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TREAS/IRS RIN: 1545-BK65 Publication ID: Spring 2014 
Title: Failure to File Gain Recognition Agreements 
Abstract: This amendment to the regulations under Treasury Regulation section 1.367(a)-8 is a change to the existing rules governing the consequences of failures to file gain recognition agreements (GRAs), or other reporting obligations related to an existing GRA. Currently, a taxpayer who does not file a GRA with its timely filed tax return for the year of the transfer, or otherwise fails to comply with the requirements of the GRA regulations, must recognize the full gain on the transferred stock, unless the failure to comply was due to reasonable cause. Taxpayers must meet a high standard to qualify for reasonable-cause relief. In many cases, the penalty seems disproportionate to the offense, with the result that reasonable-cause determinations often entail lengthy and protracted disputes between taxpayers and the Service. These proposed regulations would change the standard that the taxpayer must satisfy to receive relief from the penalty of full gain recognition from reasonable cause to willful failure to file, which should result in an incentive to file, but will not result in the taxpayer recognizing full gain in most situations. 
Agency: Department of the Treasury(TREAS)  Priority: Substantive, Nonsignificant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Proposed Rule Stage 
Major: No  Unfunded Mandates: No 
CFR Citation: 26 CFR 1.367(a)-8   
Legal Authority: 26 USC 7805    26 USC 0367    26 USC 6038B   
Legal Deadline:  None
Timetable:
Action Date FR Cite
NPRM  12/00/2014 
Additional Information: REG-140649-11 Drafting attorney: Shane M. McCarrick (202) 317-6937 Reviewing attorney: Jason Smyczek (202) 317-6937 Treasury attorney: Brenda Zent (202) 622-6894 CC:INTL
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Federalism: No 
Included in the Regulatory Plan: No 
RIN Data Printed in the FR: No 
Agency Contact:
Andrew Wigmore
Attorney
Department of the Treasury
Internal Revenue Service
1111 Constitution Avenue NW.,
Washington, DC 20224
Phone:202 317-6937
Fax:202 317-4922
Email: andrew.l.wigmore@irscounsel.treas.gov