65568 Federal Register / Vol. 60, No. 244 / Wednesday, December 20, 1995 / Rules and Regulations

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR part 53 is

amended as follows:

PART 53—FOUNDATION AND SIMILAR

EXCISE TAXES

Paragraph 1. The authority for part 53

continues to read as follows:

Authority: 26 U.S.C. 7805.

Par. 2. Section 53.4941(d)–2 is

amended as follows:

1. Paragraph (f)(1) is amended by

removing the second and third

sentences and revising the fourth

sentence.

2. Paragraph (f)(3) is revised.

3. Paragraph (f)(4) is redesignated as

paragraph (f)(9).

4. New paragraphs (f)(4) through (f)(8)

are added.

The additions and revisions read as

follows:

§ 53.4941(d)–2 Specific acts of selfdealing.

* * * * *

(f) Transfer or use of the income or

assets of a private foundation—(1) In

general. * * * For purposes of the

preceding sentence, the purchase or sale

of stock or other securities by a private

foundation shall be an act of self-dealing

if such purchase or sale is made in an

attempt to manipulate the price of the

stock or other securities to the

advantage of a disqualified person.

* * *

* * * * *

(3) Non-compensatory

indemnification of foundation managers

against liability for defense in civil

proceedings. (i) Except as provided in

§ 53.4941(d)–3(c), section 4941(d)(1)

shall not apply to the indemnification

by a private foundation of a foundation

manager, with respect to the manager’s

defense in any civil judicial or civil

administrative proceeding arising out of

the manager’s performance of services

(or failure to perform services) on behalf

of the foundation, against all expenses

(other than taxes, including taxes

imposed by chapter 42, penalties, or

expenses of correction) including

attorneys’ fees, judgments and

settlement expenditures if—

(A) Such expenses are reasonably

incurred by the manager in connection

with such proceeding; and

(B) The manager has not acted

willfully and without reasonable cause

with respect to the act or failure to act

which led to such proceeding or to

liability for tax under chapter 42.

(ii) Similarly, except as provided in

§ 53.4941(d)–3(c), section 4941(d)(1)

shall not apply to premiums for

insurance to make or to reimburse a

foundation for an indemnification

payment allowed pursuant to this

paragraph (f)(3). Neither shall an

indemnification or payment of

insurance allowed pursuant to this

paragraph (f)(3) be treated as part of the

compensation paid to such manager for

purposes of determining whether the

compensation is reasonable under

chapter 42.

(4) Compensatory indemnification of

foundation managers against liability

for defense in civil proceedings. (i) The

indemnification by a private foundation

of a foundation manager for

compensatory expenses shall be an act

of self-dealing under this paragraph

unless when such payment is added to

other compensation paid to such

manager the total compensation is

reasonable under chapter 42. A

compensatory expense for purposes of

this paragraph (f) is—

(A) Any penalty, tax (including a tax

imposed by chapter 42), or expense of

correction that is owed by the

foundation manager;

(B) Any expense not reasonably

incurred by the manager in connection

with a civil judicial or civil

administrative proceeding arising out of

the manager’s performance of services

on behalf of the foundation; or

(C) Any expense resulting from an act

or failure to act with respect to which

the manager has acted willfully and

without reasonable cause.

(ii) Similarly, the payment by a

private foundation of the premiums for

an insurance policy providing liability

insurance to a foundation manager for

expenses described in this paragraph

(f)(4) shall be an act of self-dealing

under this paragraph (f) unless when

such premiums are added to other

compensation paid to such manager the

total compensation is reasonable under

chapter 42.

(5) Insurance Allocation. A private

foundation shall not be engaged in an

act of self-dealing if the foundation

purchases a single insurance policy to

provide its managers both the

noncompensatory and the compensatory

coverage discussed in this paragraph (f),

provided that the total insurance

premium is allocated and that each

manager’s portion of the premium

attributable to the compensatory

coverage is included in that manager’s

compensation for purposes of

determining reasonable compensation

under chapter 42.

(6) Indemnification. For purposes of

this paragraph (f), the term

indemnification shall include not only

reimbursement by the foundation for

expenses that the foundation manager

has already incurred or anticipates

incurring but also direct payment by the

foundation of such expenses as the

expenses arise.

(7) Taxable Income. The

determination of whether any amount of

indemnification or insurance premium

discussed in this paragraph (f) is

included in the manager’s gross income

for individual income tax purposes is

made on the basis of the provisions of

chapter 1 and without regard to the

treatment of such amount for purposes

of determining whether the manager’s

compensation is reasonable under

chapter 42.

(8) De minimis items. Any property or

service that is excluded from income

under section 132(a)(4) may be

disregarded for purposes of determining

whether the recipient’s compensation is

reasonable under chapter 42.

* * * * *

Margaret Milner Richardson,

Commissioner of Internal Revenue.

Approved: December 12, 1995.

Leslie Samuels,

Assistant Secretary of Treasury.

[FR Doc. 95–30838 Filed 12–19–95; 8:45 am]

BILLING CODE 4830–01–U

Fiscal Service

31 CFR Part 390

Collection By Administrative Offset

AGENCY: Bureau of the Public Debt,

Fiscal Service, Department of the

Treasury.

ACTION: Final rule.

SUMMARY: This final rule amends Title

31 by removing Part 390. The action is

being taken because the Treasury

Department’s promulgation of

administrative offset regulations at 31

CFR Part 5, Subpart D, made Part 390

unnecessary.

EFFECTIVE DATE: December 20, 1995.

FOR FURTHER INFORMATION CONTACT: Ed

Gronseth, Deputy Chief Counsel, Bureau

of the Public Debt, Parkersburg, WV

(304) 480–5187.

