User Fees Relating to Enrollment To Perform Actuarial Services, 72606-72607 [07-6156]
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Federal Register / Vol. 72, No. 245 / Friday, December 21, 2007 / Rules and Regulations
passive category (that is, the income
category), and a $10 CODL account with
respect to the passive category (that is, the
income category). No member of the group
has foreign-source income or loss in year 1.
The group apportions its interest expense
according to the tax book value method.
(ii) On November 6, year 1, the group
identifies S’s assets and the group’s assets
(including S’s assets) expected to produce
foreign-source general category income. Use
of end-of-the-year values will not create
substantial distortions in determining the
relative values of S’s and the group’s relevant
assets on November 6, year 1. The group
determines that S’s relevant assets have a tax
book value of $2,000 and a fair market value
of $2,200. Also, the group’s relevant assets
(including S’s assets) have a tax book value
of $8,000. On November 6, year 1, S has no
assets expected to produce U.S. source
income.
(iii) Under paragraph (c)(2)(ii) of this
section, S takes a $10 COFL account for the
general category ($40 × $2000/$8000) and a
$5 CSLL account for the general category
with respect to the passive category ($20 ×
$2000/$8000). S does not take any portion of
the CODL account. The limitation described
in paragraph (c)(2)(iii) of this section does
not apply because the aggregate of the COFL
and CSLL accounts for the general category
that are apportioned to S ($15) is less than
150 percent of the actual fair market value of
S’s general category foreign assets ($2,200 x
150%).
Example 2. (i) Assume the same facts as in
Example 1, except that the fair market value
of S’s general category foreign assets is $4 as
of November 6, year 1.
(ii) Under paragraph (c)(2)(iii) of this
section, S’s COFL and CSLL accounts for the
general category must be reduced by $9,
which is the excess of $15 (the aggregate
amount of the accounts apportioned under
paragraph (c)(2)(ii) of this section) over $6
(150 percent of the $4 actual fair market
value of S’s general category foreign assets).
S thus takes a $4 COFL account for the
general category ($10¥($9 × $10/$15)) and a
$2 CSLL account for the general category
with respect to the passive category ($5¥($9
× $5/$15)).
Example 3. (i) Assume the same facts as in
Example 1, except that S also has assets that
are expected to produce U.S. source income.
(ii) On November 6, year 1, the group
identifies S’s assets and the group’s assets
(including S’s assets) expected to produce
U.S. source income. Use of end-of-the-year
values will not create substantial distortions
in determining the relative values of S’s and
the group’s relevant assets on November 6,
year 1. The group determines that S’s
relevant assets have a tax book value of
$3,000 and a fair market value of $2,500.
Also, the group’s relevant assets (including
S’s assets) have a tax book value of $6,000.
(iii) Under paragraph (c)(2)(ii) of this
section, S takes a $5 CODL account ($10 ×
$3,000/$6,000), in addition to the COFL and
CSLL accounts determined in Example 1.
The limitation described in paragraph
(c)(2)(iii) of this section does not apply
because the CODL account that is
apportioned to S ($5) is less than 150 percent
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18:20 Dec 20, 2007
Jkt 214001
of the actual fair market value of S’s U.S.
assets ($2,500 × 150%).
Background
Internal Revenue Service
The Employee Retirement Income
Security Act of 1974 (Pub. L. 93–406)
ordered the Secretary of Labor and the
Secretary of Treasury to establish a Joint
Board for the Enrollment of Actuaries.
29 U.S.C. 1241. The Joint Board shall,
by regulation, establish reasonable
standards and qualifications for persons
performing actuarial services and the
Joint Board shall enroll such individuals
who, upon application, satisfy such
standards and qualifications. 29 U.S.C.
1242(a). The regulations at 20 CFR Part
901, Subpart B address eligibility for
enrollment and renewal of enrollment.
Pursuant to the Joint Board’s bylaws, the
Secretary of the Treasury is to appoint
an Executive Director to the Board who
has the delegated authority to
administer the Board’s enrollment
program. The Secretary of the Treasury
has delegated these functions to the
Internal Revenue Service and the costs
of these activities are borne by the
Service.
20 CFR 901.11(d)(4) provides for a
reasonable non-refundable fee for
applications for renewal of enrollment.
