Federal Register / Vol. 61, No. 93 / Monday, May 13, 1996 / Proposed Rules 21997

(i) Each member of the electing entity;

or

(ii) Any officer, manager, or member

of the electing entity who is authorized

to make the election and who represents

to having such authorization under

penalties of perjury.

(3) Further notification of elections.

An eligible entity required to file a

federal tax return for the taxable year for

which an election is made under

paragraph (c)(1)(i) of this section shall

attach a copy of the form filed in

accordance with paragraph (c)(1)(i) of

this section to its federal tax return for

that year. If the entity is not required to

file a return for that year, the

Commissioner will require that a copy

of such form be attached to the federal

income tax return of any direct or

indirect owner of the entity for the

taxable year of the owner that includes

the date on which the election was

effective.

(d) Special rule for certain

partnership terminations. When a

partnership terminates by operation of

section 708(b)(1)(B) (on the sale or

exchange of fifty percent or more of the

total interests in partnership capital or

profits within a twelve month period),

the resulting entity created by such

termination is a partnership.

(e) Effective date—(1) In general. The

rules of this section apply to periods

beginning on or after the date that final

regulations are published in the Federal

Register.

(2) Prior treatment of existing entities.

In the case of a business entity that is

not described in § 301.7701–2(b) (1), (3),

(4), (5), (6), or (7), and that is in

existence prior to the effective date of

this section, the entity’s claimed

classification will be respected for all

periods prior to the effective date of this

section if—

(i) The entity had a reasonable basis

(within the meaning of section 6662) for

its claimed classification;

(ii) The entity claimed that same

classification for all prior periods; and

(iii) Neither the entity nor any

member has been notified in writing on

or before May 8, 1996 that the

classification of the entity is under

examination (in which case the entity’s

classification will be determined in the

examination).

Par. 8. Section 301.7701–4 is

amended as follows:

1. The last sentence of paragraphs (b),

(c)(1), (c)(2) Example 1, and (c)(2)

Example 3 are revised.

2. Paragraph (f) is added.

The revisions and additions read as

follows:

§ 301.7701–4 Trusts.

* * * * *

(b) Business trusts. * * * The fact

that any organization is technically cast

in the trust form, by conveying title to

property to trustees for the benefit of

persons designated as beneficiaries, will

not change the real character of the

organization if the organization is more

properly classified as a business entity

under § 301.7701–2.

(c) * * * (1) * * * An investment

trust with multiple classes of ownership

interests ordinarily will be classified as

a business entity under § 301.7701–2;

however, an investment trust with

multiple classes of ownership interests,

in which there is no power under the

trust agreement to vary the investment

of the certificate holders, will be

classified as a trust if the trust is formed

to facilitate direct investment in the

assets of the trust and the existence of

multiple classes of ownership interests

is incidental to that purpose.

(2) * * *

Example 1. * * * As a consequence, the

existence of multiple classes of trust

ownership is not incidental to any purpose

of the trust to facilitate direct investment,

and, accordingly, the trust is classified as a

business entity under § 301.7701–2.

* * * * *

Example 3. * * * Accordingly, the trust is

classified as a business entity under

§ 301.7701–2.

* * * * *

(f) Effective date. The rules of this

section generally apply to taxable years

beginning after December 31, 1960.

Paragraph (e)(5) of this section contains

rules of applicability for paragraph (e) of

this section. In addition, the last

sentences of paragraphs (b), (c)(1), and

(c)(2) Example 1 and Example 3 of this

section apply to taxable years beginning

on or after the date that final regulations

are published in the Federal Register.

Par. 9. Section 301.7701–6 is revised

to read as follows:

§ 301.7701–6 Definitions; person,

fiduciary.

(a) Person. The term person includes

an individual, a corporation, a

partnership, a trust or estate, a jointstock company, an association, or a

syndicate, group, pool, joint venture, or

other unincorporated organization or

group. The term also includes a

guardian, committee, trustee, executor,

administrator, trustee in bankruptcy,

receiver, assignee for the benefit of

creditors, conservator, or any person

acting in a fiduciary capacity.

(b) Fiduciary—(1) In general.

