Foreign Tax Credit Corporations

Forms and Documents

Document Name	Status
Form 1118 Foreign Tax Credit Corporations Form	Modified
Form Schedule J (Form 1 Schedule J (Form 1118) - Adjustments to Separate Limitations Income (Loss) Form	New
Form Schedule I (Form 1 Schedule I (Form 1118) - Reduction of Oil and Gas Extraction Taxes Form and Instruction	New
Summary_behind_creation_of_Sch_K.pdf Justification for No Material/Nonsubstantive Change	2010-01-07
Summary of 2008 changes.pdf Justification for No Material/Nonsubstantive Change	2008-11-10

IC Document Collections

IC ID	Document Title	Status
39546	Foreign Tax Credit Corporations Form	Modified
191708	Schedule K (Form 1118) - Foreign Tax Carryover Reconciliation Schedule Instruction	New
187157	Schedule J (Form 1118) - Adjustments to Separate Limitations Income (Loss) Form	New
187156	Schedule I (Form 1118) - Reduction of Oil and Gas Extraction Taxes Form and Instruction	New

ICR Details

OMB Control No: 1545-0122	ICR Reference No: 200811-1545-007
Status: Historical Active	Previous ICR Reference No: 200705-1545-054
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Foreign Tax Credit Corporations
Type of Information Collection: No material or nonsubstantive change to a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 06/25/2010
	Date Received in OIRA: 12/01/2009
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	09/30/2010	09/30/2010	09/30/2010
Responses	36,950	0	30,950
Time Burden (Hours)	3,483,016	0	4,031,736
Cost Burden (Dollars)	0	0	0

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Abstract: Form 1118 and separate Schedules I, J, and K are used by domestic and foreign corporations to claim a credit for taxes paid to foreign countries. The IRS uses Form 1118 and related schedules to determine if the corporation has computed the foreign tax credit correctly.

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Authorizing Statute(s): US Code: 44 USC 3507 Name of Law: Advance pyament of earned income credit
  

Citations for New Statutory Requirements: None

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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
60-day Notice:	Federal Register Citation:	Citation Date:
	72 FR 1881	03/23/2007
30-day Notice:	Federal Register Citation:	Citation Date:
	72 FR 39136	07/17/2007
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 4

IC Title	Form No.	Form Name
Foreign Tax Credit Corporations	1118	Foreign Tax Credit-Corporations
Schedule I (Form 1118) - Reduction of Oil and Gas Extraction Taxes	Schedule I (Form 1118)	Reduction of Oil and Gas Extraction Taxes
Schedule J (Form 1118) - Adjustments to Separate Limitations Income (Loss)	Schedule J (Form 1118)	Adjustments to Separate Limitations Income (Loss)
Schedule K (Form 1118) - Foreign Tax Carryover Reconciliation Schedule	Schedule K (Form 1118)	Foreign Tax Carryover Reconciliation Schedule

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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	36,950	30,950	0	6,000	0	0
Annual Time Burden (Hours)	3,483,016	4,031,736	0	174,060	-722,780	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: Form 1118 is used to compute the amount of foreign tax credit claimed on corporation income tax returns. A new line 4 was added to Schedule B of Form 1118 streamline the reporting of the tax adjustment for high-tax kickouts under Regulations section 1.904-4(c). Changes were also made to correct inconsistancies in the previous burden computations aproved by OMB for Form 1118. The result of these changes is a total burden decrease of 734,436 and 950 responses. Schedule K (Form 1118) is used to reconcile the corporation’s prior year foreign tax carryover with its current year foreign tax carryover. The creation of this new schedule will increase the estimates number of responses by 6,000 and the total burden by 174,060 hours. Modifications were also made to this collection to clarify the appropriate burden estimates with the applicable form or schedule. For Schedule I, this results in a burden increase of 900 responses and 10,359 total burden hours. For Schedule J, this results in an increase of 50 responses and 1,297 total burden hours.

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Annual Cost to Federal Government: $449,512

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]? No

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)? Yes

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: 12/01/2009

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