52788 Federal Register / Vol. 73, No. 177 / Thursday, September 11, 2008 / Rules and Regulations 

reportable transactions and complying 

with other tax laws. 

(iv) The taxpayer demonstrates that 

the failure to include on any return or 

statement any information required to 

be disclosed under section 6011 arose 

from events beyond the taxpayer’s 

control. 

(v) The taxpayer cooperates with the 

IRS by providing timely information 

with respect to the transaction at issue 

that the Commissioner (or the 

Commissioner’s delegate) may request 

in consideration of the rescission 

request. In considering whether a 

taxpayer cooperates with the IRS, the 

Commissioner (or the Commissioner’s 

delegate) will take into account whether 

the taxpayer meets the deadlines 

described in Rev. Proc. 2007–21 (or 

successor document) (see 

§ 601.601(d)(2)(ii)(b) of this chapter) for 

complying with requests for additional 

information. 

(vi) Assessment of the penalty weighs 

against equity and good conscience, 

including whether the penalty is 

disproportionate to the tax benefit 

received and whether the taxpayer 

demonstrates that there was reasonable 

cause for, and the taxpayer acted in 

good faith with respect to, the failure to 

timely file or to include on any return 

any information required to be disclosed 

under section 6011. An important factor 

in determining reasonable cause and 

good faith is the extent of the taxpayer’s 

efforts to ensure that persons who 

prepared the taxpayer’s return were 

informed of the taxpayer’s participation 

in the reportable transactions. The 

presence of reasonable cause, however, 

will not necessarily be determinative of 

whether to grant rescission. 

(4) Absence of favorable factors 

weighs against rescission. The absence 

of facts establishing the factors 

described in paragraph (d)(3) of this 

section weighs against granting 

rescission. The absence of any one of 

these factors, however, will not 

necessarily be determinative of whether 

to grant rescission. 

(5) Factors not considered. In 

determining whether to grant rescission, 

the Commissioner (or the 

Commissioner’s delegate) will not 

consider doubt as to liability for, or 

collectibility of, the penalties. 

(e) Reports to the Securities and 

Exchange Commission (SEC)—(1) In 

general. Under section 6707A(e), a 

taxpayer who is required to file periodic 

reports under section 13 or 15(d) of the 

Securities Exchange Act of 1934 (or is 

required to file consolidated reports 

with another person) must disclose in 

periodic reports filed with the SEC the 

requirement to pay each of the following 

penalties: 

(i) The penalty imposed by section 

6707A(a) in the amount of $200,000 for 

failure to disclose a listed transaction. 

(ii) The accuracy-related penalty 

imposed by section 6662A(a) at the 30- 

percent rate determined under section 

6662A(c) for a reportable transaction 

understatement with respect to which 

the relevant facts affecting the tax 

treatment of the reportable transaction 

were not adequately disclosed in 

accordance with regulations prescribed 

under section 6011. 

(iii) The accuracy-related penalty 

imposed by section 6662(a) at the 40- 

percent rate determined under section 

6662(h) for a gross valuation 

misstatement, if the taxpayer (but for the 

exclusionary rule of section 

6662A(e)(2)(C)(ii)) would have been 

subject to the accuracy-related penalty 

under section 6662A(a) at the 30- 

percent rate determined under section 

6662A(c). 

(iv) The penalty described in 

paragraph (e)(3) of this section for 

failure to disclose in periodic reports 

filed with the SEC the requirement to 

pay any of the penalties described in 

paragraphs (e)(1)(i) through (iii) or (e)(3) 

of this section. 

(2) Manner and content of disclosure. 

The Secretary may prescribe the manner 

in which disclosure of the requirement 

to pay the penalties identified in 

paragraph (e)(1) of this section must be 

made on reports filed with the SEC, 

including identification of the specific 

SEC form and section thereof in which 

the taxpayer must make the disclosure 

as well as specification of the timing 

and contents of the disclosure, by 

publishing a revenue procedure or other 

guidance in the Internal Revenue 

Bulletin. 

