33464 Federal Register / Vol. 66, No. 121 / Friday, June 22, 2001 / Rules and Regulations

qualifies for purposes of the provisions

of this paragraph (e)(2) if, immediately

prior to becoming a new member,

either—

(A) It was the common parent of a

consolidated group; or

(B) It was not required to join in the

filing of a consolidated return.

(iv) Examples. The provisions of this

paragraph (e)(2) may be illustrated by

the following examples:

Example 1. Individual A owns 100 percent

of the stock of X, a corporation that is not a

member of a consolidated group and files

separate tax returns on a calendar year basis.

On January 31 of year 1, X becomes a

member of the Y consolidated group, which

also files returns on a calendar year basis. X

is a qualified new member as defined in

paragraph (e)(2)(iii)(B) of this section

because, immediately prior to becoming a

new member of the Y consolidated group, X

was not required to join in the filing of a

consolidated return. As a result of its

becoming a new member of Group Y, X’s

separate return for the short taxable year

(January 1 of year 1 through January 31 of

year 1) is due September 15 of year 2 (with

extensions). See § 1.1502–76(c). Group Y’s

consolidated return is also due September 15

of year 2 (with extensions). See § 1.1502–

76(c). Solely for the purpose of complying

with the twelve-month requirement for

making an application for a tentative

carryback adjustment under section 6411(a),

X’s taxable year for the separate return year

is treated as ending on December 31 of year

1. X’s application for a tentative carryback

adjustment is therefore due on or before

December 31 of year 2.

Example 2. Assume the same facts as in

Example 1 except that immediately prior to

becoming a new member of Group Y, X was

a member of the Z consolidated group.

Because X was required to join in the filing

of the consolidated return for Group Z, X is

not a qualified new member as defined in

paragraph (e)(2)(iii) of this section. X’s items

for the one-month period will be included in

the consolidated return for Group Z. Group

Z’s application for a tentative carryback

adjustment, if any, continues to be due

within 12 months of the end of its taxable

year, which is not affected by X’s change in

status as a new member of Group Y.

(v) Effective date. The provisions of

this paragraph (e)(2) apply for

applications by new members of

consolidated groups for tentative

carryback adjustments resulting from

net operating losses, net capital losses,

or unused business credits arising in

separate return years of new members

that begin on or after January 1, 2001.

§ 1.1502–78T [Removed]

Par. 3. Section 1.1502–78T is

removed.

Approved: June 13, 2001.

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

Mark A. Weinberger,

Assistant Secretary of the Treasury.

[FR Doc. 01–15576 Filed 6–21–01; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 301

[TD 8951]

RIN 1545–AV00

Withdrawal of Notice of Federal Tax

Lien in Certain Circumstances

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final regulation.

SUMMARY: This document contains final

regulations relating to the withdrawal of

notices of federal tax liens in certain

circumstances. The final regulations

reflect changes made to section 6323 of

the Internal Revenue Code of 1986 by

the Taxpayer Bill of Rights 2. The final

regulations affect all taxpayers seeking

withdrawals of notices of federal tax

liens.

EFFECTIVE DATE: June 22, 2001.

FOR FURTHER INFORMATION CONTACT:

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

a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

This document contains amendments

to the Procedure and Administration

Regulations (26 CFR part 301) relating to

the withdrawal of notices of federal tax

liens under section 6323 of the Internal

Revenue Code (Code). Section 501(a) of

the Taxpayer Bill of Rights 2 (TBOR2),

Public Law 104–168, 110 Stat. 1452

(1996), amended section 6323 to

authorize the Secretary to withdraw a

notice of federal tax lien in certain

limited circumstances. Section 501(a)

also requires the Secretary to notify

credit reporting agencies, financial

institutions and creditors of the

withdrawal upon the written request of

the taxpayer. On June 30, 1999, a notice

of proposed rulemaking reflecting these

changes was published in the Federal

Register (64 FR 35102). Several parties

commented on the notice of proposed

rulemaking and a hearing was held on

November 30, 1999. The final

regulations are adopted with minor

changes.

Explanation of Provisions

Section 501(a) of TBOR2 amended

section 6323 of the Code by authorizing

the Secretary to withdraw a notice of

federal tax lien under certain conditions

and providing that upon written request

of the taxpayer the Secretary will notify

any credit reporting agency and any

financial institution or creditor

identified by the taxpayer. These

regulations implement section 501(a).

