Railroad Track Maintenance Credit; Correction, 71045-71047 [E6-20740]
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71045
Federal Register / Vol. 71, No. 236 / Friday, December 8, 2006 / Rules and Regulations
arrangements have been made to ensure
that the loss will not be used to offset
the income of another person under the
laws of a foreign country and that the
taxpayer will be informed of any such
foreign use of any portion of the loss. If
dual consolidated losses of more than
one taxable year are subject to the rules
of this paragraph (g)(2)(vi)(B), the
certifications for those years may be
combined in a single document but each
dual consolidated loss must be
separately identified.
*
*
*
*
*
§ 1.1503–2T
[Removed]
Par 21. Section 1.1503–2T is removed.
Par. 22. Section 1.6038B–1 is
amended by revising paragraph (b)(1)(ii)
to read as follows:
I
I
§ 1.6038B–1 Reporting of certain transfers
to foreign corporations.
*
*
*
*
*
(b) * * *
(1) * * *
(ii) Reporting by corporate transferor.
For transfers by corporations in taxable
years beginning before January 1, 2003,
Form 926 must be signed by an
authorized officer of the corporation if
the transferor is not a member of an
affiliated group under section 1504(a)(1)
that files a consolidated Federal income
tax return and by an authorized officer
of the common parent corporation if the
transferor is a member of such an
affiliated group. For transfers by
corporations in taxable years beginning
after December 31, 2002, Form 926 shall
be verified by signing the income tax
return to which the form is attached.
*
*
*
*
*
I Par. 23. Section 1.6038B–1T is
amended by revising paragraphs (a)
through (b)(3) to read as follows:
§ 1.6038B–1T Reporting of certain
transactions to foreign corporations
(Temporary).
Par. 28. In § 602.101, paragraph (b) is
amended by removing the entry for
‘‘1.170A–11T’’ and revising the entry for
‘‘1.170A–11’’ to read as follows:
I
Par. 24. The authority citation for part
301 continues to read, in part, as
follows:
Authority: 26 U.S.C. 7805 * * *
Par. 25. Section 301.7701–3 is
amended by revising paragraph (c)(1)(ii)
to read as follows:
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*
*
VerDate Aug<31>2005
*
PART 602—OMB CONTROL NUMBERS
UNDER THE PAPERWORK
REDUCTION ACT
Authority: 26 U.S.C. 7805.
I
*
[Removed]
Par. 26. Section 301.7701–3T is
removed.
I
Par. 27. The authority citation for part
602 continues to read as follows:
PART 301—PROCEDURE AND
ADMINISTRATION
§ 301.7701–3 Classification of certain
business entities.
§ 301.7701–3T
I
(a) through (b)(3) [Reserved]. For
further guidance, see § 1.6038B–1(a)
through (b)(3).
*
*
*
*
*
I
(c) * * * (1) * * *
(ii) Further notification of elections.
An eligible entity required to file a
Federal tax or information return for the
taxable year for which an election is
made under § 301.7701–3(c)(1)(i) must
attach a copy of its Form 8832 to its
Federal tax or information return for
that year. If the entity is not required to
file a return for that year, a copy of its
Form 8832 (‘‘Entity Classification
Election’’) must be attached to the
Federal income tax or information
return of any direct or indirect owner of
the entity for the taxable year of the
owner that includes the date on which
the election was effective. An indirect
owner of the entity does not have to
attach a copy of the Form 8832 to its
return if an entity in which it has an
interest is already filing a copy of the
Form 8832 with its return. If an entity,
or one of its direct or indirect owners,
fails to attach a copy of a Form 8832 to
its return as directed in this section, an
otherwise valid election under
§ 301.7701–3(c)(1)(i) will not be
invalidated, but the non-filing party
may be subject to penalties, including
any applicable penalties if the Federal
tax or information returns are
inconsistent with the entity’s election
under § 301.7701–3(c)(1)(i). In the case
of returns for taxable years beginning
after December 31, 2002, the copy of
Form 8832 attached to a return pursuant
to this paragraph (c)(1)(ii) is not
required to be a signed copy.
