Federal Register / Vol. 66, No. 31 / Wednesday, February 14, 2001 / Proposed Rules 10247

link by adding an ‘‘F’’ to the part number,

using an electro chemical deep etch method;

or a new upper lock link assembly, P/N

5965065–507; all made from die forged

aluminum material; per the applicable

service bulletin. Accomplishment of the

replacement constitutes terminating action

for the requirements of this AD.

Etch Inspection

(c) Perform a one-time etch inspection of

the NLG upper lock link to determine

whether the lock link is made from die forged

aluminum material (Condition 2), or from

plate or bar material (Condition 3); per the

applicable Boeing (McDonnell Douglas)

service bulletin listed in Table 1 of this AD.

Condition 2 (Die Forged Aluminum

Material)

(1) If the upper lock link is made from die

forged aluminum material, before further

flight, restore the finish and reidentify the

lock link by adding an ‘‘F’’ to the part

number, using an electro chemical deep etch

method, per the applicable service bulletin.

Identification of the lock link as being made

from die forged aluminum material

constitutes terminating action for the

requirements of this AD.

Condition 3 (Plate or Bar Material)

(2) If the NLG upper lock link is made from

plate or bar material, before further flight, do

either Condition 3, Option 1, as specified by

paragraph (c)(2)(i) of this AD, or Condition 3,

Option 2, as specified by paragraphs (c)(2)(ii)

and (c)(2)(iii) of this AD.

Condition 3, Option 1

(i) Permanently remove any discrepant

upper lock link and replace with a new

upper lock link, P/N 3914464–507; a

reidentified upper lock link by adding an ‘‘F’’

to the part number, using an electro chemical

deep etch method; or a new upper lock link

assembly, P/N 5965065–507; all made from

die forged aluminum material; per the

applicable service bulletin. Accomplishment

of the replacement constitutes terminating

action for the requirements of this AD.

Condition 3, Option 2

(ii) Restore the link finish and reidentify

the upper lock link by adding a black paint

stripe adjacent to the part number, indicating

that the part is not made from die forged

aluminum material, per the applicable

service bulletin.

(iii) Do a high frequency eddy current

(HFEC) or Type I fluorescent penetrant

inspection of the upper lock link assembly,

P/N 3914464—(any configuration), to detect

cracking of the assembly; per McDonnell

Douglas Alert Service Bulletin DC9–32A298,

Revision 02 [for Model DC–9, DC–9–80, and

C–9 (military) series airplanes; and Model

MD–88 airplanes], or Alert Service Bulletin

MD90–32A019, Revision 02 (for Model MD–

90 airplanes), both dated October 29, 1997;

as applicable.

Actions Following the Inspection Required

by Paragraph (c)(2)(iii)

(d) If no crack is detected during the HFEC

or Type I fluorescent penetrant inspection

required by paragraph (c)(2)(iii) of this AD,

within 2,500 landings on the NLG since

accomplishment of the inspection performed

per paragraph (c)(2)(iii) of this AD, as

applicable, do that inspection a second time.

If no crack is detected during this second

inspection, within 2,500 landings after

accomplishment of the second inspection,

replace the upper lock link with a new upper

lock link, P/N 3914464–507; a reidentified

upper lock link by adding an ‘‘F’’ to the part

number, using an electro chemical deep etch

method; or a new upper lock link assembly,

P/N 5965065–507; all made from die forged

aluminum material; per the applicable

Boeing (McDonnell Douglas) service bulletin

listed in Table 1 of this AD. Accomplishment

of the replacement action constitutes

terminating action for the requirements of

this AD.

(e) If any crack is detected during the HFEC

or Type I fluorescent penetrant inspection

required by paragraph (c)(2)(iii) or (d) of this

AD, before further flight, replace the

discrepant NLG upper lock link with a new

upper lock link, P/N 3914464–507; a

reidentified upper lock link by adding an ‘‘F’’

to the part number, using an electro chemical

deep etch method; or a new upper lock link

assembly, P/N 5965065–507; all made from

die forged aluminum material; per the

applicable Boeing (McDonnell Douglas)

service bulletin listed in Table 1 of this AD.

Accomplishment of the replacement

constitutes terminating action for the

requirements of this AD.

Alternative Methods of Compliance

(f)(1) An alternative method of compliance

or adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager, Los

Angeles Aircraft Certification Office (ACO),

FAA. Operators shall submit their requests

through an appropriate FAA Principal

Maintenance Inspector, who may add

comments and then send it to the Manager,

Los Angeles ACO.