Form 5434–A, ‘‘Application for Renewal
of Enrollment’’ presently states that the
renewal fee is $25. Final 26 CFR 300.7
and 300.8 establish separate $250 user
fees for the enrollment and renewal of
enrollment process. These fees represent
the IRS’s costs in administering the
program, and the $250 fee for renewal
of enrollment will supplant the $25 fee.
26 CFR Part 300
Authority
[TD 9370]
The IOAA of 1952 (31 U.S.C. 9701)
authorizes agencies to prescribe
regulations that establish charges for
services provided by the agency. The
charges must be fair and be based on the
costs to the Government, the value of
the service to the recipient, the public
policy or interest served, and other
relevant facts. The IOAA of 1952
provides that regulations implementing
user fees are subject to policies
prescribed by the President, which are
currently set forth in OMB Circular A–
25, 58 FR 38142 (July 15, 1993) (the
OMB Circular).
The OMB Circular encourages user
fees for government-provided services
that confer benefits on identifiable
recipients over and above those benefits
received by the general public. Under
the OMB Circular, an agency that seeks
to impose a user fee for governmentprovided services must calculate its full
cost of providing those services. In
general, a user fee should be set at an
amount in order for the agency to
recover the cost of providing the special
service, unless the Office of
(d) Predecessor and successor. A
reference to a member includes, as the
context may require, a reference to a
predecessor or successor of the member.
See § 1.1502–1(f).
(e) Effective/applicability date. This
section applies to consolidated return
years beginning after December 21,
2007. Taxpayers may choose to apply
the provisions of this section relating to
overall domestic losses to other
consolidated return years beginning
after December 31, 2006, as well. For
rules relating to overall foreign losses
and separate limitation losses in
consolidated return years beginning on
or before December 21, 2007 see 26 CFR
1.1502–9 (revised as of April 1, 2007).
(f) Expiration date. The applicability
of this section expires on December 20,
2010.
Linda E. Stiff,
Deputy Commissioner for Services and
Enforcement.
Approved: December 14, 2007.
Eric Solomon,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. E7–24877 Filed 12–20–07; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
RIN 1545–BG88
User Fees Relating to Enrollment To
Perform Actuarial Services
Internal Revenue Service (IRS),
Treasury.
ACTION: Final regulations.
AGENCY:
SUMMARY: This document contains final
regulations relating to user fees for the
initial and renewed enrollment to
become an enrolled actuary. The
charging of user fees is authorized by
the Independent Offices Appropriations
Act (IOAA) of 1952.
DATES: Effective Date: These regulations
are effective on December 21, 2007.
Applicability Date: For date of
applicability, see § 300.0(c).
FOR FURTHER INFORMATION CONTACT:
Concerning cost methodology, Eva J.
Williams at (202) 435–5514; concerning
the final regulations, Kimberly
Mattonen at (202) 622–4940 (not tollfree numbers).
SUPPLEMENTARY INFORMATION:
PO 00000
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Federal Register / Vol. 72, No. 245 / Friday, December 21, 2007 / Rules and Regulations
sroberts on PROD1PC70 with RULES
Management and Budget grants an
exception. Pursuant to the guidelines in
the OMB Circular, the IRS has
calculated its cost of providing services
under the enrolled actuaries program.
The IRS has determined that the full
cost of administering the enrollment
and re-enrollment processes is $250 per
enrolled actuary per process.
The final user fees will be
implemented under the authority of the
IOAA of 1952 and the OMB Circular.
On October 31, 2007, a notice of
proposed rulemaking (REG–134923–07)
was published in the Federal Register
[72 FR 61583]. No comments were
received from the public in response to
the notice of proposed rulemaking. No
public hearing was requested or held.
The proposed regulations are adopted
by this Treasury decision.
preceding this regulation was submitted
to the Chief Counsel for Advocacy of the
Small Business Administration for
comment on its impact.
Special Analyses
It has been determined that this final
rule is not a significant regulatory action
as defined in Executive Order 12866.
Therefore, a regulatory assessment is not
required. It is hereby certified that these
regulations will not have a significant
economic impact on a substantial
number of small entities. Accordingly, a
regulatory flexibility analysis is not
required. This certification is based on
the information that follows. These final
rules affect enrolled actuaries, of which
there are currently 4,600 active. The
economic impact of these regulations on
any small entity would result from a
small entity, including a sole proprietor,
being required to pay a fee prescribed by
these regulations in order to obtain a
particular service. The appropriate
NAICS codes for enrolled actuaries
relate to Insurance Other (524298) and
Administrative and General
Management Consulting, Including
Financial Consulting (541611). Entities
identified under these codes are
considered small under the SBA size
standards (13 CFR 121.201) if their
annual revenue is less than $6.5 million.