*
*
*
*
*
§ 602.101
*
OMB Control numbers.
*
*
(b) * * *
*
*
*
*
1.170A–11 ............................
Current OMB
control No.
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Current OMB
control No.
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Linda Kroening,
Deputy Commissioner for Services and
Enforcement.
Approved: December 1, 2006.
Eric Solomon,
Acting Deputy Assistant Secretary of the
Treasury (Tax Policy).
[FR Doc. E6–20734 Filed 12–7–06; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 602
[TD 9286]
RIN 1545–BE91
Railroad Track Maintenance Credit;
Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Correction to temporary
regulations.
AGENCY:
SUMMARY: This document contains
corrections to temporary regulations (TD
9286) that were published in the
Federal Register on Friday, September
8, 2006 (71 FR 53009) providing rules
for claiming the railroad track
maintenance credit under section 45G of
the Internal Revenue Code for qualified
railroad track maintenance expenditures
paid or incurred by a Class II railroad or
Class III railroad and other eligible
taxpayers during the taxable year.
DATES: This correction is effective
September 8, 2006.
FOR FURTHER INFORMATION CONTACT:
Winston H. Douglas, (202) 622–3110
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The correction notice that is the
subject of this document is under
section 45G of the Internal Revenue
Code.
Need for Correction
*
CFR part or section where
identified and described
CFR part or section where
identified and described
Sfmt 4700
*
1545–0123
1545–0074
1545–1868
As published, temporary regulations
(TD 9286) contain errors that may prove
to be misleading and are in need of
clarification.
Correction of Publication
Accordingly, the publication of the
temporary regulations (TD 9286), which
was the subject of FR Doc. E6–14858, is
corrected as follows:
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71046
Federal Register / Vol. 71, No. 236 / Friday, December 8, 2006 / Rules and Regulations
1. On page 53010, column 1, in the
preamble, under the paragraph heading
‘‘General Overview’’, first and second
lines from the bottom of the second
paragraph, the language ‘‘assigned to
such person by such a railroad.’’ is
corrected to read ‘‘assigned to such
person by a Class II railroad or a Class
III railroad.’’.
2. On page 53010, column 2, in the
preamble, under the paragraph heading
‘‘Scope’’, first paragraph of the column,
last line of the paragraph, the language
‘‘of controlled groups under section
45G.’’ is corrected to read ‘‘of controlled
groups under section 45G with respect
to the RTMC.’’.
3. On page 53010, column 2, in the
preamble, under the paragraph heading
‘‘Eligible Taxpayer’’, fourth line of the
first paragraph, the language ‘‘defined in
the temporary regulations as:’’ is
corrected to read ‘‘defined as:’’.
4. On page 53010, column 2, in the
preamble, under the paragraph heading
‘‘Eligible Taxpayer’’, third line from the
bottom of the first paragraph, the
language ‘‘railroad track assigned to the
person for’’ is corrected to read
‘‘railroad track assigned to the taxpayer
for’’.
5. On page 53010, column 2, in the
preamble, under the paragraph heading
‘‘Eligible Taxpayer’’, second through the
sixth line from the bottom of the second
paragraph, the language ‘‘Price Index)).
49 CFR part 1201, subpart A, § 1–1(a).
In general, Class III railroads have
annual carrier operating revenues of $20
million or less after applying the
railroad revenue deflator formula. 49’’ is
corrected to read ‘‘Price Index)). See 49
CFR part 1201, subpart A, § 1–1(a). In
general, Class III railroads have annual
carrier operating revenues of $20
million or less after applying the
railroad revenue deflator formula. See
49’’.
6. On page 53010, column 3, in the
preamble, under the paragraph heading
‘‘Eligible Taxpayer’’, second paragraph
of the column, tenth to seventeenth
lines, the language ‘‘services are the
transport of freight by rail, the loading
and unloading of freight transported by
rail, locomotive leasing or rental, and
maintenance of a railroad’s right-of-way
(including vegetation control). Examples
of services that are not railroad-related
services are general business services,’’
is corrected to read ‘‘services include
the transport of freight by rail, the
loading and unloading of freight
transported by rail, locomotive leasing
or rental, and maintenance of a
railroad’s right-of-way (including
vegetation control). Examples of
services that are not railroad-related
VerDate Aug<31>2005
16:20 Dec 07, 2006
Jkt 211001
services include general business
services,’’.
