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OMB Control No: 1545-1131	ICR Reference No: 202505-1545-006
Status: Received in OIRA	Previous ICR Reference No: 202204-1545-013
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Taxation of Gain or Loss from Certain Nonfunctional Currency Transactions (Section 988 Transactions)
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR: No
Type of Review Request: Regular	Date Submitted to OIRA: 09/26/2025

	Requested	Previously Approved
Expiration Date	36 Months From Approved	12/31/2025
Responses	5,000	5,000
Time Burden (Hours)	3,333	3,333
Cost Burden (Dollars)	0	0

Abstract: Treasury Decision (TD) 8400 contains previously approved final regulations regarding the taxation of gain or loss from certain foreign currency transactions under Internal Revenue Code (IRC) section 988 and applies to taxpayers engaging in such transactions. Such gains and losses are characterized as ordinary income or loss. However, under IRC section 988(a)(1)(B), taxpayers may elect to characterize exchange gain or loss on certain transactions as capital gain or loss. Treasury Regulations section 1.988-3(b) provides the procedure for making the election. Under IRC section 988(c)(1)(D)(ii), taxpayers may elect to have regulated futures contracts and certain options (which generally are not subject to section 988) treated as section 988 transactions. Treasury Regulations sections 1.988-1(a)(7)(iii) and (iv) provide the procedure for making that election. Under IRC section 988(c)(1)(E)(iii), a qualified fund may elect out of section 988 with respect to certain financial transactions. Treasury Regulations section 1.988-1(a)(8)(iv) provides the procedure for making that election. Under IRC section 988(d), taxpayers may receive special treatment allowing integration with respect to certain borrowings and property if the transactions are properly identified. The identification rules are in Treasury Regulations sections 1.988-5(a)(8), 1.988-5(b)(3), and 1.988-5(c)(2). Treasury Regulations section 1.988-2(a)(2)(v) allows an accrual basis taxpayer to make an election that provides special translation rules regarding the purchase and sale of stock or securities traded on an established securities market. Treasury Regulations section 1.988-2(b)(2)(iii)(B) provides an election allowing the translation of interest income and expense using a spot accrual convention.

Authorizing Statute(s): US Code: 26 USC 988 (c)(1)(E) Name of Law: Special rules for certain funds
   US Code: 26 USC 988 (c)(1)(D) Name of Law: Exception for certain instruments marked to market
   US Code: 26 USC 988 (a)(1)(B) Name of Law: Special rule for forward contracts, etc.
   US Code: 26 USC 988 Name of Law: Treatment of certain foreign currency transactions
   US Code: 26 USC 988 (d) Name of Law: Treatment Of 988 Hedging Transactions

Citations for New Statutory Requirements: None

Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	90 FR 11878	03/12/2025
30-day Notice:	Federal Register Citation:	Citation Date:
	90 FR 46306	09/25/2025
Did the Agency receive public comments on this ICR? No

Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
TD 8400 - Taxation of Gain or Loss from Certain Nonfunctional Currency Transactions (Section 988 Transactions)

ICR Summary of Burden

	Total Request	Previously Approved
Annual Number of Responses	5,000	5,000
Annual Time Burden (Hours)	3,333	3,333
Annual Cost Burden (Dollars)	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement:

Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination. Yes

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination. No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

Agency Contact: Raphael Cohen 202 317-3756

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