[Federal Register Volume 70, Number 19 (Monday, January 31, 2005)]
[Notices]
[Pages 4915-4916]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-1738]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

[REG-142299-01 & REG-209135-88]


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 
existing final regulations, REG-142299-01 and REG-209135-88, Certain 
Transfers of Property to Regulated Investment Companies (RICs) and Real 
Estate Investment Trusts (REITs).

DATES: Written comments should be received on or before April 1, 2005 
to be assured of consideration.

ADDRESSES: Direct all written comments to Paul Finger, Internal Revenue 
Service, room 6512, 1111 Constitution Avenue, NW., Washington, DC 
20224.

[[Page 4916]]


FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the regulations should be directed to Larnice Mack at 
Internal Revenue Service, room 6512, 1111 Constitution Avenue, NW., 
Washington, DC 20224, or at (202)622-3179, or through the Internet at 
([email protected]).

SUPPLEMENTARY INFORMATION:
    Title: Certain Transfers of Property to Regulated Investment 
Companies (RICs) and Real Estate Investment Trusts (REITs).
    OMB Number: 1545-1672. Regulation Project Number: REG-142299-01 and 
REG-209135-88.
    Abstract: The regulation applies with respect to the net built-in 
gain of C corporation property that becomes property of a Regulated 
Investment Company (RIC) or Real Estate Investment Trust (REIT) by the 
qualification of a C corporation as a RIC or REIT or by the transfer of 
property of a C corporation to a RIC or REIT in certain tax-free 
transactions. Depending on the date of the transfer of property or 
qualification as a RIC or REIT, the regulation provides that either (1) 
the C corporation will recognize gain as if it had sold the property at 
fair market value unless the RIC or REIT elects section 1374 treatment 
or (2) the RIC or REIT will be subject to section 1374 treatment with 
respect to the net recognized built-in-gain, unless the C corporation 
elects deemed sale treatment. The regulation provides that a section 
1374 election is made by filing a statement, signed by an official 
authorized to sign the income tax return of the RIC or REIT and 
attached to the RIC's or REIT's Federal income tax return for the 
taxable year in which the property of the C corporation becomes the 
property of the RIC or REIT. The regulation provides that a deemed sale 
election is made by filing a statement, signed by an official 
authorized to sign the income tax return of the C corporation and 
attached to the C corporation's Federal income tax return for the 
taxable year in which the deemed sale occurs.
    Current Actions: There are no changes being made to this existing 
regulation.
    Type of Review: Extension of currently approved collection.
    Affected Public: Business or other for-profit organizations.
    Estimated Number of Respondents: 140.
    Estimated Time Per Respondent: 30 minutes.
    Estimated Total Annual Burden Hours: 70.
    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: January 21, 2005.
Paul Finger,
IRS Reports Clearance Officer.
[FR Doc. 05-1738 Filed 1-28-05; 8:45 am]
BILLING CODE 4830-01-P