7. On page 53011, column 1, in the
preamble, under the paragraph heading
‘‘Determination of QRTME Paid or
Incurred’’, second paragraph, third and
fourth lines, the language ‘‘to a taxpayer
using an accrual method of accounting.
In this case, paid or’’ is corrected to read
‘‘to taxpayers using an accrual method
of accounting. For such taxpayers, paid
or’’.
8. On page 53011, column 1, in the
preamble, under the paragraph heading
‘‘Determination of QRTME Paid or
Incurred’’, second paragraph, fifteenth
to twentieth lines, the language ‘‘any
such expenditures. The temporary
regulations provide that reimbursements
may consist of amounts paid either
directly or indirectly to the taxpayer.
Examples of indirect reimbursements
are discounted freight shipping rates,’’
is corrected to read ‘‘any expenditures
that would otherwise qualify as
QRTME. The temporary regulations
provide that reimbursements may
consist of amounts paid either directly
or indirectly to the taxpayer. Examples
of indirect reimbursements include
discounted freight shipping rates,’’.
9. On page 53011, column 1, in the
preamble, under the paragraph heading
‘‘Determination of QRTME Paid or
Incurred’’, third paragraph, first line, the
language ‘‘If an eligible taxpayer
(assignee) pays’’ is corrected to read
‘‘The IRS and Treasury believe that the
statute is intended to allow suppliers
and shippers to claim the credit for
providing the funding for the QRTME
performed on railroad track owned by,
or leased to, a Class II railroad or Class
III railroad. However, the suppliers and
shippers may not have the necessary
expertise to perform the repairs and
improvements. The IRS and Treasury
believe that these eligible taxpayers
should be able to claim the credit for
providing the funding to the extent that
the Class II railroads and Class III
railroads use such funding to perform
the repairs and improvements to the
track. Therefore, if an eligible taxpayer
(assignee) pays’’.
10. On page 53011, column 1, in the
preamble, under the paragraph heading
‘‘Determination of QRTME Paid or
Incurred’’, third paragraph, fifth line
from the bottom of the column, the
language ‘‘paragraph, this QRTME
would be’’ is corrected to read
‘‘paragraph, QRTME would be’’.
11. On page 53011, column 2, in the
preamble, under the paragraph heading
‘‘Assignment of Railroad Track Miles’’,
first paragraph, first through fifth lines,
the language ‘‘For purposes of section
45G, the temporary regulations provide
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Fmt 4700
Sfmt 4700
that an assignment of a mile of railroad
track is not a legal transfer of title, but
merely a designation. This designation
must be’’ is corrected to read ‘‘The
temporary regulations provide that an
assignment of a mile of railroad track is
not a legal transfer of title, but merely
a designation made solely for purposes
of section 45G. This designation must
be’’.
12. On page 53011, column 2, in the
preamble, under the paragraph heading
‘‘Assignment of Railroad Track Miles’’,
second paragraph, fifth line, the
language ‘‘track. Thus, if a Class II
railroad or Class’’ is corrected to read
‘‘track. If a Class II railroad or Class’’.
13. On page 53011, column 2, in the
preamble, under the paragraph heading
‘‘Assignment of Railroad Track Miles’’,
fourth paragraph, second line, the
language ‘‘that a taxpayer must file
Form 8900,’’ is corrected to read ‘‘that
a taxpayer file Form 8900,’’.
14. On page 53011, column 3, in the
preamble, last paragraph of the column,
first line, the language ‘‘The temporary
regulations also’’ is corrected to read
‘‘The temporary regulations’’.
15. On page 53012, column 1, in the
preamble, first paragraph of the column,
first line, the language ‘‘assignment is
properly reported.’’ is corrected to read
‘‘assignment is reported.’’.
