Notice2022-08099
Proposed Collection; Requesting Comments on TD 8400, Taxation of Gain or Loss From Certain Nonfunctional Currency Transactions (Section 988 Transactions)
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
April 15, 2022
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
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).
Full Text
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<title>Federal Register, Volume 87 Issue 73 (Friday, April 15, 2022)</title>
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[Federal Register Volume 87, Number 73 (Friday, April 15, 2022)]
[Notices]
[Pages 22629-22630]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[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 <a href="/cdn-cgi/l/email-protection#234c4e410d564d4a57634a51500d444c55"><span class="__cf_email__" data-cfemail="4926242b673c27203d09203b3a672e263f">[email protected]</span></a>. 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
<a href="/cdn-cgi/l/email-protection#a6ccc9c888d488c5c7cacac7cec7c8e6cfd4d588c1c9d0"><span class="__cf_email__" data-cfemail="6c060302421e420f0d00000d040d022c051e1f420b031a">[email protected]</span></a>.
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
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