The IRS estimates that as many as 2,070
enrolled actuaries may be operating as
or employed by small entities.
Therefore, the IRS has determined that
these final rules will affect a substantial
number of small entities. The dollar
amounts of the fees are not, however,
substantial enough to have a significant
economic impact on any entity subject
to the fees. The amounts of the fees are
commensurate with, if not less than, the
amount charged by professional
organizations. Persons who elect to
apply for enrollment or renewal of
enrollment also receive benefits from
obtaining the enrolled actuary
designation. Pursuant to section 7805(f)
of the Internal Revenue Code, the NPRM
I
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18:20 Dec 20, 2007
Jkt 214001
Drafting Information
The principal author of these
regulations is Kimberly A. Mattonen of
the Office of the Associate Chief
Counsel (Procedure & Administration).
List of Subjects in 26 CFR Part 300
Reporting and recordkeeping
requirements, User fees.
Adoption of Amendments to the
Regulations
Accordingly, 26 CFR Part 300 is
amended as follows:
I
PART 300—USER FEES
Paragraph 1. The authority citation
for part 300 continues to read as
follows:
Authority: 31 U.S.C. 9701.
Par. 2. Section 300.0 is amended as
follows:
I 1. Paragraphs (b)(7) and (b)(8) are
added.
I 2. Paragraph (c) is revised.
I The additions and revision read as
follows:
I
§ 300.0
User fees, in general.
*
*
*
*
*
(b) * * *
(7) Enrolling an enrolled actuary.
(8) Renewing the enrollment of an
enrolled actuary.
(c) Effective/applicability date. This
part 300 is applicable March 16, 1995,
except that the user fee for processing
offers in compromise is applicable
November 1, 2003; the user fee for the
special enrollment examination,
enrollment, and renewal of enrollment
for enrolled agents is applicable
November 6, 2006; the user fee for
entering into installment agreements on
or after January 1, 2007, is applicable
January 1, 2007; the user fee for
restructuring or reinstatement of an
installment agreement on or after
January 1, 2007, is applicable January 1,
2007; and the user fee for the enrollment
and renewal of enrollment for enrolled
actuaries is applicable January 22, 2008.
I Par. 3. Section 300.7 is added to read
as follows:
§ 300.7
Enrollment of enrolled actuary fee.
(a) Applicability. This section applies
to the initial enrollment of enrolled
actuaries with the Joint Board for the
Enrollment of Actuaries pursuant to 20
CFR Part 901.
(b) Fee. The fee for initially enrolling
as an enrolled actuary with the Joint
PO 00000
Frm 00045
Fmt 4700
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72607
Board for the Enrollment of Actuaries is
$250.00.
(c) Person liable for the fee. The
person liable for the enrollment fee is
the applicant filing for enrollment as an
enrolled actuary with the Joint Board for
the Enrollment of Actuaries.
I Par. 5. Section 300.8 is added to read
as follows:
§ 300.8 Renewal of enrollment of enrolled
actuary fee.
(a) Applicability. This section applies
to the renewal of enrollment of enrolled
actuaries with the Joint Board for the
Enrollment of Actuaries pursuant to 20
CFR Part 901.
(b) Fee. The fee for renewal of
enrollment as an enrolled actuary with
the Joint Board for the Enrollment of
Actuaries is $250.00.
(c) Person liable for the fee. The
person liable for the renewal of
enrollment fee is the person renewing
their enrollment as an enrolled actuary
with the Joint Board for the Enrollment
of Actuaries.
Linda E. Stiff,
Deputy Commissioner for Services and
Enforcement.
Eric Solomon,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 07–6156 Filed 12–18–07; 2:32 pm]
BILLING CODE 4830–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Parts 51 and 52
[EPA–HQ–OAR–2001–0004; FRL–8508–4]
RIN–2060–AN88
Prevention of Significant Deterioration
and Nonattainment New Source
Review: Reasonable Possibility in
Recordkeeping
Environmental Protection
Agency (EPA).
ACTION: Final rule.
