[Federal Register Volume 71, Number 219 (Tuesday, November 14, 2006)]
[Notices]
[Pages 66368-66369]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-19129]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Proposed Collection; Comment Request for REG-166012-02

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 
REG-166012-02, Notional Principal Contracts; Contingent Nonperiodic 
Payments.

DATES: Written comments should be received on or before January 16, 
2007 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 form and instructions should be directed to R. Joseph 
Durbala, (202) 622-3634, at Internal Revenue Service, room 6516, 1111 
Constitution Avenue, NW., Washington, DC 20224, or through the Internet 
at [email protected].

SUPPLEMENTARY INFORMATION:
    Title: Notional Principal Contracts; Contingent Nonperiodic 
Payments.
    OMB Number: 1545-1876.
    Form Number: REG-166012-02.
    Abstract: The collection of information in the proposed regulations 
is in Sec.  1.446-3(g)(6)(vii) of the Income Tax Regulations, requiring 
Taxpayers to maintain in their books and records a description of the 
method used to determine the projected amount of a contingent payment, 
the projected payment schedules, and the adjustments taken into account 
under the proposed regulations. The information is required by the IRS 
to verify compliance with section 446 of the Internal Revenue Code and 
the method of accounting described in Sec.  1.446-3(g)(6). This 
information will be used to determine whether the amount of tax has 
been calculated correctly. The collection of information is required to 
properly determine the amount of income or deduction to be taken into 
account. The respondents are sophisticated investors that enter into 
notional principal contracts with contingent nonperiodic payments.
    Current Actions: There is no change in the paperwork burden 
previously approved by OMB. This form is being submitted for renewal 
purposes only.
    Type of Review: Extension of a currently approved collection.
    Affected Public: Individuals and Households, Businesses and other 
for-profit organizations.
    Estimated Number of Respondents: 4,250.
    Estimated Time Per Respondent: 6 hours.
    Estimated Total Annual Burden Hours: 25,500.
    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

[[Page 66369]]

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: October 23, 2006.
Glenn P. Kirkland,
IRS Reports Clearance Officer.
[FR Doc. E6-19129 Filed 11-13-06; 8:45 am]
BILLING CODE 4830-01-P