The proposed regulations provided

that the district director had the

authority to withdraw a notice of federal

tax lien if the district director

determined that one of the four

conditions enumerated in paragraph (b)

of the regulations existed. Because of

the reorganization of the Internal

Revenue Service (IRS), which

eliminated the district director position,

the final regulations provide that the

Commissioner or his delegate

(Commissioner) may withdraw a notice

of federal tax lien under the proper

conditions.

The notice of federal tax lien is

withdrawn by filing a notice of

withdrawal in the office in which the

notice of federal tax lien is filed and

providing the taxpayer with a copy of

the notice. Following the withdrawal of

a notice of federal tax lien, chapter 64

of subtitle F, relating to collection, is

applied as if the IRS had never filed a

notice of federal tax lien. The

withdrawal of a notice of federal tax lien

does not affect the underlying tax lien.

The withdrawal simply relinquishes any

lien priority the IRS had obtained under

section 6323 of the Code when the IRS

filed the notice being withdrawn.

Paragraph (b) of the regulations

provides that the Commissioner has the

authority to withdraw a notice of federal

tax lien if one of the following

conditions exists: (1) The filing of the

notice of federal tax lien was premature

or otherwise not in accordance with the

administrative procedures of the

Secretary; (2) the taxpayer has entered

into an agreement under section 6159 to

satisfy the liability for which the lien

was imposed by means of installment

payments, unless the agreement by its

terms provides that the notice will not

be withdrawn; (3) the withdrawal of

notice will facilitate collection of the tax

liability for which the lien was imposed;

or (4) the withdrawal of notice is in the

best interests of the taxpayer and the

United States.

A new example has been added

(Example 1) that illustrates when the

Commissioner may withdraw a notice of

federal tax lien under paragraph (b)(1)

because the IRS failed to follow

administrative procedures when filing

Federal Register / Vol. 66, No. 121 / Friday, June 22, 2001 / Rules and Regulations 33465

notice. Each example now refers to just

one of the four withdrawal criteria

under paragraph (b)(1). In addition, the

examples have been renumbered to

correspond to the numbers of the

criteria in paragraph (b) that the

examples illustrate.

One of the commenting parties

recommended that the final regulations

define the terms ‘‘facilitate collection’’

and ‘‘best interests of the taxpayer and

the United States,’’ found in paragraphs

(b)(3) and (b)(4). The final regulations

purposely do not define these terms.

Congress intended ‘‘to give the IRS

discretion to withdraw a notice of lien’’

in these circumstances. H.R. Rep. No.

506, 104the Cong., 2d Sess. 32 (Mar. 28,

1996). The circumstances under which

a lien may be withdrawn are inherently

factual. Further refinement of the

statutory terms may unnecessarily limit

the IRS’s ability to withdraw a notice

where appropriate.

A commenting party asked the IRS to

add a paragraph providing that, if the

National Taxpayer Advocate (or his

delegate) determines that a taxpayer is

suffering or about to suffer a significant

hardship, the National Taxpayer

Advocate (or his delegate) may, in

appropriate cases, issue a taxpayer

assistance order (TAO) requiring the

Commissioner to withdraw a notice of

federal tax lien. This issue, concerning

whether the National Taxpayer

Advocate (or his delegate) may issue a

TAO ordering the withdrawal of a

notice, involves an interpretation of

section 7811, and the authority granted

to the National Taxpayer Advocate,

which are not pertinent to this

regulation.

The final regulations provide that a

person may request the withdrawal of a

notice of federal tax lien by writing to

the Commissioner. A written request for

withdrawal must include: (1) The name,

current address, and taxpayer

identification number of the person

requesting withdrawal of the notice of

federal tax lien; (2) a copy of the notice

of federal tax lien affecting the property,

if available; (3) the grounds upon which

the withdrawal of notice of federal tax

lien is being requested; (4) a list of the

names and addresses of any credit

reporting agency and any financial

institution or creditor that the taxpayer

wishes the Commissioner to notify of

the withdrawal of notice of federal tax

lien; and (5) a request to disclose

information relating to the withdrawal

to the persons or entities listed.