AGENCY:
SUMMARY: This rule finalizes proposed
revisions to the regulations governing
the major new source review (NSR)
programs mandated by parts C and D of
title I of the Clean Air Act (CAA). These
changes clarify the ‘‘reasonable
possibility’’ recordkeeping and
reporting standard of the 2002 NSR
reform rules. The ‘‘reasonable
possibility’’ standard identifies for
sources and reviewing authorities the
criteria under which an owner or
operator of a major stationary source
undergoing a physical change or change
in the method of operation that does not
E:\FR\FM\21DER1.SGM
21DER1
]]>Agencies
[Federal Register Volume 72, Number 245 (Friday, December 21, 2007)]
[Rules and Regulations]
[Pages 72606-72607]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 07-6156]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 300
[TD 9370]
RIN 1545-BG88
User Fees Relating to Enrollment To Perform Actuarial Services
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Final regulations.
-----------------------------------------------------------------------
SUMMARY: This document contains final regulations relating to user fees
for the initial and renewed enrollment to become an enrolled actuary.
The charging of user fees is authorized by the Independent Offices
Appropriations Act (IOAA) of 1952.
DATES: Effective Date: These regulations are effective on December 21,
2007.
Applicability Date: For date of applicability, see Sec. 300.0(c).
FOR FURTHER INFORMATION CONTACT: Concerning cost methodology, Eva J.
Williams at (202) 435-5514; concerning the final regulations, Kimberly
Mattonen at (202) 622-4940 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
The Employee Retirement Income Security Act of 1974 (Pub. L. 93-
406) ordered the Secretary of Labor and the Secretary of Treasury to
establish a Joint Board for the Enrollment of Actuaries. 29 U.S.C.
1241. The Joint Board shall, by regulation, establish reasonable
standards and qualifications for persons performing actuarial services
and the Joint Board shall enroll such individuals who, upon
application, satisfy such standards and qualifications. 29 U.S.C.
1242(a). The regulations at 20 CFR Part 901, Subpart B address
eligibility for enrollment and renewal of enrollment. Pursuant to the
Joint Board's bylaws, the Secretary of the Treasury is to appoint an
Executive Director to the Board who has the delegated authority to
administer the Board's enrollment program. The Secretary of the
Treasury has delegated these functions to the Internal Revenue Service
and the costs of these activities are borne by the Service.
20 CFR 901.11(d)(4) provides for a reasonable non-refundable fee
for applications for renewal of enrollment. Form 5434-A, ``Application
for Renewal of Enrollment'' presently states that the renewal fee is
$25. Final 26 CFR 300.7 and 300.8 establish separate $250 user fees for
the enrollment and renewal of enrollment process. These fees represent
the IRS's costs in administering the program, and the $250 fee for
renewal of enrollment will supplant the $25 fee.
Authority
The IOAA of 1952 (31 U.S.C. 9701) authorizes agencies to prescribe
regulations that establish charges for services provided by the agency.
The charges must be fair and be based on the costs to the Government,
the value of the service to the recipient, the public policy or
interest served, and other relevant facts. The IOAA of 1952 provides
that regulations implementing user fees are subject to policies
prescribed by the President, which are currently set forth in OMB
Circular A-25, 58 FR 38142 (July 15, 1993) (the OMB Circular).
The OMB Circular encourages user fees for government-provided
services that confer benefits on identifiable recipients over and above
those benefits received by the general public. Under the OMB Circular,
an agency that seeks to impose a user fee for government-provided
services must calculate its full cost of providing those services. In
general, a user fee should be set at an amount in order for the agency
to recover the cost of providing the special service, unless the Office
of
[[Page 72607]]
Management and Budget grants an exception. Pursuant to the guidelines
in the OMB Circular, the IRS has calculated its cost of providing
services under the enrolled actuaries program. The IRS has determined
that the full cost of administering the enrollment and re-enrollment
processes is $250 per enrolled actuary per process.
The final user fees will be implemented under the authority of the
IOAA of 1952 and the OMB Circular.
On October 31, 2007, a notice of proposed rulemaking (REG-134923-
07) was published in the Federal Register [72 FR 61583]. No comments
were received from the public in response to the notice of proposed
rulemaking. No public hearing was requested or held. The proposed
regulations are adopted by this Treasury decision.
