81_FR_39220 81 FR 39105 - Proposed Collection; Comment Request for Regulation Project

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)

Page Range39105-39106
FR Document2016-14109

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 Issue 115 (Wednesday, June 15, 2016) 
[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

Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Notices 39105 you consider confidential or national bank or eligible savings through the use of automated collection inappropriate for public disclosure. association; techniques or other forms of information Additionally, please send a copy of (2) Citations to relevant State laws or technology; and your comments by mail to: OCC Desk regulations; (e) Estimates of capital or start-up Officer, 1557–0221, U.S. Office of (3) A copy of a written resolution by costs and costs of operation, Management and Budget, 725 17th a majority of the national bank’s or maintenance, and purchase of services Street NW., #10235, Washington, DC savings association’s board of directors to provide information. 20503, or by email to: oira_submission@ approving the use of the limits, and Dated: June 10, 2016. omb.eop.gov. confirming the terms and conditions for Mary Hoyle Gottlieb, FOR FURTHER INFORMATION CONTACT: use of this lending authority; and (4) A description of how the board Regulatory Specialist, Legislative and Shaquita Merritt, Clearance Officer, Regulatory Activities Division. (202) 649–5490 or, for persons who are will exercise its continuing responsibility to oversee the use of this [FR Doc. 2016–14162 Filed 6–14–16; 8:45 am] deaf or hard of hearing, TTY, (202) 649– 5597, Legislative and Regulatory lending authority. BILLING CODE 4810–33–P Activities Division, Office of the 12 CFR 32.9(b) provides national Comptroller of the Currency, 400 7th banks and savings associations with three alternative methods for calculating DEPARTMENT OF THE TREASURY Street SW., Washington, DC 20219. SUPPLEMENTARY INFORMATION: The OCC the credit exposure of derivative Internal Revenue Service is publishing notice of the renewal of transactions other than credit the collection of information set forth in derivatives (the Internal Model Method, Proposed Collection; Comment this document. the Conversion Factor Matrix Method, Request for Regulation Project Title: Lending Limits. and the Remaining Maturity Method) OMB Control No.: 1557–0221 (12 CFR and two alternative methods for AGENCY: Internal Revenue Service (IRS), 32.7) (Merging in 1557–0317 (12 CFR calculating such exposure for securities Treasury. 32.7)). financing transactions. The OCC ACTION: Notice and request for Affected Public: Businesses or other provided these models to reduce the comments. for-profit. practical burden of such calculations, Type of Review: Extension of a particularly for small and mid-size SUMMARY: The Department of the currently approved collection. banks and savings associations. Treasury, as part of its continuing effort Abstract: 12 CFR 32.7(a) provides Under 12 CFR 32.9(b)(1)(i)(C)(1), the to reduce paperwork and respondent that, in addition to the amount that a use of a model (other than the model burden, invites the general public and national bank or savings association approved for purposes of the Advanced other Federal agencies to take this may lend to one borrower under 12 CFR Measurement Approach in the capital opportunity to comment on proposed 32.3, an eligible national bank or rules) must be approved by the OCC and/or continuing information savings association may make specifically for part 32 purposes and collections, as required by the residential real estate loans, small must