8804,8805,8813,8804-Sch A.Sup

8804,8805,8813,8804-Sch A.Sup.doc

Form 8804 - Annual Return for Partnership Withholding Tax (Section 1446); Form 8805 - Foreign Partner's Information Statement of Section 1446 Withholding Tax; and Form 8813 - ......

OMB: 1545-1119

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Supporting Statement

(Forms 8804, 8805 and 8813)


1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION


Section 1446 requires partnerships that are engaged in the conduct of a trade or business in the United States to pay a withholding tax equal to the applicable percentage of the effectively connected taxable income allocable to their foreign partners. The partnerships use Form 8813 to make payments of withholding tax to the IRS. They use Forms 8804 and 8805 to make annual reports to provide the IRS and affected partners with information to assure proper withholding, crediting to partners’ accounts and compliance.


2. USE OF DATA


The Service uses this information to verify the income paid, that the correct amount of tax was paid to the U.S., and that affected partners receive needed data. The data is also used to make reports to foreign governments as required under the tax treaties between various foreign countries and the U.S.


3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN


Forms 8804, 8805, and 8813 cannot be filed electronically, since its relatively low volume does not justify the cost electronic enabling.


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


Not applicable.


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


Not applicable.


  1. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT WITH GUIDELINES IN 5 CFR 1320.5(d)(2)

Not applicable.


  1. CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS


Periodic meetings are held between IRS personnel and representatives of the American Bar Association, the National Society of Public Accountants, the American Institute of Certified Public Accountants, and other professional groups to discuss tax law and tax forms. During these meetings, there is an opportunity for those attending to make comments regarding Forms 8804, 8804-(Sch A) Parts I, II, II, IV, V, VI, VII, 8805 and 8813.


In response to the Federal Register Notice dated August 31, 2007, we received no comments during the comment period regarding the forms.


  1. 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


Number of Time per Total

Form Responses Response Hours


8804 5,000 3.01 15,050

8805 30,000 2.18 65,400

8813 20,000 1.71 34,200

114,650


Estimates of annualized cost to respondents for the hour burdens shown above are not available at this time.


13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS


As suggested by OMB, our Federal Register notice dated August 31, 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 responses from taxpayers on this subject. As a result, estimates of these cost burdens 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 these forms. We estimate that the cost of printing the forms is $2,000.


15. REASONS FOR CHANGE IN BURDEN


We added 14 lines items and 2 code references.


The above changes resulted in a program change increase of

2,895.


These forms are being submitted for renewal purposes only.


16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION


Not applicable.


  1. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE


See attachment.


  1. EXCEPTION 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 Typeapplication/msword
File TitleSupporting Statement
AuthorTQ1FB
Last Modified ByTQ1FB
File Modified2007-10-12
File Created2007-10-11

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