Federal Register / Vol. 81, No. 16 / Tuesday, January 26, 2016 / Proposed Rules 4221 

as listed in the ADDRESSES section of this 

document. FAA Order 7400.9Z lists 

Class A, B, C, D, and E airspace areas, 

air traffic service routes, and reporting 

points. 

The Proposal 

The FAA is proposing an amendment 

to Title 14 Code of Federal Regulations 

(14 CFR) Part 71 by removing Class D 

airspace at Pearson Field Airport, 

Vancouver, WA. FAA Joint Order 

7400.2K states that if non-towered 

airports requiring a surface area, the 

airspace will be designated Class E. 

There is no operating control tower at 

Pearson Field Airport, Vancouver, WA, 

which would remove the necessity of 

the Class D airspace. 

Class D airspace designations are 

published in paragraph 5000 of FAA 

Order 7400.9Y, dated August 6, 2014, 

and effective September 15, 2014, which 

is incorporated by reference in 14 CFR 

71.1. The Class D airspace designations 

listed in this document will be 

published subsequently in the Order. 

Regulatory Notices and Analyses 

The FAA has determined that this 

regulation only involves an established 

body of technical regulations for which 

frequent and routine amendments are 

necessary to keep them operationally 

current, is non-controversial and 

unlikely to result in adverse or negative 

comments. It, therefore: (1) Is not a 

‘‘significant regulatory action’’ under 

Executive Order 12866; (2) is not a 

‘‘significant rule’’ under DOT 

Regulatory Policies and Procedures (44 

FR 11034; February 26, 1979); and (3) 

does not warrant preparation of a 

regulatory evaluation as the anticipated 

impact is so minimal. Since this is a 

routine matter that will only affect air 

traffic procedures and air navigation, it 

is certified that this rule, when 

promulgated, would not have a 

significant economic impact on a 

substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

Environmental Review 

This proposal will be subject to an 

environmental analysis in accordance 

with FAA Order 1050.1F, 

‘‘Environmental Impacts: Policies and 

Procedures’’ prior to any FAA final 

regulatory action. 

List of Subjects in 14 CFR Part 71 

Airspace, Incorporation by reference, 

Navigation (air). 

The Proposed Amendment 

Accordingly, pursuant to the 

authority delegated to me, the Federal 

Aviation Administration proposes to 

amend 14 CFR part 71 as follows: 

PART 71—DESIGNATION OF CLASS A, 

B, C, D, AND E AIRSPACE AREAS; AIR 

TRAFFIC SERVICE ROUTES; AND 

REPORTING POINTS 

■ 1. The authority citation for 14 CFR 

part 71 continues to read as follows: 

Authority: 49 U.S.C. 106(f), 106(g), 40103, 

40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 

1959–1963 Comp., p. 389. 

§ 71.1 [Amended] 

■ 2. The incorporation by reference in 

14 CFR 71.1 of FAA Order 7400.9Z, 

Airspace Designations and Reporting 

Points, dated August 6, 2015, and 

effective September 15, 2015, is 

amended as follows: 

Paragraph 5000 Class D Airspace. 

* * * * * 

ANM WA D Vancouver, WA [Removed] 

Issued in Seattle, Washington, on January 

19, 2016. 

Mindy Wright, 

Acting Manager, Operations Support Group, 

Western Service Center. 

[FR Doc. 2016–01415 Filed 1–25–16; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–134122–15] 

RIN 1545–BN09 

Special Enrollment Examination User 

Fee for Enrolled Agents 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking 

and notice of public hearing. 

SUMMARY: This document contains 

proposed amendments to the regulation 

relating to the user fee for the special 

enrollment examination to become an 

enrolled agent. The charging of user fees 

is authorized by the Independent 

Offices Appropriations Act (IOAA) of 

1952. This document also contains a 

notice of public hearing on this 

proposed regulation. The proposed 

regulation affects individuals taking the 

enrolled agent special enrollment 

examination. 

DATES: Written or electronic comments 

must be received by February 24, 2016. 

Requests to speak and outlines of topics 

to be discussed at the public hearing 

scheduled for February 25, 2016, must 

be received by February 24, 2016. 

ADDRESSES: Send submissions to: 

CC:PA:LPD:PR (REG–134122–15), Room 

5203, Internal Revenue Service, P.O. 

Box 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–134122–15), 

Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue NW., 

Washington, DC, or sent via the Federal 

eRulemaking Portal at 

www.regulations.gov (IRS REG–134122– 

15). The public hearing will be held in 

the IRS Auditorium, Internal Revenue 

Building, 1111 Constitution Avenue 

NW., Washington, DC. 

