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###### Department of the Treasury

###### Internal Revenue Service

          - [REG-209826-96]

# 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 application of the grantor trust rules to nonexempt employees' trusts.

# DATES:

Written comments should be received on or before October 11, 2011 to be assured of consideration.

# ADDRESSES:

Direct all written comments to Yvette Lawrence, Internal Revenue Service, Room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224.

# FOR FURTHER INFORMATION CONTACT:

                        Requests for additional information or copies of the regulations should be directed to Allan Hopkins at Internal Revenue Service, Room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224, or at (202) 622-6665, or through the Internet at                         *Allan.M.Hopkins@irs.gov.*

# SUPPLEMENTARY INFORMATION:

*Title:*                     Application of the Grantor Trust Rules to Nonexempt Employees' Trusts.                

*OMB Number:*                     1545-1498.                

*Regulation Project Number:*                     REG-209826-96.                

*Abstract:*                     This regulation provides rules for the application of the grantor trust rules to certain nonexempt employees' trusts. Under Section 1.671-1(h)(3)(iii) of the regulation, the overfunded amount for certain foreign employees' trusts will be reduced to the extent the taxpayer demonstrates to the Commissioner, and indicates on a statement attached to a timely filed Form 5471, that the overfunded amount is attributable to a reasonable funding exception. The IRS needs this information to determine accurately the portion of the trust that is properly treated as owned by the employer.                

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

*Type of Review:*                     Extension of currently approved collection.                

*Affected Public:*                     Business or other for-profit organizations.                

*Estimated Number of Respondents:*                     1,000.                

*Estimated Time per Respondent:*                     1 hour.                

*Estimated Total Annual Burden Hours:*                     1,000.                          ( print page 49537)    

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: August 2, 2011.

Yvette Lawrence,

IRS Reports Clearance Officer.

[FR Doc. 2011-20217 Filed 8-9-11; 8:45 am]

BILLING CODE 4830-01-P