Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Proposed Rules 33391

decisions on the proposal. Comments

are specifically invited on the overall

regulatory, aeronautical, economic,

environmental, and energy-related

aspects of the proposal.

Communications should identify the

airspace docket number and be

submitted in triplicate to the address

listed above. Commenters wishing the

FAA to acknowledge receipt of their

comments on this notice must submit

with the comments a self-addressed,

stamped postcard on which the

following statement is made:

‘‘Comments to Airspace Docket No. 95–

AWP–40.’’ The postcard will be date/

time stamped and returned to the

commenter. All communications

received on or before the specified

closing date for comments will be

considered before taking action on the

proposed rule. The proposal contained

in this notice may be changed in light

of comments received. All comments

submitted will be available for

examination in the Operations Branch,

Air Traffic Division, at 15000 Aviation

Boulevard, Lawndale, California 90261,

both before and after the closing date for

comments. A report summarizing each

substantive public contact with FAA

personnel concerned with this

rulemaking will be filed in the docket.

Availability of NPRM

Any person may obtain a copy of this

Notice of Proposed Rulemaking (NPRM)

by submitting a request to the Federal

Aviation Administration, Operations

Branch, P.O. Box 92007, Worldway

Postal Center, Los Angeles, California

90009. Communications must identify

the notice number of this NPRM.

Persons interested in being placed on a

mailing list for future NPRM’s should

also request a copy of Advisory Circular

No. 11–2A, which describes the

application procedures.

The Proposal

The FAA is considering an

amendment to part 71 of the Federal

Aviaiton Regulations (14 CFR part 71)

by establishing Class E airspace area at

Coolidge, AZ. The development of a

GPS and VOR/DME SIAP at Coolidge

Municipal Airport has made this

proposal necessary. The intended effect

of this proposal is to provide adequate

Class E airspace for aircraft executing

the GPS RWY 23 and VOR/DME RWY

05 SIAP at Coolidge Municipal Airport,

Coolidge, AZ. Class E airspace

designations for airspace areas

extending upward from 700 feet or more

above the surface of the earth 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 would be

published subsequently in this Order.

The FAA has determined that this

proposed regulation only involves an

established body of technical

regulations for which frequent and

routine amendments are necessary to

keep them operationally current.

Therefore, this proposed 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 proposed rule

would 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).

The Proposed Amendment

In consideration of the foregoing, the

Federal Aviation Administration

proposes to amend 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

Designations 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 AZ E5 Coolidge, AZ [New]

Coolidge Municipal Airport, AZ.

(Lat. 32°56′00′′ N, long. 111°25′32′′ W)

That airspace extending upward from 700

feet above the surface bounded by a line

beginning at lat. 32°19′55′′ N, long.

111°24′00′′ W; thence west to lat. 32°17′20′′

N, long. 111°44′30′′ W; thence north to lat.

32°58′50′′ N, long. 111°46′00′′ W; thence

northeast to lat. 33°08′10′′ N, long.

111°10′20′′ W; thence southeast to lat.

32°58′50′′ N, long. 111°04′15′′ W; thence

southwest to the point of beginning.

* * * * *

Issued in Los Angeles, California, on June

13, 1996.

George D. Williams,

Manager, Air Traffic Division, Western-Pacific

Region.

[FR Doc. 96–16412 Filed 6–26–96; 8:45 am]

BILLING CODE 4910–13–M

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[CO–26–96]

RIN 1545–AU33

Regulations Under Section 382 of the

Internal Revenue Code of 1986;

Application of Section 382 in Short

Taxable Years and With Respect to

Controlled Groups

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Withdrawal of prior proposed

rule, notice of proposed rulemaking by

cross-reference to temporary

regulations, and notice of public

hearing.

SUMMARY: On January 29, 1991,

proposed rules under section 382 of the

Internal Revenue Code of 1986 (relating

to limitations on net operating loss

carryforwards and certain built-in losses

following an ownership change) were

filed with the Office of the Federal

Register (CO–77–90; see 56 FR 4183;

1991–1 C.B. 749). The January, 1991,

proposed rules are withdrawn and these

proposed rules are issued in their place.

In the Rules and Regulations section

of this issue of the Federal Register, the

IRS is issuing temporary regulations

relating to the application of section 382

in short taxable years and with respect

to controlled groups. These regulations

comply with the statutory direction

under section 382(m) to prescribe such

regulations. Additional rules amend

certain aspects of § 1.382–2T relating

principally to the separate tracking of

the stock ownership of loss corporations

that cease to exist following a merger or

similar transactions.

The text of those temporary

regulations also serves as the text of

these proposed regulations. This

document also provides a notice of

public hearing on these proposed

regulations.

DATES: Written comments must be

received by September 25, 1996.

Outlines of topics to be discussed at the
33392 Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Proposed Rules

public hearing scheduled for Thursday,

October 17, 1996, at 10 a.m. must be

received by Thursday, September 26,

1996.

