[Federal Register Volume 78, Number 149 (Friday, August 2, 2013)]
[Proposed Rules]
[Pages 46854-46855]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-18701]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-112815-12]
RIN 1545-BK99
Mixed Straddles; Straddle-by-Straddle Identification Under
Section 1092(b)(2)(A)(i)(I)
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of proposed rulemaking by cross-reference to temporary
regulations and notice of public hearing.
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SUMMARY: In the Rules and Regulations section of this issue of the
Federal Register the Treasury Department and the IRS are issuing
temporary regulations that explain how to account for unrealized gain
or loss on a position held by a taxpayer prior to the time the taxpayer
establishes a mixed straddle using straddle-by-straddle identification.
The text of the temporary regulations also serves as the text of these
proposed regulations. This document also provides notice of a public
hearing on these proposed regulations.
DATES: Comments must be received by October 31, 2013. Request to speak
and
[[Page 46855]]
outlines of topics to be discussed at the public hearing scheduled for
December 4, 2013, at 10 a.m. must be received by October 31, 2013.
ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-112815-12), Room
5205, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand-delivered Monday through
Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-
112815-12), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue NW., Washington, DC, or sent electronically via the Federal
eRulemaking Portal at www.regulations.gov (IRS REG-112815-12).
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations,
Elizabeth M. Bouzis or Robert B. Williams at (202) 622-3950; concerning
submissions of comments, the hearing, and/or to be placed on the
building access list to attend the hearing, Oluwafunmilayo Taylor,
(202) 622-7180 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background and Explanation of Provisions
Temporary regulations in the Rules and Regulations section of this
issue of the Federal Register amend the Income Tax Regulations (26 CFR
part 1) relating to section 1092(b). First, the temporary regulations
limit the application of Sec. 1.1092(b)-3T(b)(6) to section 1092(b)(2)
identified mixed straddles established on or before August 1, 2013.
Second, a new Sec. 1.1092(b)-6T provides that unrealized gain and loss
on a position held prior to establishing a section 1092(b)(2)
identified mixed straddle is taken into account at the time and has the
character provided by provisions of the Internal Revenue Code (Code)
that would apply if the section 1092(b)(2) identified mixed straddle
had not been established. Section 1.1092(b)-6T applies to section
1092(b)(2) identified mixed straddles established after August 1, 2013.
The text of the temporary regulations also serves as the text of these
proposed regulations.
Special Analyses
It has been determined that this notice of proposed rulemaking is
not a significant regulatory action as defined in Executive Order
12866, as supplemented by 13563. Therefore, a regulatory assessment is
not required. It also has been determined that section 553(b) of the
Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to
these regulations, and because the regulations do not impose a
collection of information on small entities, the Regulatory Flexibility
Act (5 U.S.C. chapter 6) does not apply. Pursuant to section 7805(f) of
the Internal Revenue Code, this notice of proposed rulemaking has been
submitted to the Chief Counsel for Advocacy of the Small Business
Administration for comment on its impact on small businesses.
Comments and Public Hearing
Before these proposed regulations are adopted as final regulations,
consideration will be given to any comments that are submitted timely
to the IRS as prescribed in the preamble under the ADDRESSES heading.
The Treasury Department and the IRS welcome comments on this proposed
regulation. All comments will be available at www.regulations.gov or
upon request.
A public hearing has been scheduled for December 4, 2013, beginning
at 10 a.m. in the Auditorium of the Internal Revenue Service Building,
1111 Constitution Avenue NW., Washington, DC. Due to building security
procedures, visitors must enter at the Constitution Avenue entrance. In
addition, all visitors must present photo identification to enter the
building. Because of access restrictions, visitors will not be admitted
beyond the immediate entrance area more than 30 minutes before the
hearing starts. For information about having your name placed on the
building access list to attend the hearing, see the FOR FURTHER
INFORMATION CONTACT section of this preamble.
The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who
wish to present oral comments at the hearing must submit written
comments and an outline of the topics to be discussed and the time to
be devoted to each topic by October 31, 2013. Submit a signed paper
original and eight (8) copies or an electronic copy. A period of 10
minutes will be allotted to each person for making comments. An agenda
showing the scheduling of the speakers will be prepared after the
deadline for receiving outlines has passed. Copies of the agenda will
be available free of charge at the hearing.
Drafting Information
The principal author of these regulations is Elizabeth M. Bouzis,
Office of Associate Chief Counsel (Financial Institutions and
Products). However, other personnel from the Treasury Department and
the IRS participated in their development.
List of Subjects in 26 CFR Part 1
Income Taxes, Reporting and recordkeeping requirements.
Proposed Amendments to the Regulations
Accordingly, 26 CFR part 1 is proposed to be amended as follows:
PART 1--INCOME TAXES
0
Paragraph 1. The authority citation for part 1 is amended by adding
entries in numerical order to read as follows:
Authority: 26 U.S.C. 7805 * * *
Section 1.1092(b)-6 also issued under 26 U.S.C. 1092(b)(1).
Section 1.1092(b)-6 also issued under 26 U.S.C. 1092(b)(2). * *
*
0
Par. 2. Section 1.1092(b)-3 is added to read as follows:
Sec. 1.1092(b)-3 Mixed straddles; straddle-by-straddle identification
under section 1092(b)(2)(A)(i)(I).
[The text of the proposed amendments to Sec. 1.1092(b)-3(b)(6) is
the same as the text for the amendments to Sec. 1.1092(b)-3T(b)(6)
published elsewhere in this issue of the Federal Register].
0
Par. 3. Section 1.1092(b)-6 is added to read as follows:
Sec. 1.1092(b)-6 Mixed straddles; accrued gain and loss associated
with a position that becomes part of a section 1092(b)(2) identified
mixed straddle that is established after August 1, 2013.
[The text of Sec. 1.1092(b)-6 is the same as the text for Sec.
1.1092(b)-6T published elsewhere in this issue of the Federal
Register].
Beth Tucker,
Deputy Commissioner for Operations Support.
[FR Doc. 2013-18701 Filed 8-1-13; 8:45 am]
BILLING CODE 4830-01-P