66770 Federal Register / Vol. 60, No. 247 / Tuesday, December 26, 1995 / Proposed Rules

checks required by this AD shall be

established in accordance with either

paragraph (f)(1) or (f)(2) of this AD, as

applicable. After each leak check has been

performed once, each subsequent leak check

must be performed in accordance with the

new operator’s schedule, in accordance with

either paragraph (a) or (b) of this AD, as

applicable.

(1) For airplanes previously maintained in

accordance with this AD: The first leak check

to be performed by the new operator must be

accomplished in accordance with either the

previous operator’s schedule or the new

operator’s schedule, whichever would result

in the earlier accomplishment date for that

leak check.

(2) For airplanes that have not been

previously maintained in accordance with

this AD: The first leak check to be performed

by the new operator must be accomplished

prior to further flight; or in accordance with

a schedule approved by the FAA PMI, but

within a period not to exceed 200 flight

hours.

(g) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager, Los

Angeles ACO, FAA, Transport Airplane

Directorate. Operators shall submit their

requests through an appropriate FAA PMI,

who may add comments and then send it to

the Manager, Los Angeles ACO.

Note 7: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Los Angeles ACO.

Note 8: For any valve that is not eligible

for the extended leak check intervals of this

AD: To be eligible for the leak check interval

specified in paragraph (a)(1), (a)(2), (b)(2)(i),

or (b)(2)(ii), the service history data of the

valve must be submitted to the Manager, Los

Angeles ACO, FAA, Transport Airplane

Directorate, with a request for approval of an

alternative method of compliance with this

AD. The request should include an analysis

of known failure modes for the valve, if it is

an existing design, and known failure modes

of similar valves. Additionally, the request

should include an explanation of how design

features will preclude these failure modes,

results of qualification tests, and

approximately 25,000 flight hours or 25,000

flight cycles of service history data, including

a winter season, collected in accordance with

the requirements of paragraph (c) of this AD

or a similar program.

(h) Special flight permits may be issued in

accordance with sections 21.197 and 21.199

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the airplane to

a location where the requirements of this AD

can be accomplished.

Issued in Renton, Washington, on

December 19, 1995.

Darrell M. Pederson,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 95–31245 Filed 12–22–95; 8:45 am]

BILLING CODE 4910–13–U

RAILROAD RETIREMENT BOARD

20 CFR Part 211

RIN 3220–AB10

Finality of Records of Compensation

AGENCY: Railroad Retirement Board.

ACTION: Proposed rule.

SUMMARY: The Railroad Retirement

Board (Board) hereby proposes to adopt

regulations pertaining to the finality of

reports of compensation. The proposed

regulations relate to corrections to

records of compensation more than four

years after the date on which the

compensation was required to be

reported to the Board.

DATES: Comments must be received on

or before February 26, 1996.

ADDRESSES: Secretary to the Board,

Railroad Retirement Board, 844 North

Rush Street, Chicago, Illinois 60611.

FOR FURTHER INFORMATION CONTACT:

Michael C. Litt, General Attorney,

Railroad Retirement Board, 844 North

Rush Street, Chicago, Illinois 60611,

telephone (312) 751–4929, TTD (312)

751–4701.

SUPPLEMENTARY INFORMATION: The

Board’s rules and procedures regarding

the finality and reports of compensation

are presently contained in Board Orders,

which are not readily available to the

public.

The proposed rule would amend part

211 of the Board’s regulations

(Creditable Railroad Compensation) by

adding a new § 211.16 to this part.

Under section 9 of the Railroad

Retirement Act, the Board will not

change an employee’s record of reported

compensation if the change is requested

more than four years after the report of

compensation is required to be filed

under § 209.6 of the Board’s regulations.

Proposed § 211.16 explains when the

Board will change a record of

compensation beyond the four year

period; for example, where the record is

incorrect because of clerical error or

fraud, where the compensation was

posted to the wrong period or person, or

where the compensation was originally

reported to the Social Security

Administration but the Board or a court

has determined that it should have been

reported to the Board. Changes to credit

compensation and service after the four

year period could be made only where

taxes due under the Railroad Retirement

Tax Act have been paid.

The Labor Member of the Board

dissented from the action of the majority

of the Board approving the proposed

rule. The Labor Member’s reasons for

dissenting from this action are set out

below.

Views of the Labor Member of the

Board

The Labor Member feels that this

proposed revision to part 211 presents

a major change in the crediting of

compensation and service, in that if the

four year time limit for corrections to

records of compensation has passed, no

employee may be credited with service

months or compensation unless the

employee establishes that all

employment taxes have been paid with

respect to this service. The Labor

Member acknowledges that in the

current environment where the Internal

Revenue Service has responsibility for

assessing and collecting taxes under the

Railroad Retirement Tax Act and the

Board has the responsibility for

crediting compensation and service, a

lack of coordination is inevitable. He

contends that this should in no way

compel the Board to limit the granting

of legitimate railroad retirement credits,

but that the change proposed by the

majority of the Board would do this.

The Labor Member feels that this

change could also put an employee in

a ‘‘catch 22’’ situation since there could

be questions as to the employee’s status

under the Social Security Act for the

period where the employer is found to

be covered under the Railroad

Retirement Act, but because no railroad

retirement taxes had been paid, the

employee would receive no railroad

retirement credit. Conceivably, the

employee would receive no credit under

either Act. The Labor Member points

out that currently there are many

situations where the Board may correct

a compensation record retroactively.

There are cases where earnings were

erroneously reported to the Social

Security Administration by the

employer and, subsequently, the Board

rules that the employer is covered under

the Railroad Retirement Act. The Board

may correct a record of compensation

where such correction is determined or

approved by a court having jurisdiction

to make such a decision, or as a result

of a settlement entered into by the

employer and the Internal Revenue

Service.