The Commissioner must consider

each taxpayer’s request for withdrawal

of notice of federal tax lien and

determine whether any of the

conditions authorizing withdrawal exist

and whether to issue a withdrawal. The

Commissioner also may issue a notice of

withdrawal based on information

received from a source other than the

taxpayer.

If the Commissioner grants a request

for the withdrawal of notice of federal

tax lien, the taxpayer may supplement

the list of credit reporting agencies and

financial institutions or creditors

provided with the request for

withdrawal. If no list was submitted

with the request for withdrawal, a list

may be submitted after the notice is

withdrawn. A request to supplement the

list must be sent in writing to the

Commissioner. The request must

contain: (1) The name, current address,

and taxpayer identification number of

the person requesting the notification;

(2) a copy of the notice of withdrawal;

(3) the names and addresses of the

persons or entities the taxpayer wishes

the IRS to contact; and (4) a request to

disclose the withdrawal to the persons

or entities listed.

A commenting party suggested that

the IRS send notification to credit

agencies and financial institutions by

certified mail. Certified mail generally is

required where there is a statute of

limitations dependent on service. This

is not the case with respect to

notification under section 6323(j)(2).

A commenting party also requested

that language be added to the

regulations stating that, upon receipt of

notification that the IRS has withdrawn

a notice of federal tax lien, a credit

agency will be immune from any

damage claim a taxpayer may have

against it for its handling of the notice

if the credit agency acts within

reasonable time after receiving notice.

The statute simply instructs the IRS to

notify credit agencies of a notice of

withdrawal upon request of the

taxpayer. The IRS does not have the

statutory authority to shield a credit

agency from a taxpayer’s claim for

damages due to how the credit agency

handled the notice.

The regulations will apply on or after

June 22, 2001, with respect to

withdrawals of any notice of federal tax

lien occurring after such date regardless

of when the notice was filed.

Special Analyses

It has been determined that this final

regulation is not a significant regulatory

action as defined in Executive Order

12866. Therefore, a regulatory

assessment is not required. It also has

been determined that section 553(b) of

the Administrative Procedure Act (5

U.S.C. chapter 5) does not apply to these

regulations, and because the collection

of information in the regulations is

exempt pursuant to 5 U.S.C. 601(7)(B),

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

chapter 6) does not apply. Pursuant to

section 7805(f) of the Internal Revenue

Code, this regulation will be submitted

to the Chief Counsel for Advocacy of the

Small Business Administration for

comment on its impact on small

businesses.

Drafting Information

The principal author of these

regulations is Kevin B. Connelly, Office

of Associate Chief Counsel (Procedure

and Administration), Collection

Bankruptcy & Summons Division,

CC:PA:CBS, IRS. However, other

personnel from the IRS and 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.

Final Amendments to the Regulations

Accordingly, the IRS amends 26 CFR

part 301 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 301.6323(j)-1 is added

to read as follows:

§ 301.6323(j)–1 Withdrawal of notice of

federal tax lien in certain circumstances.

(a) In general. The Commissioner or

his delegate (Commissioner) may

withdraw a notice of federal tax lien

filed under this section, if the

Commissioner determines that any of

the conditions in paragraph (b) of this

section exist. A notice of federal tax lien

is withdrawn by the filing by the

Commissioner of a notice of withdrawal

in the office in which the notice of

federal tax lien is filed. If a notice of

withdrawal is filed, chapter 64 of

subtitle F, relating to collection, will be

applied as if the withdrawn notice had

never been filed. A copy of the notice

of withdrawal will be provided to the

taxpayer. Upon written request by a

taxpayer with respect to whom a notice

of federal tax lien has been or will be

withdrawn, the Commissioner will

promptly make reasonable efforts to

notify any credit reporting agency and

any financial institution or creditor

identified by the taxpayer of the

withdrawal of such notice. The

withdrawal of a notice of federal tax lien

33466 Federal Register / Vol. 66, No. 121 / Friday, June 22, 2001 / Rules and Regulations

will not affect the underlying federal tax

lien.

(b) Conditions authorizing

withdrawal. The Commissioner may

authorize the withdrawal of a notice of

federal tax lien upon determining that

one of the following conditions exists:

(1) Premature or not in accordance

with administrative procedures. The

filing of the notice of federal tax lien

was premature or otherwise not in

accordance with the administrative

procedures of the Secretary.

