Disqualified Corporate Interest Expense Disallowed Under Section 163(j) and Related Information

Forms and Documents

Document Name	Status
Form 8926 Disqualified Corporate Interest Expense Disallowed Under Section 163(j) and Related Information Form	New
Emergency Justification Memorandum.doc Supplementary Document	2008-11-04
ombat1.doc Supplementary Document	2008-11-04
Supporting Statement - For Form 8926.pdf Supporting Statement A	2008-11-04

IC Document Collections

IC ID	Document Title	Status
187090	Disqualified Corporate Interest Expense Disallowed Under Section 163(j) and Related Information Form	New

ICR Details

OMB Control No: 1545-2127	ICR Reference No: 200811-1545-003
Status: Historical Active	Previous ICR Reference No:
Agency/Subagency: TREAS/IRS	Agency Tracking No: Need Approval by 12/1/2008
Title: Disqualified Corporate Interest Expense Disallowed Under Section 163(j) and Related Information
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 12/01/2008
OIRA Conclusion Action: Approved without change	Conclusion Date: 11/23/2008
	Date Received in OIRA: 11/06/2008
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	05/31/2009	6 Months From Approved
Responses	500,000	0	0
Time Burden (Hours)	7,560,000	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: Pursuant to Congressional direction to determine whether the earnings stripping limitation rule of Code Section 163(j) was effective in curbing the erosion of the U.S. tax base, CC:INTL, LMSB, and the Treasury sought to create new Form 8926, Disqualified Corporate Interest Expense Disallowed Under Section 163(j) and Related Information. The new form is based on Code section 163(j) and the related proposed regulations

Emergency Justfication: See attached justification statement for more details. Congress directed the Treasury in sections 424 and 806 of Public Law (P.L.) 108-357, the American Jobs Creation Act of 2004, to study issues surrounding earnings stripping issues corporations use under section 163(j), Limitation on deduction for interest on certain indebtedness. The Treasury subsequently found in November 2007, in the Report to Congress on Earnings Stripping, Transfer Pricing and U.S. Income Tax Treaties (“the report”), that the most egregious situation arises when a U.S. corporation converts to foreign corporation status. A late availability of the form would not allow the taxpayer corporations to timely understand the new form and instructions. This would then place undue burden on both the taxpayer and the Service as extensions would have to be prepared by the corporations and the Service would have to process them. Alternatively, the taxpayer corporation would file their return on time and then have to file an amended return at a later date. This would also add undue taxpayer burden and burden the Service with additional processing costs for the second return.

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Authorizing Statute(s): US Code: 26 USC 163(j) Name of Law: Limitation on deduction for interest on certain indebtedness
  

Citations for New Statutory Requirements: US Code: 26 USC 163(j) Name of Law: Limitation on deduction for interest on certain indebtedness

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

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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

IC Title	Form No.	Form Name
Disqualified Corporate Interest Expense Disallowed Under Section 163(j) and Related Information	8926	Disqualified Corporate Interest Expense Disallowed Under Section 163(j) and Related Information

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	500,000	0	500,000	0	0	0
Annual Time Burden (Hours)	7,560,000	0	7,560,000	0	0	0
Annual Cost Burden (Dollars)	0	0	0	0	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: Pursuant to a Congressional directive to determine whether the earnings stripping limitation rule of Code section 163(j) was effective in curbing the erosion of the U.S. tax base, CC:INTL, LMSB, and the Treasury sought to create new Form 8926, Disqualified Corporate Interest Expense Disallowed Under Section 163(j) and Related Information. This form and its instructions have been in the developmental stage since August 2007.

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Annual Cost to Federal Government: $10,000

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

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? Uncollected

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Uncollected

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? Uncollected

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 11/06/2008

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