Federal Register / Vol. 60, No. 1 / Tuesday, January 3, 1995 / Proposed Rules 83

Also, if the indemnification or

insurance is to pay chapter 42 tax, it

will be an act of self-dealing unless the

amounts are treated as compensation.

Special Analyses

It has been determined that these

proposed rules are not major rules as

defined in EO 12866. Therefore, a

regulatory assessment is not required. It

has also been determined that section

553(b) of the Administrative Procedure

Act (5 U.S.C. chapter 5) and the

Regulatory Flexibility Act (5 U.S.C.

chapter 6) do not apply to these

regulations, and, therefore, a Regulatory

Flexibility Analysis is not required.

Pursuant to section 7805(f) of the

Internal Revenue Code, a copy of these

proposed regulations will be submitted

to the Chief Counsel for Advocacy of the

Small Business Administration for

comment on its impact on small

business.

Comments and Requests for a Public

Hearing

Before these proposed regulations are

adopted as final regulations,

consideration will be given to any

written comments that are submitted

timely (preferably a signed original and

eight (8) copies) to the IRS. All

comments will be available for public

inspection and copying. A public

hearing may be scheduled if requested

in writing by any person that timely

submits written comments. If a public

hearing is scheduled, notice of the date,

time, and place for the hearing will be

published in the Federal Register.

Drafting Information

The principal author of these

proposed regulations is Terri Harris,

Office of the Assistant Chief Counsel

(Employee Benefits and Exempt

Organizations), IRS. However, personnel

from other offices of the IRS and

Treasury Department participated in

their development.

List of Subjects in 26 CFR Part 53

Excise taxes, Foundations,

Investments, Lobbying, Reporting and

recordkeeping requirements.

Proposed Amendments to the

Regulations

Accordingly, 26 CFR part 53 is

proposed to be amended as follows:

PART 53—FOUNDATION AND SIMILAR

EXCISE TAXES

Paragraph 1. The authority for part 53

continues to read as follows:

Authority: 26 U.S.C. 7805.

Par. 2. Section 53.4941(d)-2 is

amended as follows:

1. Paragraphs (f)(1) and (3) are

revised.

2. Paragraph (f)(4) is redesignated as

paragraph (f)(5).

3. New paragraph (f)(4) is added.

The additions and revisions read as

follows:

§ 53.4941(d)–2 Specific acts of selfdealing.

* * * * *

(f) Transfer or use of the income or

assets of a private foundation—(1) In

general. The transfer to, or use by or for

the benefit of, a disqualified person of

the income or assets of a private

foundation shall constitute an act of

self-dealing. For purposes of the

preceding sentence, the payment by a

private foundation of any tax imposed

on a foundation manager by chapter 42

shall be treated as a transfer of the

income or assets of a private foundation

for the benefit of a disqualified person

unless such payment is treated as part

of the compensation to such manager.

Similarly, the payment by a private

foundation of the premiums for an

insurance policy providing liability

insurance to a foundation manager for

chapter 42 taxes shall be an act of selfdealing under this paragraph unless

such premiums are treated as part of the

compensation paid to such manager.

* * * * *

(3) Indemnification of foundation

managers against liability for defense in

civil proceedings. Except as provided in

§ 53.4941(d)-3(c), section 4941(d)(1)

shall not apply to the indemnification

by a private foundation of a foundation

manager, with respect to the manager’s

defense in any civil judicial or civil

administrative proceeding arising out of

the manager’s performance of services

on behalf of the foundation, against all

expenses (other than taxes, penalties, or

expenses of correction) including

attorneys’ fees, if—

(i) Such expenses are reasonably

incurred by the manager in connection

with such proceeding; and

(ii) The manager has not acted

willfully and without reasonable cause

with respect to the act or failure to act

which led to such proceeding or to

liability for tax under chapter 42.

Similarly, except as provided in

§ 53.4941(d)-3(c), section 4941(d)(1)

shall not apply to premiums for

insurance to reimburse a foundation for

an indemnification payment allowed

pursuant to this paragraph (f)(3)(ii).

Neither shall such indemnification or

payment of insurance be treated as part

of the compensation paid to such

manager. Thus, a private foundation

shall not be engaged in an act of selfdealing if the foundation purchases a

single insurance policy to provide its

managers both the noncompensatory

and the compensatory coverage

discussed in this paragraph (f), provided

that the total insurance premium is

allocated to include, in each manager’s

compensation, that manager’s portion of

the premium attributable to the

compensatory coverage, which is the

coverage for the amount of penalty, tax,

expense of correction, judgment or

expense, that is owed by the manager.

(4) Indemnification. For purposes of

this paragraph (f), the term

indemnification shall include not only

reimbursement by the foundation for

losses and expenses that the foundation

manager has already incurred but also

direct payment by the foundation of

such expenses as the expenses arise.

* * * * *

Margaret Milner Richardson,

Commissioner of Internal Revenue.

