Federal Register / Vol. 66, No. 116 / Friday, June 15, 2001 / Rules and Regulations 32541

Interim Rule

How Will the Department of State

Amend Its Regulations?

This rule and the INS rule published

elsewhere in this issue amend the list of

countries found at 22 CFR 41.2(i) whose

citizens the Department and the INS

have determined are not eligible for the

transit without visa (TWOV) program.

Administrative Procedure Act

The Department is implementing this

rule as an interim rule, with a 60-day

provision for post-promulgation public

comments, based on the ‘‘good cause’’

exceptions found at 5 U.S.C. 553(b)(B)

and 553(d)(3). Since this rule bestows a

benefit for Russian nationals traveling to

the U.S., the Department is

implementing this rule immediately.

Regulatory Flexibility Act

The Department of State, in

accordance with the Regulatory

Flexibility Act (5 U.S.C. 605(b)), has

reviewed this regulation and, by

approving it, certifies that this rule will

not have a significant economic impact

on a substantial number of small

entities.

Unfunded Mandates Reform Act of 1995

This rule will not result in the

expenditure by State, local and tribal

governments, in the aggregate, or by the

private sector, of $100 million or more

in any year and it will not significantly

or uniquely affect small governments.

Therefore, no actions were deemed

necessary under the provisions of the

Unfunded Mandates Reform Act of

1995.

Small Business Regulatory Enforcement

Fairness Act of 1996

This rule is not a major rule as

defined by section 804 of the Small

Business Regulatory Enforcement Act of

1996. This rule will not result in an

annual effect on the economy of $100

million or more; a major increase in

costs or prices; or significant adverse

effects on competition, employment,

investment, productivity, innovation, or

on the ability of United States-based

companies to compete with foreignbased companies in domestic and

export markets.

Executive Order 12866

Although this rule is promulgated in

conjunction with the Immigration and

Naturalization Service, a domestic

agency, the Department of State does

not consider this rule to be a

‘‘significant regulatory action’’ under

Executive Order 12866, section 3(f)

Regulatory Planning and Review.

Therefore, in accordance with the letter

to the Department of State of February

4, 1994 from the Director of

Management and Budget, it does not

require review by the Office of

Management and Budget.

Executive Order 13132

This regulation will not have

substantial direct effects on the States,

on the relationship between the national

government and the States, or on the

distribution of power and

responsibilities among the various

levels of government. Therefore, in

accordance with section 6 of Executive

Order 13132, it is determined that this

rule does not have sufficient federalism

implications to warrant the preparation

of a federalism summary impact

statement.

Paperwork Reduction Act

This rule does not impose any new

reporting or record-keeping

requirements. The information

collection requirement (Form OF–156)

contained by reference in this rule was

previously approved for use by the

Office of Management and Budget

(OMB) under the Paperwork Reduction

Act.

List of Subjects in 22 CFR Part 41

Aliens, Foreign officials, Passports

and visas.

In view of the foregoing, the

Department amends 22 CFR as follows:

PART 41—[AMENDED]

1. The authority citation for 22 CFR

part 41 continues to read as follows:

Authority: 8 U.S.C. 1104; Pub. L. 105–277,

112 Stat. 2681 et. seq.

2. Amend § 41.2 by revising paragraph

(i)(2) to read as follows:

§ 41.2 Waiver by Secretary of State and

Attorney General of passport and/or visa

requirements for certain categories of

nonimmigrants.

* * * * *

(i) * * *

(2) Notwithstanding the provisions of

paragraph (i)(1) of this section, this

waiver is not available to an alien who

is a citizen of: Afghanistan, Angola,

Bangladesh, Belarus, BosniaHerzegovina, Burma, Burundi, Central

African Republic, People’s Republic of

China, Colombia, Congo (Brazzaville),

India, Iran, Iraq, Libya, Nigeria, North

Korea, Pakistan,Sierra Leone, Somalia,

Sri Lanka, Sudan, or the Federal

Republic of Yugoslavia.

* * * * *

Dated: June 6, 2001.

Mary A. Ryan,

Assistant Secretary for Consular Affairs,

Department of State.

