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7464 Federal Register / Vol. 73, No.

27 / Friday, February 8, 2008 / Rules and Regulations

The rationale for requiring blood and the blood collecting, processing, and that capital assets include all property
blood components, including fresh storage system approved for such use by held by a taxpayer with certain
frozen plasma collected by an apheresis the Director, CBER. specified exclusions. Section 1221(a)(1)
procedure, to be collected by a single excludes from the definition of a capital
§ 640.24 [Amended] asset inventory property or property
uninterrupted venipuncture is to help
ensure minimal tissue damage which ■ 3. Section 640.24 is amended in the held by a taxpayer primarily for sale to
could activate the coagulation cascade. first sentence of paragraph (d) by customers in the ordinary course of the
This is also a requirement for Platelet removing ‘‘6.0’’ and adding in its place taxpayer’s trade or business. Section
collection. Under 21 CFR 640.22(d), the ‘‘6.2’’. 1221(a)(3) excludes from the definition
regulation states that Platelet Dated: February 1, 2008. of a capital asset copyrights, literary,
phlebotomy shall be performed by a Jeffrey Shuren, musical, or artistic compositions, letters
single uninterrupted venipuncture with Assistant Commissioner for Policy.
or memoranda, or similar property held
minimal damage to, and minimal by a taxpayer whose personal efforts
[FR Doc. E8–2322 Filed 2–7–08; 8:45 am]
manipulation of, the donor’s tissue. created the property (or held by a
BILLING CODE 4160–01–S
FDA does not anticipate, in the near taxpayer whose basis in the property is
future, any change in the policy for determined by reference to the basis of
using a sterile connecting device to such property in the hands of the
DEPARTMENT OF THE TREASURY taxpayer whose personal efforts created
attach a sterile needle to a collection set
in the event of a blood flow the property).
Internal Revenue Service Section 1221(b)(3) of the Code, added
interruption.
by section 204 of the Tax Increase
List of Subjects 26 CFR Part 1 Prevention and Reconciliation Act of
21 CFR Part 640 [TD 9379] 2005 (Public Law 109–222, 120 Stat.
345) and amended by section 412 of the
Blood, Labeling, Reporting and RIN 1545–BG35
Tax Relief and Health Care Act of 2006
recordkeeping requirements. (Public Law 109–432, 120 Stat. 2922),
Time and Manner for Electing Capital
■ Therefore, under the Federal Food, provides that, at the election of a
Asset Treatment for Certain Self-
Drug, and Cosmetic Act and the Public Created Musical Works taxpayer, the section 1221(a)(1) and
Health Service Act, and under authority (a)(3) exclusions from capital asset
delegated by the Commissioner of Food AGENCY: Internal Revenue Service (IRS), status do not apply to musical
and Drugs, 21 CFR part 640 is amended Treasury. compositions or copyrights in musical
as follows: ACTION: Temporary regulation. works sold or exchanged by a taxpayer
described in section 1221(a)(3). Thus, if
PART 640—ADDITIONAL STANDARDS SUMMARY: This document contains a
a taxpayer who owns a musical
FOR HUMAN BLOOD AND BLOOD temporary regulation that provides the composition or copyright in a musical
PRODUCTS time and manner for making an election work created by the taxpayer (or
