61770 Federal Register / Vol. 73, No. 202 / Friday, October 17, 2008 / Proposed Rules 

incurred by the state and by its 

recipients are in conformance with the 

following cost principles, as applicable: 

(i) ‘‘Cost Principles for State, Local, 

and Indian Tribal Governments (OMB 

Circular A–87),’’ which is codified at 2 

CFR part 225; 

(ii) ‘‘Cost Principles for Non-Profit 

Organizations (OMB Circular A–122),’’ 

which is codified at 2 CFR part 230; and 

(iii) ‘‘Cost Principles for Educational 

Institutions (OMB Circular A–21),’’ 

which is codified at 2 CFR part 220. 

(2) All cost items described in 

Appendix B of 2 CFR part 225 that 

require federal agency approval are 

allowable without prior approval of 

HUD to the extent they otherwise 

comply with the requirements of 2 CFR 

part 225 and are otherwise eligible 

under this subpart I, except for the 

following: 

(i) Depreciation methods for fixed 

assets shall not be changed without the 

express approval of HUD or, if charged 

through a cost allocation plan, the 

cognizant federal agency. 

(ii) Fines and penalties (including 

punitive damages) are unallowable costs 

to the CDBG program. 

5. Add § 570.490(a)(3) to read as 

follows: 

§ 570.490 Recordkeeping requirements. 

(a) * * * 

(3) Integrated Disbursement and 

Information System (IDIS). The state 

shall make entries into IDIS in a form 

prescribed by HUD to accurately capture 

the state’s accomplishment and funding 

data, including program income, for 

each program year. It is recommended 

that the state enter IDIS data on a 

quarterly basis and it is required to be 

entered annually. 

* * * * * 

6. Add § 570.504(e) to read as follows: 

§ 570.504 Program income. 

* * * * * 

(e)(1) Transfer of program income to 

Entitlement program. A unit of general 

local government that becomes eligible 

to be an Entitlement grantee may 

request the state’s approval to transfer 

State CDBG grant-generated program 

income to the unit of general local 

government’s Entitlement program. A 

state may approve the transfer, provided 

the unit of general local government: 

(i) Has officially elected to participate 

in the Entitlement grant program; 

(ii) Agrees to use such program 

income in accordance with Entitlement 

program requirements; 

(iii) Has set up Integrated 

Disbursement and Information System 

(IDIS) access and agrees to enter receipt 

of program income into IDIS. 

(2) Transfer of program income of 

grantees losing Entitlement status. Upon 

entry into the State CDBG program, a 

unit of general local government that 

has lost or relinquished its Entitlement 

status must, with respect to program 

income that a unit of general local 

government would otherwise be 

permitted to retain, either: 

(1) Retain the program income 

generated under Entitlement grants and 

continue to comply with Entitlement 

program requirements for program 

income; or 

(2) Retain the program income and 

transfer it to the State CDBG program, in 

which case the unit of general local 

government must comply with the 

state’s rules for program income and the 

requirements of § 570.489(e). 

Dated: September 23, 2008. 

Susan D. Peppler, 

Assistant Secretary for Community Planning 

and Development. 

[FR Doc. E8–24572 Filed 10–16–08; 8:45 am] 

BILLING CODE 4210–67–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–103146–08] 

RIN 1545–BH69 

Information Reporting Requirements 

Under Internal Revenue Code Section 

6039; Hearing 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of public hearing on 

proposed rulemaking. 

SUMMARY: This document provides 

notice of public hearing on a notice of 

proposed rulemaking relating to the 

return and information statement 

requirements under section 6039 of the 

Internal Revenue Code. These 

regulations reflect changes to section 

6039 made by section 403 of the Tax 

Relief and Health Care Act of 2006. 

These proposed regulations affect 

corporations that issue statutory stock 

options and provide guidance to assist 

corporations in complying with the 

return and information statement 

requirements under section 6039. 

DATES: The public hearing is being held 

on October 30, 2008, at 10 a.m. The IRS 

must receive outlines of the topics to be 

discussed at the hearing by October 23, 

2008. 

ADDRESSES: The public hearing is being 

held in room 2116, Internal Revenue 

Building, 1111 Constitution Avenue, 

NW., Washington, DC. Send 

submissions to: CC:PA:LPD:PR (REG– 

103146–08), room 5203, Internal 

Revenue Service, P.O. Box 7604, Ben 

Franklin Station, Washington, DC 

20044. Submissions may be handdelivered Monday through Friday 

between the hours of 8 a.m. and 4 p.m. 

to CC:PA:LPD:PR (REG–103146–08), 

Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue, 

NW., Washington, DC. Alternatively, 

taxpayers may submit electronic 

outlines of oral comments via the 

Federal eRulemaking Portal at http:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Concerning the regulations, Thomas 

Scholz at (202) 622–6030 (not a toll-free 

number); concerning submissions of 

comments, the hearing, and/or to be 

placed on the building access list to 

attend the hearing, Richard A. Hurst at 

Richard.A.Hurst@irscounsel.treas.gov. 

SUPPLEMENTARY INFORMATION: The 

subject of the public hearing is the 

notice of proposed rulemaking (REG– 

103146–08) that was published in the 

Federal Register on Thursday, July 17, 

2008 (73 FR 40999). 

Persons who wish to present oral 

comments at the hearing that submitted 

written comments, must submit an 

outline of the topics to be discussed and 

the amount of time to be devoted to 

each topic (signed original and eight (8) 

copies) by October 23, 2008. 

A period of 10 minutes is allotted to 

each person for presenting oral 

comments. After the deadline for 

receiving outlines has passed, the IRS 

will prepare an agenda containing the 

schedule of speakers. Copies of the 

agenda will be made available, free of 

charge, at the hearing or in the Freedom 

of Information Reading Room (FOIA RR) 

(Room 1621) which is located at the 

11th and Pennsylvania Avenue, NW., 

entrance, 1111 Constitution Avenue, 

NW., Washington, DC. 

Because of access restrictions, the IRS 

will not admit visitors beyond the 

immediate entrance area more than 30 

minutes before the hearing starts. For 

information about having your name 

placed on the building access list to 

attend the hearing, see the FOR FURTHER

INFORMATION CONTACT section of this 

document. 

Cynthia Grigsby, 

Acting Chief, Publications and Regulations 

Branch, Legal Processing Division, Associate 

Chief Counsel (Procedure and 

Administration). 

[FR Doc. E8–24653 Filed 10–16–08; 8:45 am] 

BILLING CODE 4830–01–P 


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