Federal Register / Vol. 72, No. 195 / Wednesday, October 10, 2007 / Rules and Regulations 57487 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[TD 9353] 

RIN 1545–BC67 

Section 1045 Application to 

Partnerships; Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Correcting amendments. 

SUMMARY: This document contains 

corrections to final regulations (TD 

9353) that were published in the 

Federal Register on Tuesday, August 

14, 2007 (72 FR 45346) relating to the 

application of section 1045 of the 

Internal Revenue Code to partnerships 

and their partners. 

DATES: This correction is effective 

October 10, 2007. 

FOR FURTHER INFORMATION CONTACT: Jian 

H. Grant at (202) 622–3050 (not a tollfree number). 

SUPPLEMENTARY INFORMATION: 

Background 

The final regulations that are the 

subject of this correction are under 

section 1045 of the Internal Revenue 

Code. 

Need for Correction 

As published, final regulations (TD 

9353) contain errors that may prove to 

be misleading and are in need of 

clarification. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Correction of Publication 

■ Accordingly, 26 CFR part 1 is 

corrected by making the following 

amendments: 

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. Section 1.1045–1 is amended 

by revising the last sentence of 

paragraph (c)(1)(i), the subtitle of 

paragraph (c)(2)(i), the first five 

sentences of paragraph (h)(3)(i) Example 

3.(i), the fourth sentence of (h)(3)(i) 

Example 5.(v), and the first sentence of 

(h)(3)(i) Example 12.(ii) to read as 

follows: 

§ 1.1045–1 Application to partnerships. 

* * * * * 

(c) * * * 

(1) * * * 

(i) * * * A taxpayer other than a C 

corporation that sells QSB stock held for 

more than 6 months at the time of the 

sale may elect in accordance with 

paragraph (h) of this section to apply 

section 1045 if replacement QSB stock 

is purchased by a purchasing 

partnership (including a selling 

partnership). 

* * * * * 

(2) * * * 

(i) General rule. 

* * * * * 

(h) * * * 

(3) * * * 

(i) * * * 

Example 3. * * * 

(i) On January 1, 2008, A, an individual, 

and B, an individual, each contribute $500 to 

UTP (upper-tier partnership) for equal 

partnership interests. On February 1, 2008, 

UTP and C, an individual, each contribute 

$1,000 to LTP (lower-tier partnership) for 

equal partnership interests. On March 1, 

2008, LTP purchases QSB stock for $500. On 

April 1, 2008, D, an individual, joins UTP by 

contributing $500 to UTP for a 1/3 interest 

in UTP. On December 1, 2008, LTP sells the 

QSB stock for $2,000. * * * 

* * * * * 

Example 5. * * * 

(v) * * * In accordance with the principles 

of § 1.743–1(j)(3), the amount of A’s gain 

from the March 30, 2009, sale of replacement 

QSB1 stock in which A has a $200 negative 

basis adjustment equals $300 (A’s share of 

PRS’ gain from the sale of replacement QSB1 

stock ($100), increased by the amount of A’s 

negative basis adjustment for replacement 

QSB1 stock ($200)). * * * 

* * * * * 

Example 12. * * * 

(ii) Because A purchased within 60 days of 

PRS’ sale of the QSB stock, replacement QSB 

stock for a cost equal to A’s share of the 

partnership’s amount realized on the sale of 

the QSB stock, and because A made a valid 

election to apply section 1045 with respect 

to A’s share of the gain from PRS’ sale of the 

QSB stock, A does not recognize A’s $100 

distributive share of the gain from PRS’ sale 

of the QSB stock. * * * 

* * * * * 

LaNita Van Dyke, 

Chief, Publications and Regulations Branch, 

Legal Processing Division, Associate Chief 

Counsel (Procedure and Administration). 

[FR Doc. E7–19869 Filed 10–9–07; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 117 

[CGD01–07–136] 

Drawbridge Operation Regulations; 

Kennebec River, Bath and Woolwich, 

ME 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of temporary deviation 

from regulations. 

SUMMARY: The Commander, First Coast 

Guard District, has issued a temporary 

deviation from the regulation governing 

the operation of the Carlton Bridge 

across the Kennebec River at mile 14.0, 

between Bath and Woolwich, Maine. 