16. On page 53012, column 1, in the
preamble, under the paragraph heading
‘‘Special Rules’’, first paragraph, second
through fourth lines from the bottom of
the paragraph, the language ‘‘structure
(railroad track, roadbed, bridges, and
related track structures) and intangible
assets to which the’’ is corrected to read
‘‘structure and intangible assets to
which the’’.
17. On page 53012, column 1, in the
preamble, under the paragraph heading
‘‘Special Rules’’, second paragraph,
sixth line, the language ‘‘of the RTMC
allowable. This reduction’’ is corrected
to read ‘‘of the RTMC allowable. The
basis reduction’’.
18. On page 53012, column 1, in the
preamble, under the paragraph heading
‘‘Special Rules’’, third paragraph, first
line, the language ‘‘The temporary
regulations also’’ is corrected to read
‘‘The temporary regulations do not’’.
19. On page 53012, column 2, in the
preamble, under the paragraph heading
‘‘Special Rules’’, first paragraph of the
column, fourth line to the last of the
paragraph, the language ‘‘legislative
history does not refer to, any exception
to this rule. Accordingly, pursuant to
section 61 and the regulations under
section 61, the owner of the tangible
assets (for example, railroad track and
roadbed) with respect to which the
QRTME is paid or incurred by another
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Federal Register / Vol. 71, No. 236 / Friday, December 8, 2006 / Rules and Regulations
person that does not have a depreciable
interest in those assets has gross income
in the amount of that QRTME. However,
the application of section 61 to QRTME
paid or incurred with respect to eligible
railroad track that is leased by a Class
II railroad or Class III railroad raises a
question as to under what
circumstances the owner or lessee
should recognize gross income with
respect to QRTME. The IRS and
Treasury Department request comments
on this issue.’’ is replaced to read
‘‘legislative history does not refer to, any
exception to this rule for an owner of
tangible assets (for example, railroad
track and roadbed) for the value of the
repairs or improvements to such assets
with respect to which QRTME is paid or
incurred by another person that does
not have a depreciable interest in such
assets.’’
LaNita Van Dyke,
Chief, Publications and Regulations Branch,
Legal Processing Division, Associate Chief
Counsel, (Procedure and Administration).
[FR Doc. E6–20740 Filed 12–7–06; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF JUSTICE
28 CFR Part 61
[Docket No. USMS 101]
RIN 1105–AB13
Supplement to Justice Department
Procedures and Council on
Environmental Quality Regulations To
Ensure Compliance With the National
Environmental Policy Act
United States Marshals Service,
Justice.
ACTION: Final rule.
AGENCY:
SUMMARY: This rule adds Appendix E to
part 61 of the Department of Justice’s
regulations to ensure better compliance
with the National Environmental Policy
Act (NEPA) of 1969. The rule
supplements existing Department
procedures and regulations of the
Council on Environmental Quality and
only pertains to internal procedures of
the United States Marshals Service
(USMS).
EFFECTIVE DATE:
This rule is effective
January 8, 2007.
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FOR FURTHER INFORMATION CONTACT:
Joseph Band, Office of Chief Counsel,
United States Marshals Service,
Washington, DC 20002; Telephone (202)
307–9722.
SUPPLEMENTARY INFORMATION:
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16:20 Dec 07, 2006
Jkt 211001
Background
The USMS published a notice of
proposed rulemaking on this subject on
January 10, 2006 (71 FR 3248). The
USMS received no comments before the
comment period closed on March 21,
2006. Accordingly, this document
finalizes the proposed rule without
change.
Need for This Rule
This rule is needed so that the USMS
can comply more fully with NEPA.
Under NEPA, Federal agencies are
required to implement internal
procedures to ensure proper
environmental consideration of
proposed agency actions. The internal
procedures promote the protection of
the environment by minimizing the use
of natural resources and by improving
planning and decision-making processes
to avoid excess pollution and
environmental degradation.
Overview of the Rule’s Standards
In complying with and implementing
NEPA, the USMS shall make efforts to
produce clear and concise NEPA
documents and increase administrative
efficiency.