(3) Penalty for failure to disclose in 

SEC filings. Any taxpayer who is 

required to file periodic reports under 

section 13 or 15(d) of the Securities 

Exchange Act of 1934 (or is required to 

file consolidated reports with another 

person) may be subject to a penalty in 

the amount of $200,000 for each failure 

to disclose the requirement to pay a 

penalty identified in paragraphs (e)(1)(i) 

through (e)(1)(iii) of this section in the 

manner specified by revenue procedure 

or other guidance published in the 

Internal Revenue Bulletin. The taxpayer 

also may be subject to an additional 

penalty in the amount of $200,000 for 

each failure to disclose a penalty arising 

under this section in the manner 

specified by revenue procedure or other 

guidance published in the Internal 

Revenue Bulletin. The penalty provided 

by this paragraph is not subject to 

rescission as described in paragraph (d) 

of this section. 

(f) Effective/applicability date—(1) 

The rules of this section apply to 

disclosure statements that are due after 

September 11, 2008. 

(2) The applicability of this section 

expires on or before September 9, 2011. 

L.E. Stiff, 

Deputy Commissioner for Services and 

Enforcement. 

Approved: September 5, 2008. 

Eric Solomon, 

Assistant Secretary of the Treasury, (Tax 

Policy). 

[FR Doc. E8–21161 Filed 9–10–08; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket No. USCG–2008–0900] 

Safety Zone; Milwaukee Harbor, 

Milwaukee, WI 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of enforcement of 

regulation. 

SUMMARY: The Coast Guard will enforce 

the Milwaukee Harbor Safety Zone in 

Milwaukee Harbor from 8:30 p.m. 

through 8:45 p.m. on September 29, 

2008. This action is necessary to protect 

vessels and people from the hazards 

associated with fireworks displays. This 

safety zone will restrict vessel traffic 

from portions of the Captain of the Port 

Lake Michigan Zone. 

DATES: The regulation in 33 CFR 

165.935 will be enforced from 8:30 p.m. 

through 8:45 p.m. on September 29, 

2008. 

FOR FURTHER INFORMATION CONTACT: 

Petty Officer Eric Vogel, Prevention 

Department, Coast Guard Sector Lake 

Michigan, Milwaukee, WI at (414) 747–

7154. 

SUPPLEMENTARY INFORMATION: The Coast 

Guard will enforce Safety Zone, 

Milwaukee Harbor, Milwaukee, WI, 33 

CFR 165.935 for the following event: 

Milwaukee Brewers Rally Monday, on 

September 29, 2008, from 8:30 p.m. 

through 8:45 p.m. 

All vessels must obtain permission 

from the Captain of the Port or his 

designated representative to enter, move 

within, or exit the safety zone. Vessels 

and persons granted permission to enter 

the safety zone shall obey all lawful 

orders or directions of the Captain of the 


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Federal Register / Vol. 73, No. 177 / Thursday, September 11, 2008 / Rules and Regulations 52789 

Port or his designated representative. 

While within a safety zone, all vessels 

shall operate at the minimum speed 

necessary to maintain a safe course. 

This notice is issued under authority 

of 33 CFR 165.935 Safety Zone, 

Milwaukee Harbor, Milwaukee, WI, and 

5 U.S.C. 552(a). In addition to this 

notice in the Federal Register, the Coast 

Guard will provide the maritime 

community with advance notification of 

these enforcement periods via broadcast 

Notice to Mariners or Local Notice to 

Mariners. 

The Captain of the Port or designated 

representative may be contacted via U.S. 

Coast Guard Sector Lake Michigan on 

channel 16, VHF–FM. 

Dated: August 27, 2008. 

Bruce C. Jones, 

Captain, U.S. Coast Guard, Captain of the 

Port Lake Michigan. 

[FR Doc. E8–21223 Filed 9–10–08; 8:45 am] 

BILLING CODE 4910–15–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

46 CFR Parts 10 and 15 

[Docket No. USCG–2006–26202] 

RIN 1625–AB10 

Training and Service Requirements for 

Merchant Marine Officers 

AGENCY: Coast Guard, DHS. 

ACTION: Final rule. 

SUMMARY: The Coast Guard amends 

certain regulations relating to mariner 

training and service. These regulatory 

changes remove the expiration date of 

the radar-observer endorsement from 

the merchant mariner’s license, allow 

for an apprentice mate of towing vessels 

to reduce sea-service time for mate 

(pilot) of towing vessels by completing 

additional approved training, and 

provide an alternate path to mate (pilot) 

of towing vessels for master of steam or 

motor vessels of any tonnage that is 200 

GRT or less. These changes are intended 

and expected to eliminate confusion 

and provide alternate training and 

service requirements for mate (pilot) of 

towing vessels. 