ADDRESSES: Send submissions to:

CC:DOM:CORP:R (CO–26–96), 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 (CO–26–96),

Courier’s Desk, Internal Revenue

Service, 1111 Constitution Avenue NW.,

Washington, DC. The public hearing

will be held in the NYU Classroom,

Room 2615, Internal Revenue Building,

1111 Constitution Avenue NW.,

Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Concerning the regulations, David B.

Friedel, (202) 622–7550; concerning

submissions and the hearing,

Evangelista Lee, (202) 622–7190 (not

toll-free numbers).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

The collection of information

contained in this notice of proposed

rulemaking has been reviewed and

approved by the Office of Management

and Budget in accordance with the

Paperwork Reduction Act (44 U.S.C.

3507) under the control number 1545–

1434. Proposed § 1.382–8(h) requires a

response from certain corporations that

are members of controlled groups. The

IRS requires this information to assure

compliance with section 382(m)(5) so

that the value of a loss corporation that

is a member of a controlled group is not

taken into account more than once in

computing a section 382 limitation.

Comments concerning 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

August 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.

Proposed § 1.382–8(h) provides that

the loss corporation must file a

statement signed by it and any other

member of the controlled group that

elects to restore value to it indicating

relevant information regarding the

election. The likely respondents and/or

recordkeepers are corporations that are

members of certain controlled groups.

Responses to this collection of

information are required to obtain a

benefit (relating to the restoration of

value for section 382 purposes).

Books or records relating to this

collection of information must be

retained as long as their contents may

become material in the administration

of any Internal Revenue law. Generally,

tax returns and tax return information

are confidential, as required by 26

U.S.C. 6103.

Estimated total annual reporting

burden: 875 hours. The estimated

annual burden per respondent varies

from ten to thirty minutes, depending

on individual circumstances, with an

estimated average of fifteen minutes.

Estimated number of respondents:

21,000. Estimated frequency of

responses: once every six years.

Background

Temporary regulations in the Rules

and Regulations section of this issue of

the Federal Register amend the Income

Tax Regulations (26 CFR Part 1) under

section 382 of the Internal Revenue

Code of 1986. Among other changes,

those regulations add temporary

regulations §§ 1.382–5T and 1.382–8T,

and amend § 1.382–2T(f). The final

regulations that are proposed to be

based on these proposed regulations

would be added to part 1 of title 26 of

the Code of Federal Regulations. Those

final regulations would provide rules

relating to limitations on net operating

loss carryforwards and certain built-in

losses following an ownership change

under section 382.

For the text of these new temporary

regulations, see TD 8679. The preamble

to the temporary regulations explains

the regulations.

Special Analyses

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 also has

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, this notice of proposed

rulemaking will be submitted to the

Chief Counsel for Advocacy of the Small

Business Administration for comment

on its impact on small business.

Comments and Public Hearing

Before these proposed regulations are

adopted as final regulations,

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 has been scheduled

for Thursday, October 17, 1996, at 10

a.m. in the NYU Classroom, Room 2615,

Internal Revenue Building, 1111

Constitution Avenue NW., Washington,

DC. Because of access restrictions,

visitors will not be admitted beyond the

building lobby more than 15 minutes

before the hearing starts.

The rules of 26 CFR 601.601(a)(3)

apply to the hearing.

Persons that wish to present oral

comments at the hearing must submit

written comments by September 25,

1996 and submit an outline of the topics

to be discussed and the time to be

devoted to each topic (signed original

and eight (8) copies) by Thursday,

September 26, 1996.

A period of 10 minutes will be

allotted to each person for making

comments.

An agenda showing the scheduling of

the speakers will be prepared after the

deadline for receiving outlines has

passed. Copies of the agenda will be

available free of charge at the hearing.

Drafting Information: The principal author

of the temporary regulations is David B.

Friedel of the Office of Assistant Chief

Counsel (Corporate), IRS. Other personnel

from the IRS and Treasury participated in

their development.

Withdrawal of Notice of Proposed

Rulemaking

Accordingly, under the authority of

26 U.S.C. 7805, the notice of proposed

rulemaking that was published on

January 29, 1991 (56 FR 4183) is

withdrawn.

List of Subjects in 26 CFR Part 1

Income taxes, Reporting and

recordkeeping requirements.

Proposed Amendments to the

Regulations

Accordingly, 26 CFR part 1 is

proposed to be amended as follows:

PART 1—INCOME TAXES

Paragraph 1. The authority citation

for part 1 is amended by revising the

entry for § 1.382–2T and adding

citations for §§ 1.382–5 and 1.382–8 in

numerical order to read as follows:

Authority: 26 U.S.C. 7805 * * *
Federal Register / Vol. 61, No. 125 / Thursday, June 27, 1996 / Proposed Rules 33393

Section 1.382–2T also issued under 26

U.S.C. 382(g)(4)(C), (i), (k)(1) and (6), (l)(3),

(m), and 26 U.S.C. 383.* * *

Section 1.382–5 also issued under 26

U.S.C. 382(m).* * *

Section 1.382–8 also issued under 26

U.S.C. 382(m).* * *

Par. 2. Section 1.382–1 is amended by

revising the entry for § 1.382–2(a)(1)(iv),

and adding §§ 1.382–5 and 1.382–8 to

read as follows:

§ 1.382–1 Table of contents.