FOR FURTHER INFORMATION CONTACT: 

Concerning this proposed regulation, 

Jonathan R. Black, (202) 317–6845; 

concerning submissions of comments 

and/or requests for a hearing, Regina 

Johnson (202) 317–6901 (not toll-free 

numbers). 

SUPPLEMENTARY INFORMATION: 

Background and Explanation of 

Provisions 

Section 330 of title 31 of the United 

States Code authorizes the Secretary of 

the Treasury to regulate the practice of 

representatives before the Treasury 

Department. Pursuant to section 330 of 

title 31, the Secretary has published 

regulations governing practice before 

the IRS in 31 CFR part 10 and reprinted 

the regulations as Treasury Department 

Circular No. 230 (Circular 230). Circular 

230 is administered by the IRS Office of 

Professional Responsibility (OPR). 

Section 10.4(a) of Circular 230 

authorizes the IRS to grant status as 

enrolled agents to individuals who 

demonstrate special competence in tax 

matters by passing a written 

examination (Enrolled Agent Special 

Enrollment Examination (EA–SEE)) 

administered by, or under the oversight 

of, the IRS and who have not engaged 

in any conduct that would justify 

suspension or disbarment under 

Circular 230. Starting in 2006, the IRS 

engaged the services of a third-party 

contractor to develop and administer 

the EA–SEE. 

After becoming enrolled, an enrolled 

agent must, as provided in § 10.6(d), 

renew enrollment every three years to 

maintain active enrollment and to be 

able to practice before the IRS. To 

qualify for renewal, an enrolled agent 

must certify the completion of the 

continuing education requirements set 

forth in § 10.6(e). There are currently 

approximately 55,600 enrolled agents. 

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4222 Federal Register / Vol. 81, No. 16 / Tuesday, January 26, 2016 / Proposed Rules 

The EA–SEE is comprised of three 

parts, which are offered in a testing 

period that begins each May 1 and ends 

the last day of the following February. 

The EA–SEE is not available in March 

and April, during which period it is 

updated to reflect changes in the 

relevant law. When it determined the 

current fee, the IRS estimated that 

individuals would take 34,000 parts of 

the EA–SEE each year. That number of 

parts has not been reached in any year. 

In the testing periods beginning in 2012, 

2013, and 2014, the contractor 

administered approximately 18,900, 

19,500, and 22,400 parts of the EA–SEE, 

respectively. During the testing period 

beginning May 2016, the IRS estimates 

that individuals taking the EA–SEE will 

take 20,000 parts. More information on 

the EA–SEE, including content, scoring, 

and how to register, can be found on the 

IRS Web site at www.irs.gov/TaxProfessionals/Enrolled-Agents/. 

The Independent Offices 

Appropriations Act (IOAA) of 1952, 

which is codified at 31 U.S.C. 9701, 

authorizes agencies to prescribe 

regulations that establish charges for 

services they provide. These charges 

include user fees. The charges must be 

fair and must 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 provides that regulations 

implementing user fees are subject to 

policies prescribed by the President, 

which are currently set forth in the 

Office of Management and Budget 

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 government-provided 

services must calculate the full cost of 

providing those services. In general, a 

user fee should be set at an amount that 

allows the agency to recover the full 

cost of providing the special service, 

unless the Office of Management and 

Budget grants an exception. 

As discussed above, Circular 230 

§ 10.4(a) provides that IRS will grant 

enrolled agent status to an applicant if 

the applicant, among other things, 

demonstrates special competence in tax 

matters by written examination. The 

EA–SEE is the written examination that 

tests special competence in tax matters 

for purposes of that provision, and an 

applicant must pass all parts of the EA– 

SEE to be granted enrolled agent status 

through written examination. The IRS 

confers a benefit on individuals who 

take the EA–SEE beyond those that 

accrue to the general public by 

providing them with an opportunity to 

demonstrate special competence in tax 

matters by passing a written 

examination and therefore satisfying 

one of the requirements for becoming an 

enrolled agent under Circular 230 

§ 10.4(a). Because the opportunity to 

take the EA–SEE is a special benefit, IRS 

charges a user fee to take the 

examination. 

Pursuant to the guidelines in the OMB 

Circular, the IRS has calculated its cost 

of providing examination services under 

the enrolled agent program. The 

proposed user fee will be implemented 

under the authority of the IOAA and the 

OMB Circular and will recover the full 

cost of overseeing the program. The 

current user fee is $11 to take each part 

of the EA–SEE. The contractor who 

administers the EA–SEE also charges 

individuals taking the EA–SEE an 

additional fee for its services. For the 

May 2015 to February 2016 testing 

period, the contractor’s fee is $98 for 

each part of the EA–SEE. 

