[Federal Register Volume 78, Number 149 (Friday, August 2, 2013)]
[Proposed Rules]
[Pages 46854-46855]
From the Federal Register Online via the Government Printing 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