47408 Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Proposed Rules 

(2) Trade secrets, copyrighted 

material, or any other confidential 

business information; 

(3) Records exempted from disclosure 

by statute, regulation, court order, or 

recognized privilege; 

(4) Records reflecting internal predecisional deliberations; 

(5) Records reflecting employee 

medical information, evaluations, tests 

or other identifiable health information; 

(6) Records reflecting employee 

personal information, such as social 

security number, driver’s license 

number, personal financial information, 

home addresses, home or personal 

cellular numbers, confidential personal 

information, spouse names, marital 

status or dependent information; 

(7) Investigatory or enforcement 

records that would interfere with active 

enforcement proceedings or individual 

due process rights, disclose the identity 

of public complainants or confidential 

sources or investigative techniques or 

endanger the life or safety of 

Commission personnel; or 

(8) Records related to emergency 

procedures, facilities or critical 

infrastructure. 

(c) Procedures. The Access to Records 

Policy will detail the necessary 

procedures for requesting records and 

processing records requests: 

(1) Requests shall be in writing and 

shall be reasonably specific; 

(2) The Commission shall identify an 

Access to Records Officer to handle 

requests; 

(3) The Commission shall respond to 

a records request within a reasonable 

time and in consideration of available 

resources and the nature of the request; 

(4) The Commission shall not be 

required to create a record that does not 

already exist, or to compile, maintain, 

format or organize a public record in a 

manner in which the Commission does 

not currently do so; 

(5) A procedure shall be identified for 

electronic transfer, copying or otherwise 

providing records in a manner that 

maintains the integrity of the 

Commission’s files; and 

(6) A procedure shall be identified for 

handling review of requests that seek 

access to information that has been 

identified as confidential and for 

notifying the person(s) who submitted 

the confidential information that it is 

subject to a records request. 

(d) Fees. The Commission shall adopt 

and maintain a ‘‘Records Processing Fee 

Schedule.’’ The fees shall be calculated 

to reflect the actual costs to the 

Commission for processing records 

requests and may include the costs of 

reproducing records and the cost to 

search, prepare and/or redact records for 

extraordinary requests. 

(e) Appeals. Any person aggrieved by 

a Commission action on a records 

request shall have 30 days to appeal a 

decision in accordance with 18 CFR 

808.2. 

Dated: October 5, 2017. 

Stephanie L. Richardson, 

Secretary to the Commission. 

[FR Doc. 2017–21975 Filed 10–11–17; 8:45 am] 

BILLING CODE 7040–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Part 1 

[REG–116256–17] 

RIN 1545–BN94 

Streamlining the Section 754 Election 

Statement 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: This document contains 

proposed amendments to the regulation 

relating to the requirements for making 

a valid election under section 754 of the 

Internal Revenue Code of 1986 (Code), 

as amended. The proposed regulation 

affects partnerships and their partners 

by removing a regulatory burden in 

making an election to adjust the basis of 

partnership property. 

DATES: Electronic or written comments 

and requests for a public hearing must 

be received by November 13, 2017. 

ADDRESSES: Send submissions to 

Internal Revenue Service, 

CC:PA:LPD:PR (REG–116256–17), Room 

5203, P.O. Box 7604, Ben Franklin 

Station, Washington, DC 20044. 

Submissions may be hand-delivered 

Monday through Friday between the 

hours of 8 a.m. and 4 p.m. to 

CC:PA:LPD:PR (REG–116256–17), 

Courier’s Desk, 1111 Constitution 

Avenue NW., Washington, DC 20224, or 

sent electronically, via the Federal 

eRulemaking Portal at 

www.regulations.gov (indicate IRS and 

REG–116256–17). 

FOR FURTHER INFORMATION CONTACT: 

Concerning the proposed regulation, 

Meghan Howard, at (202) 317–5055; 

concerning submissions of comments 

and requests for a public hearing, 

Regina Johnson, at (202) 317–6901 (not 

toll-free numbers). 