Under this temporary deviation the 

Carlton Bridge may remain in the closed 

position from 6:30 a.m. to 6:30 p.m. for 

seven days; October 1, 2, 8, 9, 15, 16, 

and 22, 2007, to facilitate bridge 

painting operations. Vessels that can 

pass under the draw without a bridge 

opening may do so at all times. This 

deviation is necessary to facilitate 

bridge painting. 

DATES: This deviation is effective from 

October 1, 2007 through October 22, 

2007. 

ADDRESSES: Materials referred to in this 

document are available for inspection or 

copying at the First Coast Guard 

District, Bridge Branch Office, 408 

Atlantic Avenue, Boston, Massachusetts 

02110, between 7 a.m. and 3 p.m., 

Monday through Friday, except Federal 

holidays. The telephone number is (617) 

223–8364. The First Coast Guard 

District Bridge Branch Office maintains 

the public docket for this temporary 

deviation. 

FOR FURTHER INFORMATION CONTACT: John 

McDonald, Project Officer, First Coast 

Guard District, at (617) 223–8364. 

SUPPLEMENTARY INFORMATION: The 

Carlton Bridge, across the Kennebec 

River, mile 14.0, between Bath and 

Woolwich, Maine, has a vertical 

clearance in the closed position of 10 

feet at mean high water and 16 feet at 

mean low water. The existing 

drawbridge operation regulations are 

listed at 33 CFR 117.525. 

The owner of the bridge, Maine 

Department of Transportation, requested 

a temporary deviation to facilitate 

bridge painting operations at the Carlton 

Bridge. 

The bridge painting will be performed 

on the lift span end sections which 

requires the lift span to be raised up 6 

feet and locked in that position in order 


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57488 Federal Register / Vol. 72, No. 195 / Wednesday, October 10, 2007 / Rules and Regulations 

to install paint containment, sandblast 

the metal, and paint the bridge span 

ends. 

This work must be performed before 

the ambient air temperature becomes 

too cold for outdoor painting. 

Historically, there were thirteen 

requests to open the Carlton Bridge in 

September 2006, and eleven requests to 

open in October 2006. Those totals were 

for the entire month. 

The requested bridge closure dates to 

complete the bridge painting at the 

bridge for 2007, will all be on Monday 

and Tuesday when recreational boating 

activity is very low. 

Under this temporary deviation the 

Carlton Bridge need not open for the 

passage of vessel traffic between 6:30 

a.m. and 6:30 p.m.; October 1, 2, 8, 9, 

15, 16, and 22, 2007. Vessels that can 

pass under the bridge without a bridge 

opening may do so at all times. 

In accordance with 33 CFR 117.35(e), 

the bridge must return to its regular 

operating schedule immediately at the 

end of the designated time period. This 

deviation from the operating regulations 

is authorized under 33 CFR 117.35. 

Should the bridge maintenance 

authorized by this temporary deviation 

be completed before the end of the 

effective period published in this notice, 

the Coast Guard will rescind the 

remainder of this temporary deviation, 

and the bridge shall be returned to its 

normal operation schedule. 

Notice of the above action shall be 

provided to the public in the Local 

Notice to Mariners and the Federal 

Register, where practicable. 

Dated: September 28, 2007. 

Gary Kassof, 

Bridge Program Manager, First Coast Guard 

District. 

[FR Doc. 07–4998 Filed 10–4–07; 3:08 pm] 

BILLING CODE 4910–15–P 

POSTAL SERVICE 

39 CFR Part 111 

Temporary Mail Forwarding Policy 

AGENCY: Postal Service. 

ACTION: Final rule. 

SUMMARY: The Postal Service published 

an interim rule and request for comment 

on amendments to the standards in the 

Mailing Standards of the United States 

Postal Service, Domestic Mail Manual 

(DMM) concerning temporary change of 

address orders. The Postal Service is 

adopting the interim rule with clarifying 

revisions. 

DATES: Effective Date: October 10, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Charles B. Hunt, Product Management, 

(901) 681–4651, James Wilson, Address 

Management, (901) 681–4676. 

