48 Federal Register / Vol. 67, No. 1 / Wednesday, January 2, 2002 / Proposed Rules 

notice to be adopted, including any 

related matters or alternative proposals 

that commenters may wish to discuss. 

Comments are due February 1, 2002. 

Comments may be filed either in paper 

format or electronically. Those filing 

electronically do not need to make a 

paper filing. 

36. For paper filings, the original and 

14 copies of such comments should be 

submitted to the Office of the Secretary, 

Federal Energy Regulatory Commission, 

888 First Street, NE., Washington, DC 

20426 and should refer to Docket No. 

RM96–1–020. 

37. Documents filed electronically via 

the Internet must be prepared in 

WordPerfect, MS Word, Portable 

Document Format, or ASCII format. To 

file the document, access the 

Commission’s Website at www.ferc.gov

and click on ‘‘Make An E-Filing,’’ and 

then follow the instructions for each 

screen. First time users will have to 

establish a user name and password. 

The Commission will send an automatic 

acknowledgment to the sender’s e-mail 

address upon receipt of comments. User 

assistance for electronic filing is 

available at 202–208–0258 or by e-mail 

to efiling@ferc.fed.us. Comments should 

not be submitted to the e-mail address. 

38. All comments will be placed in 

the Commission’s public files and will 

be available for inspection in the 

Commission’s Public Reference Room at 

888 First Street, N.E., Washington D.C. 

20426, during regular business hours. 

Additionally, all comments may be 

viewed, printed, or downloaded 

remotely via the Internet through 

FERC’s Homepage using the RIMS link. 

User assistance for RIMS is available at 

202–208–2222, or by e-mail to 

rimsmaster@ferc.fed.us.

39. Document Availability

40. In addition to publishing the full 

text of this document in the Federal 

Register, the Commission provides all 

interested persons an opportunity to 

view and/or print the contents of this 

document via the Internet through 

FERC’s homepage (http://www.ferc.gov)

and in FERC’s Public Reference Room 

during normal business hours (8:30 a.m. 

to 5 p.m. Eastern time) at 888 First 

Street, NE., Room 2A, Washington, DC 

20426. 

41. From FERC’s homepage on the 

Internet, this information is available in 

both the Commission Issuance Posting 

System (CIPS) and the Records and 

Information Management System 

(RIMS). 

42. CIPS provides access to the texts 

of formal documents issued by the 

Commission since November 14, 1994. 

43. CIPS can be accessed using the 

CIPS link or the Documents & Filing 

link. The full text of this document is 

available on CIPS in ASCII and 

WordPerfect 8.0 format for viewing, 

printing, and/or downloading. 

44. RIMS contains images of 

documents submitted to and issued by 

the Commission after November 16, 

1981. Documents from November 1995 

to the present can be viewed and 

printed from FERC’s homepage using 

the RIMS link or the Documents & 

Filing link. Descriptions of documents 

back to November 16, 1981, are also 

available from RIMS-on-the-Web; 

requests for copies of these and other 

older documents should be submitted to 

the Public Reference Room. 

45. User assistance is available for 

RIMS, CIPS, and the Web site during 

normal business hours from our Help 

line at (202) 208–2222 (e-mail to 

WebMaster@ferc.fed.us) or the Public 

Reference at (202) 208–1371 (e-mail to 

public.referenceroom@ferc.fed.us). 

46. During normal business hours, 

documents can also be viewed and/or 

printed in FERC’s Public Reference 

Room, where RIMS, CIPS, and the FERC 

Web site are available. User assistance is 

also available.

List of Subjects in 18 CFR Part 284 

Continental shelf, Incorporation by 

reference, Natural gas, Reporting and 

recordkeeping requirements.

By direction of the Commission. 

Linwood A. Watson, Jr., 

Acting Secretary.

In consideration of the foregoing, the 

Commission proposes to amend part 

284, Chapter I, Title 18, Code of Federal 

Regulations, as follows.

PART 284—CERTAIN SALES AND 

TRANSPORTATION OF NATURAL GAS 

UNDER THE NATURAL GAS POLICY 

ACT OF 1978 AND RELATED 

AUTHORITIES 

1. The authority citation for part 284 

continues to read as follows:

Authority: 15 U.S.C. 717–717w, 3301–

3432; 42 U.S.C. 7101–7532; 43 U.S.C. 1331–

1356.