SUPPLEMENTARY INFORMATION: 

Background and Explanation of 

Provision 

This document contains proposed 

amendments to 26 CFR part 1 under 

section 754 of the Code. Specifically, 

these proposed amendments would 

remove the signature requirement 

contained in § 1.754–1(b) (current 

regulation) in order to eliminate a 

regulatory burden. 

Section 754 provides that if a 

partnership files an election (section 

754 election), in accordance with 

regulations prescribed by the Secretary, 

the basis of partnership property shall 

be adjusted, in the case of a distribution 

of property, in the manner provided in 

section 734 and, in the case of a transfer 

of a partnership interest, in the manner 

provided in section 743. Such an 

election applies with respect to all 

distributions of property by the 

partnership and to all transfers of 

interests in the partnership during the 

taxable year with respect to which such 

election was filed and all subsequent 

taxable years. Such election may be 

revoked by the partnership, subject to 

such limitations as may be provided by 

regulations prescribed by the Secretary. 

The current regulation provides the 

method to make the section 754 election 

and states in relevant part that a section 

754 election shall be made in a written 

statement (section 754 election 

statement) filed with the partnership 

return for the taxable year during which 

the distribution or transfer occurs. For 

the section 754 election to be valid, the 

return must be filed not later than the 

time prescribed for filing the return for 

such taxable year, including extensions. 

The current regulation requires that the 

section 754 election statement (i) set 

forth the name and address of the 

partnership making the election, (ii) be 

signed by any one of the partners, and 

(iii) contain a declaration that the 

partnership elects under section 754 to 

apply the provisions of section 734(b) 

and section 743(b). Accordingly, under 

the current regulation, a partnership 

that files an unsigned section 754 

election statement with its partnership 

return (whether filed electronically or in 

paper) has not made a valid section 754 

election. 

Currently the only remedy for failing 

to make a proper section 754 election is 

to request ‘‘9100 relief’’ to make a late 

section 754 election either: (1) Through 

automatic relief, if the error is 

discovered within 12 months pursuant 

to § 301.9100–2 of the Procedure and 

Administration Regulations; or (2) 

through a private letter ruling request 

pursuant to § 301.9100–3. The IRS has 

received numerous requests for 9100 


asabaliauskas on DSKBBXCHB2PROD with PROPOSALS
Federal Register / Vol. 82, No. 196 / Thursday, October 12, 2017 / Proposed Rules 47409 

relief with respect to unsigned section 

754 election statements, especially 

where returns have been filed 

electronically. In order to ease the 

burden on partnerships seeking to make 

a valid section 754 election and to 

eliminate the need to seek 9100 relief, 

the Treasury Department and the IRS 

are proposing to amend the current 

regulation to remove the signature 

requirement in § 1.754–1(b)(1). The 

amended regulation will provide that a 

taxpayer making a section 754 election 

must file a statement with its return 

that: (i) Sets forth the name and address 

of the partnership making the section 

754 election, and (ii) contains a 

declaration that the partnership elects 

under section 754 to apply the 

provisions of section 734(b) and section 

743(b). 

Proposed Applicability Date 

The amendments to this regulation 

are proposed to apply to taxable years 

ending on or after the date of 

publication of the Treasury decision 

adopting these rules as a final regulation 

in the Federal Register. Taxpayers, 

however, may rely on this proposed 

regulation for periods preceding the 

proposed applicability date. 

Accordingly, partnerships that filed a 

timely partnership return containing an 

otherwise valid section 754 election 

statement, but for the missing signature 

of a partner on the statement, will not 

need to seek 9100 relief in such cases. 

Special Analyses 

Certain IRS regulations, including this 

one, are exempt from the requirements 

of Executive Order 12866, as 

supplemented and reaffirmed by 

Executive Order 13563. Therefore, a 

regulatory impact assessment is not 

required. It is hereby certified that this 

regulation, if adopted, would not have 

a significant economic impact on a 

substantial number of small entities 

under the Regulatory Flexibility Act (5 

U.S.C. chapter 6). This certification is 

based on the fact that this regulation 

reduces the information currently 

required to be collected in making an 

election to adjust the basis of 

partnership property and thereby 

reduces burden on small entities. 