SUPPLEMENTARY INFORMATION: On July 7, 

2006, the Postal Service published an 

interim final rule in the Federal 

Register revising the DMM standards 

concerning the duration and submission 

of change of address orders. 71 FR 

38537. The notice also invited public 

comment concerning the changes. The 

Postal Service received five customer 

comments on the revisions. 

Four of the comments oppose the 

establishment of a six month limit on 

the duration of the initial temporary 

change-of-address order, stating their 

preference for a longer period such as 

seven or eight months if not the current 

period of up to one year. Some 

commenters appeared to misunderstand 

the new rule, believing that it reduces 

the amount of time for temporary 

change-of-address service from one year 

to six months. Others, not appearing to 

have this misunderstanding, based their 

comments on the inconvenience of 

submitting a second temporary change 

order. 

As explained in the interim rule, the 

change does not reduce the maximum 

time for which customers can obtain 

temporary change-of-address service, 

which remains up to one year. The 

change only requires customers to 

submit a second request if they need the 

service for more than six months. Since 

the majority (approximately 62 percent) 

of all temporary change-of-address 

requests are for less than six months, 

most requests will not be affected by the 

new policy. We realize that some 

customers may be inconvenienced by 

the requirement to submit a second 

request to extend their forwarding order. 

However, we will minimize the 

inconvenience by sending customers a 

reminder to submit a second temporary 

forwarding request if they desire 

additional forwarding time. We believe 

that limiting initial requests to six 

months will benefit customers who 

inadvertently fail to state an ending date 

on a temporary change of address order. 

Two commenters opposed extending 

the minimum duration of temporary 

change of address orders. One suggested 

that service be provided for shorter time 

periods for a fee, while the other 

suggested customers be required to 

submit the requests far enough in 

advance to permit them to be processed 

in time in order to be applied to the 

shorter period. 

As explained in the interim rule, the 

time needed to process and redirect the 

mail of temporary change-of-address 

orders may approach two weeks. 

Accordingly, the acceptance of shortterm forwarding orders results in 

instances where mail does not arrive 

prior to the date the customer leaves the 

temporary address. This mail must be 

redirected again to the permanent 

address, resulting in additional 

handling by the Postal Service and 

delay in receipt of mail for the 

customer. The imposition of a fee for 

short-term temporary change-of-address 

service would not alter this pattern. 

Furthermore, while the Postal Service 

encourages customers to file change-ofaddress orders in advance of their move, 

it cannot, as a practical matter, require 

customers to submit them by a specific 

date since circumstances may require 

temporary moves on the part of a 

customer with little advance notice. 

Accordingly, for the reasons 

explained here as well as in the interim 

rule, the Postal Service adopts the 

interim rule as a final rule with the 

additional changes discussed below. 

These changes are based on review of 

the comments and further internal 

consideration of the standards. 

The additional changes to DMM 

507.2.1.3 adopted in this final rule are 

intended to clarify the time periods for 

temporary change of address orders. 

That is, the revisions provide more 

precise information for customers by 

also expressing the periods in days. 

Accordingly, the changes state the 

minimum duration for a change of 

address order is 15 days; the maximum 

duration for the initial change of 

address order is 185 days; and the 

maximum duration for the additional 

change of address order is 179 days. A 

customer seeking the longest duration 

for temporary change of address, can 

accordingly submit an initial order for 

185 days and a second order for 179 

more days, thus reaching the maximum 

period of 364 days. 

The Postal Service adopts the 

following revisions of the DMM, 

incorporated by reference in the Code of 

Federal Regulations. See 39 CFR 111.1, 

111.4. 

List of Subjects in 39 CFR Part 111 

Administrative practice and 

procedure, Postal Service. 

■ Accordingly, 39 CFR part 111 is 

amended as follows: 

PART 111—[AMENDED] 

■ 1. The authority citation for 39 CFR 

part 111 continues to read as follows: 

Authority: 5 U.S.C. 552(a); 39 U.S.C. 101, 

401, 403, 404, 414, 416, 3001–3011, 3201–

3219, 3403–3406, 3621, 3626, 5001. 


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