Federal Register / Vol. 61, No. 110 / Thursday, June 6, 1996 / Proposed Rules 28823

§ 1.1202–2 Qualified small business stock;

effect of redemptions.

(a) Redemptions from taxpayer or

related person—(1) In general. Stock

acquired by a taxpayer is not qualified

small business stock if, in one or more

purchases during the 4-year period

beginning on the date 2 years before the

issuance of the stock, the issuing

corporation purchases (directly or

indirectly) more than a de minimis

amount of its stock from the taxpayer or

from a person related (within the

meaning of section 267(b) or 707(b)) to

the taxpayer.

(2) De minimis amount. For purposes

of this paragraph (a), stock exceeds a de

minimis amount only if the aggregate

amount paid for the stock exceeds

$10,000 and more than 2 percent of the

stock held by the taxpayer and related

persons is acquired. The following rules

apply for purposes of determining

whether the 2-percent limit is exceeded.

The percentage of stock acquired in any

single purchase is determined by

dividing the stock’s value (as of the time

of purchase) by the value (as of the time

of purchase) of all stock held (directly

or indirectly) by the taxpayer and

related persons immediately before the

purchase. The percentage of stock

acquired in multiple purchases is the

sum of the percentages determined for

each separate purchase.

(b) Significant redemptions—(1) In

general. Stock is not qualified small

business stock if, in one or more

purchases during the 2-year period

beginning on the date 1 year before the

issuance of the stock, the issuing

corporation purchases more than a de

minimis amount of its stock and the

purchased stock has an aggregate value

(as of the time of the respective

purchases) exceeding 5 percent of the

aggregate value of all of the issuing

corporation’s stock as of the beginning

of such 2-year period.

(2) De minimis amount. For purposes

of this paragraph (b), stock exceeds a de

minimis amount only if the aggregate

amount paid for the stock exceeds

$10,000 and more than 2 percent of all

outstanding stock is purchased. The

following rules apply for purposes of

determining whether the 2-percent limit

is exceeded. The percentage of the stock

acquired in any single purchase is

determined by dividing the stock’s

value (as of the time of purchase) by the

value (as of the time of purchase) of all

stock outstanding immediately before

the purchase. The percentage of stock

acquired in multiple purchases is the

sum of the percentages determined for

each separate purchase.

(c) Transfers by shareholders in

connection with the performance of

services not treated as purchases. A

transfer of stock by a shareholder to an

employee or independent contractor (or

to a beneficiary of an employee or

independent contractor) is not treated as

a purchase of the stock by the issuing

corporation for purposes of this section

even if the stock is treated as having

first been transferred to the corporation

under § 1.83–6(d)(1) (relating to

transfers by shareholders to employees

or independent contractors).

(d) Exceptions for termination of

services, death, or disability or mental

incompetency. A stock purchase is

disregarded for purposes of this section

if—

(1) Termination of services—(i)

Employees and directors. The stock was

acquired by the seller in connection

with the performance of services as an

employee or director and the stock is

purchased from the seller incident to

the seller’s retirement or other bona fide

termination of such services;

(ii) Independent contractors.

[Reserved];

(2) Death. The stock is purchased

from the deceased shareholder’s estate,

beneficiary, heir, surviving joint tenant,

or from a surviving spouse or a trust

established by a decedent, the stock is

purchased within 3 years and 9 months

from the date of death, and the stock (or

an option to acquire the stock) was

acquired by the seller before or on

account of the death of the decedent; or

(3) Disability or mental incompetency.

The stock is purchased incident to the

disability or mental incompetency of the

selling shareholder.

(e) Effective date. This section applies

to stock issued after the date these

regulations are published as final

regulations in the Federal Register. This

section also applies to stock issued on

or before the date these regulations are

published as final regulations in the

Federal Register, but only with respect

to the effect of purchases by the issuing

corporation that occur after that date.

Margaret Milner Richardson,

Commissioner of Internal Revenue.