SUPPLEMENTARY INFORMATION:

Background

Part 390 applied to the collection of

claims by administrative offset by the

Bureau of the Public Debt. The rule was

needed to implement the administrative

offset provisions of section 10 of the

Debt Collection Act of 1982, (31 U.S.C.

3716). Subsequent to the adoption of

this rule, the Department of the

Treasury promulgated Department-wide
Federal Register / Vol. 60, No. 244 / Wednesday, December 20, 1995 / Rules and Regulations 65569

administrative offset regulations at 31

CFR Part 5, Subpart D.

Procedural Requirements

This final rule is not a ‘‘significant

regulatory action’’ pursuant to Executive

Order 12866. This final rule merely

removes a redundancy from existing

Department of the Treasury regulations.

Accordingly, notice and public

procedure thereon is unnecessary.

Pursuant to 5 U.S.C. 553(d)(3), good

cause is found for making this rule

effective upon publication. As no notice

of proposed rulemaking is required, the

provisions of the Regulatory Flexibility

Act (5 U.S.C. 601 et seq.) do not apply.

There are no collections of information

required by this final rule, and,

therefore, the Paperwork Reduction Act

does not apply.

List of Subjects in 31 CFR Part 390

Administrative practice and

procedure, Claims.

Accordingly, under the authority of 5

U.S.C. 301, 31 CFR chapter II is hereby

amended by removing part 390.

PART 390—[REMOVED]

1. Part 390 is removed.

Dated: December 7, 1995.

Van Zeck,

Acting Commissioner of the Public Debt.

[FR Doc. 95–30780 Filed 12–19–95; 8:45 am]

BILLING CODE 4810–39–P

DEPARTMENT OF DEFENSE

Department of the Navy

32 CFR Part 706

Certifications and Exemptions Under

the International Regulations for

Preventing Collisions at Sea, 1972;

Amendment

AGENCY: Department of the Navy, DOD.

ACTION: Final rule.

SUMMARY: The Department of the Navy

is amending its certifications and

exemptions under the International

Regulations for Preventing Collisions at

Sea, 1972 (72 COLREGS), to reflect that

the Deputy Assistant Judge Advocate

General (Admiralty) of the Navy has

determined that USS BLACK HAWK

(MHC 58) is a vessel of the Navy which,

due to its special construction and

purpose, cannot fully comply with

certain provisions of the 72 COLREGS

without interfering with its special

functions as a naval ship. The intended

effect of this rule is to warn mariners in

waters where 72 COLREGS apply.

EFFECTIVE DATE: November 30, 1995.

FOR FURTHER INFORMATION CONTACT:

Captain R. R. Pixa, JAGC, U.S. Navy

Admiralty Counsel, Office of the Judge

Advocate General, Navy Department,

200 Stovall Street, Alexandria, Virginia,

22332–2400, Telephone Number: (703)

325–9744.

SUPPLEMENTARY INFORMATION: Pursuant

to the authority granted in 33 U.S.C.

1605, the Department of the Navy

amends 32 CFR Part 706. This

amendment provides notice that the

Deputy Assistant Judge Advocate

General (Admiralty) of the Navy, under

authority delegated by the Secretary of

the Navy, has certified that USS BLACK

HAWK (MHC 58) is a vessel of the Navy

which, due to its special construction

and purpose, cannot fully comply with

the following specific provisions of 72

COLREGS without interfering with its

special function as a naval ship: Rule

27(f), pertaining to the display of allround lights by a vessel engaged in mine

clearance operations; and Annex I,

paragraph 9(b), prescribing that allround lights be located as not to be

obscured by masts, topmasts or

structures within angular sectors of

more than six degrees. The Deputy

Assistant Judge Advocate General

(Admiralty) of the Navy has also

certified that the lights involved are

located in closest possible compliance

with the applicable 72 COLREGS

requirements.

Moreover, it has been determined, in

accordance with 32 CFR Parts 296 and

701, that publication of this amendment

for public comment prior to adoption is

impracticable, unnecessary, and

contrary to public interest since it is

based on technical findings that the

placement of lights on this vessel in a

manner differently from that prescribed

herein will adversely affect the vessel’s

ability to perform its military functions.

List of Subjects in 32 CFR Part 706

Marine Safety, Navigation (Water),

and Vessels.

PART 706—[AMENDED]

Accordingly, 32 CFR part 706 is

amended as follows:

1. The authority citation for 32 CFR

part 706 continues to read:

Authority: 33 U.S.C. 1605.

2. Section 706.2 is amended by adding the

following ship to Table Four, paragraph 18:

§ 706.2 Certifications of the Secretary of

the Navy under Executive Order 11964 and

33 U.S.C. 1605.

* * * * *

Vessel Number

Obscured angles relative to ship’s heading

Port STBD

* * * * * * *

Black hawk ...................................................................................................................... MHC

58

65.0° to 75.6° ............ 284.1° to 294.6°.

Dated: November 30, 1995.

R.R. Pixa,

Captain, JAGC, U.S. Navy, Deputy Assistant

Judge Advocate General (Admiralty).

[FR Doc. 95–30720 Filed 12–19–95; 8:45 am]

BILLING CODE 3810–FF–P

32 CFR Part 706

Certifications and Exemptions Under

the International Regulations for

Preventing Collisions at Sea, 1972;

Amendment

AGENCY: Department of the Navy, DOD.

ACTION: Final rule.

SUMMARY: The Department of the Navy

is amending its certifications and

exemptions under the International

Regulations for Preventing Collisions at

Sea, 1972 (72 COLREGS), to reflect that

the Deputy Assistant Judge Advocate

General (Admiralty) of the Navy has

determined that USS OAK HILL (LSD

51) is a vessel of the Navy which, due

to its special construction and purpose,