Reg-107186-00

Federal Register / Vol. 66, No. 31 / Wednesday, February 14, 2001 / Proposed Rules
link by adding an ‘‘F’’ to the part number,
using an electro chemical deep etch method;
or a new upper lock link assembly, P/N
5965065–507; all made from die forged
aluminum material; per the applicable
service bulletin. Accomplishment of the
replacement constitutes terminating action
for the requirements of this AD.
Etch Inspection
(c) Perform a one-time etch inspection of
the NLG upper lock link to determine
whether the lock link is made from die forged
aluminum material (Condition 2), or from
plate or bar material (Condition 3); per the
applicable Boeing (McDonnell Douglas)
service bulletin listed in Table 1 of this AD.
Condition 2 (Die Forged Aluminum
Material)
(1) If the upper lock link is made from die
forged aluminum material, before further
flight, restore the finish and reidentify the
lock link by adding an ‘‘F’’ to the part
number, using an electro chemical deep etch
method, per the applicable service bulletin.
Identification of the lock link as being made
from die forged aluminum material
constitutes terminating action for the
requirements of this AD.
Condition 3 (Plate or Bar Material)
(2) If the NLG upper lock link is made from
plate or bar material, before further flight, do
either Condition 3, Option 1, as specified by
paragraph (c)(2)(i) of this AD, or Condition 3,
Option 2, as specified by paragraphs (c)(2)(ii)
and (c)(2)(iii) of this AD.
Condition 3, Option 1
(i) Permanently remove any discrepant
upper lock link and replace with a new
upper lock link, P/N 3914464–507; a
reidentified upper lock link by adding an ‘‘F’’
to the part number, using an electro chemical
deep etch method; or a new upper lock link
assembly, P/N 5965065–507; all made from
die forged aluminum material; per the
applicable service bulletin. Accomplishment
of the replacement constitutes terminating
action for the requirements of this AD.
Condition 3, Option 2
(ii) Restore the link finish and reidentify
the upper lock link by adding a black paint
stripe adjacent to the part number, indicating
that the part is not made from die forged
aluminum material, per the applicable
service bulletin.
(iii) Do a high frequency eddy current
(HFEC) or Type I fluorescent penetrant
inspection of the upper lock link assembly,
P/N 3914464—(any configuration), to detect
cracking of the assembly; per McDonnell
Douglas Alert Service Bulletin DC9–32A298,
Revision 02 [for Model DC–9, DC–9–80, and
C–9 (military) series airplanes; and Model
MD–88 airplanes], or Alert Service Bulletin
MD90–32A019, Revision 02 (for Model MD–
90 airplanes), both dated October 29, 1997;
as applicable.
Actions Following the Inspection Required
by Paragraph (c)(2)(iii)
(d) If no crack is detected during the HFEC
or Type I fluorescent penetrant inspection
required by paragraph (c)(2)(iii) of this AD,

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within 2,500 landings on the NLG since
accomplishment of the inspection performed
per paragraph (c)(2)(iii) of this AD, as
applicable, do that inspection a second time.
If no crack is detected during this second
inspection, within 2,500 landings after
accomplishment of the second inspection,
replace the upper lock link with a new upper
lock link, P/N 3914464–507; a reidentified
upper lock link by adding an ‘‘F’’ to the part
number, using an electro chemical deep etch
method; or a new upper lock link assembly,
P/N 5965065–507; all made from die forged
aluminum material; per the applicable
Boeing (McDonnell Douglas) service bulletin
listed in Table 1 of this AD. Accomplishment
of the replacement action constitutes
terminating action for the requirements of
this AD.
(e) If any crack is detected during the HFEC
or Type I fluorescent penetrant inspection
required by paragraph (c)(2)(iii) or (d) of this
AD, before further flight, replace the
discrepant NLG upper lock link with a new
upper lock link, P/N 3914464–507; a
reidentified upper lock link by adding an ‘‘F’’
to the part number, using an electro chemical
deep etch method; or a new upper lock link
assembly, P/N 5965065–507; all made from
die forged aluminum material; per the
applicable Boeing (McDonnell Douglas)
service bulletin listed in Table 1 of this AD.
Accomplishment of the replacement
constitutes terminating action for the
requirements of this AD.
Alternative Methods of Compliance
(f)(1) An alternative method of compliance
or adjustment of the compliance time that
provides an acceptable level of safety may be
used if approved by the Manager, Los
Angeles Aircraft Certification Office (ACO),
FAA. Operators shall submit their requests
through an appropriate FAA Principal
Maintenance Inspector, who may add
comments and then send it to the Manager,
Los Angeles ACO.
Note 2: Information concerning the
existence of approved alternative methods of
compliance with this AD, if any, may be
obtained from the Los Angeles ACO.
(2) Alternative methods of compliance,
approved previously in accordance with AD
97–02–10, amendment 39–9895, are
approved as alternative methods of
compliance with paragraph (f)(1) of this AD.
Special Flight Permits
(g) Special flight permits may be issued in
accordance with sections 21.197 and 21.199
of the Federal Aviation Regulations (14 CFR
21.197 and 21.199) to operate the airplane to
a location where the requirements of this AD
can be accomplished.
Issued in Renton, Washington, on February
8, 2001.
Donald L. Riggin,
Acting Manager, Transport Airplane
Directorate, Aircraft Certification Service.
[FR Doc. 01–3700 Filed 2–13–01; 8:45 am]
BILLING CODE 4910–13–P

