[Federal Register Volume 87, Number 73 (Friday, April 15, 2022)]
[Notices]
[Pages 22629-22630]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-08099]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Proposed Collection; Requesting Comments on TD 8400, Taxation of 
Gain or Loss From Certain Nonfunctional Currency Transactions (Section 
988 Transactions)

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice and request for comments.

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SUMMARY: The Internal Revenue Service, 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. The IRS is soliciting comments 
concerning Treasury Decision (TD) 8400, Taxation of Gain or Loss from 
Certain Nonfunctional Currency Transactions (Section 988 Transactions).

DATES: Written comments should be received on or before June 14, 2022 
to be assured of consideration.

ADDRESSES: Direct all written comments to Andres Garcia, Internal 
Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 
20224, or by email to [email protected]. Include OMB Control No. 1545-
1131 in the subject line of the message.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of this collection should be directed to Jon Callahan, (737) 
800-7639, at Internal Revenue Service, Room 6526, 1111 Constitution 
Avenue NW, Washington, DC 20224, or through the internet at 
[email protected].

SUPPLEMENTARY INFORMATION: The IRS is currently seeking comments 
concerning the following information collection tools, reporting, and 
record-keeping requirements:
    Title: TD 8400--Taxation of Gain or Loss from Certain Nonfunctional 
Currency Transactions (Section 988 Transactions).
    OMB Number: 1545-1131.
    Regulation Project Number: TD 8400.
    Abstract: This document contains previously approved final 
regulations regarding the taxation of gain or loss

[[Page 22630]]

from certain foreign currency transactions under Internal Revenue Code 
(IRC) section 988 and applies to taxpayers engaging in such 
transactions. Such gains and losses are characterized as ordinary 
income or loss. However, under IRC section 988(a)(1)(B), taxpayers may 
elect to characterize exchange gain or loss on certain transactions as 
capital gain or loss. Treasury Regulations section 1.988-3(b) provides 
the procedure for making the election. Under IRC section 
988(c)(1)(D)(ii), taxpayers may elect to have regulated futures 
contracts and certain options (which generally are not subject to 
section 988) treated as section 988 transactions. Treasury Regulations 
sections 1.988-1(a)(7)(iii) and (iv) provide the procedure for making 
that election. Under IRC section 988(c)(1)(E)(iii), a qualified fund 
may elect out of section 988 with respect to certain financial 
transactions. Treasury Regulations section 1.988-1(a)(8)(iv) provides 
the procedure for making that election. Under IRC section 988(d), 
taxpayers may receive special treatment allowing integration with 
respect to certain borrowings and property if the transactions are 
properly identified. The identification rules are in Treasury 
Regulations sections 1.988-5(a)(8), 1.988-5(b)(3), and 1.988-5(c)(2). 
Treasury Regulations section 1.988-2(a)(2)(v) allows an accrual basis 
taxpayer to make an election that provides special translation rules 
regarding the purchase and sale of stock or securities traded on an 
established securities market. Treasury Regulations section 1.988-
2(b)(2)(iii)(B) provides an election allowing the translation of 
interest income and expense using a spot accrual convention.
    Current Actions: There is no change to the existing collection.
    Type of Review: Extension of a currently approved collection.
    Affected Public: Business or other for-profit organizations, not-
for-profit institutions, and individuals and households.
    Estimated Number of Responses: 5,000.
    Estimated Time per Respondent: 40 minutes.
    Estimated Total Annual Burden Hours: 3,333.
    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: April 12, 2022.
Jon R. Callahan,
Tax Analyst.
[FR Doc. 2022-08099 Filed 4-14-22; 8:45 am]
BILLING CODE 4830-01-P