29714 Federal Register / Vol. 61, No. 114 / Wednesday, June 12, 1996 / Proposed Rules

Section 177.2550 Reverse osmosis

membranes.

Section 177.2600 Rubber articles

intended for repeated use.

Section 177.2800 Textiles and textile

fibers.

D. Indirect Food Additives: Adjuvants,

Production Aids, and Sanitizers

Section 178.1005 Hydrogen peroxide

solution.

Section 178.3120 Animal glue.

Section 178.3570 Lubricants with

incidental food contact.

Section 178.3850 Reinforced wax.

VI. Regulations Reinvented for Clarity

The agency has noted that some of its

food additive regulations could be

rewritten to provide clearer guidance.

A. Food Additives Permitted for Direct

Addition to Food for Human

Consumption

The labeling directions in § 172.725

Gibberellic acid and its potassium salt

could be rewritten for clarity.

Section 172.177 Sodium nitrite used

in processing smoked chub could be

revised to achieve greater consistency

with 21 CFR 172.175.

B. Secondary Direct Food Additives

Permitted in Food for Human

Consumption

Section 173.357 Materials used as

fixing agents in the immobilization of

enzyme preparations could be revised to

give a clearer statement of components

that may be safely used.

Section 173.395 Trifluoromethane

sulfonic acid could be revised for

clarity.

C. Indirect Food Additives: General

Section 174.5 General provisions

applicable to indirect food additives

could be revised to achieve greater

clarity in paragraph (d)(l) and in the

restrictions placed on GRAS substances

authorized for use in this part.

D. Indirect Food Additives: Polymers

In § 177.1560 Polyarylsulfone resins,

the agency could add a definition for

‘‘normal baking temperature.’’

In § 177.2490 Polyphenylene sulfide

resins, the agency could add a definition

for ‘‘normal baking and frying

temperature.’’

E. Direct Food Substances Affirmed as

Generally Recognized as Safe

In §§ 184.1257 Clove and its

derivatives and 184.1259 Cocoa butter

substitute primarily from palm oil, the

description of the additives could be

simplified.

Section 184.1287 Enzyme-modified

fats does not contain general

requirements for enzyme preparations.

FDA could reinvent this section to be

consistent with the agency’s general

enzyme provisions.

In § 184.1333 Gum ghatti, the agency

could eliminate the specifications under

paragraph (b) and incorporate by

reference the specifications in the Food

Chemicals Codex.

In § 184.1408 Licorice and licorice

derivatives could be revised to achieve

greater clarity and the regulation could

state that methods of analysis are

available from CFSAN.

The description of the additives in

§ 184.1685 Rennet (animal-derived) and

chymosin preparation (fermentationderived) could be simplified.

VII. Request for Comments

Interested persons may, on or before,

September 10, 1996, submit to the

Dockets Management Branch (address

above) written comments regarding this

notice. Two copies of any comments are

to be submitted, except that individuals

may submit one copy. Comments are to

be identified with the docket number

found in brackets in the heading of this

document. Received comments may be

seen in the office above between 9 a.m.

and 4 p.m., Monday through Friday.

Dated: June 6, 1996.

William B. Schultz,

Deputy Commissioner for Policy

[FR Doc. 96–14889 Filed 6–7–96; 3:02 pm]

BILLING CODE 4160–01–F

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 26

[PS–22–96]

RIN 1545–AU26

Generation-Skipping Transfer Tax

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Notice of proposed rulemaking.

SUMMARY: This document contains

proposed regulations relating to the

final generation-skipping transfer (GST)

tax regulations under chapter 13 of the

Internal Revenue Code (Code). This

document proposes a change to the final

regulations and is necessary to provide

guidance to taxpayers so that they may

comply with chapter 13 of the Code.

DATES: Written comments and requests

for a public hearing must be received by

September 10, 1996.