to treat the sale or exchange of musical transferred to the taxpayer by the work’s
■ 1. The authority citation for 21 CFR compositions or copyrights in musical creator in a section 1221(a)(3)(C)
part 640 continues to read as follows: works created by the taxpayer (or transferred basis transaction) elects the
Authority: 21 U.S.C. 321, 351, 352, 353, received by the taxpayer from the
application of this provision, gain or
355, 360, 371; 42 U.S.C. 216, 262, 263, 263a, works’ creator in a transferred basis
loss from the sale or exchange of the
264. transaction) as the sale or exchange of
musical composition or copyright is
■ 2. Section 640.4 is amended by a capital asset. The regulation reflects
treated as capital gain or loss.
revising paragraph (h) to read as changes to the law made by the Tax
follows: Increase Prevention and Reconciliation Explanation of Provisions
Act of 2005 and the Tax Relief and This temporary regulation provides
§ 640.4 Collection of the blood. Health Care Act of 2006. The regulation rules regarding the time and manner for
* * * * * affects taxpayers making the election making an election under section
(h) Storage. Whole Blood must be under section 1221(b)(3) of the Internal 1221(b)(3) to treat gain or loss from the
placed in storage at a temperature Revenue Code (Code) to treat gain or sale or exchange of certain musical
between 1 and 6 °C immediately after loss from such a sale or exchange as compositions or copyrights in musical
collection unless the blood is to be capital gain or loss. The text of this works as gain or loss from the sale or
further processed into another temporary regulation also serves as the exchange of a capital asset.
component or the blood must be text of the proposed regulation (REG–
transported from the donor center to the 153589–06) set forth in the Proposed Special Analyses
processing laboratory. If transported, the Rules section of this issue of the Federal It has been determined that this
blood must be placed in temporary Register. Treasury decision is not a significant
storage having sufficient refrigeration DATES: Effective Date: This regulation is regulatory action as defined in
capacity to cool the blood continuously effective on February 8, 2008. Executive Order 12866. Therefore, a
toward a temperature range between 1 Applicability Dates: For dates of regulatory assessment is not required. It
and 10 °C until arrival at the processing applicability, see § 1.1221–3T(d). also has been determined that section
laboratory. At the processing laboratory, FOR FURTHER INFORMATION CONTACT: 553(b) of the Administrative Procedure
the blood must be stored at a Jamie Kim, (202) 622–4950 (not a toll- Act (5 U.S.C. chapter 5) does not apply
temperature between 1 and 6 °C. Blood free number). to this regulation. For application of the
from which a component is to be Regulatory Flexibility Act (5 U.S.C.
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SUPPLEMENTARY INFORMATION:
prepared must be held in an Chapter 6) please refer to the cross
environment maintained at a Background reference notice of proposed rulemaking
temperature range specified for that Section 1221(a) of the Internal published elsewhere in this issue of the
component in the directions for use for Revenue Code (Code) generally provides Federal Register. Pursuant to section