Special Analyses
It has been determined that this final rule is not a significant
regulatory action as defined in Executive Order 12866. Therefore, a
regulatory assessment is not required. It is hereby certified that
these regulations will not have a significant economic impact on a
substantial number of small entities. Accordingly, a regulatory
flexibility analysis is not required. This certification is based on
the information that follows. These final rules affect enrolled
actuaries, of which there are currently 4,600 active. The economic
impact of these regulations on any small entity would result from a
small entity, including a sole proprietor, being required to pay a fee
prescribed by these regulations in order to obtain a particular
service. The appropriate NAICS codes for enrolled actuaries relate to
Insurance Other (524298) and Administrative and General Management
Consulting, Including Financial Consulting (541611). Entities
identified under these codes are considered small under the SBA size
standards (13 CFR 121.201) if their annual revenue is less than $6.5
million. The IRS estimates that as many as 2,070 enrolled actuaries may
be operating as or employed by small entities. Therefore, the IRS has
determined that these final rules will affect a substantial number of
small entities. The dollar amounts of the fees are not, however,
substantial enough to have a significant economic impact on any entity
subject to the fees. The amounts of the fees are commensurate with, if
not less than, the amount charged by professional organizations.
Persons who elect to apply for enrollment or renewal of enrollment also
receive benefits from obtaining the enrolled actuary designation.
Pursuant to section 7805(f) of the Internal Revenue Code, the NPRM
preceding this regulation was submitted to the Chief Counsel for
Advocacy of the Small Business Administration for comment on its
impact.
Drafting Information
The principal author of these regulations is Kimberly A. Mattonen
of the Office of the Associate Chief Counsel (Procedure &
Administration).
List of Subjects in 26 CFR Part 300
Reporting and recordkeeping requirements, User fees.
Adoption of Amendments to the Regulations
0
Accordingly, 26 CFR Part 300 is amended as follows:
PART 300--USER FEES
0
Paragraph 1. The authority citation for part 300 continues to read as
follows:
Authority: 31 U.S.C. 9701.
0
Par. 2. Section 300.0 is amended as follows:
0
1. Paragraphs (b)(7) and (b)(8) are added.
0
2. Paragraph (c) is revised.
0
The additions and revision read as follows:
Sec. 300.0 User fees, in general.
* * * * *
(b) * * *
(7) Enrolling an enrolled actuary.
(8) Renewing the enrollment of an enrolled actuary.
(c) Effective/applicability date. This part 300 is applicable March
16, 1995, except that the user fee for processing offers in compromise
is applicable November 1, 2003; the user fee for the special enrollment
examination, enrollment, and renewal of enrollment for enrolled agents
is applicable November 6, 2006; the user fee for entering into
installment agreements on or after January 1, 2007, is applicable
January 1, 2007; the user fee for restructuring or reinstatement of an
installment agreement on or after January 1, 2007, is applicable
January 1, 2007; and the user fee for the enrollment and renewal of
enrollment for enrolled actuaries is applicable January 22, 2008.
0
Par. 3. Section 300.7 is added to read as follows:
Sec. 300.7 Enrollment of enrolled actuary fee.
(a) Applicability. This section applies to the initial enrollment
of enrolled actuaries with the Joint Board for the Enrollment of
Actuaries pursuant to 20 CFR Part 901.
(b) Fee. The fee for initially enrolling as an enrolled actuary
with the Joint Board for the Enrollment of Actuaries is $250.00.
(c) Person liable for the fee. The person liable for the enrollment
fee is the applicant filing for enrollment as an enrolled actuary with
the Joint Board for the Enrollment of Actuaries.
0
Par. 5. Section 300.8 is added to read as follows:
Sec. 300.8 Renewal of enrollment of enrolled actuary fee.
(a) Applicability. This section applies to the renewal of
enrollment of enrolled actuaries with the Joint Board for the
Enrollment of Actuaries pursuant to 20 CFR Part 901.
(b) Fee. The fee for renewal of enrollment as an enrolled actuary
with the Joint Board for the Enrollment of Actuaries is $250.00.
(c) Person liable for the fee. The person liable for the renewal of
enrollment fee is the person renewing their enrollment as an enrolled
actuary with the Joint Board for the Enrollment of Actuaries.
Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
Eric Solomon,
Assistant Secretary of the Treasury (Tax Policy).
[FR Doc. 07-6156 Filed 12-18-07; 2:32 pm]
BILLING CODE 4830-01-P
