Proposed Collection; Comment Request for Regulation Project

DEPARTMENT OF THE TREASURY

Internal Revenue Service

[IA-120-86]

Proposed Collection; Comment Request for Regulation Project

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice and request for comments.

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SUMMARY: The Department of the Treasury, 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, Pub. L. 104-13 (44 U.S.C.

3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning an

existing final regulation, IA-120-86 (TD 8584), Capitalization of

Interest (Secs. 1.263A-8(b)(2)(iii), 1.263A-9(d)(1), 1.263A-9(e)(1),

1.263A-9(f)(1)(ii), 1.263A-9(f)(2)(iv), 1.263A-9(g)(2)(iv)(C), 1.263A-

9(e)(1) and 1.263A-9(g)(3)(iv)).

DATES: Written comments should be received on or before August 21, 1998

to be assured of consideration.

ADDRESSES: Direct all written comments to Garrick R. Shear, Internal

Revenue Service, room 5571, 1111 Constitution Avenue NW., Washington,

DC 20224.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or

copies of the regulation should be directed to Carol Savage, (202) 622-

3945, Internal Revenue Service, room 5569, 1111 Constitution Avenue

NW., Washington, DC 20224.

SUPPLEMENTARY INFORMATION:

Title: Capitalization of Interest.

OMB Number: 1545-1265.

Regulation Project Number: IA-120-86.

Abstract: Internal Revenue Code section 263A(f) requires taxpayers

to estimate the length of the production period and total cost of

tangible personal property to determine if interest capitalization is

required. This regulation requires taxpayers to maintain

contemporaneous written records of production period estimates, to file

a ruling request to segregate

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activities in applying the interest capitalization rules, and to

request the consent of the Commissioner to change their methods of

accounting for the capitalization of interest.

Current Actions: There is no change to this existing regulation.

Type of Review: Extension of OMB approval.

Affected Public: Individuals or households, and business or other

for-profit organizations.

Estimated Number of Respondents: 50.

Estimated Time Per Respondent: 2 hours.

Estimated Total Annual Burden Hours: 100.

Estimated Number of Recordkeepers: 500,000.

Estimated Time Per Recordkeeper: 14 minutes.

Estimated Total Annual Recordkeeping Hours: 116,667.

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: June 16, 1998.

Garrick R. Shear,

IRS Reports Clearance Officer.

[FR Doc. 98-16412 Filed 6-19-98; 8:45 am]

BILLING CODE 4830-01-P