In this issue of the Bulletin, the IRS and the Treasury Department are issuing temporary regulations (T.D. 9598) under section 988(d) of the Internal Revenue Code. These regulations address certain integrated transactions that involve a foreign currency denominated debt instrument and multiple associated hedging transactions. The text of the temporary regulations also serves as the text of these proposed regulations.
Written or electronic comments and requests for a public hearing must be received by December 6, 2012.
Send submissions to: CC:PA:LPD:PR (REG-138489-09), room 5203, Internal Revenue Service, PO Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand-delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-138489-09), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW, Washington, DC, or sent electronically, via the Federal eRulemaking Portal at www.regulations.gov (IRS and REG-138489-09).
Concerning the regulations, Sheila Ramaswamy, at (202) 622-3870; concerning submissions and delivery of comments, Oluwafunmilayo Taylor, 202-622-7180 (not toll-free numbers).
The temporary regulations published in this issue of the Bulletin provide guidance regarding certain integrated transactions that involve a foreign currency denominated debt instrument and multiple associated hedging transactions. The text of those temporary regulations also serves as the text of these proposed regulations. The preamble to the temporary regulations explains the temporary regulations and these proposed regulations.
It has been determined that this notice of proposed rulemaking is not a significant regulatory action as defined in Executive Order 12866. Therefore, a regulatory assessment is not required. It has also been determined that section 553(b) of the Administrative Procedure Act (5 U.S.C. chapter 5) does not apply to these regulations, and because these regulations do not impose a collection of information on small entities, the provisions of the Regulatory Flexibility Act (5 U.S.C. chapter 6) do not apply. Pursuant to section 7805(f) of the Internal Revenue Code, this notice of proposed rulemaking will be submitted to the Chief Counsel for Advocacy of the Small Business Administration for comment on its impact on small business.
Before these proposed regulations are adopted as final regulations, consideration will be given to any written (a signed original and eight (8) copies) or electronic comments that are submitted timely to the IRS. The IRS and the Treasury Department request comments on the clarity of the proposed rules and how they can be made easier to understand. All comments will be available for public inspection and copying. A public hearing may be scheduled if requested in writing by any person that timely submits written comments. If a public hearing is scheduled, notice of the date, time, and place for a public hearing will be published in the Federal Register.
Accordingly, 26 CFR part 1 is proposed to be amended as follows:
Paragraph 1. The authority citation for part 1 continues to read in part as follows:
Authority: 26 U.S.C. 7805 * * *
Par. 2. Section 1.988-5 is amended by revising paragraph (a)(6)(ii) and adding paragraph (a)(9)(iv) Example 11 and paragraph (h) to read as follows:
(a) * * *
(6) * * *
(ii) [The text of these proposed amendments to §1.988-5(a)(6)(ii) is the same as the text of §1.988-5T(a)(6)(ii) published elsewhere in this issue of the Bulletin.]
* * * * *
(9) * * *
(iv) * * *
* * * * *
Example 11 [The text of these proposed amendments to §1.988-5(a)(9)(iv) Example 11 is the same as the text of §1.988-5T(a)(9)(iv) Example 11 published elsewhere in this issue of the Bulletin.]
* * * * *
(h) [The text of these proposed amendments to §1.988-5(h) is the same as the text of §1.988-5T(h) published elsewhere in this issue of the Bulletin.]
Steven T. Miller,The Internal Revenue Bulletin is produced and published by the Internal Revenue Service and contains IRS pronouncements affecting tax analysis under the Code and the Regulations, including but not limited to Revenue Procedures, Revenue Rulings, Notices and Announcements. Access the IRS site at https://www.irs.gov/help/irsgov-accessibility for information concerning accessibility of IRS materials. While every effort has been made to ensure that the IRB database files available through the TouchTax application are accurate, those using TouchTax for legal research should verify their results against the printed versions of the IRBs available from the IRS.