All NEPA documents, specifically
Environmental Assessments (EAs) and
Environmental Impact Statements
(EISs), shall be analytical, clear, and
concise. The documents shall focus on
significant issues and shall be presented
in plain language and in the standard
format outlined in Appendix E. In order
to reduce paperwork, EISs shall be
limited to approximately 150 pages, or
in unusually complex matters, 300
pages. To avoid duplicative work, NEPA
documents shall, whenever possible, be
prepared jointly with State and local
governments and shall adopt,
incorporate by reference, or combine,
existing USMS and other agencies’
analyses, documentation, and/or other
environmental reports.
The USMS shall make every effort to
prevent and reduce delay. The USMS
will follow the procedures outlined in
the CEQ regulations including, (1)
Integrating the NEPA process in the
early stages of planning to ensure that
decisions reflect environmental values,
and to head off potential conflicts and/
or delays, (2) emphasizing inter-agency
cooperation before the environmental
analysis and documentation is prepared,
(3) ensuring the swift and fair resolution
of any dispute by designating a lead
agency for any inter-agency projects, (4)
employing the scoping process to
distinguish the significant issues
requiring consideration in the NEPA
analysis, (5) setting deadlines for the
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71047
NEPA process as appropriate for
individual proposed actions, (6)
initiating the NEPA analysis as early as
possible to coincide with the agency’s
presentation of a proposal by another
party, and (7) using accelerated
procedures as described in the CEQ
regulations for legislative proposals.
Implementation of Changes
Through this rule, the USMS is
revising its guidance, establishing
policy, and assigning responsibilities for
implementing the requirements of
Section 102(2) of NEPA (42 U.S.C. 4321,
et seq.), Executive Order 11514 of March
5, 1970, titled ‘‘Protection and
Enhancement of Environmental
Quality,’’ and regulations of the CEQ (40
CFR parts 1500–1508).
This rule is intended to (1) Enhance
the USMS’ ability to comply with
NEPA, related legal authorities, and
Executive Orders, (2) allow nonsignificant program actions to be exempt
from the requirement to prepare an EA
or EIS, (3) focus NEPA analysis upon
major Federal actions significantly
affecting the quality of the environment,
(4) ensure public involvement in
decision-making regarding
environmental impact on local
communities, and (5) reflect changes in
the current USMS organizational
structure. Development of these revised
regulations was orchestrated by USMS
headquarters and district office
personnel who represent the USMS’
collective technical and managerial
expertise in environmental quality and
NEPA compliance. In addition to
revising part 61 by adding Appendix E,
the USMS will provide guidance
materials to district offices.
These changes affect USMS internal
procedures. The USMS consulted with
the CEQ during the development of this
rule.
Regulatory Certifications
Executive Order 12866
This regulation has been drafted and
reviewed in accordance with Executive
Order 12866, ‘‘Regulatory Planning and
Review’’ § 1 (b), Principles of
Regulation. The Department of Justice
has determined that this rule is not a
‘‘significant regulatory action’’ under
Executive Order 12866, § 3(f),
Regulatory Planning and Review; and,
accordingly, this rule has not been
reviewed by the Office of Management
and Budget. This rule provides
environmental benefits by ensuring the
USMS compliance with NEPA to
improve planning and avoid excess
pollution and environmental
degradation. Further, this rule affects
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]]>Agencies
[Federal Register Volume 71, Number 236 (Friday, December 8, 2006)]
[Rules and Regulations]
[Pages 71045-71047]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-20740]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Parts 1 and 602
[TD 9286]
RIN 1545-BE91
Railroad Track Maintenance Credit; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correction to temporary regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains corrections to temporary regulations
(TD 9286) that were published in the Federal Register on Friday,
September 8, 2006 (71 FR 53009) providing rules for claiming the
railroad track maintenance credit under section 45G of the Internal
Revenue Code for qualified railroad track maintenance expenditures paid
or incurred by a Class II railroad or Class III railroad and other
eligible taxpayers during the taxable year.
DATES: This correction is effective September 8, 2006.
FOR FURTHER INFORMATION CONTACT: Winston H. Douglas, (202) 622-3110
(not a toll-free number).