(2) Installment agreement. The

taxpayer has entered into an agreement

under section 6159 to satisfy the

liability for which the lien was imposed

by means of installment payments.

Entry into an installment agreement

may not, however, be the basis for

withdrawal of a notice of lien if the

installment agreement specifically

provides that a notice of federal tax lien

will not be withdrawn.

(3) Facilitate collection. The

withdrawal of the notice of federal tax

lien will facilitate the collection of the

tax liability for which the lien was

imposed.

(4) Best interests of the United States

and the taxpayer—(i) In general. The

taxpayer or the National Taxpayer

Advocate (or his delegate) has

consented to the withdrawal of the

notice of federal tax lien, and

withdrawal of the notice would be in

the best interest of the taxpayer, as

determined by the taxpayer or the

National Taxpayer Advocate (or his

delegate), and in the best interest of the

United States, as determined by the

Commissioner.

(ii) Best interest of the taxpayer.

When a taxpayer requests the

withdrawal of notice of federal tax lien

based on the best interests of the United

States and the taxpayer, the National

Taxpayer Advocate (or his delegate)

generally will determine whether the

withdrawal of the notice of federal tax

lien is in the best interest of the

taxpayer. If, however, a taxpayer

requests the Commissioner to withdraw

a notice and has not specifically

requested the National Taxpayer

Advocate (or his delegate) to determine

the taxpayer’s best interest, a finding by

the Commissioner that the withdrawal

of notice is in the best interest of the

taxpayer will be sufficient to support

withdrawal. If the Commissioner

decides independently of a request by

the taxpayer to withdraw a notice of

federal tax lien, the taxpayer or the

National Taxpayer Advocate (or his

delegate) must consent to the

withdrawal.

(5) Examples. The following examples

illustrate the provisions of this

paragraph (b):

Example 1. A owes $1,000 in Federal

income taxes. The IRS files a notice of federal

tax lien to secure A’s tax liability. However,

the IRS failed to follow procedure provided

by the Internal Revenue Manual (but not

required by statute) with regard to managerial

approval prior to the filing of a notice of

federal tax lien. The Commissioner may

withdraw the notice of federal tax lien

because the filing of the notice was not in

accordance with the Secretary’s

administrative procedures.

Example 2. A owes $1,000 in federal

income taxes. A enters into an agreement to

pay the outstanding federal income tax

liability in installments. The agreement

provides that a notice of federal tax lien may

be filed if the taxpayer defaults. A timely

pays the installments each month and has

not defaulted in any way. Eleven months

after entering into the installment agreement,

the Internal Revenue Service files a notice of

federal tax lien. Noting that there has been

no default, the taxpayer asks the Internal

Revenue Service to withdraw the notice of

federal tax lien. In this situation, the

Commissioner may withdraw the notice of

federal tax lien because the taxpayer has

entered into an installment agreement.

Example 3. A is an employee of X

Corporation. A notice of federal tax lien has

been filed to secure an outstanding tax

liability against A. A, who has no assets and

no other secured creditors, has agreed to pay

the balance of tax due through payroll

deductions at a rate higher than the Internal

Revenue Service could obtain through a wage

levy in order to get the notice of federal tax

lien withdrawn. X Corporation has agreed to

allow A to enter into a payroll deduction

agreement. In this situation, the

Commissioner may withdraw the notice of

federal tax lien to facilitate collection.

Example 4. A is owner of a farm machinery

dealership against whom a notice of federal

tax lien has been filed to secure an

outstanding tax liability. A currently is

paying the tax liability by an installment

agreement. X Corporation has agreed to

provide A with 100 tractors to increase A’s

inventory if the notice of federal tax lien is

withdrawn. A asks the Internal Revenue

Service to withdraw the notice of federal tax

lien. The Commissioner determines that the

larger inventory would enable A to generate

additional tractor sales. Increased sales

would enable A to increase the amount of

installment payments and, consequently,

reduce the amount of time needed to satisfy

the liability. A, who has no other assets or

secured creditors, has agreed to modify the

installment agreement. The Commissioner

may withdraw the notice of federal tax lien

because the withdrawal is in the best interest

of the taxpayer and the United States.

