72606 Federal Register / Vol. 72, No. 245 / Friday, December 21, 2007 / Rules and Regulations 

passive category (that is, the income 

category), and a $10 CODL account with 

respect to the passive category (that is, the 

income category). No member of the group 

has foreign-source income or loss in year 1. 

The group apportions its interest expense 

according to the tax book value method. 

(ii) On November 6, year 1, the group 

identifies S’s assets and the group’s assets 

(including S’s assets) expected to produce 

foreign-source general category income. Use 

of end-of-the-year values will not create 

substantial distortions in determining the 

relative values of S’s and the group’s relevant 

assets on November 6, year 1. The group 

determines that S’s relevant assets have a tax 

book value of $2,000 and a fair market value 

of $2,200. Also, the group’s relevant assets 

(including S’s assets) have a tax book value 

of $8,000. On November 6, year 1, S has no 

assets expected to produce U.S. source 

income. 

(iii) Under paragraph (c)(2)(ii) of this 

section, S takes a $10 COFL account for the 

general category ($40 × $2000/$8000) and a 

$5 CSLL account for the general category 

with respect to the passive category ($20 × 

$2000/$8000). S does not take any portion of 

the CODL account. The limitation described 

in paragraph (c)(2)(iii) of this section does 

not apply because the aggregate of the COFL 

and CSLL accounts for the general category 

that are apportioned to S ($15) is less than 

150 percent of the actual fair market value of 

S’s general category foreign assets ($2,200 x 

150%). 

Example 2. (i) Assume the same facts as in 

Example 1, except that the fair market value 

of S’s general category foreign assets is $4 as 

of November 6, year 1. 

(ii) Under paragraph (c)(2)(iii) of this 

section, S’s COFL and CSLL accounts for the 

general category must be reduced by $9, 

which is the excess of $15 (the aggregate 

amount of the accounts apportioned under 

paragraph (c)(2)(ii) of this section) over $6 

(150 percent of the $4 actual fair market 

value of S’s general category foreign assets). 

S thus takes a $4 COFL account for the 

general category ($10¥($9 × $10/$15)) and a 

$2 CSLL account for the general category 

with respect to the passive category ($5¥($9 

× $5/$15)). 

Example 3. (i) Assume the same facts as in 

Example 1, except that S also has assets that 

are expected to produce U.S. source income. 

(ii) On November 6, year 1, the group 

identifies S’s assets and the group’s assets 

(including S’s assets) expected to produce 

U.S. source income. Use of end-of-the-year 

values will not create substantial distortions 

in determining the relative values of S’s and 

the group’s relevant assets on November 6, 

year 1. The group determines that S’s 

relevant assets have a tax book value of 

$3,000 and a fair market value of $2,500. 

Also, the group’s relevant assets (including 

S’s assets) have a tax book value of $6,000. 

(iii) Under paragraph (c)(2)(ii) of this 

section, S takes a $5 CODL account ($10 × 

$3,000/$6,000), in addition to the COFL and 

CSLL accounts determined in Example 1. 

The limitation described in paragraph 

(c)(2)(iii) of this section does not apply 

because the CODL account that is 

apportioned to S ($5) is less than 150 percent 

of the actual fair market value of S’s U.S. 

assets ($2,500 × 150%). 

(d) Predecessor and successor. A 

reference to a member includes, as the 

context may require, a reference to a 

predecessor or successor of the member. 

See § 1.1502–1(f). 

(e) Effective/applicability date. This 

section applies to consolidated return 

years beginning after December 21, 

2007. Taxpayers may choose to apply 

the provisions of this section relating to 

overall domestic losses to other 

consolidated return years beginning 

after December 31, 2006, as well. For 

rules relating to overall foreign losses 

and separate limitation losses in 

consolidated return years beginning on 

or before December 21, 2007 see 26 CFR 

1.1502–9 (revised as of April 1, 2007). 

(f) Expiration date. The applicability 

of this section expires on December 20, 

2010. 

Linda E. Stiff, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: December 14, 2007. 

Eric Solomon, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. E7–24877 Filed 12–20–07; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 300 

[TD 9370] 

RIN 1545–BG88 

User Fees Relating to Enrollment To 

Perform Actuarial Services 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Final regulations. 

SUMMARY: This document contains final 

regulations relating to user fees for the 

initial and renewed enrollment to 

become an enrolled actuary. The 

charging of user fees is authorized by 

the Independent Offices Appropriations 

Act (IOAA) of 1952. 

DATES: Effective Date: These regulations 

are effective on December 21, 2007. 

Applicability Date: For date of 

applicability, see § 300.0(c). 

FOR FURTHER INFORMATION CONTACT: 

Concerning cost methodology, Eva J. 