[FR Doc. 94–31666 Filed 12–30–94; 8:45 am]

BILLING CODE 4830–01–U

26 CFR Part 301

[GL–0038–93]

RIN 1545–AS61

Seals of Office

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice of Proposed Rulemaking.

SUMMARY: This document contains a

proposed regulatory amendment

relating to the authority contained

within section 7514 of the Internal

Revenue Code to prescribe or modify

seals of office for the district directors,

service center directors, and compliance

center directors (directors) and other

officers or employees of the Treasury

Department to whom any of the

functions of the Secretary of the

Treasury are or may be delegated. The

proposed regulations provide an

additional or alternative uniform seal to

various Internal Revenue offices

throughout the country. This

amendment is intended to eliminate the

need to publish facsimiles of seals in the

Federal Register as new internal

revenue offices are established or

relocated or as replacement of existing

seals becomes necessary.

DATES: Written comments and requests

for a public hearing must be received by

March 6, 1995.

ADDRESSES: Send submissions to:

CC:DOM:CORP:T:R (GL–0038- 93), room

5228, Internal Revenue Service, P.O.B.
84 Federal Register / Vol. 60, No. 1 / Tuesday, January 3, 1995 / Proposed Rules

7604, Ben Franklin Station, Washington,

DC 20044. In the alternative,

submissions may be hand delivered

between the hours of 8 a.m. and 5 p.m.

to: CC:DOM:CORP:T:R (GL–0038–93),

Courier’s Desk, Internal Revenue

Service, 1111 Constitution Avenue, NW,

Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Robert A. Walker, (202) 622–4208 (not

a toll-free call).

SUPPLEMENTARY INFORMATION:

Background

This document contains proposed

regulations that amend the Procedure

and Administration Regulations (26 CFR

301) under section 7514 of the Internal

Revenue Code (Code) and is issued

under the authority contained in section

7805 (68A Stat. 917; 26 U.S.C. 7805).

Section 7514 was enacted by section 91

of the Technical Amendments Act of

1958 (Pub. L. 85–866, 72 Stat. 1667) and

amended by section 1906(b)(13)(A), (M)

of the Tax Reform Act of 1976 (Pub. L.

94–455, 90 Stat. 1834, 1835). The IRS

desired to streamline the process by

which documents to be presented as

evidence in court could be

authenticated. Authentication is a

process by which documents under seal

can be admitted in court as evidence of

the act, transaction, or occurrence it

represents without laying an evidentiary

foundation that often may have

involved costly expert witnesses and

courtroom time. Prior to passage of

section 7514, documents needing a seal

for authentication were mailed to the

Internal Revenue headquarters in

Washington, DC, in a cumbersome

process that was not only time

consuming, but also subjected important

original documents to the possibility of

being lost or misplaced. The statute

provided that courts could take judicial

notice of official seals, facsimiles of

which had been duly published in the

Federal Register. This last requirement

itself has become a cumbersome

process.

Explanation of Provisions

Section 301.7514–1 currently

provides for several different seals of

office for various offices of internal

revenue throughout the country. The

proposed amendment to the regulations

would permit these Internal Revenue

offices to keep the official seal currently

in use, but would provide for a uniform

Internal Revenue Service seal for use

when replacement of the current seal

becomes necessary, or for other reasons

such as the establishment of a new

office or the relocation of an office to a

new geographic area. By providing a

uniform seal, it would no longer be

necessary to amend the Treasury

regulations to name the specific office

each time an office is established or

relocated or an existing office needs a

new seal. The uniform seal could be

used by all internal revenue offices

throughout the country.

Special Analyses

It has been determined that this notice

of proposed rulemaking is not a

significant regulatory action as defined

in EO 12866. Therefore, a regulatory

assessment is not required. It has also

been determined that section 553(b) of

the Administrative Procedure Act (5

U.S.C. chapter 5) and the Regulatory

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

not apply to these regulations, and,

therefore, a Regulatory Flexibility

Analysis is not required. Pursuant to

section 7805(f) of the Internal Revenue

Code, this notice of proposed

rulemaking will be submitted to the

Chief Counsel for Advocacy of the Small

Business Administration for comment

on its impact on small business.

Comments and Request for a Public

Hearing

Before these proposed regulations are

adopted as final regulations,

consideration will be given to any

written comments that are submitted

timely (preferably a signed original and

eight copies) to the IRS. All comments

will be available for public inspection

and copying. A public hearing may be

scheduled if requested in writing by a

person that timely submits written

comments. If a public hearing is

scheduled, notice of the date, time, and

place for the hearing will be published

in the Federal Register.

Drafting Information

The principal author of these

regulations is Robert A. Walker of the

General Litigation Division, Office of

Chief Counsel, Internal Revenue

Service. However, other personnel from

the IRS and the Treasury Department

participated in their development.

List of Subjects in 26 CFR Part 301

Employment taxes, Estate taxes,

Excise taxes, Gift taxes, Income taxes,

Penalties, Reporting and recordkeeping

requirements.