Pursuant to section 7805(f) of the Code, 

this regulation has been submitted to 

the Chief Counsel for Advocacy of the 

Small Business Administration for 

comment on its impact on small 

businesses. 

Comments and Requests for a Public 

Hearing 

Before this proposed regulation is 

adopted as a final regulation, 

consideration will be given to any 

comments that are submitted timely to 

the IRS as prescribed in this preamble 

under the ADDRESSES heading. The 

Treasury Department and the IRS 

request comments on all aspects of the 

proposed regulation. All comments will 

be available at www.regulations.gov or 

upon request. A public hearing will be 

scheduled if requested in writing by any 

person that timely submits written 

comments. If a public hearing is 

scheduled, notice of the date, time, and 

place for the public hearing will be 

published in the Federal Register. 

Drafting Information 

The principal author of this regulation 

is Meghan M. Howard of the Office of 

the Associate Chief Counsel 

(Passthroughs and Special Industries). 

However, other personnel from the 

Treasury Department and the IRS 

participated in their development. 

List of Subjects in 26 CFR Part 1 

Income taxes, Reporting and 

recordkeeping requirements. 

Proposed Amendment 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 continues to read in part as 

follows: 

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

Section 1.754–1 also issued under 26 

U.S.C. 754. 

■ Par 2. Section 1.754–1 is amended by 

revising the fourth sentence of 

paragraph (b)(1) and adding new 

paragraph (d) to read as follows: 

§ 1.754–1 Time and manner of making 

election to adjust basis of partnership 

property. 

* * * * * 

(b) * * * 

(1) * * * The statement required by 

this paragraph (b)(1) must set forth the 

name and address of the partnership 

making the election, and contain a 

declaration that the partnership elects 

under section 754 to apply the 

provisions of section 734(b) and section 

743(b). * * * 

* * * * * 

(d) Applicability date. The fourth 

sentence of paragraph (b)(1) of this 

section applies to taxable years ending 

on or after the date these regulations are 

published as final regulations in the 

Federal Register. Taxpayers may, 

however, rely on the fourth sentence of 

paragraph (b)(1) of this section for 

periods prior to the date these 

regulations are published as final 

regulations in the Federal Register. 

Kirsten Wielobob, 

Deputy Commissioner for Services and 

Enforcement. 

[FR Doc. 2017–22080 Filed 10–11–17; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF LABOR 

Employee Benefits Security 

Administration 

29 CFR Part 2560 

RIN 1210–AB39 

Claims Procedure for Plans Providing 

Disability Benefits; Extension of 

Applicability Date 

AGENCY: Employee Benefits Security 

Administration, Department of Labor. 

ACTION: Proposed rule. 

SUMMARY: The Department of Labor 

proposes to delay for ninety (90) days— 

through April 1, 2018—the applicability 

of the Final Rule amending the claims 

procedure requirements applicable to 

ERISA-covered employee benefit plans 

that provide disability benefits. The 

Final Rule was published in the Federal 

Register on December 19, 2016, and 

became effective on January 18, 2017. 

The Final Rule currently is scheduled to 

apply to claims for disability benefits 

under ERISA-covered employee benefit 

plans that are filed on or after January 

1, 2018. Following publication of the 

Final Rule, various stakeholders and 

members of Congress asserted that it 

will drive up disability benefit plan 

costs, cause an increase in litigation, 

and in so doing impair workers’ access 

to disability insurance benefits. 

Pursuant to Executive Order 13777, the 

Department of Labor has concluded that 

it is appropriate to give the public an 

additional opportunity to submit 

comments and data concerning 

potential impacts of the Final Rule. The 

Department of Labor will carefully 

consider the submitted comments and 

data as part of its effort to examine 

regulatory alternatives that meet its 

objectives of ensuring the full and fair 

review of disability benefit claims while 

not imposing unnecessary costs and 

adverse consequences. The Department 

of Labor accordingly seeks public 

comment on a proposed 90-day delay of 

the applicability of the Final Rule in 

order to solicit additional public input 

and examine regulatory alternatives. If 

this proposal is finalized, the 

amendments made on December 19, 


asabaliauskas on DSKBBXCHB2PROD with PROPOSALS