ADDRESSES: Send submissions to:

CC:DOM:CORP:R (PS–22–96), 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 (PS–22–96),

Courier’s Desk, Internal Revenue

Service, 1111 Constitution NW.,

Washington, DC 20224.

FOR FURTHER INFORMATION CONTACT:

Concerning the proposed regulation,

James F. Hogan, (202) 622–3090 (not a

toll-free number); concerning

submissions, Christina Vasquez, (202)

622–7180, (not a toll-free number).

SUPPLEMENTARY INFORMATION:

Background

On December 24, 1992, the IRS

published a notice of proposed

rulemaking in the Federal Register (57

FR 61356) containing proposed

regulations under sections 2611, 2612,

2613, 2632, 2641, 2642, 2652, 2653,

2654, and 2663. On December 27, 1995,

the IRS published final regulations in

the Federal Register (60 FR 66898)

under sections 2611, 2612, 2613, 2632,

2641, 2642, 2652, 2653, 2654, and 2663.

This proposed regulation will delete

§ 26.2652–1(a)(4) and two related

examples.

Explanation of Provision

Section 2652(a)(1) provides generally,

that the term transferor means—(A) in

the case of any property subject to the

tax imposed by chapter 11, the

decedent, and (B) in the case of any

property subject to the tax imposed by

chapter 12, the donor. An individual is

treated as transferring any property with

respect to which the individual is the

transferor. Under § 26.2652–1(a)(2), a

transfer is subject to Federal gift tax if

a gift tax is imposed under section

2501(a) and is subject to Federal estate

tax if the value of the property is

includable in the decedent’s gross estate

determined under section 2031 or

section 2103. Under § 26.2652–1(a)(4),

the exercise of a power of appointment

that is not a general power of

appointment is also treated as a transfer

subject to Federal estate or gift tax by

the holder of the power if the power is

exercised in a manner that may

postpone or suspend the vesting,

absolute ownership, or power of

alienation of an interest in property for

a period, measured from the date of the

creation of the trust, extending beyond

any specified life in being at the date of

creation of the trust plus a period of 21

years plus, if necessary, a reasonable

period of gestation.

The purpose of the rule in § 26.2652–

1(a)(4) was to apply the GST tax when
Federal Register / Vol. 61, No. 114 / Wednesday, June 12, 1996 / Proposed Rules 29715

it may not otherwise have applied. It

was never intended to (nor could it)

prevent the application of the tax

pursuant to the statutory provisions that

apply based on the original taxable

transfer. To eliminate any uncertainty

concerning the proper application of the

GST tax, the regulations under section

2652(a) will be clarified by eliminating

§ 26.2652–1(a)(4) and Example 9 and

Example 10 in § 26.2652–1(a)(6) from

the final regulations.

Proposed Effective Date

These amendments apply to transfers

to trusts on or after June 12, 1996.

Special Analysis

It has been determined that this notice

of proposed rulemaking 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.

Comments and Requests for a Public

Hearing

Before this proposed regulation is

adopted as a final regulation,

consideration will be given to any

written comments (a signed original and

eight (8) copies) that are submitted

timely to the IRS. All comments will be

available for public inspection and

copying. A public hearing may be

scheduled if requested in writing by a

person that timely submits written

comments. If a public hearing is

scheduled, notice of the date, time, and

place for the hearing will be published

in the Federal Register.

Drafting Information

The principal author of this proposed

regulation is James F. Hogan, Office of

the Chief Counsel, IRS. Other personnel

from the IRS and Treasury Department

participated in its development.

List of Subjects in 26 CFR Part 26

Estate taxes, Reporting and

recordkeeping requirements.