Fiduciary is a term that applies to

persons who occupy positions of

peculiar confidence toward others, such

as trustees, executors, and

administrators. A fiduciary is a person

who holds in trust an estate to which

another has a beneficial interest, or

receives and controls income of another,

as in the case of receivers. A committee

or guardian of the property of an

incompetent person is a fiduciary.

(2) Fiduciary distinguished from

agent. There may be a fiduciary

relationship between an agent and a

principal, but the word agent does not

denote a fiduciary. An agent having

entire charge of property, with authority

to effect and execute leases with tenants

entirely on his own responsibility and

without consulting his principal, merely

turning over the net profits from the

property periodically to his principal by

virtue of authority conferred upon him

by a power of attorney, is not a fiduciary

within the meaning of the Internal

Revenue Code. In cases when no legal

trust has been created in the estate

controlled by the agent and attorney, the

liability to make a return rests with the

principal.

(c) Effective date. The rules of this

section are effective on the date that

final regulations are published in the

Federal Register.

§ 301.7701–7 [Removed]

Par. 10. Section 301.7701–7 is

removed.

Margaret Milner Richardson,

Commissioner of Internal Revenue.

[FR Doc. 96–11780 Filed 5–9–96; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF THE INTERIOR

Minerals Management Service

30 CFR Chapter II

Meeting of the Federal Gas Valuation

Negotiated Rulemaking Committee

AGENCY: Minerals Management Service,

Interior.

ACTION: Notice of meeting.

SUMMARY: The Secretary of the

Department of the Interior (Department)

established a Federal Gas Valuation

Negotiated Rulemaking Committee

(Committee) to develop specific

recommendations with respect to

Federal gas valuation under its

responsibilities imposed by the Federal

Oil and Gas Royalty Management Act of

1982 (FOGRMA). The Department has

determined that the establishment of

this Committee is in the public interest

and will assist the agency in performing

its duties under FOGRMA.

MMS published a proposed rule on

November 6, 1995, in the Federal
21998 Federal Register / Vol. 61, No. 93 / Monday, May 13, 1996 / Proposed Rules

Register (60 FR 56007) advancing the

consensus decisions of the Committee

regarding the valuation of gas produced

from Federal leases. On December 13,

1995, in the Federal Register (60 FR

64000), MMS extended the period for

receiving comments on the proposed

rule through February 5, 1996. MMS is

holding a meeting of the Committee to

discuss how to proceed with further

rulemaking in light of the comments

received on the proposed rule.

DATES: The Committee will meet on:

Wednesday, June 12, 1996, 10:00 a.m. to

5:00 p.m.; Thursday, June 13, 1996, 8:00

a.m. to 5:00 p.m.; Friday, June 14, 1996,

8:00 a.m. to 2:00 p.m.

ADDRESSES: The meetings will be held at

the Denver Federal Center, building 85,

West 6th Avenue and Kipling Street,

Lakewood, Colorado, 80225.

Written statements may be submitted

to Ms. Deborah Gibbs Tschudy, Chief,

Valuation and Standards Division,

Minerals Management Service, Royalty

Management Program, P.O. Box 25165,

MS 3150, Denver, Colorado 80225–

0165, courier delivery to Building 85,

Denver Federal Center, Denver, CO

80225.

FOR FURTHER INFORMATION CONTACT: Ms.

Deborah Gibbs Tschudy, Chief,

Valuation and Standards Division,

Minerals Management Service, Royalty

Management Program, P.O. Box 25165,

MS 3150, Denver, Colorado, 80225–

0165, telephone number (303) 275–

7200, fax number (303) 275–7227.

SUPPLEMENTARY INFORMATION: The

meetings will be open to the public

without advanced registration. Public

attendance may be limited to the space

available. Members of the public may

make statements during the meeting, to

the extent time permits, and file written

statements with the Committee for its

consideration.

Written statements should be

submitted to the address listed above.

Minutes of Committee meetings will be

available for public inspection and

copying 10 days following each meeting

at the same address. In addition, the

materials received to date during the

input sessions are available for

inspection and copying at the same

address.

Dated: May 7, 1996.

Robert E. Brown,

Associate Director for Royalty Management.