2. Section 284.12 is amended as 

follows:

§ 284.12 [Amended] 

a. Paragraph (a) is removed and 

paragraphs (b) and (c) are redesignated 

as paragraphs (a) and (b), respectively. 

b. In newly redesignated paragraphs 

(a)(1)(i), (ii), (iii), and (v), revise all 

references to ‘‘Version 1.4, August 31, 

1999’’ to read ‘‘Version 1.5, August 18, 

2001.’’

c. In newly redesignated paragraph 

(a)(1)(iv), revise all references to 

‘‘Version 1.4, November 15, 1999’’ to 

read ‘‘Version 1.5, August 18, 2001.’’

[FR Doc. 01–32004 Filed 12–31–01; 8:45 am] 

BILLING CODE 6717–01–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service 

26 CFR Part 1 

[REG–142299–01] [REG–209135–88] 

RIN 1545–BA36 and 1545–AW92 

Certain Transfers of Property to 

Regulated Investment Companies and 

Real Estate Investment Trusts

AGENCY: Internal Revenue Service (IRS), 

Treasury.

ACTION: Notice of proposed rulemaking 

by cross-reference to temporary 

regulations. 

SUMMARY: This document contains 

proposed regulations that apply to 

certain transactions or events that result 

in a Regulated Investment Company 

[RIC] or Real Estate Investment Trust 

[REIT] owning property that has a basis 

determined by reference to a C 

corporation’s basis in the property. The 

text of the temporary regulations 

published in the Rules and Regulations 

section of this issue of the Federal 

Register serves as the text of this 

proposed regulation.

DATES: Written or electronic comments 

must be received by April 2, 2002.

ADDRESSES: Send submissions to: 

CC:ITA:RU [REG–142299–01], room 

5226, Internal Revenue Service, POB 

7604, Ben Franklin Station, Washington, 

DC 20044. Submissions may be hand 

delivered Monday through Friday 

between the hours of 8 a.m. and 5 p.m. 

to CC:ITA:RU [REG–142299–01], 

Courier’s Desk, Internal Revenue 

Service, 1111 Constitution Avenue NW., 

Washington, DC or sent to the IRS 

Internet site at: http://www.irs.gov/

taxregs/reglist.html.

FOR FURTHER INFORMATION CONTACT:

Concerning the proposed regulations, 

Lisa A. Fuller, (202) 622–7750; 

concerning submissions of comments, 

Donna Poindexter (202) 622–7180 (not 

toll-free numbers).

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act 

The collection of information 

contained in this notice of proposed 

rulemaking has been submitted to the 

Office of Management and Budget for 

review in accordance with the 

Paperwork Reduction Act of 1995 (44 

Federal Register / Vol. 67, No. 1 / Wednesday, January 2, 2002 / Proposed Rules 49

U.S.C. 3507(d)). Comments on the 

collection of information should be sent 

to the Office of Management and 

Budget, Attn: Desk Officer for the 

Department of the Treasury, Office of 

Information and Regulatory Affairs, 

Washington, DC 20503, with copies to 

the Internal Revenue Service, Attn: IRS 

Reports Clearance Officer, 

W:CAR:MP:FP:S:O, Washington, DC 

20224. Comments on the collection of 

information should be received by 

March 4, 2002. Comments are 

specifically requested concerning: 

Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the IRS, 

including whether the collection will 

have practical utility; The accuracy of 

the estimated burden associated with 

the proposed collection of information 

(see below); How the quality, utility, 

and clarity of the information to be 

collected may be enhanced; How the 

burden of complying with the proposed 

collection of information may be 

minimized, including through the 

application of automated collection 

techniques or other forms of information 

technology; and Estimates of capital or 

start-up costs and costs of operation, 

maintenance, and purchase of services 

to provide information. 

