RP 2009-XX - Internal Revenue Code Section 108(i) Election

Forms and Documents

Document Name	Status
Summary of Change Worksheet.doc Justification for No Material/Nonsubstantive Change	2009-07-01
108 rev proc 6-22-09 PRA.doc Supplementary Document	2009-06-24
Supporting Statement.pdf Supporting Statement A	2009-05-27

IC Document Collections

IC ID	Document Title	Status
189294	RP 2009-XX - Internal Revenue Code Section 108(i) Election	Modified

ICR Details

OMB Control No: 1545-2147	ICR Reference No: 200906-1545-042
Status: Historical Active	Previous ICR Reference No: 200905-1545-025
Agency/Subagency: TREAS/IRS	Agency Tracking No: Requested approval by 7/7/2009
Title: RP 2009-XX - Internal Revenue Code Section 108(i) Election
Type of Information Collection: No material or nonsubstantive change to a currently approved collection	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 06/03/2009
OIRA Conclusion Action: Approved without change	Conclusion Date: 07/06/2009
	Date Received in OIRA: 07/02/2009
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	12/31/2009	12/31/2009	12/31/2009
Responses	50,000	0	100,000
Time Burden (Hours)	300,000	0	200,000
Cost Burden (Dollars)	0	0	0

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Abstract: The law allows taxpayers to defer for 5 years taxation of certain income arising in 2009 or 2010. Taxpayers then must include the deferred amount in income ratably over 5 years. The election statement advises that a taxpayer makes the election and the election and information statements provide information necessary to track the income. Respondents are C corporations and other persons in a business that reacquire debt instruments . This revenue procedure provides the exclusive procedures for taxpayers to make an election to defer recognizing discharge of indebtedness income (cancellation of debt, or COD income) under § 108(i) of the Internal Revenue Code.

Emergency Justfication: Section 1231 of Pub. L. No. 111-5 requires taxpayers to attach an election statement to the taxpayer's tax return to obtain a tax benefit. Information on how to make the election and what the statement must include must be published as early as possible to allow taxpayers sufficient time to determine whether to make the election and timely prepare and file their tax returns.

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Authorizing Statute(s): US Code: 26 USC 108(i) Name of Law: Deferral and Ratable Inclusion of Income
  

Citations for New Statutory Requirements: PL: Pub.L. 111 - 5 1231 Name of Law: American recovery and Reinvestment Act of 2009

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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
RP 2009-XX - Internal Revenue Code Section 108(i) Election

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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	50,000	100,000	0	-50,000	0	0
Annual Time Burden (Hours)	300,000	200,000	0	100,000	0	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: This revenue procedure provides the exclusive procedures for taxpayers to make an election to defer recognizing discharge of indebtedness income (cancellation of debt, or COD income) under § 108(i) of the Internal Revenue Code. Section 1231 of Pub. L. No. 111-5 requires taxpayers to attach an election statement to the taxpayer's tax return to obtain a tax benefit. The creation of this new requirement under section 108(i) of the Code results in a decrease in the number of respondents from 100,000 to 50,000. This was a result after analysis of the collection and the addition of a new category of respondents, foreign taxpayers that do not otherwise have to file a tax return. New information is being collected so the average burden hours per respondent was raised from one hour to six hours, with a range of two to eight hours depending on an individual’s circumstance. These changes result in a total burden increase of 100,000 hours.

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Annual Cost to Federal Government: $0

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)? 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: 07/02/2009

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