SUPPORTING STATEMENT
Announcement 2004-46
CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
The Service has determined that transactions described in Notice 2000-44, 2000-2 C.B. 255, and substantially similar transactions are abusive and were designed, marketed, and undertaken solely for unintended tax benefits. Announcement 2004-46 offers a settlement to certain taxpayers that participated in the transaction for efficient tax administration reasons and to avoid prolonged litigation.
USE OF DATA
The information collected is required to apply the terms of the settlement as set forth in the announcement, obtain the benefit described in the announcement, and it will be used by examiners, appeals officers and counsel attorneys to determine whether the taxpayer reported the transaction properly for income tax purposes.
USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
We have no plans to offer electronic filing. IRS publications, regulations, notices and letters are to be electronically enabled on an as practicable basis in accordance with the IRS Reform and Restructuring Act of 1998.
EFFORTS TO IDENTIFY DUPLICATION
We have attempted to eliminate duplication within the agency wherever possible.
METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES
Not applicable.
CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES
Not applicable.
SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT WITH GUIDELINES IN 5 CFR 1320.5(d)(2)
Not applicable.
CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS
Announcement 2004-46 was published in the Internal Revenue Bulletin on May 24, 2004 (2004-21 IRB 964).
In response to the Federal Register Notice dated July 13, 2007 (72 38656), we received no comments during the comment period regarding Announcement 2004-46.
EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
Not applicable.
ASSURANCE OF CONFIDENTIALITY OF RESPONSES
Generally, tax returns and tax return information are confidential as required by 26 USC 6103.
JUSTIFICATION OF SENSITIVE QUESTIONS
Not applicable.
ESTIMATED BURDEN OF INFORMATION COLLECTION
The collection of information in this announcement is in the section titled REQUIRED PROCEDURES FOR ELECTING PARTICIPANTS. This information is required to apply the terms of the settlement set forth in this announcement. This information will be used to determine whether the taxpayer has reported the disclosed item properly for income tax purposes. The estimated reporting burden is 5,000 hours. The estimated burden per respondent is 5 hours. The estimated number of respondents is 1,000.
Estimates of the annualized cost to respondents for the hour burdens shown are not available at this time.
ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
As suggested by OMB, our Federal Register Notice dated July 13, 2007, requested
public comments on estimates of cost burden that are not captured in the estimates of
burden hours, i.e., estimates of capital or start-up costs and costs of operation,
maintenance, and purchase of services to provide information. However, we did not
receive any response from taxpayers on this subject. As a result, estimates of the cost
burdens are not available at this time.
ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
Not applicable.
REASONS FOR CHANGE IN BURDEN
There is no change in the paperwork burden previously approved by OMB. We are making this submission to renew the OMB approval.
We are making this submission to renew the OMB approval.
PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
Not applicable.
REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
We believe that displaying the OMB expiration date is inappropriate because it could cause confusion by leading taxpayers to believe that the announcement sunsets as of the expiration date. Taxpayers are not likely to be aware that the Service intends to request renewal of the OMB approval and obtain a new expiration date before the old one expires.
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.
| File Type | application/msword |
| Author | FD3BB |
| Last Modified By | TQ1FB |
| File Modified | 2007-09-14 |
| File Created | 2007-09-14 |