[Federal Register Volume 62, Number 203 (Tuesday, October 21, 1997)]
[Notices]
[Pages 54688-54689]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-27867]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service
[FI-43-94]


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, Pub. L. 104-13 (44 U.S.C. 
3506(c)(2)(A)).
    Currently, the IRS is soliciting comments concerning an existing 
final regulation, FI-43-94 (TD 8649), Regulations Under Section 1258 of 
the Internal Revenue Code of 1986; Netting Rule for Certain Conversion 
Transactions (Sec. 1.1258-1).

DATES: Written comments should be received on or before December 22, 
1997 to be assured of consideration.

ADDRESSES: Direct all written comments to Garrick R. Shear, Internal 
Revenue Service, room 5571, 1111 Constitution Avenue NW., Washington, 
DC 20224.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the information collection should be directed to Carol 
Savage, (202) 622-3945, Internal Revenue Service, room 5569, 1111 
Constitution Avenue NW., Washington, DC 20224.

SUPPLEMENTARY INFORMATION:

    Title: Regulations Under Section 1258 of the Internal Revenue Code 
of 1986; Netting Rule for Certain Conversion Transactions.
    OMB Number: 1545-1452.
    Regulation Project Number: FI-43-94.
    Abstract: Internal Revenue Code section 1258 recharacterizes 
capital gains from conversion transactions as ordinary income to the 
extent of the time value element. This regulation provides that certain 
gains and losses may be netted for purposes of determining the amount 
of gain recharacterized. To be eligible for netting relief, the 
taxpayer must identify on its books and records all the positions that 
are part of the conversion transaction. This must be done before the 
close of the day on which the positions become part of the conversion 
transaction.
    Current Actions: There is no change to this existing regulation.
    Type of Review: Extension of a currently approved collection.
    Affected Public: Business or other for-profit organizations, and 
not-for-profit institutions.
    Estimated Number of Respondents: 50,000.
    Estimated Time Per Respondent: 6 minutes.
    Estimated Total Annual Burden Hours: 5,000.
    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

[[Page 54689]]

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: October 15, 1997.
Garrick R. Shear,
IRS Reports Clearance Officer.
[FR Doc. 97-27867 Filed 10-20-97; 8:45 am]
BILLING CODE 4830-01-U