Federal Register / Vol. 61, No. 107 / Monday, June 3, 1996 / Proposed Rules 27833

(1) An action by BIA, the joint

managers, or an allottee, the Secretary

must immediately notify the BIA’s

Office of Trust Fund Management and

the Minerals Management Service

(MMS) of the error and how to correct

it;

(2) An action or inaction by MMS, a

lessee, payee, or a person or company

legally associated with a lessee, MMS

must immediately notify the BIA’s

Office of Trust Fund Management of the

error and how to correct it.

Dated: May 22, 1996.

Ada E. Deer,

Assistant Secretary—Indian Affairs.

[FR Doc. 96–13731 Filed 5–31–96; 8:45 am]

BILLING CODE 4310–02–P

25 CFR Parts 271, 272, 274, 277 and

278

RIN 1076 AD 53

Contracts and Grants; School

Construction; Special Grants to Small

Tribes; Removal of Regulations

AGENCY: Bureau of Indian Affairs,

Interior.

ACTION: Proposed Rule.

SUMMARY: The Bureau of Indian Affairs

(Bureau) is proposing the elimination of

25 CFR Parts 271, 272, 274, 277 and 278

as mandated by Executive Order 12866

to streamline the regulatory process and

enhance the planning and coordination

of new and existing regulations.

DATES: Comments must be received on

or before August 2, 1996.

ADDRESSES: Mail comments to James

Thomas, Division of Self-Determination

Services, Office of Tribal Services,

Bureau of Indian Affairs, Department of

the Interior, 1849 C St. NW, Mail Stop

4603–MIB, Washington, DC 20240; OR,

hand deliver them to Room 4603 at the

above address. Comments will be

available for inspection at this address

from 9:00 a.m. to 4:00 p.m., Monday

through Friday beginning approximately

2 weeks after publication of this

document in the Federal Register.

FOR FURTHER INFORMATION CONTACT:

James Thomas, Office of Tribal Services,

Bureau of Indian Affairs at telephone

(202) 208–3463.

SUPPLEMENTARY INFORMATION:

Background

The Bureau is promulgating new rules

to implement the Indian SelfDetermination and Education

Assistance Act, 25 CFR Part 900, which

will replace Part 271, Contracts under

Indian Self-Determination Act and Part

272, Grants under Indian SelfDetermination Act. The Bureau is

proposing the elimination of 25 CFR

Part 274, School Construction Contracts

or Services for Tribally Operated

Previously Private Schools, Part 277,

School Construction Contracts for

Public Schools and Part 278, Special

Grants for Economic Development and

Core Management Grants to Small

Tribes because they are no longer

necessary for the administration of

Bureau programs.

Supplementary Information

The authority to issue rules and

regulations is vested in the Secretary of

the Interior by 5 U.S.C. 301 and sections

463 and 465 of the Revised Statutes, 25

U.S.C. 2 and 9.

Publication of this proposed rule by

the Department of the Interior

(Department) provides the public an

opportunity to participate in the

rulemaking process. Interested persons

may submit written comments regarding

this proposed rule to the location

identified in the ‘‘addresses’’ section of

this document.

Executive Order 12778

The Department has certified to the

Office of Management and Budget

(OMB) that this rule meets the

applicable standards provided in

sections 2(a) and 2(b)(2) of Executive

Order 12778.

Executive Order 12866

This rule is not a significant

regulatory action under Executive Order

12866 and does not require review by

the Office of Management and Budget.

Regulatory Flexibility Act

This rule will not have a significant

economic impact on a substantial

number of small entities under the

Regulatory Flexibility Act (5 U.S.C. 601

et seq.).

Executive Order 12630

The Department has determined that

this rule does not have ‘‘significant

takings’’ implications. This rule does

not pertain to ‘‘taking’’ of private

property interests, nor does it impact

private property.

Executive Order 12612

The Department has determined that

this rule does not have significant

federalism effects because it pertains

solely to Federal-tribal relations and

will not interfere with the roles, rights

and responsibilities of states.

