[Federal Register Volume 78, Number 172 (Thursday, September 5, 2013)]
[Proposed Rules]
[Pages 54598-54599]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-21541]


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DEPARTMENT OF TREASURY

Internal Revenue Service

26 CFR Part 1

[REG-111753-12]
RIN 1545-BL24


Debt That Is a Position in Personal Property That Is Part of a 
Straddle

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations and notice of public hearings.

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SUMMARY: This document contains proposed regulations relating to the 
application of the straddle rules to a debt instrument. The proposed 
regulations clarify that a taxpayer's obligation under a debt 
instrument can be a position in personal property that is part of a 
straddle. The proposed regulations primarily affect taxpayers that 
issue debt instruments that provide for one or more payments that 
reference the value of personal property or a position in personal 
property. This document also provides notice of a public hearing on 
these proposed regulations.

DATES: Written or electronic comments must be received by November 4, 
2013. Requests to speak and outlines of topics to be discussed at the 
public hearing scheduled for January 15, 2014, must be received by 
November 4, 2013.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-111753-12), Room 
5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand-delivered Monday through 
Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-
111753-12), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue NW., Washington, DC, or sent electronically via the Federal 
eRulemaking Portal at www.regulations.gov (IRS REG-111753-12).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Mary Brewer, (202) 622-4695; concerning submissions of comments, the 
hearing and/or to be placed on the building access list to attend the 
hearing, Oluwafunmilayo Taylor, (202) 622-7180 (not toll-free numbers).

SUPPLEMENTARY INFORMATION: 

Background and Explanation of Provisions

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend the Income Tax Regulations (26 CFR 
part 1) relating to section 1092(d). The temporary regulations provide 
that if a taxpayer is the obligor under a debt instrument one or more 
payments on which are linked to the value of personal property or a 
position with respect to personal property, then the taxpayer's 
obligation under the debt instrument is a position with respect to 
personal property and may be part of a straddle. The temporary 
regulations apply to straddles established on or after January 17, 
2001. The text of the temporary regulations also serves as the text of 
these proposed regulations and is identical to the text of regulations 
originally proposed under REG-105801-00.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in Executive Order 
12866, as supplemented by Executive Order 13563. Therefore, a 
regulatory assessment is not required. It also has been determined that 
section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) 
does not apply to these regulations, and because the regulation does 
not impose a collection of information on small entities, the 
Regulatory Flexibility Act (5 U.S.C. chapter 6) does not apply. 
Pursuant to section 7805(f) of the Internal Revenue Code, this notice 
of proposed rulemaking has been submitted to the Chief Counsel for 
Advocacy of the Small Business Administration for comment on its impact 
on small business.

Comments and Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any comments that are submitted timely 
to the IRS as prescribed in the preamble under the ADDRESSES heading. 
The Treasury Department and the IRS welcome comments on this proposed 
regulation. All comments that are submitted by the public will be 
available at for public inspection and copying at www.regulations.gov. 
upon request.
    A public hearing has been scheduled for January 15, 2014, beginning 
at 10 a.m. in the IRS Auditorium, Internal Revenue Service Building, 
1111 Constitution Avenue NW., Washington, DC. Due to building security 
procedures, visitors must enter at the Constitution Avenue entrance. In 
addition, all visitors must present photo identification to enter the 
building. Because of access restrictions, visitors will not be admitted 
beyond the

[[Page 54599]]

immediate entrance area more than 30 minutes before the hearing starts. 
For information about having your name placed on the building access 
list to attend the hearing, see the FOR FURTHER INFORMATION CONTACT 
section of this preamble.
    The rules of 26 CFR 601.601(a)(3) apply to the hearing. Persons who 
wish to present oral comments at the hearing must submit written or 
electronic comments and an outline of the topics to be discussed and 
the time to be devoted to each topic (a signed original and eight (8) 
copies by November 4, 2013. A period of 10 minutes will be allotted to 
each person for making comments. An agenda showing the scheduling of 
the speakers will be prepared after the deadline for receiving outlines 
has passed. Copies of the agenda will be available free of charge at 
the hearing.

Drafting Information

    The principal author of these regulations is Mary Brewer, Office of 
Associate Chief Counsel (Financial Institutions and Products). However, 
other personnel from the IRS and the Treasury Department participated 
in their development.

List of Subjects in 26 CFR Part 1

    Income taxes, Reporting and recordkeeping requirements.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 1 is proposed to be amended as follows:

PART 1--INCOME TAXES

0
Paragraph 1. The authority citation for part 1 is amended by adding an 
entry in numerical order to read as follows:

    Authority:  26 U.S.C. 7805 * * *
    Section 1.1092(d)-1 also issued under 26 U.S.C. 1092(b)(1). * * 
*

0
Par. 2. Section 1.1092(d)-1 is amended by revising paragraphs (d) and 
(e) to read as follows:


Sec.  1.1092(d)-1  Definitions and special rules.

* * * * *
    (d) [The text of the proposed amendment to Sec.  1.1092(d)-1(d) is 
the same as the text for Sec.  1.1092(d)-1T(d) published elsewhere in 
this issue of the Federal Register].
    (e) [The text of the proposed amendment to Sec.  1.1092(d)-1(e) is 
the same as the text for Sec.  1.1092(d)-1T(e) published elsewhere in 
this issue of the Federal Register].

Beth Tucker,
Deputy Commissioner for Operations Support.
[FR Doc. 2013-21541 Filed 9-4-13; 8:45 am]
BILLING CODE 4830-01-P