Note 2: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Los Angeles ACO.

(2) Alternative methods of compliance,

approved previously in accordance with AD

97–02–10, amendment 39–9895, are

approved as alternative methods of

compliance with paragraph (f)(1) of this AD.

Special Flight Permits

(g) Special flight permits may be issued in

accordance with sections 21.197 and 21.199

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the airplane to

a location where the requirements of this AD

can be accomplished.

Issued in Renton, Washington, on February

8, 2001.

Donald L. Riggin,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 01–3700 Filed 2–13–01; 8:45 am]

BILLING CODE 4910–13–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1, 31 and 301

[REG–107186–00]

RIN 1545–AY50

Electronic Payee Statements

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice of proposed rulemaking

by cross reference to temporary

regulations and notice of public hearing.

SUMMARY: The IRS is proposing

regulations under sections 6041 and

6051 relating to the voluntary electronic

furnishing of payee statements on Forms

W–2. The proposed regulations also

provide rules under section 6050S

relating to the voluntary electronic

furnishing of statements to individuals

for whom Forms 1098–T, ‘‘Tuition

Payments Statement,’’ and Forms 1098–

E, ‘‘Student Loan Interest Statement,’’

are filed. The proposed regulations will

affect persons required by the foregoing

Internal Revenue Code sections to

furnish these statements (furnishers)

who wish to furnish these statements

electronically. The proposed regulations

will also affect individuals, principally

employees, students, and borrowers

(recipients), who consent to receive

these statements electronically. The text

of temporary regulations published in

the Rules and Regulations section of this

issue of the Federal Register serves as

the text of these proposed regulations.

These proposed regulations do not affect

the requirement to file copy A of Forms

W–2 with the Social Security

Administration or the requirement to

file Forms 1098–T or Forms 1098–E

with the IRS.

DATES: Written or electronic comments

and requests to speak (with outlines of

oral comments) at a public hearing

scheduled for June 4, 2001, at 10 a.m.

must be submitted by May 14, 2001.

ADDRESSES: Send submissions to:

CC:M&SP:RU (REG–107186–00), room

5226, Internal Revenue Service, POB

7604, Ben Franklin Station, Washington,

DC 20044. Submissions may be hand

delivered Monday through Friday

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

to: CC:M&SP:RU (REG–107186–00),

Courier’s Desk, Internal Revenue

Service, 1111 Constitution Avenue,

NW., Washington, DC. Alternatively,

taxpayers may submit comments

electronically via the Internet by

selecting the ‘‘Tax Regulations’’ option

on the IRS Home Page, or by submitting

comments directly to the IRS Internet

10248 Federal Register / Vol. 66, No. 31 / Wednesday, February 14, 2001 / Proposed Rules

site at http://www.irs.gov/tax_regs/

regslist.html. The public hearing will be

held in the IRS Auditorium, Seventh

Floor, Internal Revenue Service

Building, 1111 Constitution Avenue,

NW., Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Concerning the regulations, Laura C.

Nash (202) 622–4910; concerning

submission of comments, the hearing,

and/or to be placed on the building

access list to attend the hearing, Sonya

Cruse (202) 622–7180 (not toll-free

numbers).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

The collection of information

contained in this notice of proposed

rulemaking has been submitted to the

Office of Management and Budget for

review in accordance with the

Paperwork Reduction Act of 1995 (44

U.S.C. 3507(d)). Comments on the

collection of information should be sent

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, with copies to

the Internal Revenue Service, Attn: IRS

Reports Clearance Officer,

W:CAR:MP:FP:S:O, Washington, DC

20224. Comments on the collection of

information should be received by April

16, 2001. Comments are specifically

requested concerning:

Whether the proposed collection of

information is necessary for the proper

performance of the functions of the

Internal Revenue Service, including

whether the information will have

practical utility;

The accuracy of the estimated burden

associated with the proposed collection

of information (see below);

How the quality, utility, and clarity of

the information to be collected may be

enhanced;

How the burden of complying with

the proposed collection of information

may be minimized, including through

the application of automated collection

techniques or other forms of information

technology; and

Estimates of capital or start-up costs

and costs of operation, maintenance,

and purchase of services to provide

information.