* * * * *

§ 1.382–2 General rules for ownership

change.

(a) * * *

(1) * * *

(iv) End of separate accounting for losses

and credits of distributor or transferor loss

corporation.

* * * * *

§ 1.382–5 Section 382 limitation.

(a) Scope.

(b) Computation of value.

(c) Short taxable year.

(d) Successive ownership changes and

absorption of a section 382 limitation.

(1) In general.

(2) Recognized built-in gains and losses.

(3) Effective date.

(e) Controlled groups.

(f) Effective date.

* * * * *

§ 1.382–8 Controlled groups.

(a) Introduction.

(b) Controlled group loss and controlled

group with respect to a controlled group loss.

(c) Computation of value.

(1) Reduction in value.

(2) Restoration of value.

(3) Reduction in value by the amount

restored.

(4) Appropriate adjustments.

(5) Certain reductions in the value of

members of a controlled group.

(d) No double reduction.

(e) Definitions and nomenclature.

(1) Definitions in § 1.382–2T.

(2) Controlled group.

(3) Component member.

(4) Predecessors and successors.

(f) Coordination between consolidated

groups and controlled groups.

(g) Examples.

(h) Time and manner of filing election to

restore.

(1) Statement required.

(2) Revocation of election.

(3) Filing by component member.

(i) [Reserved]

(j) Effective date.

(1) In general.

(2) Transition rule.

(3) Corporations that are not members on

January 29, 1991.

(4) Amended returns.

Par. 3. Section 1.382–2 is amended as

follows:

§ 1.382–2 General rules for ownership

change.

[The text of the proposed amendments

to paragraphs (e)(2)(iv), (f)(1)(i), (ii) and

(iii), (f)(4), (f)(5), and (f)(18)(i) is the

same as the text of the amendments to

paragraphs (e)(2)(iv), (f)(1)(i), (ii) and

(iii), (f)(4), (f)(5), and (f)(18)(i) of

§ 1.382–2T, published elsewhere in this

issue of the Federal Register.]

Par. 4. Sections 1.382–5 and 1.382–8

are added to read as follows:

[The text of these proposed sections is

the same as the text of §§ 1.382–5T and

1.382–8T published elsewhere in this

issue of the Federal Register.]

Margaret Milner Richardson,

Commissioner of Internal Revenue.

[FR Doc. 96–15828 Filed 6–26–96; 8:45 am]

BILLING CODE 4830–01–U

26 CFR Part 1

[CO–24–96]

RIN 1545–AU31

Consolidated Returns—Limitations on

the Use of Certain Losses and

Deductions

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Withdrawal of prior proposed

rule, notice of proposed rulemaking by

cross-reference to temporary

regulations, and notice of public

hearing.

SUMMARY: On January 29, 1991,

proposed rules under section 1502 were

filed with the Office of the Federal

Register (CO–78–90; see 56 FR 4228;

1991–1 C.B. 757). A public hearing was

held on April 8, 1991. The IRS and

Treasury published Notice 91–27 (1991–

2 C.B. 629) to advise of intended

modifications to the proposed

regulations. The January, 1991,

proposed rules are withdrawn, and

these proposed rules are issued in their

place.

In the Rules and Regulations section

of this issue of the Federal Register, the

IRS is issuing temporary regulations

relating to the carryover and carryback

of losses to consolidated and separate

return years. The text of those

temporary regulations also serves as the

text of these proposed regulations. This

document also provides a notice of

public hearing on these proposed

regulations.

DATES: Written comments must be

received by September 25, 1996.

Outlines of topics to be discussed at the

public hearing scheduled for Thursday,

October 17, 1996, at 10 a.m. must be

received by Thursday, September 26,

1996.

ADDRESSES: Send submissions to:

CC:DOM:CORP:R (CO–24–96), 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 (CO–24–96),

Courier’s Desk, Internal Revenue

Service, 1111 Constitution Avenue NW.,

Washington, DC. The public hearing

will be held in the NYU Classroom,

Room 2615, Internal Revenue Building,

1111 Constitution Avenue NW.,

Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Concerning the regulations, David B.

Friedel, (202) 622–7550; concerning

submissions and the hearing,

Evangelista Lee, (202) 622–7190 (not

toll-free numbers).

SUPPLEMENTARY INFORMATION:

Paperwork Reduction Act

The collection of information

contained in this notice of proposed

rulemaking has been reviewed and

approved by the Office of Management

and Budget in accordance with the

Paperwork Reduction Act (44 U.S.C.

3507) under the control number 1545–

1237. Section 1.1502–21(b)(3) requires a

response from certain consolidated

groups. The IRS requires the

information to assure that an election to

relinquish a carryback period is

properly documented.

Comments concerning 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

August 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

Proposed § 1.1502–21(b)(3). That section

permits an election to relinquish a

carryback period with respect to a

consolidated net operating loss. The

common parent of the group files the

statement evidencing the election with

the income tax return of the group. This

information is required by the IRS to

assure that an election to relinquish a

carryback period is properly

documented. The likely respondents