27004 Federal Register / Vol. 61, No. 105 / Thursday, May 30, 1996 / Rules and Regulations

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 71

[Airspace Docket No. 96–AWP–5]

Amendment of Class E Airspace; Ely,

NV

AGENCY: Federal Aviation

Administration (FAA), DOT

ACTION: Final rule.

SUMMARY: This action amends the Class

E airspace area at Ely, NV. The

establishment of a Global Positioning

System (GPS) Standard Instrument

Approach Procedure (SIAP) to Runway

(RWY) 18 has made this action

necessary. The intended effect of this

action is to provide additional

controlled airspace for Instrument Flight

Rules (IFR) operations at Ely Airport

(Yelland Field), Ely, NV.

EFFECTIVE DATE: 0901 UTC August 15,

1996.

FOR FURTHER INFORMATION CONTACT:

William Buck, Airspace Specialist,

Operations Branch, AWP–530, Air

Traffic Division, Western-Pacific

Region, Federal Aviation

Administration, 15000 Aviation

Boulevard, Lawndale, California 90261,

telephone (310) 725–6556.

SUPPLEMENTARY INFORMATION:

History

On March 11, 1996, the FAA

proposed to amend part 71 of the

Federal Aviation Regulations (14 CFR

part 71) by amending the Class E

airspace area at Ely, NV (61 FR 9656).

On April 8, 1996, the FAA issued a

supplemental notice to amend this

proposal to establish a Class E airspace

area at Ely, NV (61 FR 15432).

Interested parties were invited to

participate in this rulemaking

proceeding by submitting written

comments on the proposals to the FAA.

No comments to the proposals were

received. Class E airspace designations

are published in paragraph 6005 of FAA

Order 7400.9C dated August 17, 1995,

and effective September 16, 1995, which

is incorporated by reference in 14 CFR

71.1. The Class E airspace designation

listed in this document will be

published subsequently in this Order.

The Rule

This amendment to part 71 of the

Federal Aviation Regulations (14 CFR

part 71) amends the Class E airspace

area at Ely, NV. The development of a

GPS SIAP to RWY 18 has made this

action necessary. The intended effect of

this action is to provide additional

controlled airspace for IFR operations at

Ely Airport (Yelland Field), Ely, NV. 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. Therefore, this regulation—(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 10034; 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 will not have

a significant economic impact on a

substantial number of small entities

under the criteria of the Regulatory

Flexibility Act.

List of Subjects in 14 CFR Part 71

Airspace, Incorporation by reference,

Navigation (air).

Adoption of the Amendment

In consideration of the foregoing, the

Federal Aviation Administration

amends 14 CFR part 71 as follows:

PART 71—[AMENDED]

1. The authority citation for 14 CFR

part 71 continues to read as follows:

Authority: 49 U.S.C. 106(g), 40103, 40113,

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–

1963 Comp., p. 389; 14 CFR 11.69.

§ 71.1 [Amended]

2. The incorporation by reference in

14 CFR 71.1 of the Federal Aviation

Administration Order 7400.9C, Airspace

Designation and Reporting Points, dated

August 17, 1995, and effective

September 16, 1995, is amended as

follows:

Paragraph 6005 Class E airspace areas

extending upward from 700 feet or more

above the surface of the earth.

* * * * *

AWP NV E5 Ely, CA [Revised]

Ely VOR/DME

(Lat. 39°17′53′′ N, long. 114°50′54′′ W)

That airspace extending upward from 700

feet above the surface within a 4.3-mile

radius of Ely VOR and within 4.3-miles

northeast and 8.3 miles southwest of the Ely

VOR 303° radial, extending from the Ely VOR

to 16.1 miles northwest and within 3 miles

each side of the Ely VOR 014° radial,

extending from the Ely VOR to 12.6 miles

northeast and within 3 miles each side of the

Ely VOR 167° radial, extending from the Ely

VOR to 7.7 miles south of the Ely VOR. That

airspace extending upward from 1,200 feet

above the surface within 19.1-mile radius of

Ely VOR and within 6.1 miles northeast and

8.7 miles southwest of the Ely VOR 335°

radial, extending from the 19.1-mile radius to

33 miles northwest of the Ely VOR and

within 4.3 miles east and 6.5 miles west of

the Ely VOR 014° radial, extending from the

19.1-mile radius to 21.3 miles north of the

Ely VOR and within 14 miles east and 12.5

west of the Ely VOR 169° radial, extending

from the 19.1-mile radius to 53 miles south

of the Ely VOR.