Adoption of Amendments to the

Regulations

Accordingly, 26 CFR part 26 is

proposed to be amended as follows:

PART 26—GENERATION-SKIPPING

TRANSFER TAX REGULATIONS

UNDER THE TAX REFORM ACT OF

1986

Paragraph 1. The authority citation

for part 26 continues to read, in part, as

follows:

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

Par. 2. Section 26.2652–1 is amended

as follows:

§ 26.2652–1 [Amended]

1. Paragraph (a)(4) is removed and

paragraphs (a)(5) and (a)(6) are

redesignated as paragraphs (a)(4) and

(a)(5), respectively.

2. In newly designated paragraph

(a)(5), Examples 9 and 10 are removed

and Example 11 is redesignated as

Example 9.

Margaret Milner Richardson,

Commissioner of Internal Revenue.

[FR Doc. 96–13858 Filed 6–11–96; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF JUSTICE

28 CFR Part 74

Redress Provisions for Persons of

Japanese Ancestry: Guidelines Under

Ishida v. United States

AGENCY: Department of Justice.

ACTION: Notice of extension of deadline

for public comment.

SUMMARY: On April 22, 1996, the

Department of Justice published in the

Federal Register (61 FR 17667) a

proposed rule to amend the

Department’s regulation governing

redress provisions for persons of

Japanese ancestry. This change will

amend the standards of the Civil

Liberties Act of 1988 to make eligible for

payments of $20,000 those persons who

were born after their parents

‘‘voluntarily’’ evacuated from the

prohibited military zones of the West

Coast of the United States as a result of

military proclamations issued pursuant

to Executive Order 9066. This change

will also make eligible for redress those

persons who were born outside the

prohibited military zones in the United

States after their parents were released

from internment camps during the

defined war period and whose parents

had resided in the prohibited military

zones on the West Coast immediately

prior to their internment.

The period for accepting comments

was published as ending on June 6,

1996. Due to a clerical mistake,

however, the period for accepting

comments should end on June 20, 1996,

upon the expiration of the standard

sixty day comment period. Due to this

mistake and requests from interested

parties to have the full sixty day period

in which to submit comments, the

comment period is extended through

June 20, 1996.

DATES: The comment period is extended

to June 20, 1996.

ADDRESSES: Written comments may be

mailed to the Office of Redress

Administration, P.O. Box 66260,

Washington, D.C. 20035–6260.

FOR FURTHER INFORMATION CONTACT: Tink

D. Cooper or Emlei M. Kuboyama,

Office of Redress Administration, Civil

Rights Division, U.S. Department of

Justice, P.O. Box 66260, Washington,

D.C. 20035–6260; (202) 219–6900

(voice) or (202) 219–4710 (TDD). These

are not toll-free numbers.

SUPPLEMENTARY INFORMATION: The

proposed rule published in the Federal

Register on April 22, 1996, would

amend the regulation of the Department

of Justice governing redress provisions

for persons of Japanese ancestry. A

number of persons have asserted claims

for redress based on their parents’

evacuation or internment by the United

States Government prior to their birth

and their subsequent inability to legally

return to their parents’ original place of

residence in the prohibited military

zones on the West Coast. Based on

section 108 of the Civil Liberties Act of

1988, Public Law No. 100–383 (codified

at 50 U.S.C. app 1989 et seq., as

amended) and 28 CFR 74.4, the Civil

Rights Division found these persons

ineligible for redress. Approximately

1,000 persons who were born after their

parents ‘‘voluntarily’’ evacuated from

the prohibited military zones or after

their parents were released from

internment camps claimed

compensation under the Act. Most of

these claimants were born prior to

midnight on January 2, 1945, the

effective date of Proclamation Number

21, which rescinded the prohibited

military zones on the West Coast and

lifted the general exclusion restrictions

on persons of Japanese ancestry.

However, the United States Court of

Appeals for the Federal Circuit

determined that the Civil Rights

Division’s policy of denying such claims

was inconsistent with the terms of the

Act. Ishida v. U.S., No. 94–5151 (Fed.

Cir., July 6, 1995). In order to conform

to the court decision, the Civil Rights

Division proposed this revision to the

regulation.