[Federal Register Volume 66, Number 85 (Wednesday, May 2, 2001)]
[Notices]
[Pages 22073-22074]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-10872]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

[FI-3-91]


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 an 
existing final regulation, FI-3-91 (TD 8456), Capitalization of Certain 
Policy Acquisition Expenses (Secs. 1.848-2(g)(8), 1.848-2(h)(3) and 
1.848-2(i)(4)).

DATES: Written comments should be received on or before July 2, 2001 to 
be assured of consideration.

ADDRESSES: Direct all written comments to Garrick R. Shear, Internal 
Revenue Service, room 5244, 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, (202) 
622-6665, Internal Revenue Service, room 5244, 1111 Constitution Avenue 
NW., Washington, DC 20224.

SUPPLEMENTARY INFORMATION:
    Title: Capitalization of Certain Policy Acquisition Expenses.
    OMB Number: 1545-1287.
    Regulation Project Number: FI-3-91.
    Abstract: Internal Revenue Code section 848 provides that insurance 
companies must capitalize ``specified policy acquisition expenses.'' In 
lieu of identifying the categories of expenses that must be 
capitalized, section 848 requires that a company capitalize an amount 
of otherwise deductible expenses equal to specified percentages of net 
premiums with respect to certain types of insurance contracts. 
Insurance companies that enter into reinsurance agreements must 
determine the amounts to be capitalized under those agreements 
consistently. This regulation provides elections to permit the parties 
to a reinsurance agreement to shift the burden of capitalization for 
their mutual benefit.
    Current Actions: There is no change to this existing regulation.
    Type of review: Extension of OMB approval.
    Affected Public: Business or other for-profit organizations.
    Estimated Number of Respondents: 2,070.
    Estimated Time Per Respondent: 1 hr.
    Estimated Total Annual Burden Hours: 2,070.
    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

[[Page 22074]]

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: April 25, 2001.
Garrick R. Shear,
IRS Reports Clearance Officer.
[FR Doc. 01-10872 Filed 5-1-01; 8:45 am]
BILLING CODE 4830-01-P