[Federal Register Volume 76, Number 44 (Monday, March 7, 2011)]
[Notices]
[Pages 12415-12416]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-5003]


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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 May 6, 2011 to 
be assured of consideration.

ADDRESSES: Direct all written comments to Allan Hopkins, Internal 
Revenue Service, room 6129, 1111 Constitution Avenue, NW., Washington, 
DC 20224.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the regulations should be directed to Ralph Terry at Internal 
Revenue Service, room 6129, 1111 Constitution Avenue, NW., Washington, 
DC 20224, or at (202)622-8144, 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

[[Page 12416]]

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: March 1, 2011.
Allan Hopkins,
Tax Analyst.
[FR Doc. 2011-5003 Filed 3-4-11; 8:45 am]
BILLING CODE 4830-01-P