* * * * *

Issued in Los Angeles, California, on May

17, 1996.

Thomas S. Kamman,

Acting Manager, Air Traffic Division,

Western-Pacific Region.

[FR Doc. 96–13555 Filed 5–29–96; 8:45 am]

BILLING CODE 4910–13–M

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Food and Drug Administration

21 CFR Parts 172, 173, 175, 176, 177,

178, 180, 181, and 189

Change of Names and Addresses;

Technical Amendment; Correction

AGENCY: Food and Drug Administration,

HHS.

ACTION: Technical amendment;

correction.

SUMMARY: The Food and Drug

Administration (FDA) is correcting a

technical amendment that appeared in

the Federal Register of April 2, 1996 (61

FR 14481). The document amended the

regulations in 21 CFR parts 172, 173,

175, 176, 177, 178, 180, 181, and 189 to

reflect a change in the name and mailing

address for the Association of Official

Analytical Chemists International. The

document was published with some

errors. This document corrects those

errors.

DATES: Effective April 1, 1996.

FOR FURTHER INFORMATION CONTACT:

LaJuana D. Caldwell, Office of Policy

(HF–27), Food and Drug

Administration, 5600 Fishers Lane,

Rockville, MD 20857, 301–443–2994.

SUPPLEMENTARY INFORMATION: In FR doc.

96–7919, appearing on p.14481, in the

Federal Register of Tuesday, April 2,

1996, the following correction is made:

§§ 172, 173, 175, 176, 177, 178, 180, 181, and

189 [Corrected]

On page 14482, in the 1st column,

under the ‘‘Supplementary

Information’’ caption, beginning in line

12, the name and mailing address for

the Association of Official Analytical

Chemists International is corrected to

read: ‘‘AOAC INTERNATIONAL, 481

North Frederick, suite 500,

Gaithersburg, MD 20877–2417’’.
Federal Register / Vol. 61, No. 105 / Thursday, May 30, 1996 / Rules and Regulations 27005

Dated: May 22, 1996.

William K. Hubbard,

Associate Commissioner for Policy

Coordination.

[FR Doc. 96–13537 Filed 5–29–96; 8:45 am]

BILLING CODE 4160–01–F

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[TD 8666]

RIN 1545–AS74

Payment by Employer of Expenses for

Meals and Entertainment, Club Dues,

and Spousal Travel

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final regulations.

SUMMARY: This document contains final

regulations relating to reimbursement

and other expense allowance

arrangements for expenses of business

meals and entertainment that are

disallowed as a deduction under section

274(n), and working condition fringe

benefit treatment for expenses for club

dues and spousal travel that are

disallowed as a deduction under

sections 274(a)(3) and 274(m)(3). The

final regulations reflect changes to the

law made by the Omnibus Budget

Reconciliation Act of 1993. The persons

affected by the final regulations are

persons who provide or receive the use

of business meals and entertainment,

club membership dues, or spousal travel

expenses.

EFFECTIVE DATE: May 30, 1996.

FOR FURTHER INFORMATION CONTACT:

Concerning regulations under sections

62 and 132, David N. Pardys, (202) 622–

6040; concerning regulations under

section 274, John T. Sapienza, Jr., (202)

622–4920 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

On December 16, 1994, a notice of

proposed rulemaking relating to

payment by an employer of expenses for

business meals and entertainment, club

dues, and spousal travel was published

in the Federal Register (59 FR 64909).

A public hearing was held on April 14,

1995.

