[Federal Register Volume 81, Number 222 (Thursday, November 17, 2016)]
[Notices]
[Pages 81242-81243]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-27606]
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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
Arbitrage Restrictions on Tax-Exempt Bonds.
DATES: Written comments should be received on or before January 17,
2017 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 regulations should be directed to Sara Covington at Internal
Revenue Service, Room 6526, 1111 Constitution Avenue NW., Washington,
DC 20224, or through the Internet, at [email protected].
SUPPLEMENTARY INFORMATION:
Title: Arbitrage Restrictions and Issue Price Definition for Tax-
Exempt Bonds.
OMB Number: 1545-1347.
Regulation: TD 8476, TD 8718, TD 9777 and REG-138526-14 (NPRM).
Abstract: Section 148 of the Internal Revenue Code requires issuers
of tax-exempt bonds to rebate certain arbitrage profits earned on
nonpurpose investments acquired with the bond proceeds.
Under section 148(f), interest on a state or local bond is not tax
exempt unless the issuer of the bond rebates to the United States
arbitrage profits earned from investing proceeds of the bond in higher
yielding nonpurpose investments. Form 8038-T is used to pay the
arbitrage rebate to the United States and to pay penalty in lieu of
rebates. Burden for the form is being reported under 1545-1219.
Issuers are also required to keep records of certain interest rate
hedges so that the hedges are taken into account in determining
arbitrage profits. Under
[[Page 81243]]
TD 8718, the scope of interest rate hedging transactions covered by the
arbitrage regulations was broadened by requiring that hedges entered
into prior to the sale date of the bonds are covered as well.
The collection of information in the proposed regulation (REG-
138526-14) is in Sec. 1.148-1(f)(2)(ii) which contains a requirement
that the issuer obtain certifications and supporting documentation
regarding the underwriter's sales of the issuer's bonds.
Current Actions: There is no change to the final regulations (TD
8476, TD 8718, TD 9777), and proposed Regulation 138526-14 to the
information collection request.
Type of Review: Extension of a currently approved collection.
Affected Public: State, local or tribal governments.
Estimated Number of Respondents: 15,646
Estimated Number of Responses: 24,010.
Estimated Time per Respondent: 4 hours.
Estimated Total Annual Burden Hours: 94,326.
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
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: November 8, 2016.
Tuawana Pinkston,
IRS Supervisory Tax Analyst.
[FR Doc. 2016-27606 Filed 11-16-16; 8:45 am]
BILLING CODE 4830-01-P