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###### Department of the Treasury

###### Internal Revenue Service

          - [FI-7-94; FI-36-92]

# 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 existing final regulations, FI-7-94 (TD 8718; TD 8538) and FI-36-92 (TD 8476), Arbitrage Restrictions on Tax-Exempt Bonds (Sec. Sec. 1.148-2, 1.148-3, 1.148-4, 1.148-7, and 1.148-11).

# DATES:

Written comments should be received on or before May 18, 2009 to be assured of consideration.

# ADDRESSES:

Direct all written comments to Glenn P. Kirkland, Internal Revenue Service, room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224.

# FOR FURTHER INFORMATION CONTACT:

                        Requests for additional information or copies of regulations should be directed to R. Joseph Durbala, at (202) 622-3634, or at Internal Revenue Service, room 6129, 1111 Constitution Avenue, NW., Washington, DC 20224, or through the Internet, at                         *RJoseph.Durbala@irs.gov.*

# SUPPLEMENTARY INFORMATION:

*Title:*                     Arbitrage Restrictions on Tax-Exempt Bonds.                

*OMB Number:*                     1545-1347.                

*Regulation Project Numbers:*                     FI-36-92; FI-7-94.                

*Abstract:*                     Section 148 of the Internal Revenue Code requires issuers of tax-exempt bonds to rebate certain arbitrage profits earned on nonpurpose investments acquired with the bond proceeds. Under FI-36-92, issuers are required to file a Form 8038-T and remit the rebate.                

Issuers are also required to keep records of certain interest rate hedges so that the hedges are taken into account in determining arbitrage profits. Under FI-7-94, the scope of interest rate hedging transactions covered by the arbitrage regulations was broadened by requiring that hedges entered into prior to the sale date of the bonds are covered as well.

*Current Actions:*                     There is no change to these existing regulations.                

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

*Affected Public:*                     State, local or Tribal governments.                

*Estimated Number of Respondents:*                     3,100.                

*Estimated Time per Respondent:*                     14 hr., 34 min.                

*Estimated Total Annual Burden Hours:*                     42,050.                

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 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: March 3, 2009.

R. Joseph Durbala,

IRS Reports Clearance Officer.

 [FR Doc. E9-5963 Filed 3-18-09; 8:45 am]

BILLING CODE 4830-01-P