Proposed Amendments to the

Regulations

Accordingly, 26 CFR part 301 is

proposed to be amended as follows:

PART 301—PROCEDURE AND

ADMINISTRATION

Paragraph 1. The authority citation

for part 301 continues to read in part as

follows:

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

Par. 2. Section 301.7514–1 is

amended as follows:

a. Paragraphs (a)(2) through (7) are

redesignated (a)(3) through (8).

b. New paragraph (a)(2) is added.

The addition reads as follows:

§ 301.7514–1 Seals of office.

(a) * * *

(2) Establishment of uniform seal. In

addition to the seals of office prescribed

for those offices set forth in paragraphs

(a)(3) through (a)(8) of this section, a

uniform seal for use by any office of

internal revenue is established. This

uniform seal may be used by any office

of internal revenue set forth in

paragraphs (a)(3 through (8) of this

section, as well as by any other office of

the internal revenue designated to use a

seal by the Commissioner. The uniform

seal is described and illustrated below

as follows: A circle within which shall

appear that part of the seal of the

Treasury Department represented by the

shield with a dark background. Exterior

to this circle and within a circumscribed

circle forming the exterior of the seal

shall appear words describing the

specific office of internal revenue

authorized to use the seal under this

§ 301.7514–1. This paragraph (a)(2) is

effective on date of publication of Final

Regulations in the Federal Register.

* * * * *
Federal Register / Vol. 60, No. 1 / Tuesday, January 3, 1995 / Proposed Rules 85

BILLING CODE 4830–01–C

Margaret Milner Richardson,

Commissioner of Internal Revenue.

[FR Doc. 94–31984 Filed 12–30–95; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF EDUCATION

Office of Elementary and Secondary

Education

34 CFR Parts 200, 201, 203, and 212

Title I—Helping Disadvantaged

Children Meet High Standards

AGENCY: Department of Education.

ACTION: Notice of meetings to conduct a

negotiated rulemaking process.

SUMMARY: The Assistant Secretary for

Elementary and Secondary Education

(Assistant Secretary) of the U.S.

Department of Education (Department)

will convene a negotiating group—

including Federal, State, and local

education administrators, parents,

teachers, and members of local boards of

education—to participate in a

negotiated rulemaking process prior to

publishing proposed regulations to

implement the programs under Title I

(formerly Chapter 1 of Title I), of the

Elementary and Secondary Education

Act of 1965, as recently amended.

Programs under Title I are designed to

help disadvantaged children meet high

academic standards and include

programs operated by local educational

agencies in high-poverty schools (Part

A), Even Start family literacy programs

(Part B), programs for migratory

children (Part C), and prevention and

intervention programs for children and

youth who are neglected, delinquent, or

at risk of dropping out (Part D). The

group will review draft proposed

regulations developed on selected issues

involving a minimum of two key

provisions of the statute—‘‘schoolwide

programs’’ and ‘‘standards and

assessment.’’

DATES: The meetings of the negotiating

group are scheduled for January 11–13

and January 18–19, 1995.

ADDRESSES: The meetings will be held at

the Sheraton City Centre, 1143 New

Hampshire Avenue, N.W., Washington,

D.C. 20047. Other meetings may be

recommended and called by the

Department, if necessary. The meetings

are open to the public for individuals

who wish to observe the process.

FOR FURTHER INFORMATION CONTACT:

Mary Jean LeTendre, Director,

Compensatory Education Programs,

Office of Elementary and Secondary

Education, U.S. Department of

Education, 600 Independence Avenue

S.W., Portals Building, room 4400,

Washington, D.C. 20202–6132.

Individuals who use a

telecommunications device for the deaf

(TDD) may call the Federal Information

Relay Service (FIRS) at 1–800–877–8339

between 8 a.m. and 8 p.m., Eastern time,

Monday through Friday.

SUPPLEMENTARY INFORMATION:

Background

On October 20, 1994, the President

signed into law Pub. L. 103–382, the

Improving America’s Schools Act of

1994 (IASA), amending the Elementary

and Secondary Education Act of 1965

(ESEA). The IASA reauthorizes—for a

five-year period—programs currently

under Chapter 1 of Title I of the ESEA.

Section 1601 of Title I of the ESEA

requires that, before publishing any

proposed regulations to implement

programs under Title I, the Assistant

Secretary establish a negotiated

rulemaking process on issues involving

a minimum of two key provisions in the

statute—‘‘schoolwide programs’’ and

‘‘standards and assessment.’’ The

regulatory negotiation process is to be

conducted in a timely manner to ensure

that final regulations are issued by the

Secretary of Education not later than

July 1, 1995. In accordance with section

1601(b)(4)(B) of the ESEA, the process is

not subject to the Federal Advisory

Committee Act, but will otherwise

follow the provisions of the Negotiated

Rulemaking Act of 1990 (5 U.S.C. 561 et

seq.).

On October 28, 1994, the Assistant

Secretary published a notice in the

Federal Register (59 FR 54372)

requesting advice and recommendations

on regulatory issues under Title I of the

ESEA. The Assistant Secretary has

selected individuals to participate in the

negotiated rulemaking sessions from

among the individuals and groups