Williams at (202) 435–5514; concerning 

the final regulations, Kimberly 

Mattonen at (202) 622–4940 (not tollfree numbers). 

SUPPLEMENTARY INFORMATION: 

Background 

The Employee Retirement Income 

Security Act of 1974 (Pub. L. 93–406) 

ordered the Secretary of Labor and the 

Secretary of Treasury to establish a Joint 

Board for the Enrollment of Actuaries. 

29 U.S.C. 1241. The Joint Board shall, 

by regulation, establish reasonable 

standards and qualifications for persons 

performing actuarial services and the 

Joint Board shall enroll such individuals 

who, upon application, satisfy such 

standards and qualifications. 29 U.S.C. 

1242(a). The regulations at 20 CFR Part 

901, Subpart B address eligibility for 

enrollment and renewal of enrollment. 

Pursuant to the Joint Board’s bylaws, the 

Secretary of the Treasury is to appoint 

an Executive Director to the Board who 

has the delegated authority to 

administer the Board’s enrollment 

program. The Secretary of the Treasury 

has delegated these functions to the 

Internal Revenue Service and the costs 

of these activities are borne by the 

Service. 

20 CFR 901.11(d)(4) provides for a 

reasonable non-refundable fee for 

applications for renewal of enrollment. 

Form 5434–A, ‘‘Application for Renewal 

of Enrollment’’ presently states that the 

renewal fee is $25. Final 26 CFR 300.7 

and 300.8 establish separate $250 user 

fees for the enrollment and renewal of 

enrollment process. These fees represent 

the IRS’s costs in administering the 

program, and the $250 fee for renewal 

of enrollment will supplant the $25 fee. 

Authority 

The IOAA of 1952 (31 U.S.C. 9701) 

authorizes agencies to prescribe 

regulations that establish charges for 

services provided by the agency. The 

charges must be fair and be based on the 

costs to the Government, the value of 

the service to the recipient, the public 

policy or interest served, and other 

relevant facts. The IOAA of 1952 

provides that regulations implementing 

user fees are subject to policies 

prescribed by the President, which are 

currently set forth in OMB Circular A–

25, 58 FR 38142 (July 15, 1993) (the 

OMB Circular). 

The OMB Circular encourages user 

fees for government-provided services 

that confer benefits on identifiable 

recipients over and above those benefits 

received by the general public. Under 

the OMB Circular, an agency that seeks 

to impose a user fee for governmentprovided services must calculate its full 

cost of providing those services. In 

general, a user fee should be set at an 

amount in order for the agency to 

recover the cost of providing the special 

service, unless the Office of 


sroberts on PROD1PC70 with RULES
Federal Register / Vol. 72, No. 245 / Friday, December 21, 2007 / Rules and Regulations 72607 

Management and Budget grants an 

exception. Pursuant to the guidelines in 

the OMB Circular, the IRS has 

calculated its cost of providing services 

under the enrolled actuaries program. 

The IRS has determined that the full 

cost of administering the enrollment 

and re-enrollment processes is $250 per 

enrolled actuary per process. 

The final user fees will be 

implemented under the authority of the 

IOAA of 1952 and the OMB Circular. 

On October 31, 2007, a notice of 

proposed rulemaking (REG–134923–07) 

was published in the Federal Register 

[72 FR 61583]. No comments were 

received from the public in response to 

the notice of proposed rulemaking. No 

public hearing was requested or held. 

The proposed regulations are adopted 

by this Treasury decision. 

Special Analyses 

It has been determined that this final 

rule is not a significant regulatory action 

as defined in Executive Order 12866. 

Therefore, a regulatory assessment is not 

required. It is hereby certified that these 

regulations will not have a significant 

economic impact on a substantial 

number of small entities. Accordingly, a 

regulatory flexibility analysis is not 

required. This certification is based on 

the information that follows. These final 

rules affect enrolled actuaries, of which 

there are currently 4,600 active. The 

economic impact of these regulations on 

any small entity would result from a 

small entity, including a sole proprietor, 

being required to pay a fee prescribed by 

these regulations in order to obtain a 

particular service. The appropriate 

NAICS codes for enrolled actuaries 

relate to Insurance Other (524298) and 

Administrative and General 

Management Consulting, Including 

Financial Consulting (541611). Entities 

identified under these codes are 

considered small under the SBA size 

standards (13 CFR 121.201) if their 

annual revenue is less than $6.5 million. 

The IRS estimates that as many as 2,070 

enrolled actuaries may be operating as 

or employed by small entities. 

