Proposed Collection; Comment Request for Regulation Project

DEPARTMENT OF THE TREASURY

Internal Revenue Service

[INTL-939-86]

Proposed Collection; Comment Request for Regulation Project

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice and request for comments.

-----------------------------------------------------------------------

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, Public Law 104-13 (44 U.S.C.

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

existing notice of proposed rulemaking, INTL-939-86, Insurance Income

of a Controlled Foreign Corporation for Taxable Years Beginning After

December 31, 1986 (Secs. 1.953-2(e)(3)(iii), 1.953-4(b), 1.953-5(a),

1.953-6(a), 1.953-7(c)(8), and 1.6046-1).

DATES: Written comments should be received on or before August 25, 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: Insurance Income of a Controlled Foreign Corporation for

Taxable Years Beginning After December 31, 1986.

[[Page 34964]]

OMB Number: 1545-1142.

Regulation Project Number: INTL-939-86.

Abstract: This regulation relates to the definition and computation

of the insurance income of a controlled foreign corporation, and it

also contains rules applicable to certain captive insurance companies.

The information collection is required by the IRS in order for

taxpayers to elect to locate risks with respect to moveable property by

reference to the location of the property in a prior period; to

allocate investment income to a particular category of insurance

income; to allocate deductions to a particular category of insurance

income; to determine the amount of those items, such as reserves, which

are computed with reference to an insurance company's annual statement;

to elect to have related person insurance income treated as income

effectively connected with the conduct of a United States trade or

business; and to collect the information required by Code section 6046

relating to controlled foreign corporations as defined in Code section

953(c).

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

Type of Review: Extension of a currently approved collection.

Affected Public: Business or other for-profit organizations.

Estimated Number of Respondents/Recordkeepers: 500.

Estimated Time Per Respondent/Recordkeeper: 28 hr., 12 min.

Estimated Total Annual Burden Hours: 14,100.

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. 98-16845 Filed 6-25-98; 8:45 am]

BILLING CODE 4830-01-P