SUPPORTING STATEMENT 83-I_Foreign Importer

SUPPORTING STATEMENT 83-I_Foreign Importer.doc

Foreign Based Importers - Non-Filers

OMB: 1545-2084

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SUPPORTING STATEMENT




1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION


Foreign corporations are subject to U.S Income Tax on income that is effectively connected with a U.S. trade or business and are required to file a U.S Income tax return reporting taxable income. A CIP project has been approved (project code 0564) to investigate a select group of foreign corporate importers to determine if the importer has a U.S. Income Tax return filing requirement. However, based on the public information available, it is not readily determinable without further research that US Income Tax compliance has been fulfilled. Therefore, IDRS will be utilized to determine if filing compliance has been met. If an importer does not appear to have complied with filing requirements or if the importer has filed a protective Form 1120F, contact with the foreign importer will be initiated requesting further information to draw a conclusion on US tax liability. This contact letter is sent to taxpayers who appear to have a U.S. trade or business and have not filed a U.S. Income Tax return or filed a protective 1120F.


2. USE OF DATA


The information provided in response to the contact letter will determine the foreign corporation’s compliance requirement.

  1. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN


The collection of information does not involve the use information technology due to risk of disclosure. Additionally, the information collection request will be required by the taxpayer only occasionally to determine tax compliance.


4. EFFORTS TO IDENTIFY DUPLICATION


We have attempted to eliminate duplication within the agency

wherever possible.


5. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES


The target group of taxpayer’s contacted is only foreign corporation importers with annual imports of $50 million or more. Thus, contact letters will not be sent to small businesses or other small entities.




6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES


Collection will only be required on an occasional basis to a limited number of foreign corporation importers.




7. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE

INCONSISTENT WITH GUIDELINES IN 5 CFR 1320.5(d)(2)


Not applicable.



8. CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON

AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY

OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS


Not applicable.



9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO

RESPONDENTS


Not applicable.



10. ASSURANCE OF CONFIDENTIALITY OF RESPONSES


Generally, tax returns and tax return information are

confidential as required by 26 USC 6103.



11. JUSTIFICATION OF SENSITIVE QUESTIONS


Not applicable.


12. ESTIMATED BURDEN OF INFORMATION COLLECTION


The burden estimate is as follows:


Number of Time per Total

Responses Response Hours

Contact letters

requesting

additional information 30 1 hour 30


There is no additional burden. Estimates of the annualized cost to respondents are not available at this time.




13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS


Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information are not available at this time.


14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT


The primary cost to the government consists of the cost of printing contact Letter minimal. We estimate that the cost of printing the letter is minimal.



15. REASONS FOR CHANGE IN BURDEN


Not applicable.


16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION


Not applicable.


17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS

INAPPROPRIATE


Not applicable.


18. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB FORM 83-I


Not applicable.


Note: The following paragraph applies to all of the collections of information in this submission:


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.


*If emergency approval is needed, please give reason.

The subject letter and attached questionnaire are necessary to conduct a Compliance Initiative Project which was approved May 2007 and which is projected to be completed by December 31, 2007. Because of the estimated completion date we need to make this submission under the emergency request provisions. The timely use of this letter will help us establish the Internal Revenue Service's Large and Midsize Business Division mission of ensuring compliance with the tax laws and treating taxpayers in a fair and equitable manner.

File Typeapplication/msword
AuthorCarol
Last Modified Byqhrfb
File Modified2007-07-20
File Created2007-06-14

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