(c) Determinations by the

Commissioner. The Commissioner must

determine whether any of the

conditions authorizing the withdrawal

of a notice of federal tax lien exist if a

taxpayer submits a request for

withdrawal in accordance with

paragraph (d) of this section. The

Commissioner may also make this

determination independent of a request

from the taxpayer based on information

received from a source other than the

taxpayer. If the Commissioner

determines that conditions authorizing

the withdrawal are not present, the

Commissioner may not authorize the

withdrawal. If the Commissioner

determines conditions for withdrawal

are present, the Commissioner may (but

is not required to) authorize the

withdrawal.

(d) Procedures for request for

withdrawal—(1) Manner. A request for

the withdrawal of a notice of federal tax

lien must be made in writing in

accordance with procedures prescribed

by the Commissioner.

(2) Form. The written request will

include the following information and

documents—

(i) Name, current address, and

taxpayer identification number of the

person requesting the withdrawal of

notice of federal tax lien;

(ii) A copy of the notice of federal tax

lien affecting the taxpayer’s property, if

available;

(iii) The grounds upon which the

withdrawal of notice of federal tax lien

is being requested;

(iv) A list of the names and addresses

of any credit reporting agency and any

financial institution or creditor that the

taxpayer wishes the Commissioner to

notify of the withdrawal of notice of

federal tax lien; and

(v) A request to disclose the

withdrawal of notice of federal tax lien

to the persons listed in paragraph

(d)(2)(iv) of this section.

(e) Supplemental list of credit

agencies, financial institutions, and

creditors—(1) In general. If the

Commissioner grants a withdrawal of

notice of federal tax lien, the taxpayer

may supplement the list in paragraph

(d)(2)(iv) of this section. If no list was

provided in the request to withdraw the

notice of federal tax lien, the list in

paragraph (d)(2)(iv) of this section and

the request for notification in paragraph

(d)(2)(v) of this section may be

submitted after the notice is withdrawn.

(2) Manner. A request to supplement

the list of any credit agencies and any

financial institutions or creditors that

the taxpayer wishes the Commissioner

to notify of the withdrawal of notice of

federal tax lien must be made in writing

in accordance with procedures

prescribed by the Commissioner.

(3) Form. The request must include

the following information and

documents—

Federal Register / Vol. 66, No. 121 / Friday, June 22, 2001 / Rules and Regulations 33467

(i) Name, current address, and

taxpayer identification number of the

taxpayer requesting the notification of

any credit agency or any financial

institution or creditor of the withdrawal

of notice of federal tax lien;

(ii) A copy of the notice of

withdrawal, if available;

(iii) A supplemental list, identified as

such, of the names and addresses of any

credit reporting agency and any

financial institution or creditor that the

taxpayer wishes the Commissioner to

notify of the withdrawal of notice of

federal tax lien; and

(iv) A request to disclose the

withdrawal of notice of federal tax lien

to the persons listed in paragraph

(e)(3)(iii) of this section.

(f) Effective date. This section applies

on or after June 22, 2001, with respect

to a withdrawal of any notice of federal

tax lien.

Approved: June 13, 2001.

Robert E. Wenzel,

Deputy Commissioner of Internal Revenue.

Mark A. Weinberger,

Assistant Secretary of the Treasury.

[FR Doc. 01–15656 Filed 6–21–01; 8:45 am]

BILLING CODE 4830–01–P

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 100

[CGD05–01–023]

RIN 2115–AE46

Special Local Regulations for Marine

Events; Nanticoke River, Sharptown,

Maryland

AGENCY: Coast Guard, DOT.

ACTION: Temporary final rule.

SUMMARY: The Coast Guard is

establishing temporary special local

regulations for the Sharptown Outboard

Regatta, a marine event to be held on the

waters of the Nanticoke River between

Maryland S.R. 313 bridge at Sharptown,

Maryland and Nanticoke River Light 43

(LLN–24175). These special local

regulations are necessary to provide for

the safety of life on navigable waters

during the event. This action is

intended to restrict vessel traffic in

portions of the Nanticoke River during

the event.

DATES: This rule is effective from 11

a.m. eastern time on June 23, 2001 until

6 p.m. eastern time on June 24, 2001.