SUPPLEMENTARY INFORMATION:
Background
The correction notice that is the subject of this document is under
section 45G of the Internal Revenue Code.
Need for Correction
As published, temporary regulations (TD 9286) contain errors that
may prove to be misleading and are in need of clarification.
Correction of Publication
Accordingly, the publication of the temporary regulations (TD
9286), which was the subject of FR Doc. E6-14858, is corrected as
follows:
[[Page 71046]]
1. On page 53010, column 1, in the preamble, under the paragraph
heading ``General Overview'', first and second lines from the bottom of
the second paragraph, the language ``assigned to such person by such a
railroad.'' is corrected to read ``assigned to such person by a Class
II railroad or a Class III railroad.''.
2. On page 53010, column 2, in the preamble, under the paragraph
heading ``Scope'', first paragraph of the column, last line of the
paragraph, the language ``of controlled groups under section 45G.'' is
corrected to read ``of controlled groups under section 45G with respect
to the RTMC.''.
3. On page 53010, column 2, in the preamble, under the paragraph
heading ``Eligible Taxpayer'', fourth line of the first paragraph, the
language ``defined in the temporary regulations as:'' is corrected to
read ``defined as:''.
4. On page 53010, column 2, in the preamble, under the paragraph
heading ``Eligible Taxpayer'', third line from the bottom of the first
paragraph, the language ``railroad track assigned to the person for''
is corrected to read ``railroad track assigned to the taxpayer for''.
5. On page 53010, column 2, in the preamble, under the paragraph
heading ``Eligible Taxpayer'', second through the sixth line from the
bottom of the second paragraph, the language ``Price Index)). 49 CFR
part 1201, subpart A, Sec. 1-1(a). In general, Class III railroads
have annual carrier operating revenues of $20 million or less after
applying the railroad revenue deflator formula. 49'' is corrected to
read ``Price Index)). See 49 CFR part 1201, subpart A, Sec. 1-1(a). In
general, Class III railroads have annual carrier operating revenues of
$20 million or less after applying the railroad revenue deflator
formula. See 49''.
6. On page 53010, column 3, in the preamble, under the paragraph
heading ``Eligible Taxpayer'', second paragraph of the column, tenth to
seventeenth lines, the language ``services are the transport of freight
by rail, the loading and unloading of freight transported by rail,
locomotive leasing or rental, and maintenance of a railroad's right-of-
way (including vegetation control). Examples of services that are not
railroad-related services are general business services,'' is corrected
to read ``services include the transport of freight by rail, the
loading and unloading of freight transported by rail, locomotive
leasing or rental, and maintenance of a railroad's right-of-way
(including vegetation control). Examples of services that are not
railroad-related services include general business services,''.
7. On page 53011, column 1, in the preamble, under the paragraph
heading ``Determination of QRTME Paid or Incurred'', second paragraph,
third and fourth lines, the language ``to a taxpayer using an accrual
method of accounting. In this case, paid or'' is corrected to read ``to
taxpayers using an accrual method of accounting. For such taxpayers,
paid or''.
8. On page 53011, column 1, in the preamble, under the paragraph
heading ``Determination of QRTME Paid or Incurred'', second paragraph,
fifteenth to twentieth lines, the language ``any such expenditures. The
temporary regulations provide that reimbursements may consist of
amounts paid either directly or indirectly to the taxpayer. Examples of
indirect reimbursements are discounted freight shipping rates,'' is
corrected to read ``any expenditures that would otherwise qualify as
QRTME. The temporary regulations provide that reimbursements may
consist of amounts paid either directly or indirectly to the taxpayer.
Examples of indirect reimbursements include discounted freight shipping
rates,''.
9. On page 53011, column 1, in the preamble, under the paragraph
heading ``Determination of QRTME Paid or Incurred'', third paragraph,
first line, the language ``If an eligible taxpayer (assignee) pays'' is
corrected to read ``The IRS and Treasury believe that the statute is
intended to allow suppliers and shippers to claim the credit for
providing the funding for the QRTME performed on railroad track owned
by, or leased to, a Class II railroad or Class III railroad. However,
the suppliers and shippers may not have the necessary expertise to
perform the repairs and improvements. The IRS and Treasury believe that
these eligible taxpayers should be able to claim the credit for
providing the funding to the extent that the Class II railroads and
Class III railroads use such funding to perform the repairs and
improvements to the track. Therefore, if an eligible taxpayer
(assignee) pays''.