The collections of information in

these proposed regulations are in

§§ 1.6041–2(a)(5), 1.6050S–1(a),

1.6050S–2(a), and 31.6051–1(i). These

temporary regulations state that

furnishers may provide the written

statements required by sections 6041(d),

6050S(d), and 6051 in an electronic

format in lieu of a paper format. In

addition, the proposed regulations

provide furnishers with a method to

furnish a statement in connection with

a Form 1098-T or Form 1098-E under

section 6050S(d), or a Form W–2 under

section 6041(d) or 6051, electronically

using website technology. In general, a

furnisher may furnish the statement

electronically using the method

described in the proposed regulations if

the recipient consents to receive the

statement electronically, and if the

furnisher makes certain disclosures to

the recipient, annually notifies the

recipient that the statement is available

on a website, and provides access to the

statement on that website for a

prescribed period of time. This

collection of information is required

only for persons who wish to furnish

the statements electronically using the

method described in the proposed

regulations. The likely respondents are

businesses, other for-profit institutions,

and eligible educational institutions.

Estimated total annual reporting/

recordkeeping burden: 2,844,950 hours.

Estimated average annual burden

hours per response: 6 minutes.

Estimated number of responses:

28,449,495.

Estimated annual frequency of

responses: Once.

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

assigned by the Office of Management

and Budget.

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

Temporary regulations in the Rules

and Regulations section of this issue of

the Federal Register amend the

Regulations on Income Taxes (26 CFR

part 1) relating to sections 6041 and

6050S(d), the Regulations on

Employment Taxes and Collection of

Income Tax at Source (26 CFR part 31)

relating to section 6051, and the

Regulations on Procedure and

Administration (26 CFR part 301)

relating to section 6724. The text of

those temporary regulations also serves

as the text of these proposed

regulations. The preamble to the

temporary regulations explains the

regulations.

Special Analyses

It has been determined that this notice

of proposed rulemaking is not a

significant regulatory action as defined

in Executive Order 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) does not apply

to these regulations. An initial

regulatory flexibility analysis has been

prepared for this notice of proposed

rulemaking under 5 U.S.C. 603 and is

set forth under the heading ‘‘Initial

Regulatory Flexibility Act Analysis’’ in

this preamble. Pursuant to section

7805(f), 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.

Initial Regulatory Flexibility Act

Analysis

This initial analysis is required under

the Regulatory Flexibility Act. (5 U.S.C.

chapter 6). The collection of information

contained in §§ 1.6041–2(a)(5), 1.6050S–

1(a), 1.6050S–2(a), and 31.6051–1(i) is

required if a furnisher implements the

method described in the proposed

regulations to furnish statements

electronically.

The types of small entities to which

the proposed regulations may apply are

small eligible educational institutions

(such as colleges and universities),

certain payees of interest on qualified

education loans, and small employers. It

is estimated that furnishers will seek

consents from approximately 28,449,495

individuals to receive these statements

electronically. There are no known

Federal rules that duplicate, overlap, or

conflict with these proposed

regulations. The regulations proposed

are considered to have the least

economic effect on small entities of all

alternatives considered.

Comments and Public Hearing

Before these proposed regulations are

adopted as final regulations,

consideration will be given to any

electronic or written comments (a

signed original and eight (8) copies) that

are submitted timely to the IRS. The IRS

and Treasury Department request

comments on the clarity of the proposed

rules and how they can be made easier

to understand. All comments will be

available for public inspection and

copying.

A public hearing has been scheduled

for June 4, 2001, beginning at 10 a.m.,

in the IRS Auditorium of the Internal

Revenue Building, 1111 Constitution

Avenue, NW., Washington, DC. Due to

Federal Register / Vol. 66, No. 31 / Wednesday, February 14, 2001 / Proposed Rules 10249

building security procedures, visitors

must enter at the 10th Street entrance,

located between Constitution and

Pennsylvania Avenues, NW. In

addition, all visitors must present photo

identification to enter the building.

Because of access restrictions, visitors

will not be admitted beyond the

immediate entrance area more than 15

minutes before the hearing starts. For

information about having your name

placed on the building access list to

attend the hearing, see the FOR FURTHER

INFORMATION CONTACT section of this

preamble.

The rules of 26 CFR 601.601(a)(3)

apply to the hearing. Persons who wish

to present oral comments at the hearing

must submit written comments and an

outline of the topics to be discussed and

the time to be devoted to each topic

(signed original and eight (8) copies) by

May 14, 2001. A period of ten minutes

will be allotted to each person for

making comments. An agenda showing

the scheduling of speakers will be

prepared after the deadline for receiving

outlines has passed. Copies of the

agenda will be available free of charge

at the hearing.