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10247

DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1, 31 and 301
[REG–107186–00]
RIN 1545–AY50

Electronic Payee Statements
AGENCY: Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking
by cross reference to temporary
regulations and notice of public hearing.
SUMMARY: The IRS is proposing
regulations under sections 6041 and
6051 relating to the voluntary electronic
furnishing of payee statements on Forms
W–2. The proposed regulations also
provide rules under section 6050S
relating to the voluntary electronic
furnishing of statements to individuals
for whom Forms 1098–T, ‘‘Tuition
Payments Statement,’’ and Forms 1098–
E, ‘‘Student Loan Interest Statement,’’
are filed. The proposed regulations will
affect persons required by the foregoing
Internal Revenue Code sections to
furnish these statements (furnishers)
who wish to furnish these statements
electronically. The proposed regulations
will also affect individuals, principally
employees, students, and borrowers
(recipients), who consent to receive
these statements electronically. The text
of temporary regulations published in
the Rules and Regulations section of this
issue of the Federal Register serves as
the text of these proposed regulations.
These proposed regulations do not affect
the requirement to file copy A of Forms
W–2 with the Social Security
Administration or the requirement to
file Forms 1098–T or Forms 1098–E
with the IRS.
DATES: Written or electronic comments
and requests to speak (with outlines of
oral comments) at a public hearing
scheduled for June 4, 2001, at 10 a.m.
must be submitted by May 14, 2001.
ADDRESSES: Send submissions to:
CC:M&SP:RU (REG–107186–00), 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:M&SP:RU (REG–107186–00),
Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue,
NW., Washington, DC. Alternatively,
taxpayers may submit comments
electronically via the Internet by
selecting the ‘‘Tax Regulations’’ option
on the IRS Home Page, or by submitting
comments directly to the IRS Internet

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10248

Federal Register / Vol. 66, No. 31 / Wednesday, February 14, 2001 / Proposed Rules

site at http://www.irs.gov/tax_regs/
regslist.html. The public hearing will be
held in the IRS Auditorium, Seventh
Floor, Internal Revenue Service
Building, 1111 Constitution Avenue,
NW., Washington, DC.
FOR FURTHER INFORMATION CONTACT:
Concerning the regulations, Laura C.
Nash (202) 622–4910; concerning
submission of comments, the hearing,
and/or to be placed on the building
access list to attend the hearing, Sonya
Cruse (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
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 April
16, 2001. Comments are specifically
requested concerning:
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Internal Revenue Service, including
whether the information 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 collections of information in
these proposed regulations are in
§§ 1.6041–2(a)(5), 1.6050S–1(a),
1.6050S–2(a), and 31.6051–1(i). These
temporary regulations state that
furnishers may provide the written
statements required by sections 6041(d),
6050S(d), and 6051 in an electronic
format in lieu of a paper format. In

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addition, the proposed regulations
provide furnishers with a method to
furnish a statement in connection with
a Form 1098-T or Form 1098-E under
section 6050S(d), or a Form W–2 under
section 6041(d) or 6051, electronically
using website technology. In general, a
furnisher may furnish the statement
electronically using the method
described in the proposed regulations if
the recipient consents to receive the
statement electronically, and if the
furnisher makes certain disclosures to
the recipient, annually notifies the
recipient that the statement is available
on a website, and provides access to the
statement on that website for a
prescribed period of time. This
collection of information is required
only for persons who wish to furnish
the statements electronically using the
method described in the proposed
regulations. The likely respondents are
businesses, other for-profit institutions,
and eligible educational institutions.
Estimated total annual reporting/
recordkeeping burden: 2,844,950 hours.
Estimated average annual burden
hours per response: 6 minutes.
Estimated number of responses:
28,449,495.
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 the collection of information
displays a valid OMB 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.