[FR Doc. 01–15051 Filed 6–14–01; 8:45 am]

BILLING CODE 4710–06–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Parts 1, 31, 301, and 602

[TD 8947]

RIN 1545–AY79

Penalties for Underpayments of

Deposits and Overstated Deposit

Claims

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final regulations and removal of

final regulations.

SUMMARY: This document makes

conforming amendments to certain final

regulations to reflect the removal of

final regulations relating to the penalty

for underpayment of deposits of taxes

and the penalty for overstated deposit

claims. These regulations are obsolete

due to amendments to section 6656 of

the Internal Revenue Code. The removal

of these regulations will not affect

taxpayers.

DATES: The amendments and removals

are effective June 15, 2001.

FOR FURTHER INFORMATION CONTACT:

Robin M. Tuczak, (202) 622–4940 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Background and Explanation of

Provisions

This document removes two sections

from the Procedure and Administration

Regulations (26 CFR part 301) relating to

penalties for underpayment of Federal

tax deposits and overstated deposit

claims under section 6656 of the

Internal Revenue Code. The Omnibus

Budget Reconciliation Act of 1989,

Public Law 101–239 (103 Stat. 2106,

1989) amended section 6656, modifying

the penalty rates relating to a failure to

make a Federal tax deposit and

removing the penalty relating to

overstatement of Federal tax deposits.

These changes have rendered

§§ 301.6656–1 and 301.6656–2 obsolete.

Section 301.6656–1 was revised and

§ 301.6656–2 was added by TD 7925,

published in the Federal Register for

December 13, 1983 (LR–311–81, 48 FR

5453). Section 301.6656–2 was added to

implement changes made by the

32542 Federal Register / Vol. 66, No. 116 / Friday, June 15, 2001 / Rules and Regulations

Economic Recovery Tax Act of 1981,

Public Law 97–34 (95 Stat. 172, 1981).

Section 301.6656–1 was revised to

remove outdated provisions relating to

deposits made before January 1, 1970,

based on the law in effect for those

deposits.

Section 301.6656–1 reflects that, at

the time it was revised, the penalty for

underpayment of deposits was five

percent of the amount of the

underpayment without regard to the

period during which the underpayment

continued, absent reasonable cause. The

Omnibus Budget Reconciliation Act of

1986, Public Law 99–509 (100 Stat.

1874, 1986) amended section 6656 to

impose a ten percent penalty for

underpayment. The Omnibus Budget

Reconciliation Act of 1989 further

amended this section to provide for a

penalty that is equal to an applicable

percentage of the amount of the

underpayment based on the duration of

the underpayment. This regulation does

not reflect the most recent amendments

to section 6656. Furthermore, all

relevant information regarding

underpayment penalties is put forth in

the code section or in other published

guidance. This regulation does not

provide any additional guidance

regarding the current underpayment

penalties as set forth in section 6656

and therefore may be removed.

Section 301.6656–2 explains and

expands upon former section 6656(b),

Overstated Deposit Claims. The

Omnibus Budget Reconciliation Act of

1989 removed former section 6656(b),

making this regulation obsolete.

In addition, § 301.6656–3 is

redesignated as § 301.6656–1. Further,

§§ 1.6302–1(d) and 1.6302–2(d) of the

Income Tax Regulations and

§§ 31.6302–1(m)(1) and 31.6302(c)–4(a)

of the Employment Tax Regulations are

revised to remove references to the

removed regulations under section

6656.

Effect on other Documents

The final regulations §§ 301.6656–1

and 301.6656–2 published in the

Federal Register for December 13, 1983

(LR–311–81, 48 FR 5453) are removed

as of June 15, 2001.

Special Analyses

It has been determined that the

removal of these regulations is not a

significant regulatory action as defined

in Executive Order 12866. Therefore, a

regulatory assessment is not required.

Because this rule merely removes

regulatory provisions made obsolete by

statute, prior notice and comment and a

delayed effective date are unnecessary

and contrary to the public interest. 5

U.S.C. 553(b)(B) and (d). Because no

notice of proposed rulemaking is

required, the Regulatory Flexibility Act

(5 U.S.C. chapter 6) does not apply.

