80 FR 75169 - Proposed Collection; Comment Request for Regulation Project

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 80, Issue 230 (December 1, 2015)

The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning Arbitrage Restrictions on Tax-Exempt Bonds.

[Federal Register Volume 80, Number 230 (Tuesday, December 1, 2015)]
[Notices]
[Pages 75169-75170]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-30383]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Proposed Collection; Comment Request for Regulation Project

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice and request for comments.

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SUMMARY: The Department of the Treasury, as part of its continuing 
effort to reduce paperwork and respondent burden, invites the general 
public and other Federal agencies to take this opportunity to comment 
on proposed and/or continuing information collections, as required by 
the Paperwork Reduction Act of 1995, Public Law 104-13 (44 U.S.C. 
3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning 
Arbitrage Restrictions on Tax-Exempt Bonds.

DATES: Written comments should be received on or before February 1, 
2016 to be assured of consideration.

ADDRESSES: Direct all written comments to Michael Joplin, Internal 
Revenue Service, Room 6129, 1111 Constitution Avenue NW., Washington, 
DC 20224.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of regulations should be directed to Kerry Dennis at Internal 
Revenue Service, Room 6129, 1111 Constitution Avenue NW., Washington, 
DC 20224, or through the Internet, at [email protected].

SUPPLEMENTARY INFORMATION: 
    Title: Arbitrage Restrictions on Tax-Exempt Bonds.
    OMB Number: 1545-1347.
    Regulation: TD 8718 and REG-138526-14 (NPRM).
    Abstract: Section 148 of the Internal Revenue Code requires issuers 
of tax-exempt bonds to rebate certain arbitrage profits earned on 
nonpurpose investments acquired with the bond proceeds.
    Under section 148(f), interest on a state or local bond is not tax 
exempt unless the issuer of the bond rebates to the United States 
arbitrage profits earned from investing proceeds of the bond in higher 
yielding nonpurpose investments. Form 8038-T is used to pay the 
arbitrage rebate to the United States and to pay penalty in lieu of 
rebates. Burden for the form is being reported under 1545-1219.
    Issuers are also required to keep records of certain interest rate 
hedges so that the hedges are taken into account in determining 
arbitrage profits. Under TD 8718, the scope of interest rate hedging 
transactions covered by the arbitrage regulations was broadened by 
requiring that hedges entered into prior to the sale date of the bonds 
are covered as well.
    The collection of information in the proposed regulation (REG-
138526-14) is in Sec.  1.148-1(f)(2)(ii) which contains a requirement 
that the issuer obtain certifications and supporting documentation 
regarding the underwriter's sales of the issuer's bonds.
    Current Actions: There is no change to the final regulations (TD 
8718), however the agency is adding the proposed Regulation 138526-14 
to the information collection request.
    Type of Review: Revision of a currently approved collection.
    Affected Public: State, local or tribal governments.
    Estimated Number of Respondents: 15,646
    Estimated Number of Responses: 24,010.
    Estimated Time per Respondent: 4 hours.
    Estimated Total Annual Burden Hours: 96,040.
    The following paragraph applies to all of the collections of 
information covered by this notice:
    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. 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.

[[Page 75170]]

    Request for Comments: Comments submitted in response to this notice 
will be summarized and/or included in the request for OMB approval. All 
comments will become a matter of public record. Comments are invited 
on: (a) Whether the collection of information is necessary for the 
proper performance of the functions of the agency, including whether 
the information shall have practical utility; (b) the accuracy of the 
agency's estimate of the burden of the collection of information; (c) 
ways to enhance the quality, utility, and clarity of the information to 
be collected; (d) ways to minimize the burden of the collection of 
collection techniques or other forms of information technology; and (e) 
estimates of capital or start-up costs and costs of operation, 
maintenance, and purchase of services to provide information.

    Approved: November 20, 2015.
Michael Joplin,
IRS Tax Analyst.
[FR Doc. 2015-30383 Filed 11-30-15; 8:45 am]
BILLING CODE 4830-01-P