DATES: This final rule is effective 

October 14, 2008. 

ADDRESSES: Comments and material 

received from the public, as well as 

documents mentioned in this preamble 

as being available in the docket, are part 

of docket USCG–2006–26202 and are 

available for inspection or copying at 

the Docket Management Facility (M–30), 

U.S. Department of Transportation, 

West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. You may also 

find this docket on the Internet at 

http://www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this rule, call 

Commander Kelly Post or Mr. Gerald 

Miante, CG–5221, Coast Guard, 

telephone 202–372–1401. If you have 

questions on viewing the docket, call 

Ms. Renee V. Wright, Program Manager, 

Docket Operations, telephone 202–366–

9826. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Table of Abbreviations 

II. Regulatory History 

III. Background and Purpose 

IV. Discussion of Comments and Changes 

V. Regulatory Evaluation 

A. Executive Order 12866 

B. Small Entities 

C. Assistance for Small Entities 

D. Collection of Information 

E. Federalism 

F. Unfunded Mandates Reform Act 

G. Taking of Private Property 

H. Civil Justice Reform 

I. Protection of Children 

J. Indian Tribal Governments 

K. Energy Effects 

L. Technical Standards 

M. Environment 

I. Table of Abbreviations 

GRT Gross Register Tons 

MMC Merchant Mariner’s Credential 

NPRM Notice of Proposed Rulemaking 

OSV Offshore Supply Vessel 

SNPRM Supplemental Notice of 

Proposed Rulemaking 

TOAR Towing Officer Assessment 

Record 

TSAC Towing Safety Advisory 

Committee 

II. Regulatory History 

On September 17, 2007, we published 

a Notice of Proposed Rulemaking 

(NPRM) entitled ‘‘Training and Service 

Requirements for Merchant Marine 

Officers’’ in the Federal Register (72 FR 

52841). The comment period closed on 

December 17, 2007. We received a total 

of 14 comments on the NPRM. No 

public meeting was requested, and none 

was held. 

III. Background and Purpose 

The revisions contained within this 

final rule: (1) Remove the expiration 

date of the radar-observer endorsement 

from the merchant mariner’s license; (2) 

Allow for an apprentice mate of towing 

vessels to reduce required minimum 

sea-service time for mate (pilot) of 

towing vessels by completing additional 

approved training; and (3) Provide an 

alternate path to mate (pilot) of towing 

vessels for a master of steam or motor 

vessels of any tonnage that is 200 gross 

register tons (GRT) or less. 

(1) Radar-observer endorsement: A 

petition for rulemaking was submitted 

to the Coast Guard on March 10, 2005, 

by an industry working group called the 

Mid-America Regional Examination 

Center Workgroup. That petition 

identified problems associated with 

placing the expiration date for the radarobserver endorsement on the deck 

licenses of mariners operating vessels 

equipped with radar. The expiration 

date for the radar-observer endorsement 

may be different from the expiration 

date of the license itself, causing 

confusion as to the validity of the 

license. 

A license is valid for a five-year 

period from the date it is issued by the 

Coast Guard. A radar-observer 

endorsement is also valid for five years, 

but that period begins after the month 

in which the certificate of training is 

issued. For original licenses, unless the 

radar training certificate was issued the 

month before the license is issued, the 

expiration date of the radar 

endorsement will be different than the 

expiration date of the license. For 

license renewals, existing 46 CFR 

10.480(k) provides a one-time 

opportunity for a mariner to 

synchronize the expiration date of the 

radar endorsement with that of the 

license. That section does not, however, 

account for subsequent renewals which 

might also bring the dates out of 

alignment. The end result is that, 

currently, many licenses have 

conflicting radar endorsement 

expiration and license expiration dates 

printed on them. 

When conflicting dates appear on the 

license, confusion may result. Moreover, 

licenses may need to be prematurely 

renewed or reissued with the new radar 

observer endorsement date when the 

mariner obtains a new radar training 

certificate. If the radar observer 

endorsement date is not printed on the 

license, this confusion would be 

avoided. 

In reviewing the industry 

recommendation, it was recognized that 

changing the requirement would 

simplify the process of issuing the 

license and ease the burden on the Coast 

Guard, industry, and schools providing 

the training. Mariners will still be 

required to keep their radar-observer 

training current, but an endorsement 

evidencing that training will no longer 

be printed on their licenses. While they 

will still be required to hold current 


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