[Federal Register Volume 62, Number 213 (Tuesday, November 4, 1997)]
[Notices]
[Page 59757]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29171]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Proposed Collection; Comment Request for Form 2439

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 
Form 2439, Notice to Shareholder of Undistributed Long-Term Capital 
Gains.

DATES: Written comments should be received on or before January 5, 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 form and instructions should be directed to Martha R. 
Brinson, (202) 622-3869, Internal Revenue Service, room 5571, 1111 
Constitution Avenue NW., Washington, DC 20224.

SUPPLEMENTARY INFORMATION:

    Title: Notice to Shareholder of Undistributed Long-Term Capital 
Gains.
    OMB Number: 1545-0145.
    Form Number: Form 2439.
    Abstract: Form 2439 is used by regulated investment companies 
(RICs) and real estate investment trusts (REITs) to report 
undistributed capital gains and the amount of tax paid on these gains 
designated under Internal Revenue Code section 852(b)(3)(D) or 
857(b)(3)(D). The company, the trust, and the shareholder file copies 
of Form 2439 with the IRS. The IRS uses the information to verify that 
the shareholder has included the capital gains in income.
    Current Actions: The following changes were made:
    The Tax Relief Act of 1997 (Act) made the following changes in law 
affecting Form 2439.
    1. For tax years beginning after August 5, 1997, section 1254 of 
the Act adds section 857(b)(3)(D) to the Code, which allows a REIT to 
elect to retain, rather than distribute, its net long-term capital 
gains and pay tax on these gains. As a result, REITs and their 
shareholders are now added to Form 2439. Shareholders include in income 
their proportionate share of the undistributed capital gains and take a 
credit for their share of the tax paid by the REIT.
    2. Section 311 of the Act changed the capital gains rate for 
individuals. The Act requires that pass-through entities, such as RICs 
and REITs, must now provide the necessary information so shareholders 
can identify the components of their undistributed capital gains to 
complete Schedule D (Form 1040).
    New box 1b is added to report the ``28% rate gain''.
    New box 1c is added to report the ``Unrecaptured section 1250 
gain''.
    New box 1d is added to report the ``Section 1202 gain''.
    Type of Review: Revision of a currently approved collection.
    Affected Public: Business or other for-profit organizations.
    Estimated Number of Respondents: 8,000.
    Estimated Time Per Respondent: 3 hr., 31 min.
    Estimated Total Annual Burden Hours: 28,160.
    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: October 28, 1997.
Garrick R. Shear,
IRS Reports Clearance Officer.
[FR Doc. 97-29171 Filed 11-3-97; 8:45 am]
BILLING CODE 4830-01-U