The Labor Member does not endorse

the change recommended by the

majority of the Board. Instead, he feels

that the Board should make a concerted

effort to identify when an employer or

employee is, in fact, covered under the

Railroad Retirement Act and attempt to

mitigate the consequences of decisions

that retroact over several years. He

submits that we are, in fact, doing this

now with the assistance of our agency’s

Audit and Compliance Division which
Federal Register / Vol. 60, No. 247 / Tuesday, December 26, 1995 / Proposed Rules 66771

is successfully dedicating significant

resources to this effort.

The Board, with the concurrence of

the Office of Management and Budget,

has determined that this is not a

significant regulatory action under

Executive Order 12866; therefore, no

regulatory impact analysis is required.

There are no information collections

associated with this rule.

List of Subjects in 20 CFR Parts 211

Pensions, Railroad employees,

Railroad retirement.

For the reasons set out in the

preamble, chapter II of title 20 of the

Code of Federal Regulations is proposed

to be amended as follows:

PART 211—[AMENDED]

1. The authority citation for part 211

continues to read as follows:

Authority: 45 U.S.C. 231(f).

2. Part 211 is amended by adding a

new § 211.16 to read as follows:

§ 211.16 Finaility of records of

compensation.

(a) Time limit for corrections to

records of compensation. The Board’s

record of the compensation reported as

paid to an employee for a given period

shall be conclusive as to amount, or if

no compensation was reported for such

period, then as to the employee’s having

received no compensation for such

period, unless the error in the amount

of compensation or the failure to make

return of the compensation is called to

the attention of the Board within four

years after the date on which the

compensation was required to be

reported to the Board as provided for in

§ 209.6 of this chapter.

(b) Correction after 4 years. Subject to

paragraph (c) of this section, the Board

may correct a report of compensation

after the time limit set forth in

paragraph (a) of this section for one of

the following reasons:

(1) Where the compensation was

posted as the result of fraud;

(2) Where the compensation was

posted for the wrong person or the

wrong period;

(3) Where the earnings were

erroneously reported to the Social

Security Administration in the good

faith belief by the employer or employee

that such earnings were not covered

under the Railroad Retirement Act and

there is a final decision of the Board

under part 259 of this chapter that such

employer or employee was covered

under the Railroad Retirement Act

during the period in which the earnings

were paid;

(4) Where a determination pertaining

to the coverage under the Railroad

Retirement Act of an individual,

partnership, or company as an

employer, is retroactive; and

(5) Where a record of compensation

could not otherwise be corrected under

this part and where in the judgment of

the three-member Board that heads the

Railroad Retirement Board failure to

make a correction would be inequitable.

(c) Limitation on crediting service. No

employee may be credited with service

months or tier II compensation beyond

the four year period referred to in

paragraph (a) of this section unless the

employee establishes to the satisfaction

of the Board that all employment taxes

imposed by sections 3201, 3211, and

3221 of title 26 of the Internal Revenue

Code have been paid with respect to the

compensation and service.

Dated: December 15, 1995.

By Authority of the Board.

Beatrice Ezerski,

Secretary to the Board.

[FR Doc. 95–31064 Filed 12–22–95; 8:45 am]

BILLING CODE 7905–01–M

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[INTL–0009–95]

RIN 1545–AT42

Certain Transfers of Domestic Stock or

Securities by U.S. Persons to Foreign

Corporations

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice of proposed rulemaking

by cross-reference to temporary

regulations 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 revising the rules under

section 367(a) with respect to certain

transfers of stock or securities of

domestic corporations by United States

persons pursuant to the corporate

organization, reorganization or

liquidation provisions of the Internal

Revenue Code. 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 comments must be

received by March 25, 1996. Outlines of

topics to be discussed at the public

hearing scheduled for April 11, 1996, at

10 a.m. must be received by March 21,

1996.

ADDRESSES: Send submissions to:

CC:DOM:CORP:R (INTL 0009–95),

Room 5228, Internal Revenue Service,

POB 7604, Ben Franklin Station,

Washington, DC 20044. In the

alternative, submissions may be hand

delivered between the hours of 8 a.m.

and 5 p.m. to: CC:DOM:CORP:R (INTL–

0009–95), Courier’s Desk, Internal

Revenue Service, 1111 Constitution

Ave. NW., Washington, DC. The public

hearing will be held in the IRS

Auditorium, Internal Revenue Building,

1111 Constitution Avenue NW.,

Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Concerning the regulations, Philip L.

Tretiak at (202) 622–3860; concerning

submissions and the hearing, Christina

Vasquez at (202) 622–7180 (not toll-free

numbers).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

The collection of information

contained in this notice of proposed

rulemaking has 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).

Comments on the collection of

information should be sent to the Office

of Management and Budget, Attn: Desk

Officer for the Department of Treasury,

Office of Information and Regulatory

Affairs, Washington, DC 20503, with

copies to the Internal Revenue Service,

Attn: IRS Reports Clearance Officer,

T:FP, Washington, DC 20224. Comments

on the collection of information should

be received by February 26, 1996.

An agency may not conduct or

sponsor, and a person is not required to

respond to, a collection of information

unless the collection of information

displays a valid control number.

The collection of information is in

§ 1.367(a)–3T(c)(4). This information is

required by the IRS as a condition for

a taxpayer to qualify for an exception to

the general rule of taxation under

section 367(a)(1). This information will

be used to determine whether a taxpayer

properly qualifies for a claimed

exception. The respondents generally

will be U.S. corporations, probably U.S.

multinationals, that are acquired by

foreign companies pursuant to

nonrecognition exchanges or that engage

in joint ventures with foreign

companies. Responses to this collection

of information by the relevant U.S.

corporations are required in order for

the shareholders of such corporations to