[FR Doc. 96–14231 Filed 6–3–96; 11:29 am]

BILLING CODE 4830–01–U

26 CFR Parts 1, 31, 35a, 301, 502, 503,

509, 513, 514, 516, 517, 520, and 521

[IL–62–90; IL–32–93; IL–52–86; IL–52–94]

RIN 1545–AO27; 1545–AR90; 1545–AL99;

1545–AT00

General Revision of Regulations

Relating to Withholding of Tax on

Certain U.S. Source Income Paid to

Foreign Persons and Related

Collection, Refunds, and Credits;

Revision of Information Reporting and

Backup Withholding Regulations; and

Removal of Regulations Under Part

35a and of Certain Regulations Under

Income Tax Treaties; Correction

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Correction to notice of public

hearing on proposed rulemaking.

SUMMARY: This document contains

corrections to the notice of a public

hearing (IL–52–86) which was

published in the Federal Register on

Wednesday, May 8, 1996 (61 FR 20767),

regarding proposed regulations relating,

in part, to information reporting and

backup withholding.

FOR FURTHER INFORMATION CONTACT:

Philip Garlett, (202) 622–3880 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Background

The notice of public hearing that is

subject to these corrections will be held

on Wednesday, July 24, 1996, beginning

at 10 a.m. Requests to speak and

outlines of oral comments must be

received by Wednesday, July 3, 1996.

Need for Correction

As published, the notice of public

hearing (IL–52–86) contains errors

which may prove to be misleading and

are in need of clarification.

Correction of Publication

Accordingly, the publication of the

notice of hearing (IL–52–86), which was

the subject of FR Doc. 96–11409, is

corrected as follows:

1. On page 20767, column 1, in the

heading, the language ‘‘26 CFR Parts 1,

32 and 35a’’ is corrected to read ‘‘26

CFR Parts 1, 31, 35a, 301, 502, 503, 509,

513, 514, 516, 517, 520, and 521’’.

2. On page 20767, column 1, in the

heading, the language ‘‘[IL–52–86]’’ is

corrected to read ‘‘[IL–62–90; IL–32–93;

IL–52–86; IL–52–94]’’.

3. On page 20767, column 1, in the

heading, the language ‘‘RIN 1545–

AL99’’ is corrected to read ‘‘RIN 1545–

AO27; 1545–AR90; 1545–AL99; 1545–

AT00’’.
28824 Federal Register / Vol. 61, No. 110 / Thursday, June 6, 1996 / Proposed Rules

4. On page 20767, column 1, in the

heading, the language ‘‘Income Taxes;

Information and Backup Withholding;

Hearing’’ is corrected to read ‘‘General

Revision of Regulations Relating to

Withholding of Tax on Certain U.S.

Source Income Paid to Foreign Persons

and Related Collection, Refunds, and

Credits; Revision of Information

Reporting and Backup Withholding

Regulations; and Removal of

Regulations Under Part 35a and of

Certain Regulations Under Income Tax

Treaties; Hearing’’.

5. On page 20767, column 1, in the

preamble, the SUMMARY is corrected to

read as follows:

SUMMARY: This document provides

notice of a public hearing on proposed

regulations relating to the withholding

of income tax on certain U.S. source

income paid to foreign persons

(including the related tax deposit and

reporting requirements, and the related

collection, refunds, and credits of

withheld tax), information reporting and

backup withholding, and the removal of

certain temporary employment tax

regulations and certain regulations

under income tax treaties.

6. On page 20767, column 2, in the

preamble, the SUPPLEMENTARY

INFORMATION is corrected to read as

follows:

SUPPLEMENTARY INFORMATION: The

subject of the public hearing is proposed

amendments to the Income Tax

Regulations, Employment Tax

Regulations, and Procedure and

Administration Regulations under

sections 163(f), 165(j), 871(h), 881(c),

1441, 1442, 1461, 1462, 1463, 3401,

3406, 6041, 6041A, 6042, 6045, 6049,

6050N, 6109, 6114, 6402 and 6413. The

proposed regulations appeared in the

Federal Register on Monday, April 22,

1996 (61 FR 17614).

Cynthia E. Grigsby,

Chief, Regulations Unit, Assistant Chief

Counsel (Corporate).

