TD 8400 - (Final) Taxation of Gain or Loss from Certain Nonfunctional Currency Transactions (Section 988 Transactions)

ICR 201512-1545-034

OMB: 1545-1131

Federal Form Document

Forms and Documents
Document
Name
Status
Supporting Statement A
2015-12-28
ICR Details
1545-1131 201512-1545-034
Historical Active 201211-1545-022
TREAS/IRS ready
TD 8400 - (Final) Taxation of Gain or Loss from Certain Nonfunctional Currency Transactions (Section 988 Transactions)
Extension without change of a currently approved collection   No
Regular
Approved without change 05/15/2016
Retrieve Notice of Action (NOA) 01/29/2016
  Inventory as of this Action Requested Previously Approved
05/31/2019 36 Months From Approved 05/31/2016
5,000 0 5,000
3,333 0 3,333
0 0 0

This document, TD 8400, contains final regulations regarding the taxation of gain or loss from certain foreign currency transactions and applies to taxpayers engaging in such transactions. Section 988 of the Internal Revenue Code concerns the taxation of exchange gain or loss on certain foreign currency denominated transactions. Such gains and losses are characterized as ordinary income or loss. However, under section 988(a)(1)(B) taxpayers may elect to characterize exchange gain or loss on certain transactions as capital gain or loss. Section 1.988-3(b) of the regulations provides the procedure for making the election. Under 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. Sections 1.988-1(a)(4)(iii) and (iv) provide the procedure for making that election. Under section 988(c)(1)(E)(iii), a commodity fund may elect special treatment under section 988. Section 1.988-1(a)(5)(iv) provides the procedure for making that election. Under section 988(d) taxpayers may receive special treatment if they identify certain transactions. The identification rules are in sections 1.988-5(a)(8), 1.988-5(b)(3), 1.988-5(c)(2) and 1.988-5(d)(2)(i)(A).

US Code: 26 USC 988 (c)(1)(E) Name of Law: Special rules for certain funds
   US Code: 26 USC 988 (c)(1)(D) Name of Law: Exception for certain instruments marked to market
   US Code: 26 USC 988 (a)(1)(B) Name of Law: Special rule for forward contracts, etc.
   US Code: 26 USC 988 Name of Law: Treatment of certain foreign currency transactions
  
None

Not associated with rulemaking

  80 FR 72488 11/19/2015
81 FR 5032 01/29/2016
No

1
IC Title Form No. Form Name
TD 8400 - (Final) Taxation of Gain or Loss from Certain Nonfunctional Currency Transactions (Section 988 Transactions)

  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 5,000 5,000 0 0 0 0
Annual Time Burden (Hours) 3,333 3,333 0 0 0 0
Annual Cost Burden (Dollars) 0 0 0 0 0 0
No
No

$0
No
No
No
No
No
Uncollected
Jeffrey Dorfman 202 622-3870

  No

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:
 
 
 
 
 
 
 
    (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;
 
 
 
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.
01/29/2016


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