ADDRESSES: You may mail comments

and related material to Commander

(Aoax), Fifth Coast Guard District, 431

Crawford Street, Portsmouth, Virginia

23704–5004, or deliver them to the same

address between 9 a.m. and 2 p.m.,

Monday through Friday, except Federal

holidays. Comments and materials

received from the public as well as

documents indicated in this preamble as

being available in the docket, are part of

docket CGD05–01–023 and are available

for inspection or copying at Commander

(Aoax), Fifth Coast Guard District, 431

Crawford Street, Portsmouth, Virginia

23704–5004, between 9 a.m. and 2 p.m.,

Monday through Friday, except Federal

holidays.

FOR FURTHER INFORMATION CONTACT: S. L.

Phillips, Project Manager, Commander

(Aoax), Fifth Coast Guard District, 431

Crawford Street, Portsmouth, Virginia

23704–5004, telephone number (757)

398–6204.

SUPPLEMENTARY INFORMATION:

Regulatory Information

A notice of proposed rulemaking

(NPRM) was not published for this

regulation. In keeping with 5 U.S.C.

553(b)(B) and 553(d)(3), the Coast Guard

finds that good cause exists for not

publishing a NPRM and for making this

rule effective less than 30 days after

publication in the Federal Register. The

Coast Guard received the request for

special local regulations on May 9,

2001. We were notified of the need for

special local regulations with

insufficient time to publish a NPRM,

allow for comments, and publish a final

rule prior to the event on June 23, 2001.

Background and Purpose

The North-South Racing Association

will sponsor the Sharptown Outboard

Regatta on June 23 and June 24, 2001.

The event will consist of 50

hydroplanes and runabouts conducting

a high speed competitive race on the

waters of the Nanticoke River between

Maryland S.R. 313 bridge at Sharptown,

Maryland and Nanticoke River Light 43

(LLN–24175). A fleet of spectator

vessels is anticipated for the event. Due

to the need for vessel control during the

races, vessel traffic will be temporarily

restricted to provide for the safety of

participants, spectators and transiting

vessels.

Discussion of Regulations

The Coast Guard is establishing

temporary special local regulations on

specified waters of the Nanticoke River.

The regulated area will include waters

of the Nanticoke River between

Maryland S.R. 313 bridge at Sharptown,

Maryland and Nanticoke River Light 43

(LLN–24175). The temporary special

local regulations will be enforced from

11 a. m. to 6 p.m. eastern time on June

23 and June 24, 2001, and will restrict

general navigation in the regulated area

during the event. Except for participants

in the Sharptown Outboard Regatta and

persons or vessels authorized by the

Coast Guard Patrol Commander, no

person or vessel may enter or remain in

the regulated area.

Regulatory Evaluation

This rule is not a ‘‘significant

regulatory action’’ under section 3(f) of

Executive Order 12866 and does not

require an assessment of potential costs

and benefits under section 6(a)(3) of that

Order. The Office of Management and

Budget has not reviewed it under that

Order. It is not significant under the

regulatory policies and procedures of

the Department of Transportation (DOT)

(44 FR 11040; February 26, 1979).

We expect the economic impact of

this temporary final rule to be so

minimal that a full Regulatory

Evaluation under paragraph 10e of the

regulatory policies and procedures of

DOT is unnecessary.

Although this regulation prevents

traffic from transiting a portion of the

Nanticoke River during the event, the

effect of this regulation will not be

significant due to the limited duration

that the regulated area will be in effect

and the extensive advance notifications

that will be made to the maritime

community via the Local Notice to

Mariners, marine information

broadcasts, and area newspapers so

mariners can adjust their plans

accordingly.

Small Entities

Under the Regulatory Flexibility Act

(5 U.S.C. 601—612), we considered

whether this rule would have a

significant economic impact on a

substantial number of small entities.

The term ‘‘small entities’’ comprises

small businesses, not-for-profit

organizations that are independently

owned and operated and are not

dominant in their fields, and

governmental jurisdictions with

populations of less than 50,000.

The Coast Guard certifies under 5

U.S.C. 605(b) that this rule will not have

a significant economic impact on a

substantial number of small entities.

This rule will affect the following

entities, some of which may be small

entities: the owners or operators of

vessels intending to transit or anchor in

the effected portions of the Nanticoke

River during the event.

Although this regulation prevents

traffic from transiting a portion of the

Nanticoke River during the event, the

effect of this regulation will not be

significant because of the limited