[FR Doc. 96–11853 Filed 5–10–96; 8:45 am]

BILLING CODE 4310–MR–P

DEPARTMENT OF TRANSPORTATION

Coast Guard

33 CFR Part 100

[CGD01–95–058]

RIN 2115–AE 46

Special Local Regulation: Connecticut

River Raft Race, Middletown, CT

AGENCY: Coast Guard, DOT.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Coast Guard proposes to

amend the regulations governing the

Connecticut River Raft Race. The event

name would change to the ‘‘Great

Connecticut River Raft Race’’ due to a

change in sponsor. The regulated area

would move upriver to coincide with a

change in the race course. The effective

period would also change to July 27,

1996, and each year thereafter on a date

and times specified in a Federal

Register document. This regulation is

necessary to control vessel traffic within

the regulated area due to the confined

nature of the waterway and anticipated

congestion at the time of the event, thus

providing for the safety of life and

property on the affected navigable

waterway.

DATES: Comments must be received on

or before June 27, 1996.

ADDRESSES: Comments should be

mailed to Commander (b), First Coast

Guard District, Captain John Foster

Williams Federal Building, 408 Atlantic

Ave., Boston, Massachusetts 02110–

3350. Comments also may be handdelivered to room 428 at the same

address between 8 a.m. and 4 p.m.,

Monday through Friday, except federal

holidays.

FOR FURTHER INFORMATION CONTACT:

Lieutenant (Junior Grade) Benjamin M.

Algeo, Chief, Boating Affairs Branch,

First Coast Guard District, (617) 223–

8311.

SUPPLEMENTARY INFORMATION:

Request for Comments

The Coast Guard encourages

interested persons to participate in this

rulemaking by submitting written data,

views, or arguments. Each person

submitting comments should include

their name and address, identify this

notice (CGD01–95–058), the specific

section of the proposal to which each

comment applies, and give the reason

for each comment. Comments and

attachments should be submitted on

81⁄2′′ × 11′′ unbound paper in a format

suitable for copying and electronic

filing. If that is not practical, a second

copy of any bound material is requested.

Persons requesting acknowledgement of

receipt of comments should enclose a

stamped, self-addressed postcard or

envelope.

All comments received during the

comment period will be considered by

the Coast Guard and may change this

proposal. The Coast Guard has no plans

to hold a public hearing. Persons may

request a public hearing by writing to

Commander (b), First Coast Guard

District at the address under ADDRESSES.

The request should include reasons why

a hearing would be beneficial. If the

Coast Guard determines that oral

presentations will aid this rulemaking,

it will hold a public hearing at a time

and place announced by a later notice

in the Federal Register.

Discussion of Proposed Amendments

The Connecticut River Raft Race is in

its twenty-second year, and is a popular

local event. A permanent special local

regulation, 33 CFR Part 100.102, governs

the running of the event. Due to a

change in sponsor, the name of the

event will change to the ‘‘Great

Connecticut River Raft Race’’ and the

location of the race will be moved a

short distance upriver. The event will

continue to be annually recurring,

therefore, the Coast Guard proposes to

permanently amend the special local

regulation found in 33 CFR Part

100.102. The race course and regulated

area will change to consist of that

portion of the Connecticut River

between Marker nos. 92 and 73,

Middletown, CT. The event date will

also change from the first Saturday in

August to the last Saturday in July or

first Saturday in August.

This event will include up to 60

homemade rafts and is expected to draw

up to 100 spectator craft. The Coast

Guard, Connecticut Department of

Environmental Protection, and local fire

and police departments will each assign

a patrol to the event. However, due to

the restricted maneuverability of the

participating rafts, it is necessary to

establish a special local regulation to

control spectator and commercial vessel

movement within this confined area.

Spectator craft are authorized to watch

the race from any area as long as they

remain outside the designated regulated

area.

The proposed section will be effective

annually on the last Saturday in July or

first Saturday in August, between 10

a.m. and 2 p.m., or as published in a

Coast Guard Notice to Mariners. A rain

date may be established and announced

in a Coast Guard Notice to Mariners. In

emergency situations, the Coast Guard

patrol commander may establish escort