Increased costs incurred by the IRS to 

implement the EA–SEE program require 

an increase in the EA–SEE user fee. 

These increased costs are primarily 

attributable to the following: (1) The 

cost for background checks required 

under Publication 4812, ‘‘Contractor 

Security Controls,’’ for individuals 

working at the contractor’s testing 

centers increased by $270,000 per year; 

(2) the IRS estimates that the contractor 

will administer 14,000 fewer parts of the 

EA–SEE per year than the estimated 

number used to calculate the $11 fee, 

and the total costs are therefore being 

recovered from fewer individuals; and 

(3) the IRS’s costs of verifying the 

contractor’s compliance with the 

information technology security 

requirements necessary to protect the 

personally identifiable information of 

individuals taking the EA–SEE have 

increased, because Publication 4812 has 

strengthened those requirements. 

In addition, IRS original estimates of 

the cost to oversee the contract did not 

cover all the work the IRS now 

performs. The proposed fee more 

accurately accounts for the time and 

personnel necessary to oversee the 

development and administration of the 

EA–SEE and to ensure the contractor 

complies with the terms of its contract. 

IRS costs for oversight include costs 

associated with: (1) Review and 

approval of materials used by the 

contractor in developing the EA–SEE; 

(2) review of surveys of existing 

enrolled agents, which help to 

determine the topics to be covered in 

the EA–SEE; (3) composition of 

potential EA–SEE questions in 

coordination with the contractor’s 

external tax law experts; (4) Office of 

Chief Counsel review and revision of 

the potential questions for legal 

accuracy; and (5) analysis of the 

answers and raw scores of a testing 

population to determine what should be 

a passing score. 

Further, IRS personnel ensure the 

contractor’s compliance with its 

contract by reviewing the work of the 

contractor using an annual Work 

Breakdown Structure—a project 

management tool—and reviewing and 

verifying that the contractor is in 

compliance with its Quality Assurance 

Plan regarding customer satisfaction and 

accuracy. The IRS incurs additional 

costs associated with resolution of testrelated issues such as cheating 

incidents, appeals regarding scores, 

refund requests, and customer service 

complaints that have not been resolved 

at the contractor level. 

Taking into account the full amount 

of these costs, the user fee for the EA– 

SEE is proposed to be increased to $99 

per part. 

Special Analyses 

Certain IRS regulations, including this 

one, are exempt from the requirements 

of Executive Order 12866, as 

supplemented and reaffirmed by 

Executive Order 13563. 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 this proposed regulation. 

Pursuant to the Regulatory Flexibility 

Act (5 U.S.C. chapter 6), it is hereby 

certified that this proposed regulation, if 

adopted, would not have a significant 

economic impact on a substantial 

number of small entities because it 

primarily affects individuals who take 

the enrolled agent examination and does 

not directly affect small entities. 

Accordingly, a regulatory flexibility 

analysis is not required. Pursuant to 

section 7805(f) of the Internal Revenue 

Code, this notice of proposed 

rulemaking has been 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 this proposed regulation is 

adopted as a final regulation, 

consideration will be given to any 

comments that are submitted timely to 

the IRS as prescribed in the preamble 

under the ADDRESSES section. The 

Treasury Department and the IRS 

request comments on all aspects of the 

proposed regulation. All comments 

mstockstill on DSK4VPTVN1PROD with PROPOSALS

Federal Register / Vol. 81, No. 16 / Tuesday, January 26, 2016 / Proposed Rules 4223 

submitted will be made available at 

www.regulations.gov or upon request. 

A public hearing has been scheduled 

for February 25, 2016, beginning at 

10:00 a.m. in the IRS Auditorium, 

Internal Revenue Building, 1111 

Constitution Avenue NW., Washington, 

DC. Due to building security 

procedures, visitors must enter at the 

Constitution Avenue entrance. All 

visitors must present photo 

identification to enter the building. 

Because of access restrictions, visitors 

will not be admitted beyond the 

immediate entrance area 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 section of this 

preamble. 

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

apply to the hearing. Persons who wish 

to present oral comments at the hearing 

must submit written or electronic 

comments and an outline of the topics 

to be discussed and the time to be 

devoted to each topic by February 24, 

2016. A period of 10 minutes will be 

allocated to each person for making 

comments. 

An agenda showing the scheduling of 

the speakers will be prepared after the 

deadline for receiving 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 Jonathan R. Black of the Office of the 

Associate Chief Counsel (Procedure and 

Administration). 

List of Subjects in 26 CFR Part 300 

Reporting and recordkeeping 

requirements, User fees. 