Written comments responding to the

notice were received. After

consideration of all the comments, the

proposed regulations are adopted as

revised by this Treasury decision. The

significant comments on the proposed

regulations and the principal revisions

made in the final regulations are

discussed below.

Explanation of Provisions

This Treasury decision contains final

regulations to the Income Tax

Regulations under sections 62(c),

132(d), and 274 of the Internal Revenue

Code (Code) to reflect changes made to

section 274 of the Code by sections

13209, 13210, and 13272 of OBRA (107

Stat. 469, 542). The OBRA provisions

amended section 274 of the Code by (1)

limiting the deductible portion of meal

and entertainment expenses to 50

percent; (2) eliminating the deduction

for club dues; and (3) restricting the

deduction for spousal travel. The

amendments to the regulations under

sections 62 and 132 of the Code concern

the income tax consequences to

employees when their employer’s (or

third party payor’s) deduction is

disallowed by the amendments to

section 274 of the Code.

Comments to the proposed

regulations concerned whether payment

of expenses for club dues and spousal

travel by an employer exempt from

taxation under subtitle A of the Internal

Revenue Code were eligible for the

working condition fringe exclusion. The

final regulations provide that any

reference in the regulations to an

employer’s deduction disallowed by

sections 274(a)(3) or 274(m)(3) of the

Code will be treated as a reference to the

amount which would be disallowed as

a deduction to the employer if the

employer were not exempt from

taxation.

Other comments suggested that the

final regulation extend the section

274(e)(2) option of an employer to avoid

the section 274 disallowance for

payment of spousal travel to persons

who pay expenses described in section

274(e)(9). To achieve consistent results

for payments to independent contractors

and employees with respect to spousal

travel, the final regulations adopted this

suggestion.

A number of comments requested

clarification of the term other individual

in section 274(m)(3). In particular, the

comments asked that the term be

clarified so as not to preclude the

deduction for travel expenses of a

business associate accompanying the

taxpayer (or an officer or employee of

the taxpayer) on business travel. The

regulation was amended to reflect these

comments.

One comment concerned the person

to whom a fringe benefit is taxable. The

rules concerning to whom a fringe

benefit is taxable are set forth in § 1.61–

21(a)(4). For rules concerning

volunteers, see § 1.132–5(r).

Several comments involved the

amount of the employer’s disallowed

deduction when the expenses of a

spouse, dependent, or other individual

accompanying an employee on a

noncommercial flight qualify as a

working condition fringe benefit. This

issue is under further consideration. In

addition, other comments requested

clarification of what constitutes a

deductible expenditure for spousal

travel under the general rule of section

162(a). The rules for deducting travel

expenses of a spouse are in § 1.162–2(c).

Special Analyses

It has been determined that this

Treasury decision is not a significant

regulatory action as defined in EO

12866. Therefore, a regulatory

assessment is not required. It has also

been determined that section 553(b) of

the Administrative Procedure Act (5

U.S.C. chapter 5) and the Regulatory

Flexibility Act (5 U.S.C. chapter 6) do

not apply to these regulations, and,

therefore, a Regulatory Flexibility

Analysis is not required. Pursuant to

section 7805(f) of the Internal Revenue

Code, the notice of proposed rulemaking

preceding these regulations was

submitted to the Small Business

Administration for comment on its

impact on small business.

Drafting Information. The principal

authors of these regulations are David N.

Pardys, Office of the Associate Chief Counsel

(Employee Benefits and Exempt

Organizations), and John T. Sapienza, Jr.,

Office of the Assistant Chief Counsel (Income

Tax and Accounting), IRS. Personnel from

other offices of the IRS and Treasury

Department also participated in their

development.

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and

recordkeeping requirements.

Amendments to the Regulations

Accordingly, 26 CFR part 1 is

amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation

for part 1 continues to read, in part, as

follows:

Authority: 26 U.S.C. 7805 * * *.

Par. 2. In § 1.62–2, paragraph (h)(1) is

amended by adding a second sentence

at the end of the paragraph to read as

follows:

§ 1.62–2 Reimbursements and other

expense allowance arrangements.

* * * * *