72952 Federal Register / Vol. 70, No. 235 / Thursday, December 8, 2005 / Proposed Rules 

Control 1487L [Amended] 

That airspace extending upward from 

5,500 feet MSL within the area bounded by 

a line beginning at lat. 58°19′58′′ N., long. 

148°55′07′′ W.; to lat. 59°08′34′′ N., long. 

147°16′06′′ W.; thence counterclockwise via 

the arc of a 149.5-mile radius centered on the 

Anchorage VOR/DME to the intersection of 

the 149.5-mile radius arc and a point 12 

miles from and parallel to the U.S. coastline; 

thence southeast 12 miles from and parallel 

to the U.S. coastline to a point 12 miles 

offshore on the Vancouver FIR boundary; to 

lat. 54°32′57′′ N., long. 133°11′29′′ W.; to lat. 

54°00′00′′ N., long. 136°00′00′′ W.; to lat. 

52°43′00′′ N., long. 135°00′00′′ W.; to lat. 

56°45′42′′ N., long. 151°45′00′′ W.; to the 

point of beginning; and that airspace 

extending upward from 1,200 feet MSL 

within the area bounded by a line beginning 

at lat. 59°33′25′′ N., long. 141°03′22′′ W.; 

thence southeast 12 miles from and parallel 

to the U.S. coastline to lat. 58°56′18′′ N., long. 

138°45′19′′ W.; to lat. 58°40′00′′ N., long. 

139°30′00′′ W.; to lat. 59°00′00′′ N., long. 

141°10′00′′ W.; to the point of beginning. The 

portion within Canada is excluded. 

* * * * * 

Issued in Washington, DC, on December 1, 

2005. 

Edith V. Parish, 

Manager, Airspace and Rules. 

[FR Doc. 05–23757 Filed 12–7–05; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–133446–03] 

RIN 1545–BC37 

Guidance on Passive Foreign 

Investment Company (PFIC) Purging 

Elections 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking 

by cross-reference to temporary 

regulations, notice of proposed 

rulemaking, and notice of public 

hearing. 

SUMMARY: In the Rules and Regulations 

section of this issue of the Federal 

Register, the IRS is issuing temporary 

regulations that provide certain 

elections for taxpayers, who in limited 

circumstances, continue to be subject to 

the excess distribution regime of section 

1291 even though the foreign 

corporation in which they own stock is 

no longer treated as a PFIC under 

section 1297(e). The regulations are 

necessary to provide guidance about 

purging the PFIC taint for such foreign 

corporations. The regulations will affect 

U.S. persons that hold stock in a PFIC. 

The text of those temporary regulations 

also serves as the text of these proposed 

regulations. This document also 

provides notice of a public hearing on 

these proposed regulations. 

DATES: Written or electronic comments 

must be received by March 8, 2006. 

Outlines of topics to be discussed at the 

public hearing scheduled for March 22, 

2006, at 10 a.m. must be received by 

March 1, 2006. 

ADDRESSES: Send submissions to 

CC:PA:LPD:PR (REG–133446–03), room 

5203, Internal Revenue Building, POB 

7604, Ben Franklin Station, Washington, 

DC 20044. Submissions may be hand 

delivered between the hours of 8 a.m. 

and 4 p.m. to CC:PA:LPD:PR (REG–

133446–03), Courier’s Desk, Internal 

Revenue Building, 1111 Constitution 

Avenue, NW., Washington, DC, 

electronically via the IRS Internet site at 

http://www.irs.gov/regs or via the 

Federal Rulemaking Portal at http:// 

www.regulations.gov (IRS REG–133446–

03). The public hearing will be held in 

the Auditorium, Internal Revenue 

Building, 1111 Constitution Avenue, 

NW., Washington, DC. 

FOR FURTHER INFORMATION CONTACT: 

Concerning the regulations, Ethan 

Atticks at (202) 622–3840, concerning 

submissions and the hearing, LaNita 

Van Dyke (202) 622–7180 (not toll-free 

numbers). 

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act 

The collections of information 

contained in this notice of proposed 

rulemaking have 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 

collections 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, 

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

20224. Comments on the collections of 

information should be received by 

February 6, 2006. Comments are 

specifically requested concerning: 

Whether the proposed collections of 

information are necessary for the proper 

performance of the functions of the IRS, 

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 collection of information in these 

proposed regulations is in § 1.1297–

3(c)(5)(ii). This information is required 

to enable the IRS to verify that a 

taxpayer is reporting the correct amount 

of income, gain or loss from that 

taxpayer’s interest in the foreign 

corporation. The collections of 

information are mandatory. The 

respondents are shareholders of PFICs. 

Estimated total annual reporting 

burden: 250 hours. 

The estimated annual burden per 

respondent is 1 hour. 

Estimated number of respondents: 

250. 