Special Analyses

Background

Comments and Public Hearing

Temporary regulations in the Rules
and Regulations section of this issue of
the Federal Register amend the
Regulations on Income Taxes (26 CFR
part 1) relating to sections 6041 and
6050S(d), the Regulations on
Employment Taxes and Collection of
Income Tax at Source (26 CFR part 31)
relating to section 6051, and the
Regulations on Procedure and
Administration (26 CFR part 301)
relating to section 6724. The text of
those temporary regulations also serves
as the text of these proposed
regulations. The preamble to the
temporary regulations explains the
regulations.

Before these proposed regulations are
adopted as final regulations,
consideration will be given to any
electronic or written comments (a
signed original and eight (8) copies) that
are submitted timely to the IRS. The IRS
and Treasury Department request
comments on the clarity of the proposed
rules and how they can be made easier
to understand. All comments will be
available for public inspection and
copying.
A public hearing has been scheduled
for June 4, 2001, beginning at 10 a.m.,
in the IRS Auditorium of the Internal
Revenue Building, 1111 Constitution
Avenue, NW., Washington, DC. Due to

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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
has also been determined that section
553(b) of the Administrative Procedure
Act (5 U.S.C. Chapter 5) does not apply
to these regulations. An initial
regulatory flexibility analysis has been
prepared for this notice of proposed
rulemaking under 5 U.S.C. 603 and is
set forth under the heading ‘‘Initial
Regulatory Flexibility Act Analysis’’ in
this preamble. Pursuant to section
7805(f), this notice of proposed
rulemaking will be submitted to the
Chief Counsel for Advocacy of the Small
Business Administration for comment
on its impact on small business.
Initial Regulatory Flexibility Act
Analysis
This initial analysis is required under
the Regulatory Flexibility Act. (5 U.S.C.
chapter 6). The collection of information
contained in §§ 1.6041–2(a)(5), 1.6050S–
1(a), 1.6050S–2(a), and 31.6051–1(i) is
required if a furnisher implements the
method described in the proposed
regulations to furnish statements
electronically.
The types of small entities to which
the proposed regulations may apply are
small eligible educational institutions
(such as colleges and universities),
certain payees of interest on qualified
education loans, and small employers. It
is estimated that furnishers will seek
consents from approximately 28,449,495
individuals to receive these statements
electronically. There are no known
Federal rules that duplicate, overlap, or
conflict with these proposed
regulations. The regulations proposed
are considered to have the least
economic effect on small entities of all
alternatives considered.

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Federal Register / Vol. 66, No. 31 / Wednesday, February 14, 2001 / Proposed Rules
building security procedures, visitors
must enter at the 10th Street entrance,
located between Constitution and
Pennsylvania Avenues, NW. In
addition, all visitors must present photo
identification to enter the building.
Because of access restrictions, visitors
will not be admitted beyond the
immediate entrance area more than 15
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
preamble.
The rules of 26 CFR 601.601(a)(3)
apply to the hearing. Persons who wish
to present oral comments at the hearing
must submit written comments and an
outline of the topics to be discussed and
the time to be devoted to each topic
(signed original and eight (8) copies) by
May 14, 2001. A period of ten minutes
will be allotted to each person for
making comments. An agenda showing
the scheduling of speakers will be
prepared after the deadline for receiving
outlines has passed. Copies of the
agenda will be available free of charge
at the hearing.
Drafting Information
The principal author of these
proposed regulations is Eric Lucas,
formerly of the Office of Associate Chief
Counsel (Procedure and
Administration). However, other
personnel from the IRS and Treasury
Department participated in their
development.

in numerical order to read in part as
follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.6041–2 also issued under 26
U.S.C. 6041(d). * * *
Section 1.6050S–1 also issued under 26
U.S.C. 6050S(g).
Section 1.6050S–2 also issued under 26
U.S.C. 6050S(g). * * *

Par. 2. Section 1.6041–2 is amended
by adding a new paragraph (a)(5) to read
as follows:
§ 1.6041–2 Return of information as to
payments to employees.

