- The IRS is extending an existing information collection (OMB 1545-1478) related to gain recognition exceptions on transfers of domestic stock or securities to foreign corporations.
- Affected businesses must meet reporting requirements under 26 CFR 1.367(a)-3(c) to qualify for an exception to gain recognition under section 367(a).
- Written comments on the collection's necessity, burden, and utility must be received by December 28, 2026, and will be summarized for OMB review.
Background on the Information Collection
According to the Internal Revenue Service notice published October 28, 2026, the agency is inviting public comments on a continuing information collection under the Paperwork Reduction Act of 1995. The collection is associated with regulations under T.D. 8702 concerning certain transfers of domestic stock or securities by U.S. persons to foreign corporations.
This relates to section 367(a) of the Internal Revenue Code, which generally requires recognition of gain on such transfers pursuant to corporate organization, reorganization, or liquidation provisions unless an applicable exception applies. The IRS uses the collected information to verify whether the requirements for the exception in 26 CFR 1.367(a)-3(c) have been satisfied, including applicable reporting by the U.S. target company and other conditions.
Current Status and Burden Estimates
The IRS notice states there is no change to the previously approved information collection. It is classified as an extension of a currently approved collection, with OMB Control Number 1545-1478.
The affected public consists of business or other for-profit organizations. The IRS estimates 100 respondents, with an estimated time per response of 10 minutes, resulting in a total annual burden of 1,000 hours. These figures remain the same as in the prior approval.
How to Submit Comments
The Internal Revenue Service notice specifies that written comments should be received on or before December 28, 2026, to be assured of consideration. Comments may be sent to Andres Garcia at the Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 20224, or by email to [email protected]. The subject line must include "OMB Control No. 1545-1478."
The agency invites feedback on five areas: whether the collection is necessary and has practical utility; the accuracy of the burden estimate; ways to enhance the quality, utility, and clarity of the information; ways to minimize the burden, including through automated techniques; and estimates of capital, start-up, operation, maintenance, and service costs.
Implications for Affected Taxpayers
This notice does not alter any substantive tax rules or eligibility for exceptions under section 367(a). It is a routine step in the OMB approval process for federal information collections, allowing the public and other agencies to provide input before the IRS seeks continued OMB clearance. Readers should review the full Federal Register notice for complete details on the collection's purpose and requirements.
Republic Tax Relief notes that while this announcement addresses reporting for corporate transfers involving foreign corporations, it does not relate to resolving existing IRS tax debts. Taxpayers with separate questions about unpaid tax liabilities from prior transactions may contact the firm for a free, no-obligation initial consultation to evaluate private tax-resolution services, including suitability, scope, and fees for communicating with the IRS.
Source Attribution and Next Steps
All facts in this article are drawn directly from the IRS notice titled "Agency Information Collection Activities; Comment Request on Certain Transfers of Domestic Stock or Securities by U.S. Persons to Foreign Corporations," published in the Federal Register on October 28, 2026. The announcement is dated October 21, 2026, by Tax Analyst Kerry Dennis.
For additional information or copies of the collection, contact Kerry Dennis at (202) 317-5751. Comments submitted become a matter of public record. Taxpayers should consult the official Federal Register document or IRS guidance for verification rather than relying solely on summaries.
Announcement covered: Oct 28, 2026.
General information only, not individual tax, legal, or financial advice. Rules, deadlines, and eligibility depend on your circumstances. Check current official guidance or consult a qualified professional.
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