be approved in writing. If a Paperwork Reduction Act of 1995, business loans, small farm loans or national bank or Federal savings Public Law 104–13 (44 U.S.C. extensions of credit thereof to one association proposes to use an internal 3506(c)(2)(A)). Currently, the IRS is borrower in the lesser of the following model that has been approved by the soliciting comments concerning two amounts: 10 percent of its capital OCC for purposes of the Advanced information collect requirements related and surplus; or the percent of its capital Measurement Approach, the institution to the treatment of distributions to and surplus, in excess of 15 percent, must provide prior written notification foreign persons under sections 367(e)(1) that a State bank or savings association to the OCC prior to use of the model for and 367(e)(2). is permitted to lend under the State lending limits purposes. OCC approval DATES: Written comments should be lending limit that is available for also is required before substantive received on or before August 15, 2016 residential real estate loans or revisions are made to a model that is to be assured of consideration. unsecured loans in the state where the used for lending limits purposes. ADDRESSES: Direct all written comments main office of the national bank or Estimated Number of Respondents: to Tuawana Pinkston, Internal Revenue savings association is located.1 295. Service, Room 6526, 1111 Constitution An eligible national bank or savings Estimated Annual Burden: 1,958 Avenue NW., Washington, DC 20224. association must submit an application hours. FOR FURTHER INFORMATION CONTACT: to, and receive approval from, its On April 4, 2016, the OCC published a notice for 60 days of comment Requests for additional information or supervisory office before using the copies of the regulation should be supplemental lending limits in § 32.7(a). concerning the collection, 81 FR 19288. No comments were received. Comments directed to Allan Hopkins, at Internal The supervisory office may approve a Revenue Service, Room 6129, 1111 completed application if it finds that continue to be invited on: (a) Whether the collection of Constitution Avenue NW., Washington, approval is consistent with safety and DC 20224, or through the Internet, at soundness. Section 32.7(b) provides that information is necessary for the proper performance of the functions of the Allan.M.Hopkins@irs.gov. the application must include: OCC, including whether the information SUPPLEMENTARY INFORMATION: (1) Certification that the national bank or savings association is an eligible has practical utility; Title: Treatment of Distributions to (b) The accuracy of the OCC’s Foreign Persons Under Sections ehiers on DSK5VPTVN1PROD with NOTICES 1 An eligible national bank or eligible savings estimate of the information collection 367(e)(1) and 367(e)(2). association is well capitalized as defined in the burden; OMB Number: 1545–1487. prompt corrective action rules applicable to the (c) Ways to enhance the quality, Regulation Project Number: REG– institution and has a composite rating of 1 or 2 utility, and clarity of the information to 209827–96 and REG–111672–99. under the Uniform Financial Institutions Rating System in connection with its most recent be collected; Abstract: Section 367(e)(1) provides examination or subsequent review, with at least a (d) Ways to minimize the burden of that, to the extent provided in rating of 2 for asset quality and for management. the collection on respondents, including regulations, a domestic corporation VerDate Sep<11>2014 15:15 Jun 14, 2016 Jkt 238001 PO 00000 Frm 00085 Fmt 4703 Sfmt 4703 E:\FR\FM\15JNN1.SGM 15JNN1