The estimated annual frequency of 

responses: One time. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a valid 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 provide certain 

elections for taxpayers that continue to 

be subject to the excess distribution 

regime of section 1291 even though the 

foreign corporation in which they own 

stock is no longer treated as a PFIC 

under section 1297(e) or section 

1298(b)(1). The text of the temporary 

regulations also serves as the text of 

these proposed regulations. The 

preamble to the temporary regulations 

explains the temporary regulations and 

these proposed 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 

Federal Register / Vol. 70, No. 235 / Thursday, December 8, 2005 / Proposed Rules 72953 

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, and, because the 

regulations do not impose a collection 

of information on small entities, the 

Regulatory Flexibility Act (5 U.S.C. 

chapter 6) does not apply. Pursuant to 

section 7805(f) of the 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 Public Hearing 

Before these proposed regulations are 

adopted as final regulations, 

consideration will be given to any 

written (a signed original and eight (8) 

copies) or electronic comments 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 is scheduled for 

March 22, 2006, beginning at 10 a.m. in 

the Auditorium, Internal Revenue 

Building, 1111 Constitution Avenue, 

NW., Washington, DC. Due to building 

security procedures, visitors must enter 

at the Constitution Avenue entrance. In 

addition, all visitors must present photo 

identification to enter the building. 

Because of access restrictions, visitors 

will not be admitted beyond the 

entrance more than 30 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 portion of this 

preamble. 

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

apply to this hearing. Persons who wish 

to present oral comments must submit 

written comments and an outline of the 

topics to be discussed and the time to 

be devoted to each topic (a signed 

original and eight (8) copies) by March 

1, 2006. A period of 10 minutes will be 

allotted to each person for making 

comments. An agenda showing the 

scheduling of the speakers will be 

prepared after the deadline for 

reviewing outlines has passed. Copies of 

the agenda will be available free of 

charge at the hearing. 

Drafting Information 

The principal author of this regulation 

is Ethan Atticks, Office of Associate 

Chief Counsel (International). However, 

other personnel from the IRS and 

Treasury Department participated in 

their development. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Proposed Amendments to the 

Regulations 

Accordingly, 26 CFR part 1 is 

proposed to be 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 § 1.1291–9, paragraph 

(j)(2)(v) is revised to read as follows: 

§ 1.1291–9 Deemed dividend election. 

* * * * * 

(j) * * * 

(2) * * * 

(v) [The text of the proposed 

amendment to § 1.1291–9(j)(2)(v) is the 

same as the text for § 1.1291–9T(j)(2)(v) 

published elsewhere in this issue of the 

Federal Register.] 

* * * * * 

Par. 3. Section 1.1297–0 is revised to 

read as follows: 

§ 1.1297–0 Table of contents. 

[The text of proposed § 1.1297–0 is 

the same as the text of § 1.1297–0T 

published elsewhere in this issue of the 

Federal Register.] 

Par. 4. Section 1.1297–3 is added to 

read as follows: 

§ 1.1297–3 Deemed sale or deemed 

dividend election by a U.S. person that is 

a shareholder of a section 1297(e) PFIC. 

[The text of proposed § 1.1297–3 is 

the same as the text of § 1.1297–3T 

published elsewhere in this issue of the 

Federal Register.] 

Par. 5. Section 1.1298–0 is revised to 

read as follows: 

§ 1.1298–0 Table of contents. 

[The text of proposed § 1.1298–0 is 

the same as the text of § 1.1298–0T 

published elsewhere in this issue of the 

Federal Register]. 

Par. 6. In § 1.1298–3, paragraph (e) 

and paragraph (f) are revised to read as 

follows: 

§ 1.1298–3 Deemed sale or deemed 

dividend election by a U.S. person that is 

a shareholder of a former PFIC. 

* * * * * 

(e) [The text of the proposed revision 

to § 1.1298–3(e) is the same as the text 

of § 1.1298–3T(e) published elsewhere 

in this issue of the Federal Register]. 

(f) [The text of the proposed revision 

to § 1.1298–3(f) is the same as the text 

of § 1.1298–3T(f) published elsewhere 

in this issue of the Federal Register]. 

Mark E. Matthews, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. 05–23628 Filed 12–7–05; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 54 

[REG–138647–04] 

RIN 1545–BE30 

Employer Comparable Contributions to 

Health Savings Accounts Under 

Section 4980G; Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Correction to notice of proposed 

rulemaking. 

SUMMARY: This document contains 

corrections to a notice of proposed 

rulemaking that was published in the 

Federal Register on Friday, August 26, 

2005 (70 FR 50233) providing guidance 

on employer comparable contributions 

to Health Savings Accounts (HSAs) 

under section 4980G. 

FOR FURTHER INFORMATION CONTACT: 

Barbara E. Pie at (202) 622–6080 (not a 

toll-free number). 

SUPPLEMENTARY INFORMATION:

Background 

The notice of proposed rulemaking 

(REG–138647–04) that is the subject of 

this correction is under section 4980 of 

the Internal Revenue Code. 

Need for Correction 

As published, REG–138647–04 

contains errors that may prove to be 

misleading and are in need of 

clarification. 

Correction of Publication 

Accordingly, the publication of the 

notice of proposed rulemaking (REG–

138647–04), which was the subject of 

FR Doc. 05–16941, is corrected as 

follows: 

1. On page 50235, column 1, in the 

preamble under the paragraph heading 

‘‘Calculating Comparable 

Contributions’’, first paragraph, line 21, 

the language, ‘‘under employer’s HDHP. 

The proposed’’ is corrected to read 

‘‘under the employer’s HDHP. The 

proposed’’. 

§ 54.4980G–4 [Corrected] 

2. On page 50241, column 2, 

§ 54.4980G–4, A–1(b), Example 8, line