Supporting Statement_for_Form_8927

SUPPORTING STATEMENT
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
The date of the determination is a critical date not only for RICs and REITs attempting to comply with the requirements
of the Deficiency Dividend Procedures but also for representatives of the IRS attempting to enforce the provisions of
the Deficiency Dividend Procedures.

2. USE OF DATA
To determine the timely filing of claim.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
We have no plans at this time to offer electronic filing because of the low volume compared to the cost of 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 apllicable.

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR
POLICY ACTIVITIES
Not apllicable.

7. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT
WITH GUIDELINES IN 5 CFR 1320.5(d)(2)
Not apllicable.

8. 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 Form 8927.
In response to the Federal Register notice (73 FR 64014), dated October 28, 2008, we have received a number of
requests for the form during the comment period regarding Form 8927.

9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
Not apllicable.

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 apllicable.

12. ESTIMATED BURDEN OF INFORMATION COLLECTION
The burden estimate is as follows:
Form

Number of
Responses

Form 8927

50

Time per
Response
2 hrs., 48 mins.

Total
Hours
140

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
After consultation with various functions within the Service, we have determined that the cost of developing,
printing, processing, distribution and overhead for the form is $7,500.

15. REASONS FOR CHANGE IN BURDEN
This is a new form.

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
Not apllicable.

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
See attached.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB PRA SUBMISSION FORM
Not apllicable.
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.

19. REASON FOR EMERGENCY SUBMISSION
The collection of information is needed quicker than the normal review process in order to provide a means for
regulated investment companies (RICs) and real estate investment trusts (REITs) to effect a self-determination of a
deficiency dividend under section 860(e)(4) of the Code. This provision allows a RIC or REIT to be relieved from the
payment of a deficiency in (or to be allowed a credit or refund of) certain taxes. This self-determination provision is part
of a complicated set of relief provisions to help ensure that shareholders of RICs and REITs are not harmed by minor
errors made by the RIC or REIT in meeting numerous qualifying requirements in the Code.