Proposed Collection; Comment Request for Regulation Project, 10263-10264 [2020-03435]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 85, Number 35 (Friday, February 21, 2020)]
[Notices]
[Pages 10263-10264]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-03435]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Proposed Collection; Comment Request for Regulation Project

AGENCY: Internal Revenue Service (IRS), Treasury.

[[Page 10264]]


ACTION: Notice and request for comments.

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SUMMARY: The Internal Revenue Service, 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 
continuing information collections, as required by the Paperwork 
Reduction Act of 1995. 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 April 21, 2020 
to be assured of consideration.

ADDRESSES: Direct all written comments to Dr. Philippe Thomas, Internal 
Revenue Service, Room 6529, 1111 Constitution Avenue NW, Washington, DC 
20224.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the form should be directed to Kerry Dennis, at (202) 317-
5751 or Internal Revenue Service, Room 6529, 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.
    Form Number: 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 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.
    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. TD 9704 
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, it modifies 
the reporting obligations under section 6038B associated with transfers 
that are subject to section 367(e)(2). Further, TD 9704 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 are no changes being made to the regulations 
at this time.
    Type of Review: Extension of a currently 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 hours.
    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: February 14, 2020.
Philippe Thomas,
Supervisor Tax Analyst.
[FR Doc. 2020-03435 Filed 2-20-20; 8:45 am]
 BILLING CODE 4830-01-P