REG-147144-06 Section 1.367(a)-8 Revisions; (T.D. 9446) Gain Recognition Agreements with Respect to Certain Transfers of Stock or Securities by United States Persons to Foreign Corporations.

Forms and Documents

Document Name	Status
NOT-151367-11_Summary of Changes.pdf Justification for No Material/Nonsubstantive Change	2012-02-10

IC Document Collections

IC ID	Document Title	Status
45917	REG-147144-06 Section 1.367(a)-8 Revisions; (T.D. 9446) Gain Recognition Agreements with Respect to Certain Transfers of Stock or Securities by United States Persons to Foreign Corporations.	Modified

ICR Details

OMB Control No: 1545-2056	ICR Reference No: 201202-1545-007
Status: Historical Active	Previous ICR Reference No: 201102-1545-005
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: REG-147144-06 Section 1.367(a)-8 Revisions; (T.D. 9446) Gain Recognition Agreements with Respect to Certain Transfers of Stock or Securities by United States Persons to Foreign Corporations.
Type of Information Collection: No material or nonsubstantive change to a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 04/19/2012
	Date Received in OIRA: 04/19/2012
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	04/30/2014	04/30/2014	04/30/2014
Responses	220	0	170
Time Burden (Hours)	340	0	240
Cost Burden (Dollars)	0	0	0

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Abstract: These regulations under IRC § 367(a) provide rules for taxpayers to avoid recognizing gain under a gain recognition agreement (GRA) if a new GRA and notice statement are filed. The regulations also provide a rule under which a taxpayer may reduce the basis in certain stock to meet one of the requirements for terminating a GRA. These regulations also revise an existing rule to facilitate electronic filing. The revision requires that information that a taxpayer currently would write on the face of its Federal income tax return shall instead be attached as a separate schedule to its return

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Authorizing Statute(s): US Code: 26 USC 367(a) Name of Law: Transfers of property from the United States.
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	75 FR 53019	08/30/2010
30-day Notice:	Federal Register Citation:	Citation Date:
	76 FR 10664	02/25/2011
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
REG-147144-06 Section 1.367(a)-8 Revisions; (T.D. 9446) Gain Recognition Agreements with Respect to Certain Transfers of Stock or Securities by United States Persons to Foreign Corporations.

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	220	170	0	50	0	0
Annual Time Burden (Hours)	340	240	0	100	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: Section 367(a) provides that gain must be recognized when a U.S. person (U.S. transferor) transfers property to a foreign corporation in certain subchapter C nonrecognition provisions (e.g., sections 351, 361). One exception to this general rule is afforded to a U.S. transferor who transfers stock or securities (transferred corporation) to a foreign corporation (transferee foreign corporation) and who enters into a gain recognition agreement (GRA). The terms of the GRA provide that the U.S. transferor will recognize gain if within five years of the initial transfer, certain events (triggering events) occur, such as a sale of the transferred stock by the transferee foreign corporation. Treas. Reg. § 1.367(a)-8 provides rules for how U.S. transferors enter into GRAs and also provides exceptions to certain triggering events. Temporary regulation §1.367(a)-9T provides that transactions described in section 304 (section 304 sales) are not subject to section 367(a), except where the transferor reduces its basis in stock of the foreign transferee which it held prior to the section 304 sale. In such situations, the transferor is not eligible to enter into a GRA with respect to the transferred stock. The notice will provide that section 367(a) now applies in full to all section 304 sales. As a result, U.S. transferors of stock to a foreign corporation may enter into a GRA with respect to such transfer, consistent with the rules of Treas. Reg. § 1.367(a)-8. Where the U.S. transferor no longer holds and interest in the transferred corporation or the transferee, certain other U.S. transferors may now file a substitute GRA with respect to the transferred stock. The IRS and Treasury do not expect that this notice will significantly alter the estimated total burdens associated with T.D. 9446. We expect that, at most, 50 more filers would be affected.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 04/19/2012

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