Proposed Amendments to the 

Regulations 

Accordingly, 26 CFR part 300 is 

proposed to be 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 300.4 is amended by 

revising paragraphs (b) and (d) to read 

as follows: 

§ 300.4 Enrolled agent special enrollment 

examination fee. 

* * * * * 

(b) Fee. The fee for taking the enrolled 

agent special enrollment examination is 

$99 per part, which is the cost to the 

government for overseeing the 

development and administration of the 

examination and does not include any 

fees charged by the administrator of the 

examination. 

* * * * * 

(d) Effective/applicability date. This 

section applies on and after the date of 

publication of a Treasury decision 

adopting this rule as a final regulation 

in the Federal Register. 

Karen M. Schiller, 

Acting Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. 2016–01629 Filed 1–25–16; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF VETERANS 

AFFAIRS 

38 CFR Part 60 

RIN 2900–AP45 

Fisher Houses and Other Temporary 

Lodging 

AGENCY: Department of Veterans Affairs. 

ACTION: Proposed rule. 

SUMMARY: The Department of Veterans 

Affairs (VA) proposes to amend its 

regulations concerning Fisher House 

and other temporary lodging furnished 

by VA while a veteran is experiencing 

an episode of care at a VA medical 

facility. Such lodging is generally 

furnished to veterans’ relatives, close 

friends, and caregivers at no cost, 

because VA’s experience has shown that 

veterans’ treatment outcomes are 

improved by having loved ones nearby. 

The proposed rule updates current 

regulations and better describes the 

application process for this lodging. The 

proposed rule generally reflects current 

VA policy and practice. 

DATES: Comment Date: Comments must 

be received by VA on or before March 

28, 2016. 

ADDRESSES: Written comments may be 

submitted by email through http://

www.regulations.gov; by mail or handdelivery to Director, Regulation Policy 

and Management (02REG), Department 

of Veterans Affairs, 810 Vermont 

Avenue NW., Room 1068, Washington, 

DC 20420; or by fax to (202) 273–9026. 

Comments should indicate that they are 

submitted in response to ‘‘RIN 2900– 

AP45, Fisher Houses and Other 

Temporary Lodging.’’ Copies of 

comments received will be available for 

public inspection in the Office of 

Regulation Policy and Management, 

Room 1068, between the hours of 8:00 

a.m. and 4:30 p.m., Monday through 

Friday (except holidays). Please call 

(202) 461–4902 for an appointment. 

(This is not a toll-free number.) In 

addition, during the comment period, 

comments may be viewed online 

through the Federal Docket Management 

System (FDMS) at http://

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Michael T. Kilmer, Chief Consultant, 

Care Management and Social Work 

Services (10P4C), Veterans Health 

Administration, Department of Veterans 

Affairs, 810 Vermont Avenue NW., 

Washington, DC 20420, (202) 461–6780. 

(This is not a toll-free number.) 

SUPPLEMENTARY INFORMATION: VA’s 

program for providing temporary 

lodging for certain individuals is 

authorized by section 1708 of title 38, 

United States Code (U.S.C.). Under 

section 1708, VA ‘‘may furnish [certain] 

persons . . . with temporary lodging in 

a Fisher [H]ouse or other appropriate 

facility in connection with the 

examination, treatment, or care of a 

veteran under [chapter 17].’’ This 

authority to provide temporary lodging 

assists VA in providing appropriate 

treatment and care to veterans because 

patients often respond better when they 

are accompanied by relatives, close 

friends, or caregivers. Thus, providing 

temporary lodging is an important 

element of a veteran’s treatment. VA 

implemented its authority under section 

1708 in 38 CFR part 60. However, the 

current regulation no longer accurately 

describes the process by which VA 

approves requests for Fisher House or 

other temporary lodging. This proposed 

rule would amend the regulations to 

describe the current process. 

The application process for Fisher 

House or other temporary lodging is 

described in 38 CFR 60.15. We propose 

to amend § 60.15, because the 

application process has substantially 

changed. Section 60.15(a) currently 

states that VA Form 10–0408A is ‘‘the 

application for Fisher House and other 

temporary lodging.’’ That section also 

gives instructions for obtaining and 

filing the specified form. Although we 

will continue to accept applications 

submitted on Form 10–0408A until this 

proposed regulation takes effect, VA has 

discontinued the use of this form in 

favor of a process that requires the 

requester to contact specified personnel 

directly for capture in the requester’s 

electronic health record of all 

information that would have been 

included on the form. 

This process has already improved 

the efficiency of evaluating requests for 

Fisher House and other temporary 

housing for several reasons. VA 

facilities cannot practicably store paper 

mstockstill on DSK4VPTVN1PROD with PROPOSALS