(a) * * *
(5) [The text of proposed paragraph
(a)(5) is the same as the text of § 1.6041–
2T(a)(5) published elsewhere in this
issue of the Federal Register].
*
*
*
*
*
Par. 3. Sections 1.6050S–1 and
1.6050S–2 are added to read as follows:
§ 1.6050S–1 Information reporting for
payments and reimbursements or refunds
of qualified tuition and related expenses.

[The text of these proposed
regulations is the same as the text of
§ 1.6050S–1T published elsewhere in
this issue of the Federal Register].
§ 1.6050S–2 Information reporting for
payments of interest on qualified education
loans.

[The text of these proposed
regulations is the same as the text of
§ 1.6050S–2T published elsewhere in
this issue of the Federal Register].

26 CFR Part 1

PART 31—EMPLOYMENT TAXES AND
COLLECTION OF INCOME TAX AT
SOURCE

Income taxes, Reporting and
recordkeeping requirements.

Par. 4. The authority citation for part
31 continues to read in part as follows:

List of Subjects

26 CFR Part 31

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

Employment taxes, Income taxes,
Penalties, Pensions, Railroad retirement,
Reporting and recordkeeping
requirements, Social security,
Unemployment compensation.
26 CFR Part 301
Employment taxes, Estate taxes,
Excise taxes, Gift taxes, Income taxes,
Penalties, Reporting and recordkeeping
requirements.
Proposed Amendments to the
Regulations
Accordingly, 26 CFR parts 1, 31, and
301 are proposed to be amended as
follows:
PART 1—INCOME TAXES
Paragraph 1. The authority citation
for part 1 is amended by adding entries

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Par. 5. Section 31.6051–1 is amended
by:
1. Redesignating paragraph (i) as
paragraph (j).
2. Adding a new paragraph (i).
The addition reads as follows:
§ 31.6051–1

Statements for employees.

*

*
*
*
*
(i) [The text of proposed paragraph (i)
is the same as the text of § 31.6051–1T(j)
published elsewhere in this issue of the
Federal Register].
*
*
*
*
*
PART 301—PROCEDURE AND
ADMINISTRATION
Par. 6. The authority citation for part
301 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *

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10249

Par. 7. Section 301.6724–1 is
amended by adding a new paragraph
(d)(3) to read as follows:
§ 301.6724–1

Reasonable cause.

*

*
*
*
*
(d) * * *
(3) [The text of proposed paragraph
(d)(3) is the same as the text of
§ 301.6724–1T(d)(3) published
elsewhere in this issue of the Federal
Register].
*
*
*
*
*
Robert E. Wenzel,
Deputy Commissioner of Internal Revenue.
[FR Doc. 01–1293 Filed 2–13–01; 8:45 am]
BILLING CODE 4830–01–P

DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 301
[REG–101520–97]
RIN 1545–AV01

Return of Property in Certain Cases
AGENCY: Internal Revenue Service (IRS),
Treasury.
ACTION: Notice of proposed rulemaking.
SUMMARY: This document contains
proposed regulations relating to the
return of property in certain cases. The
proposed regulations reflect changes
made to section 6343 of the Internal
Revenue Code of 1986 by the Taxpayer
Bill of Rights 2. The proposed
regulations also reflect certain changes
affecting levies enacted by the Internal
Revenue Service Restructuring and
Reform Act of 1998. The proposed
regulations affect taxpayers seeking the
return of property from the IRS.
DATES: Written comments and requests
for a public hearing must be received by
May 15, 2001.
ADDRESSES: Send submissions to:
CC:M&SP:RU (REG–101520–97), room
5226, Internal Revenue Service, POB
7604, Ben Franklin Station, Washington,
DC 20044. In the alternative,
submissions may be hand delivered to:
CC:M&S:RU (REG–101520–97), room
5226, Internal Revenue Service, 1111
Constitution Avenue NW., Washington,
DC. Taxpayers may also submit
comments electronically via the Internet
by selecting the ‘‘Tax Regs’’ option on
the IRS Home Page, or by submitting
comments directly to the IRS Internet
site at http://www.irs.gov/prod/
taxlregs/regslist.html.
FOR FURTHER INFORMATION CONTACT:
Kevin B. Connelly, (202) 622–3630 (not
a toll-free number).

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