[FR Doc. 96–14232 Filed 6–5–96; 8:45 am]

BILLING CODE 4830–01–U

DEPARTMENT OF LABOR

Occupational Safety and Health

Administration

29 CFR Part 1915

[Docket No. S–051]

RIN 1218–AB51

Safety Standards Fire Protection in

Shipyard Employment

AGENCY: Occupational Safety and Health

Administration (OSHA), U.S.

Department of Labor.

ACTION: Notice of Intent to Form

Negotiated Rulemaking Advisory

Committee to Develop a Proposal Rule

on Fire Protection in Shipyard

Employment.

SUMMARY: OSHA announces its intent to

establish a Fire Protection in Shipyard

Employment Negotiated Rulemaking

Advisory Committee (the ‘‘Committee’’),

under the Federal Advisory Committee

Act (FACA) and the Negotiated

Rulemaking Act (NRA), to negotiate

issues associated with the development

of a Notice of Proposed Rulemaking to

regulate fire hazards in shipyard

employment. The Committee will

include representatives of the parties

interested in, or affected by, the

outcome of the proposed rule. OSHA

also solicits interested parties to submit

their nominations for membership or

requests for representation, on the

Committee.

DATES: OSHA must receive written

comments and requests for membership

or representation by July 8, 1996.

ADDRESSES: Written comments should

state: OSHA Docket No. S–051 and

should be sent, in quadruplicate, to the

following address: OSHA Docket Office,

Rm N–2625, 200 Constitution Ave.

N.W., Washington, D.C. 20210;

Telephone (202) 219–7894.

Requests or recommendations for

membership or representation on the

Committee should be sent to: OSHA,

Office of Maritime Standards, Room N–

3621, 200 Constitution Avenue, N.W.,

Washington, D.C. 20210. Phone (202)

219–7234, fax (202) 219–7477.

FOR FURTHER INFORMATION CONTACT: Ann

Cyr, Acting Director; OSHA, Office of

Information and Consumer Affairs,

Room N–3647, U.S. Department of

Labor; 200 Constitution Avenue, N.W.;

Washington, D.C., 20210; Telephone:

(202) 219–8151.

SUPPLEMENTARY INFORMATION:

I. Background

Fire protection in shipyard

employment has been regulated by

OSHA’s general industry standards for

fire protection, 29 CFR 1910.155

through 1910.165, Subpart L, and

section (5)(a)(1), the General Duty

Clause of the OSH Act, which requires

each employer to,

furnish to each of his employees employment

and a place of employment which are free

from recognized hazards causing or likely to

cause death or serious physical harm.

The general industry standards

primarily address landside shipyard

operations. The general industry

standards in Subpart L address: fire

brigades; portable fire extinguishers;

standpipe and hose systems; automatic

sprinkler systems; fixed extinguishing

systems; fire detection systems; and

employee alarm systems.

Because no specific standards cover

work performed on board vessels and

vessel sections, OSHA has used the

General Duty Clause of the Act to

address fire safety hazards aboard

vessels. When the General Duty Clause

is used, the Agency must determine

how it can be applied. In other words,

OSHA must ascertain what the

employer must do to protect his or her

employees from the hazards of fire and

how the Agency can make sure the

employer is providing that protection.

In these situations, OSHA typically

relies upon standards promulgated by

other branches of the Federal

Government such as the Coast Guard,

along with guidelines developed by

professional associations such as the

National Fire Protection Association,

(NFPA), and the Marine Chemists

Association, (MCA) that have, in effect,

become industry practice, to set forth

the hazards and feasible means of

abatement. In an enforcement action,

the Agency would cite the employer for

a violation of section 5(a)(1) of the Act.

To prove a violation of section 5(a)(1)

OSHA must show, among other things

that a serious hazard is recognized by

the employer’s industry or the employer

and that there is a feasible and useful

method for abating the hazard. Although

OSHA’s enforcement under the General

Duty Clause has reduced the risk of fire

on board vessels, some risk remains.

The Agency believes a standard

promulgated under section 6(b) of the

Act will more effectively reduce these

risks. The OSH Act intends that OSHA

issue occupational safety standards to

make clear what is necessary to protect

employees and to inform employers of

their specific obligations. In addition, a

standard is more protective of

employees than an enforcement

program based upon a general

provision; consequently, greater

reduction of risks are achieved. Third,