Therefore, the IRS has determined that 

these final rules will affect a substantial 

number of small entities. The dollar 

amounts of the fees are not, however, 

substantial enough to have a significant 

economic impact on any entity subject 

to the fees. The amounts of the fees are 

commensurate with, if not less than, the 

amount charged by professional 

organizations. Persons who elect to 

apply for enrollment or renewal of 

enrollment also receive benefits from 

obtaining the enrolled actuary 

designation. Pursuant to section 7805(f) 

of the Internal Revenue Code, the NPRM 

preceding this regulation was submitted 

to the Chief Counsel for Advocacy of the 

Small Business Administration for 

comment on its impact. 

Drafting Information 

The principal author of these 

regulations is Kimberly A. Mattonen of 

the Office of the Associate Chief 

Counsel (Procedure & Administration). 

List of Subjects in 26 CFR Part 300 

Reporting and recordkeeping 

requirements, User fees. 

Adoption of Amendments to the 

Regulations 

■ Accordingly, 26 CFR Part 300 is 

amended as follows: 

PART 300—USER FEES 

■ Paragraph 1. The authority citation 

for part 300 continues to read as 

follows: 

Authority: 31 U.S.C. 9701. 

■ Par. 2. Section 300.0 is amended as 

follows: 

■ 1. Paragraphs (b)(7) and (b)(8) are 

added. 

■ 2. Paragraph (c) is revised. 

■ The additions and revision read as 

follows: 

§ 300.0 User fees, in general. 

* * * * * 

(b) * * * 

(7) Enrolling an enrolled actuary. 

(8) Renewing the enrollment of an 

enrolled actuary. 

(c) Effective/applicability date. This 

part 300 is applicable March 16, 1995, 

except that the user fee for processing 

offers in compromise is applicable 

November 1, 2003; the user fee for the 

special enrollment examination, 

enrollment, and renewal of enrollment 

for enrolled agents is applicable 

November 6, 2006; the user fee for 

entering into installment agreements on 

or after January 1, 2007, is applicable 

January 1, 2007; the user fee for 

restructuring or reinstatement of an 

installment agreement on or after 

January 1, 2007, is applicable January 1, 

2007; and the user fee for the enrollment 

and renewal of enrollment for enrolled 

actuaries is applicable January 22, 2008. 

■ Par. 3. Section 300.7 is added to read 

as follows: 

§ 300.7 Enrollment of enrolled actuary fee. 

(a) Applicability. This section applies 

to the initial enrollment of enrolled 

actuaries with the Joint Board for the 

Enrollment of Actuaries pursuant to 20 

CFR Part 901. 

(b) Fee. The fee for initially enrolling 

as an enrolled actuary with the Joint 

Board for the Enrollment of Actuaries is 

$250.00. 

(c) Person liable for the fee. The 

person liable for the enrollment fee is 

the applicant filing for enrollment as an 

enrolled actuary with the Joint Board for 

the Enrollment of Actuaries. 

■ Par. 5. Section 300.8 is added to read 

as follows: 

§ 300.8 Renewal of enrollment of enrolled 

actuary fee. 

(a) Applicability. This section applies 

to the renewal of enrollment of enrolled 

actuaries with the Joint Board for the 

Enrollment of Actuaries pursuant to 20 

CFR Part 901. 

(b) Fee. The fee for renewal of 

enrollment as an enrolled actuary with 

the Joint Board for the Enrollment of 

Actuaries is $250.00. 

(c) Person liable for the fee. The 

person liable for the renewal of 

enrollment fee is the person renewing 

their enrollment as an enrolled actuary 

with the Joint Board for the Enrollment 

of Actuaries. 

Linda E. Stiff, 

Deputy Commissioner for Services and 

Enforcement. 

Eric Solomon, 

Assistant Secretary of the Treasury (Tax 

Policy). 

[FR Doc. 07–6156 Filed 12–18–07; 2:32 pm] 

BILLING CODE 4830–01–P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Parts 51 and 52 

[EPA–HQ–OAR–2001–0004; FRL–8508–4] 

RIN–2060–AN88 

Prevention of Significant Deterioration 

and Nonattainment New Source 

Review: Reasonable Possibility in 

Recordkeeping 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Final rule. 

SUMMARY: This rule finalizes proposed 

revisions to the regulations governing 

the major new source review (NSR) 

programs mandated by parts C and D of 

title I of the Clean Air Act (CAA). These 

changes clarify the ‘‘reasonable 

possibility’’ recordkeeping and 

reporting standard of the 2002 NSR 

reform rules. The ‘‘reasonable 

possibility’’ standard identifies for 

sources and reviewing authorities the 

criteria under which an owner or 

operator of a major stationary source 

undergoing a physical change or change 

in the method of operation that does not 


sroberts on PROD1PC70 with RULES