Drafting Information

The principal author of these

proposed regulations is Eric Lucas,

formerly of the Office of Associate Chief

Counsel (Procedure and

Administration). 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 31

Employment taxes, Income taxes,

Penalties, Pensions, Railroad retirement,

Reporting and recordkeeping

requirements, Social security,

Unemployment compensation.

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 parts 1, 31, and

301 are proposed to be amended as

follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation

for part 1 is amended by adding entries

in numerical order to read in part as

follows:

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

Section 1.6041–2 also issued under 26

U.S.C. 6041(d). * * *

Section 1.6050S–1 also issued under 26

U.S.C. 6050S(g).

Section 1.6050S–2 also issued under 26

U.S.C. 6050S(g). * * *

Par. 2. Section 1.6041–2 is amended

by adding a new paragraph (a)(5) to read

as follows:

§ 1.6041–2 Return of information as to

payments to employees.

(a) * * *

(5) [The text of proposed paragraph

(a)(5) is the same as the text of § 1.6041–

2T(a)(5) published elsewhere in this

issue of the Federal Register].

* * * * *

Par. 3. Sections 1.6050S–1 and

1.6050S–2 are added to read as follows:

§ 1.6050S–1 Information reporting for

payments and reimbursements or refunds

of qualified tuition and related expenses.

[The text of these proposed

regulations is the same as the text of

§ 1.6050S–1T published elsewhere in

this issue of the Federal Register].

§ 1.6050S–2 Information reporting for

payments of interest on qualified education

loans.

[The text of these proposed

regulations is the same as the text of

§ 1.6050S–2T published elsewhere in

this issue of the Federal Register].

PART 31—EMPLOYMENT TAXES AND

COLLECTION OF INCOME TAX AT

SOURCE

Par. 4. The authority citation for part

31 continues to read in part as follows:

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

Par. 5. Section 31.6051–1 is amended

by:

1. Redesignating paragraph (i) as

paragraph (j).

2. Adding a new paragraph (i).

The addition reads as follows:

§ 31.6051–1 Statements for employees.

* * * * *

(i) [The text of proposed paragraph (i)

is the same as the text of § 31.6051–1T(j)

published elsewhere in this issue of the

Federal Register].

* * * * *

PART 301—PROCEDURE AND

ADMINISTRATION

Par. 6. The authority citation for part

301 continues to read in part as follows:

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

Par. 7. Section 301.6724–1 is

amended by adding a new paragraph

(d)(3) to read as follows:

§ 301.6724–1 Reasonable cause.

* * * * *

(d) * * *

(3) [The text of proposed paragraph

(d)(3) is the same as the text of

§ 301.6724–1T(d)(3) published

elsewhere in this issue of the Federal

Register].

* * * * *

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

[FR Doc. 01–1293 Filed 2–13–01; 8:45 am]

BILLING CODE 4830–01–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[REG–101520–97]

RIN 1545–AV01

Return of Property in Certain Cases

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document contains

proposed regulations relating to the

return of property in certain cases. The

proposed regulations reflect changes

made to section 6343 of the Internal

Revenue Code of 1986 by the Taxpayer

Bill of Rights 2. The proposed

regulations also reflect certain changes

affecting levies enacted by the Internal

Revenue Service Restructuring and

Reform Act of 1998. The proposed

regulations affect taxpayers seeking the

return of property from the IRS.

DATES: Written comments and requests

for a public hearing must be received by

May 15, 2001.

ADDRESSES: Send submissions to:

CC:M&SP:RU (REG–101520–97), room

5226, Internal Revenue Service, POB

7604, Ben Franklin Station, Washington,

DC 20044. In the alternative,

submissions may be hand delivered to:

CC:M&S:RU (REG–101520–97), room

5226, Internal Revenue Service, 1111

Constitution Avenue NW., Washington,

DC. Taxpayers may also submit

comments electronically via the Internet

by selecting the ‘‘Tax Regs’’ option on

the IRS Home Page, or by submitting

comments directly to the IRS Internet

site at http://www.irs.gov/prod/

taxlregs/regslist.html.

FOR FURTHER INFORMATION CONTACT:

Kevin B. Connelly, (202) 622–3630 (not

a toll-free number).