NEPA Statement

The Department has determined that

this rule does not constitute a major

Federal action significantly affecting the

quality of the human environment and

that no detailed statement is required

pursuant to the National Environmental

Policy Act of 1969.

Unfunded Mandates Act of 1995

This rule imposes no unfunded

mandates on any governmental or

private entity and is in compliance with

the provisions of the Unfunded

Mandates Act of 1995.

Paperwork Reduction Act of 1995

This rule contains no information

collection requirement that would

require notification to the Office of

Management and Budget.

Drafting Information

The primary author of this document

is Harriet Brown, Bureau of Indian

Affairs.

List of Subjects

25 CFR Part 271

Indians—tribal government, Indians—

contracting.

25 CFR Part 272

Indians—tribal government, Indians—

grants.

25 CFR Parts 274 and 277

Indians—school construction.

25 CFR Part 278

Indians—special grants for economic

development—core management grants.

Under the authority of Executive

Order 12866, and for the reasons stated

above, 25 CFR parts 271, 272, 274, 277

and 278 are proposed to be removed.

Dated: May 24, 1996.

Ada E. Deer,

Assistant Secretary—Indian Affairs.

[FR Doc. 96–13728 Filed 5–31–96; 8:45 am]

BILLING CODE 4310–02–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[INTL–0054–95]

RIN 1545–AT96

Proposed Amendments to the

Regulations on the Determination of

Interest Expense Deduction of Foreign

Corporations and Branch Profits Tax;

Hearing

AGENCY: Internal Revenue Service,

Treasury.

ACTION: Change of location of public

hearing.
27834 Federal Register / Vol. 61, No. 107 / Monday, June 3, 1996 / Proposed Rules

SUMMARY: This document changes the

location of the public hearing on

proposed regulations relating to the

determination of the interest expense

deduction of foreign corporations and

branch profits tax.

DATES: The public hearing is being held

on Thursday, June 6, 1996, beginning at

10:00 a.m.

ADDRESSES: The public hearing

originally scheduled in the IRS

Auditorium, Seventh floor, 7400

Corridor, Internal Revenue Building,

1111 Constitution Avenue, NW,

Washington, DC is changed to room

5718, Internal Revenue Building, 1111

Constitution Avenue, NW, Washington,

DC.

FOR FURTHER INFORMATION CONTACT:

Mike Slaughter of the Regulations Unit,

Assistant Chief Counsel (Corporate),

(202) 622–7190, (not a toll-free number).

SUPPLEMENTARY INFORMATION: A notice

of public hearing appearing in the

Federal Register on Friday, March 8,

1996 (61 FR 9377), announced that a

public hearing relating to proposed

regulations under sections 882 and 884

of the Internal Revenue Code will be

held Thursday, June 6, 1996, beginning

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

Seventh floor, 7400 Corridor, Internal

Revenue Building, 1111 Constitution

Avenue, NW, Washington, DC and that

requests to speak and outlines of oral

comments should be received by

Thursday, May 23, 1996.

The location of the public hearing has

changed. The hearing is being held in

room 5718 on Thursday, June 6, 1996,

beginning at 10:00 a.m. The requests to

speak and outlines of oral comments

should be received by Thursday, May

23, 1996. Because of controlled access

restrictions, attenders cannot be

admitted beyond the lobby of the

Internal Revenue Building until 9:45

a.m.

Copies of the agenda are available free

of charge at the hearing.

Cynthia E. Grigsby,

Chief, Regulations Unit, Assistant Chief

Counsel (Corporate).

[FR Doc. 96–13723 Filed 5–31–96; 8:45 am]

BILLING CODE 4830–01–U

26 CFR Part 1

[IA–292–84]

RIN 1545–AU11

Section 467 Rental Agreements

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice of proposed rulemaking

and notice of public hearing.