Drafting Information

The principal author of the removal of

the regulations is Robin M. Tuczak of

the Office of Associate Chief Counsel,

Procedure and Administration

(Administrative Provisions and Judicial

Practice Division).

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, Gift

taxes, Income taxes, Penalties, Reporting

and recordkeeping requirements.

26 CFR Part 602

Reporting and recordkeeping

requirements.

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR parts 1, 31, 301,

and 602 are amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation

for part 1 continues to read in part as

follows:

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

Par. 2. In § 1.6302–1, paragraph (d) is

revised to read as follows:

§ 1.6302–1 Use of Government

depositaries in connection with corporation

income and estimated income taxes and

certain taxes of tax-exempt organizations.

* * * * *

(d) Failure to deposit. For provisions

relating to the penalty for failure to

make a deposit within the prescribed

time, see section 6656.

Par. 3. In § 1.6302–2, paragraph (d) is

revised to read as follows:

§ 1.6302–2 Use of Government

depositaries for payment of tax withheld on

nonresident aliens and foreign

corporations.

* * * * *

(d) Penalties for failure to make

deposits. For provisions relating to the

penalty for failure to make a deposit

within the prescribed time, see section

6656.

* * * * *

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. In § 31.6302–1, paragraph

(m)(1) is revised to read as follows:

§ 31.6302–1 Federal tax deposit rules for

withheld income taxes and taxes under the

Federal Insurance Contributions Act (FICA)

attributable to payments made after

December 31, 1992.

* * * * *

(m) * * * (1) Failure to deposit

penalty. For provisions relating to the

penalty for failure to make a deposit

within the prescribed time, see section

6656.

* * * * *

Par. 6. In § 31.6302(c)–4, paragraph

(a) is revised to read as follows:

§ 31.6302(c)–4 Cross references.

(a) Failure to deposit. For provisions

relating to the penalty for failure to

make a deposit within the prescribed

time, see section 6656.

* * * * *

PART 301—PROCEDURE AND

ADMINISTRATION

Par. 7. The authority citation for part

301 continues to read in part as follows:

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

§§ 301.6656–1 and 301.6656–2 [Removed]

Par. 8. Sections 301.6656–1 and

301.6656–2 are removed.

§ 301.6656–3 [Redesignated as

§ 301.6656–1]

Par. 9. Section 301.6656–3 is

redesignated as new § 301.6656–1.

PART 602—OMB CONTROL NUMBERS

UNDER THE PAPERWORK

REDUCTION ACT

Par. 10. The authority citation for part

602 continues to read as follows:

Authority: 26 U.S.C. 7805.

Par. 11. In § 602.101, paragraph (b) is

amended by removing the entries for

301.6656–1 and 301.6656–2 from the

table.

Federal Register / Vol. 66, No. 116 / Friday, June 15, 2001 / Rules and Regulations 32543

Approved: June 1, 2001.

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

Mark A. Weinberger,

Assistant Secretary of the Treasury.

[FR Doc. 01–14815 Filed 6–14–01; 8:45 am]

BILLING CODE 4830–01–P

PENSION BENEFIT GUARANTY

CORPORATION

29 CFR Parts 4022 and 4044

Benefits Payable in Terminated SingleEmployer Plans; Allocation of Assets

in Single-Employer Plans; Interest

Assumptions for Valuing and Paying

Benefits

AGENCY: Pension Benefit Guaranty

Corporation.

ACTION: Final rule.

SUMMARY: The Pension Benefit Guaranty

Corporation’s regulations on Benefits

Payable in Terminated Single-Employer

Plans and Allocation of Assets in

Single-Employer Plans prescribe interest

assumptions for valuing and paying

benefits under terminating singleemployer plans. This final rule amends

the regulations to adopt interest

assumptions for plans with valuation

dates in July 2001. Interest assumptions

are also published on the PBGC’s Web

site (http://www.pbgc.gov).

EFFECTIVE DATE: July 1, 2001.

FOR FURTHER INFORMATION CONTACT:

Harold J. Ashner, Assistant General

Counsel, Office of the General Counsel,

Pension Benefit Guaranty Corporation,

1200 K Street, NW., Washington, DC

20005, 202–326–4024. (For TTY/TDD

users, call the Federal relay service tollfree at 1–800–877–8339 and ask to be

connected to 202–326–4024.)