The collection of information in this 

proposed regulation is in §§ 1.337(d)–6T 

and 1.337(d)–7T. This information is 

necessary for the IRS to determine 

whether section 1374 treatment or 

deemed sale treatment is appropriate for 

the entity for which the regulation 

applies. The collection of information is 

required to obtain a benefit, i.e., to elect 

section 1374 treatment in lieu of 

deemed sale treatment in § 1.337(d)–6T, 

or to elect deemed sale treatment in lieu 

of section 1374 treatment in § 1.337(d)–

7T. The likely respondents for deemed 

sale elections are C corporations. The 

likely respondents for section 1374 

elections are RICs and REITs. 

Section 1.337(d)–6T provides that a 

section 1374 election is made by filing 

a statement and attaching it to any 

Federal income tax return filed by the 

RIC or REIT on or before March 15, 

2003, provided that the RIC or REIT has 

reported consistently with such election 

for all periods. Alternatively, a RIC or 

REIT can also make a section 1374 

election by informing the IRS prior to 

January 2, 2002 of its intent to make a 

section 1374 election. Section 1.337(d)–

7T provides that a deemed sale election 

is made by filing a statement and 

attaching it to the C corporation’s 

Federal income tax return for the 

taxable year in which the deemed sale 

occurs. 

Estimated total annual reporting 

burden: 70 hours. 

Estimated average annual burden per 

respondent: 30 minutes. 

Estimated number of respondents:

140. 

Estimated annual frequency of 

responses: Once. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a valid control 

number assigned by the Office of 

Management and Budget. 

Books or records relating to a 

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. 

Background 

Temporary regulations in the Rules 

and Regulations section of this issue of 

the Federal Register revise and add the 

Income Tax Regulations (26 CFR part 1) 

relating to section 337(d). The 

temporary regulations generally provide 

that, if property owned by a C 

corporation or property subject to 

section 1374 owned by a RIC, a REIT, 

or an S corporation becomes the 

property of a RIC or REIT by (1) the 

qualification of the C corporation as a 

RIC or REIT, or (2) certain transfers of 

property to a RIC or REIT, then the RIC 

or REIT will be subject either to section 

1374 treatment or the C corporation will 

be subject to deemed sale treatment. The 

text of those temporary regulations also 

serves as the text of these proposed 

regulations. The preamble to the 

temporary regulations explains the 

temporary regulations. 

Special Analyses 

It has been determined that this notice 

of proposed rulemaking is not a 

significant regulatory action as defined 

in Executive Order 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) does not apply 

to these regulations and, because the 

regulations do not impose a collection 

of information on small entities, the 

Regulatory Flexibility Act (5 U.S.C. 

chapter 6) does not apply. Therefore, a 

Regulatory Flexibility Analysis is not 

required. Pursuant to section 7805(f) of 

the Code, these proposed regulations 

will be submitted to the Chief Counsel 

for Advocacy of the Small Business 

Administration for comment on their 

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) or electronic comments 

that are submitted timely to the IRS. The 

IRS and Treasury request comments on 

the clarity of the proposed rule and how 

it may be made easier to understand. All 

comments will be made available for 

public inspection and copying. A public 

hearing may be scheduled. When 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 these 

regulations is Lisa A. Fuller of the Office 

of Associate Chief Counsel (Corporate). 

Other personnel from Treasury and the 

IRS participated in their development.

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 

Par. 1. The authority citation for part 

1 is amended by adding entries in 

numerical order to read in part as 

follows:

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

Section 1.337(d)–6 also issued under 26 

U.S.C. 337. 

Section 1.337(d)–7 also issued under 26 

U.S.C. 337. * * *

Par. 2. Sections 1.337(d)–6 and 

1.337(d)–7 are added to read as follows:

§ 1.337(d)–6 New transitional rules 

imposing tax on property owned by a C 

corporation that becomes property of a RIC 

or REIT. 

[The text of proposed § 1.337(d)–6 is 

the same as the text of § 1.337(d)–6T 

published elsewhere in this issue of the 

Federal Register.]

§ 1.337(d)–7 Tax on property owned by a C 

corporation that becomes property of a RIC 

or REIT. 

[The text of proposed § 1.337(d)–7 is 

the same as the text of § 1.337(d)–7T 

published elsewhere in this issue of the 

Federal Register.]

Robert E. Wenzel, 

Deputy Commissioner of Internal Revenue.

[FR Doc. 01–31968 Filed 12–31–01; 8:45 am] 

BILLING CODE 4830–01–P