SUMMARY: This document contains

proposed regulations relating to the

treatment of rent and interest under

certain agreements for the lease of

tangible property. The proposed

regulations apply to certain rental

agreements that provide increasing or

decreasing rents, or deferred or prepaid

rent. This document also provides

notice of a public hearing on these

regulations.

DATES: Written comments, requests to

appear and outlines of topics to be

discussed at the public hearing

scheduled for September 25, 1996, must

be received by September 3, 1996.

ADDRESSES: Send submissions to:

CC:DOM:CORP:R (IA–292–84), 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 (IA–292–84),

Courier’s Desk, Internal Revenue

Service, 1111 Constitution Avenue NW.,

Washington, DC. The public hearing

will be held in the Commissioner’s

Conference Room, 3rd Floor, 1111

Constitution Avenue NW., Washington,

DC.

FOR FURTHER INFORMATION CONTACT:

Concerning the proposed regulations,

Forest Boone of the Office of Assistant

Chief Counsel (Income Tax and

Accounting) at (202) 622–4960;

concerning submissions and the public

hearing, Mike Slaughter at (202) 622–

7190 (not toll-free numbers).

SUPPLEMENTARY INFORMATION:

Background

This document contains proposed

amendments to the Income Tax

Regulations (26 CFR part 1) relating to

section 467 of the Internal Revenue

Code (Code). This section was added by

the Tax Reform Act of 1984. In general,

section 467 requires parties to certain

rental agreements to accrue rent and

interest in accordance with the rules

specified in section 467. These

proposed regulations provide guidance

regarding the applicability of section

467, and the amount of rent and interest

required to be accrued under section

467. No inference should be drawn from

any provision in the proposed

regulations concerning whether an

arrangement constitutes a lease for

Federal income tax purposes.

Explanation of Provisions

1. Section 467 Rental Agreements

Section 467(a) provides that, if a

rental agreement is a section 467 rental

agreement, the lessor and lessee must

take into account for a taxable year the

section 467 rent and the section 467

interest for that year. A section 467

rental agreement is a rental agreement

that has increasing or decreasing rents,

or prepaid or deferred rents. A rental

agreement has increasing or decreasing

rents if the annualized fixed rent

allocated to any rental period exceeds

the annualized fixed rent allocated to

any other rental period in the lease

term. The proposed regulations provide

that a rent holiday at the beginning of

the lease term is disregarded in

determining whether the rental

agreement has increasing or decreasing

rent if the rent holiday period is three

months or less.

In addition, the proposed regulations

provide that a rental agreement has

increasing or decreasing rent if it

requires (or may require) the payment of

contingent rent, other than contingent

rent that is contingent due to (a) a

provision computing rent based on a

percentage of the lessee’s gross or net

receipts (but only if the percentage does

not vary throughout the term of the

lease); (b) adjustments based on a

reasonable price index; or (c) a

provision requiring the lessee to pay

real estate taxes, insurance premiums,

maintenance costs, or any other cost

(other than a debt service cost) that

relates to the leased property and is not

within the control of the lessor or lessee

or a person related to the lessor or

lessee.

Section 467(d)(1)(A) provides that a

rental agreement has deferred rent if

rent allocated to a calendar year is

payable after the close of the succeeding

calendar year. The proposed regulations

provide that there is prepaid rent if rent

allocated to a calendar year is payable

prior to the beginning of the prior

calendar year.

Section 467(d)(2) provides that

section 467 does not apply to a rental

agreement if the aggregate rental

payments and other consideration to be

received for the use of the property do

not exceed $250,000.

2. Section 467 Rent

Under the proposed regulations, the

section 467 rent for a taxable year is the

sum of the fixed rent for any rental

periods that begin and end in the

taxable year, a ratable portion of the

fixed rent for other rental periods

beginning or ending in the taxable year,

and any contingent rent that accrues in

the taxable year. In general, the

proposed regulations provide that rental

periods may be of any length as long as

(a) the rental periods are one year or

less, cover the entire lease term, and do

not overlap, and (b) each scheduled