39106 Federal Register / Vol. 81, No. 115 / Wednesday, June 15, 2016 / Notices must recognize gain on a section 355 Current Actions: There is no change to DEPARTMENT OF VETERANS distribution of stock or securities to a this existing regulation. AFFAIRS foreign person. Section 367(e)(2) Type of Review: Reinstatement of a provides that section 337(a) and (b)(1) previously approved collection. Notice of Availability of a Draft does not apply to a section 332 Affected Public: Business or other for- Environmental Impact Statement for distribution by a domestic corporation profit organizations. the Reconfiguration of VA Black Hills to a foreign parent corporation that Estimated Number of Respondents: Health Care System; Comment Period owns 80 percent of the domestic 414. Extension liquidating corporation (as described in Estimated Time per Respondent: 5 section 337(c)). Section 6038B(a) hours, 58 minutes. AGENCY: Department of Veterans Affairs. requires a U.S. person who transfers Estimated Total Annual Burden property to a foreign corporation in an Hours: 2,471. ACTION: Notice of availability; Comment exchange described in sections 332 or The following paragraph applies to all period extension. 355, among other sections, to furnish to of the collections of information covered the Secretary of the Treasury certain by this notice: SUMMARY: The Department of Veterans information with respect to the transfer, An agency may not conduct or Affairs (VA) published, in the Federal as provided in regulations. sponsor, and a person is not required to Register on October 30, 2015, the Notice The final regulations under section respond to, a collection of information of Availability of a Draft Environmental 367(e)(1) require gain recognition only unless the collection of information Impact Statement (EIS) for the for distributions of the stock or displays a valid OMB control number. Reconfiguration of VA Black Hills securities of foreign corporations to Books or records relating to a collection Health Care System (BHHCS) that foreign persons. The final regulations of information must be retained as long analyzes the potential impacts of six under section 367(e)(2) generally require as their contents may become material alternatives for changes to VA’s gain recognition when a domestic in the administration of any internal facilities in Hot Springs and Rapid City, corporation liquidates into its foreign revenue law. Generally, tax returns and South Dakota. In order to successfully parent corporation; the regulations tax return information are confidential, complete historic property consultation generally do not require gain as required by 26 U.S.C. 6103. relating to this proposed action, VA is recognition when a foreign corporation Request for Comments: Comments extending the closing date for the liquidates into its foreign parent submitted in response to this notice will comment period for the Draft EIS from corporation. be summarized and/or included in the May 5, 2016 to June 20, 2016. This document (TD 9704) contains request for OMB approval. All final and temporary regulations relating comments will become a matter of DATES: All comments must be submitted to the consequences to U.S. and foreign public record. Comments are invited on: by June 20, 2016. persons for failing to satisfy reporting (a) Whether the collection of ADDRESSES: Submit written comments obligations associated with certain information is necessary for the proper on the VA BHHCS Reconfiguration Draft transfers of property to foreign performance of the functions of the EIS online through corporations in nonrecognition agency, including whether the www.blackhillseis.com, by email to exchanges. This document permits information shall have practical utility; vablackhillsfuture@va.gov, or by regular transferors to remedy ‘‘not willful’’ (b) the accuracy of the agency’s estimate mail to Staff Assistant to the Director, failures to file, and ‘‘not willful’’ failures of the burden of the collection of to comply with the terms of, liquidation VA Black Hills Health Care System, 113 information; (c) ways to enhance the Comanche Road, Fort Meade, SD 57741. documents required under section quality, utility, and clarity of the 367(e)(2). In addition, this document Please refer to ‘‘BHHCS Reconfiguration information to be collected; (d) ways to Draft EIS’’ in any correspondence. modifies the reporting obligations under minimize the burden of the collection of section 6038B associated with transfers information on respondents, including FOR FURTHER INFORMATION CONTACT: Staff that are subject to section 367(e)(2). through the use of automated collection Assistant to the Director, VA Black Hills Further, this document provides similar techniques or other forms of information Health Care System, at the address rules for certain transfers that are technology; and (e) estimates of capital above or by email to vablackhillsfuture@ subject to section 367(a). The or start-up costs and costs of operation, va.gov. regulations are necessary to update the maintenance, and purchase of services Dated: June 9, 2016. rules that apply when a U.S. or foreign to provide information. person fails to file required documents Janet J. Coleman, or statements or satisfy reporting Approved: June 7, 2016. Regulation Policy and Management obligations. The regulations affect U.S. Allan Hopkins, Specialist, Office of the Secretary, Department and foreign persons that transfer Tax Analyst. of Veterans Affairs. property to foreign corporations in [FR Doc. 2016–14109 Filed 6–14–16; 8:45 am] [FR Doc. 2016–14049 Filed 6–14–16; 8:45 am] certain non-recognition exchanges. BILLING CODE 4830–01–P BILLING CODE P ehiers on DSK5VPTVN1PROD with NOTICES VerDate Sep<11>2014 15:15 Jun 14, 2016 Jkt 238001 PO 00000 Frm 00086 Fmt 4703 Sfmt 9990 E:\FR\FM\15JNN1.SGM 15JNN1


Document Created: 2016-06-15 02:21:04
Document Modified: 2016-06-15 02:21:04
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice and request for comments.
DatesWritten comments should be received on or before August 15, 2016 to be assured of consideration.
ContactRequests 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]
FR Citation81 FR 39105 
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