[Federal Register Volume 71, Number 55 (Wednesday, March 22, 2006)]
[Notices]
[Pages 14581-14582]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-4111]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

[REG-107047-00]


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, REG-107047-00 (TD 8985), Hedging 
Transactions (Sec.  1.1221-2).

DATES: Written comments should be received on or before May 22, 2006 to 
be assured of consideration.

ADDRESSES: Direct all written comments to Glenn P. Kirkland, Internal 
Revenue Service, room 6516, 1111 Constitution Avenue, NW., Washington, 
DC 20224.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the regulation 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: Hedging Transactions.
    OMB Number: 1545-1480.
    Regulation Project Number: REG-107047-00.
    Abstract: This regulation deals with the character and timing of 
gain or loss from certain hedging transactions entered into by members 
of a consolidated group of corporations. The regulation applies when 
one member of the group hedges its own risk, hedges the risk of another 
member, or enters into a risk-shifting transaction with another member. 
Also, this regulation clarifies the character of gain or loss from the 
sale or exchange of property that is a part of a business hedge. A 
taxpayer must identify the hedging transaction on its book and records 
before the close of the day on which the taxpayer enters into it and 
must also identify the item, items, or aggregate risk being hedged. The 
information will

[[Page 14582]]

be used to verify that a taxpayer is properly reporting its business 
hedging transactions.
    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.
    Estimated Number of Respondents: 127,100.
    Estimated Time Per Respondent: 1 hour, 20 minutes.
    Estimated Total Annual Burden Hours: 171,050.
    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: March 10, 2006.
Glenn P. Kirkland,
IRS Reports Clearance Officer.
[FR Doc. E6-4111 Filed 3-21-06; 8:45 am]
BILLING CODE 4830-01-P