10. On page 53011, column 1, in the preamble, under the paragraph
heading ``Determination of QRTME Paid or Incurred'', third paragraph,
fifth line from the bottom of the column, the language ``paragraph,
this QRTME would be'' is corrected to read ``paragraph, QRTME would
be''.
11. On page 53011, column 2, in the preamble, under the paragraph
heading ``Assignment of Railroad Track Miles'', first paragraph, first
through fifth lines, the language ``For purposes of section 45G, the
temporary regulations provide that an assignment of a mile of railroad
track is not a legal transfer of title, but merely a designation. This
designation must be'' is corrected to read ``The temporary regulations
provide that an assignment of a mile of railroad track is not a legal
transfer of title, but merely a designation made solely for purposes of
section 45G. This designation must be''.
12. On page 53011, column 2, in the preamble, under the paragraph
heading ``Assignment of Railroad Track Miles'', second paragraph, fifth
line, the language ``track. Thus, if a Class II railroad or Class'' is
corrected to read ``track. If a Class II railroad or Class''.
13. On page 53011, column 2, in the preamble, under the paragraph
heading ``Assignment of Railroad Track Miles'', fourth paragraph,
second line, the language ``that a taxpayer must file Form 8900,'' is
corrected to read ``that a taxpayer file Form 8900,''.
14. On page 53011, column 3, in the preamble, last paragraph of the
column, first line, the language ``The temporary regulations also'' is
corrected to read ``The temporary regulations''.
15. On page 53012, column 1, in the preamble, first paragraph of
the column, first line, the language ``assignment is properly
reported.'' is corrected to read ``assignment is reported.''.
16. On page 53012, column 1, in the preamble, under the paragraph
heading ``Special Rules'', first paragraph, second through fourth lines
from the bottom of the paragraph, the language ``structure (railroad
track, roadbed, bridges, and related track structures) and intangible
assets to which the'' is corrected to read ``structure and intangible
assets to which the''.
17. On page 53012, column 1, in the preamble, under the paragraph
heading ``Special Rules'', second paragraph, sixth line, the language
``of the RTMC allowable. This reduction'' is corrected to read ``of the
RTMC allowable. The basis reduction''.
18. On page 53012, column 1, in the preamble, under the paragraph
heading ``Special Rules'', third paragraph, first line, the language
``The temporary regulations also'' is corrected to read ``The temporary
regulations do not''.
19. On page 53012, column 2, in the preamble, under the paragraph
heading ``Special Rules'', first paragraph of the column, fourth line
to the last of the paragraph, the language ``legislative history does
not refer to, any exception to this rule. Accordingly, pursuant to
section 61 and the regulations under section 61, the owner of the
tangible assets (for example, railroad track and roadbed) with respect
to which the QRTME is paid or incurred by another
[[Page 71047]]
person that does not have a depreciable interest in those assets has
gross income in the amount of that QRTME. However, the application of
section 61 to QRTME paid or incurred with respect to eligible railroad
track that is leased by a Class II railroad or Class III railroad
raises a question as to under what circumstances the owner or lessee
should recognize gross income with respect to QRTME. The IRS and
Treasury Department request comments on this issue.'' is replaced to
read ``legislative history does not refer to, any exception to this
rule for an owner of tangible assets (for example, railroad track and
roadbed) for the value of the repairs or improvements to such assets
with respect to which QRTME is paid or incurred by another person that
does not have a depreciable interest in such assets.''
LaNita Van Dyke,
Chief, Publications and Regulations Branch, Legal Processing Division,
Associate Chief Counsel, (Procedure and Administration).
[FR Doc. E6-20740 Filed 12-7-06; 8:45 am]
BILLING CODE 4830-01-P
