[Federal Register Volume 81, Number 115 (Wednesday, June 15, 2016)]
[Notices]
[Pages 39105-39106]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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