81 FR 39105 - Proposed Collection; Comment Request for Regulation Project

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 81, Issue 115 (June 15, 2016)

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 information collect requirements related to the treatment of distributions to foreign persons under sections 367(e)(1) and 367(e)(2).

[Federal Register Volume 81, Number 115 (Wednesday, June 15, 2016)]
[Notices]
[Pages 39105-39106]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-14109]


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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 
information collect requirements related to the treatment of 
distributions to foreign persons under sections 367(e)(1) and 
367(e)(2).

DATES: Written comments should be received on or before August 15, 2016 
to be assured of consideration.

ADDRESSES: Direct all written comments to Tuawana Pinkston, Internal 
Revenue Service, Room 6526, 1111 Constitution Avenue NW., Washington, 
DC 20224.

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

SUPPLEMENTARY INFORMATION: 
    Title: Treatment of Distributions to Foreign Persons Under Sections 
367(e)(1) and 367(e)(2).
    OMB Number: 1545-1487.
    Regulation Project Number: REG-209827-96 and REG-111672-99.
    Abstract: Section 367(e)(1) provides that, to the extent provided 
in regulations, a domestic corporation

[[Page 39106]]

must recognize gain on a section 355 distribution of stock or 
securities to a foreign person. Section 367(e)(2) provides that section 
337(a) and (b)(1) does not apply to a section 332 distribution by a 
domestic corporation to a foreign parent corporation that owns 80 
percent of the domestic liquidating corporation (as described in 
section 337(c)). Section 6038B(a) requires a U.S. person who transfers 
property to a foreign corporation in an exchange described in sections 
332 or 355, among other sections, to furnish to the Secretary of the 
Treasury certain information with respect to the transfer, as provided 
in regulations.
    The final regulations under section 367(e)(1) require gain 
recognition only for distributions of the stock or securities of 
foreign corporations to foreign persons. The final regulations under 
section 367(e)(2) generally require gain recognition when a domestic 
corporation liquidates into its foreign parent corporation; the 
regulations generally do not require gain recognition when a foreign 
corporation liquidates into its foreign parent corporation.
    This document (TD 9704) contains final and temporary regulations 
relating to the consequences to U.S. and foreign persons for failing to 
satisfy reporting obligations associated with certain transfers of 
property to foreign corporations in nonrecognition exchanges. This 
document permits transferors to remedy ``not willful'' failures to 
file, and ``not willful'' failures to comply with the terms of, 
liquidation documents required under section 367(e)(2). In addition, 
this document modifies the reporting obligations under section 6038B 
associated with transfers that are subject to section 367(e)(2). 
Further, this document provides similar rules for certain transfers 
that are subject to section 367(a). The regulations are necessary to 
update the rules that apply when a U.S. or foreign person fails to file 
required documents or statements or satisfy reporting obligations. The 
regulations affect U.S. and foreign persons that transfer property to 
foreign corporations in certain non-recognition exchanges.
    Current Actions: There is no change to this existing regulation.
    Type of Review: Reinstatement of a previously approved collection.
    Affected Public: Business or other for-profit organizations.
    Estimated Number of Respondents: 414.
    Estimated Time per Respondent: 5 hours, 58 minutes.
    Estimated Total Annual Burden Hours: 2,471.
    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.
    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 
information on respondents, including through the use of automated 
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: June 7, 2016.
Allan Hopkins,
Tax Analyst.
[FR Doc. 2016-14109 Filed 6-14-16; 8:45 am]
BILLING CODE 4830-01-P