iii)÷(ii)×(i), or

$80,000/$120,000×$165) ....................... 110

* * * * *

[T.D. 6500, 25 FR 11675, Nov. 26, 1960, as

amended by T.D. 6497, 25 FR 10021, Oct. 20,

1960; T.D. 6676, 28 FR 10142, Sept. 17, 1963;

T.D. 6717, 29 FR 4092, Mar. 28, 1964; T.D.

6722, 29 FR 5073, Apr. 14, 1964; T.D. 6823,

30 FR 6340, May 6, 1965; T.D. 6885, 31 FR

7800, June 2, 1966; T.D. 6887, 31 FR 8786,

June 24, 1966; T.D. 8217, 53 FR 29673, Aug.

8, 1988; T.D. 8357, 56 FR 40545, Aug. 15,

1991; T.D. 8357, 57 FR 10290, Mar. 25, 1992;

T.D. 8581, 59 FR 66180, Dec. 23, 1994]

BILLING CODE 1505–01–D

DEPARTMENT OF THE INTERIOR

Office of Surface Mining Reclamation

and Enforcement

30 CFR Part 924

[SPATS No. MS–013–FOR]

Mississippi Regulatory Program

AGENCY: Office of Surface Mining

Reclamation and Enforcement (OSM),

Interior.

ACTION: Final rule; approval of

amendment.

SUMMARY: OSM is approving, with

additional requirements, an amendment

to the Mississippi regulatory program

(hereinafter referred to as the

‘‘Mississippi program’’) under the

Surface Mining Control and

Reclamation Act of 1977 (SMCRA).

Mississippi proposed to replace all of its

currently approved regulations for

surface coal mining and reclamation

operations with new regulations. The

amendment is intended to revise the

Mississippi program to be consistent

with the corresponding Federal

regulations, provide additional

safeguards, and improve operational

efficiency.

EFFECTIVE DATE: August 13, 1998.

FOR FURTHER INFORMATION CONTACT:

Arthur W. Abbs, Director, Birmingham

Field Office, Office of Surface Mining

Reclamation and Enforcement, 135

Gemini Circle, Suite 215, Homewood,

Alabama 35209. Telephone: (205) 290–

7282. Internet: aabbs@osmre.gov.

SUPPLEMENTARY INFORMATION:

I. Background on the Mississippi Program

II. Submission of the Proposed Amendment

III. Director’s Findings

IV. Summary and Disposition of Comments

V. Director’s Decision

VI. Procedural Determinations

I. Background on the Mississippi

Program

On September 4, 1980, the Secretary

of the Interior approved the Mississippi

program. Background information on

the Mississippi program, including the

Secretary’s findings and the disposition

of comments, can be found in the

September 4, 1980, Federal Register (45

FR 58520). Subsequent actions

concerning the Mississippi program can

be found at 30 CFR 924.10, 924.16, and

924.17.

II. Submission of the Proposed

Amendment

By letter dated March 26, 1998

(Administrative Record No. MS–0355),

Mississippi submitted an amendment to

its program pursuant to SMCRA.

Mississippi submitted the amendment

in response to letters dated May 20,

1996, January 6, 1997, and June 17, 1997

(Administrative Record Nos. MS–0333,

MS–0336, and MS–0339, respectively),

that OSM sent to Mississippi in

accordance with 30 CFR 732.17(c); in

response to the required program

amendments at 30 CFR 924.16 (a) and

(e); and at its own initiative.

OSM announced receipt of the

proposed amendment in the April 14,

1998, Federal Register (63 FR 18173),

and in the same document opened the

public comment period and provided an

opportunity for a public hearing or

meeting on the adequacy of the

proposed amendment. The public

comment period closed on May 14,

1998. Because no one requested a public

hearing or meeting, none was held.

During its review of the amendment,

OSM identified concerns relating to

administrative and judicial review of

permit decisions, procedures for seeking

release of performance bond, surfaceand ground-water monitoring,

revegetation, cessation orders, formal

review of citations, and numerous

editorial-type errors. OSM notified

Mississippi of these concerns by letter

dated June 4, 1998 (Administrative

Record No. MS–0366).

Mississippi notified OSM by

telephone that it would not make

changes to the amendment at this time

and that OSM should proceed with the

publication of the final rule Federal

Register document.

III. Director’s Findings

Set forth below, pursuant to SMCRA

and the Federal regulations at 30 CFR

732.15 and 732.17, are the Director’s

findings concerning the amendment.

Detailed findings are only being made

for those regulations that require

additional explanation or that require

additional amendment. In general

provisions that are not discussed below

contain language that is the same as or

similar to the corresponding Federal

regulations. Any differences between

the State and Federal regulations are

either nonsubstantive or add detail not

contained in the Federal counterparts.

These differences do not adversely