SUPPLEMENTARY INFORMATION: The

PBGC’s regulations prescribe actuarial

assumptions—including interest

assumptions—for valuing and paying

plan benefits of terminating singleemployer plans covered by title IV of

the Employee Retirement Income

Security Act of 1974. The interest

assumptions are intended to reflect

current conditions in the financial and

annuity markets.

Three sets of interest assumptions are

prescribed: (1) a set for the valuation of

benefits for allocation purposes under

section 4044 (found in Appendix B to

Part 4044), (2) a set for the PBGC to use

to determine whether a benefit is

payable as a lump sum and to determine

lump-sum amounts to be paid by the

PBGC (found in Appendix B to Part

4022), and (3) a set for private-sector

pension practitioners to refer to if they

wish to use lump-sum interest rates

determined using the PBGC’s historical

methodology (found in Appendix C to

Part 4022).

Accordingly, this amendment (1) adds

to Appendix B to Part 4044 the interest

assumptions for valuing benefits for

allocation purposes in plans with

valuation dates during July 2001, (2)

adds to Appendix B to Part 4022 the

interest assumptions for the PBGC to

use for its own lump-sum payments in

plans with valuation dates during July

2001, and (3) adds to Appendix C to

Part 4022 the interest assumptions for

private-sector pension practitioners to

refer to if they wish to use lump-sum

interest rates determined using the

PBGC’s historical methodology for

valuation dates during July 2001.

For valuation of benefits for allocation

purposes, the interest assumptions that

the PBGC will use (set forth in

Appendix B to part 4044) will be 6.60

percent for the first 20 years following

the valuation date and 6.25 percent

thereafter. These interest assumptions

are unchanged from those in effect for

June 2001.

The interest assumptions that the

PBGC will use for its own lump-sum

payments (set forth in Appendix B to

part 4022) will be 5.00 percent for the

period during which a benefit is in pay

status, 4.25 percent during the sevenyear period directly preceding the

benefit’s placement in pay status, and

4.00 percent during any other years

preceding the benefit’s placement in pay

status. These interest assumptions are

unchanged from those in effect for June

2001.

For private-sector payments, the

interest assumptions (set forth in

Appendix C to part 4022) will be the

same as those used by the PBGC for

determining and paying lump sums (set

forth in Appendix B to part 4022).

The PBGC has determined that notice

and public comment on this amendment

are impracticable and contrary to the

public interest. This finding is based on

the need to determine and issue new

interest assumptions promptly so that

the assumptions can reflect, as

accurately as possible, current market

conditions.

Because of the need to provide

immediate guidance for the valuation

and payment of benefits in plans with

valuation dates during July 2001, the

PBGC finds that good cause exists for

making the assumptions set forth in this

amendment effective less than 30 days

after publication.

The PBGC has determined that this

action is not a ‘‘significant regulatory

action’’ under the criteria set forth in

Executive Order 12866.

Because no general notice of proposed

rulemaking is required for this

amendment, the Regulatory Flexibility

Act of 1980 does not apply. See 5 U.S.C.

601(2).

List of Subjects

29 CFR Part 4022

Employee benefit plans, Pension

insurance, Pensions, Reporting and

recordkeeping requirements.

29 CFR Part 4044

Employee benefit plans, Pension

insurance, Pensions.

In consideration of the foregoing, 29

CFR parts 4022 and 4044 are amended

as follows:

PART 4022—BENEFITS PAYABLE IN

TERMINATED SINGLE-EMPLOYER

PLANS

1. The authority citation for part 4022

continues to read as follows:

Authority: 29 U.S.C. 1302, 1322, 1322b,

1341(c)(3)(D), and 1344.

2. In appendix B to part 4022, Rate Set

93, as set forth below, is added to the

table. (The introductory text of the table

is omitted.)

Appendix B to Part 4022—Lump Sum Interest Rates For PBGC Payments

* * * * *

Rate set

For plans with a valuataion

date Immediate

annuity rate

(percent)

Deferred annuities (percent)

On or after Before i1 i2 i3 n1 n2