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Federal Register / Vol. 73, No. 27 / Friday, February 8, 2008 / Rules and Regulations 7465

7805(f) of the Internal Revenue Code, capital asset, in accordance with the is being taken in accordance with the
this regulation has been submitted to form and its instructions. Clean Air Act.
the Chief Counsel for Advocacy of the (c) Revocability of election. An DATES: This direct final rule will be
Small Business Administration for election described in this section is effective April 8, 2008, unless EPA
comment on its impact on small revocable with the consent of the receives adverse comments by March
business. Commissioner. To seek consent to 10, 2008. If adverse comments are
revoke an election, a taxpayer must received, EPA will publish a timely
Drafting Information
submit a request for a letter ruling under withdrawal of the direct final rule in the
The principal author of these the appropriate revenue procedure. See, Federal Register informing the public
regulations is Jamie Kim of the Office of for example, Rev. Proc. 2007–1, 2007–1 that the rule will not take effect.
Associate Chief Counsel (Income Tax & CB 1 (updated annually). Alternatively, ADDRESSES: Submit your comments,
Accounting). However, other personnel an automatic extension of 6 months identified by Docket ID Number EPA–
from the IRS and Treasury Department from the due date of the taxpayer’s R01–OAR–2007–1054 by one of the
participated in their development. income tax return (excluding following methods:
extensions) is granted to revoke an 1. www.regulations.gov: Follow the
List of Subjects in 26 CFR Part 1
election, provided the taxpayer timely on-line instructions for submitting
Income taxes, Reporting and filed the taxpayer’s income tax return comments.
recordkeeping requirements. and, within this 6-month extension 2. E-mail: arnold.anne@epa.gov.
period, the taxpayer files an amended 3. Fax: (617) 918–0047.
Amendments to the Regulations
income tax return that treats the sale or 4. Mail: ‘‘Docket Identification
■Accordingly, 26 CFR part 1 is exchange as the sale or exchange of Number EPA–R01–OAR–2007–1054’’,
amended as follows: property that is not a capital asset. See Anne Arnold, U.S. Environmental
§ 601.601(d)(2)(ii)(b) of this Chapter. Protection Agency, EPA New England
PART 1—INCOME TAXES (d) Effective/applicability date. (1) Regional Office, One Congress Street,
The rules of this section apply to sales Suite 1100 (mail code CAQ), Boston,
■ Paragraph 1. The authority citation and exchanges in taxable years MA 02114–2023.
for part 1 continues to read in part as beginning after May 17, 2006. 5. Hand Delivery or Courier. Deliver
follows: (2) Expiration date. This section your comments to: Anne Arnold,
Authority: 26 U.S.C. 7805 * * * expires on February 7, 2011. Manager, Air Quality Planning Unit,
■ Par. 2. Section 1.1221–3T is added to Linda E. Stiff, Office of Ecosystem Protection, U.S.
read as follows: Deputy Commissioner for Services and Environmental Protection Agency, EPA
Enforcement. New England Regional Office, One
§ 1.1221–3T Time and manner for electing Congress Street, 11th floor, (CAQ),
capital asset treatment for certain self- Approved: January 28, 2008.
Boston, MA 02114–2023. Such
created musical works (temporary). Eric Solomon,
deliveries are only accepted during the
(a) Description. Section 1221(b)(3) Assistant Secretary of the Treasury (Tax
Regional Office’s normal hours of
allows an electing taxpayer to treat the Policy).
operation. The Regional Office’s official
sale or exchange of a musical [FR Doc. E8–2309 Filed 2–7–08; 8:45 am]
hours of business are Monday through
composition or copyright in a musical BILLING CODE 4830–01–P
Friday, 8:30 to 4:30, excluding legal
work created by the taxpayer’s personal holidays.
efforts (or having a basis determined by Instructions: Direct your comments to
reference to the basis of such property ENVIRONMENTAL PROTECTION Docket ID No. EPA–R01–OAR–2007–
in the hands of a taxpayer whose AGENCY 1054. EPA’s policy is that all comments
personal efforts created such property) received will be included in the public
as the sale or exchange of a capital asset. 40 CFR Part 52 docket without change and may be
As a consequence, gain or loss from the made available online at
sale or exchange is treated as capital [EPA–R01–OAR–2007–1054; A–1–FRL– www.regulations.gov, including any
gain or loss. An election may be made 8524–9] personal information provided, unless
for sales and exchanges in taxable years the comment includes information
beginning after May 17, 2006. Approval and Promulgation of Air
claimed to be Confidential Business
Quality Implementation Plans; Maine;
(b) Time and manner for making the Information (CBI) or other information
Transportation Conformity
election. An election described in this whose disclosure is restricted by statute.
section is made separately for each AGENCY: Environmental Protection Do not submit through
musical composition (or copyright in a Agency (EPA). www.regulations.gov, or e-mail,
musical work) sold or exchanged during ACTION: Direct final rule. information that you consider to be CBI
the taxable year. An election must be or otherwise protected. The
made on or before the due date SUMMARY: EPA is approving a State www.regulations.gov Web site is an
(including extensions) of the income tax Implementation Plan (SIP) revision ‘‘anonymous access’’ system, which
return for the taxable year of the sale or submitted by the State of Maine. This means EPA will not know your identity
exchange. An election is to be made on revision establishes transportation or contact information unless you
Schedule D, ‘‘Capital Gains and Losses,’’ conformity criteria and procedures provide it in the body of your comment.
of the appropriate income tax form (for related to interagency consultation and If you send an e-mail comment directly
example, Form 1040, ‘‘U.S. Individual enforceability of certain transportation- to EPA without going through
Income Tax Return;’’ Form 1065, ‘‘U.S. related control measures and mitigation www.regulations.gov your e-mail
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Return of Partnership Income;’’ Form measures. The intended effect of this address will be automatically captured
1120, ‘‘U.S. Corporation Income Tax action is to approve State criteria and and included as part of the comment
Return’’) by treating the sale or procedures to govern transportation that is placed in the public docket and
exchange as the sale or exchange of a conformity determinations. This action made available on the Internet. If you

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