Notice 97-66, Certain Payments Made Pursuant to a Securities Lending Transaction; NOT-152783-09 - Guidance regarding Prevention of Over-Withholding and U.S. Tax Avoidance with Respect to Certain Subst

Forms and Documents

Document	Type	Status	Availability
Notice 97-66.pdf	Supplementary Document	Uploaded 2010-04-30	Available
Supporting Statementfor Notice 97-66 and NOT-152783-09.doc	Supporting Statement A	Uploaded 2010-04-30	Available

IC Document Collections

IC ID	Collection	Type	Status	Form
192776	Not-152783-09 - Guidance regarding Prevention of Over-Withholding and U.S. Tax Avoidance with Respect to Certain Substitute Dividend Payments		New
18753	Notice 97-66, Certain Payments Made Pursuant to a Securities Lending Transaction		Unchanged

ICR Details

OMB Control No: 1545-1566	ICR Reference No: 201004-1545-030
Status: Historical Active	Previous ICR Reference No: 200612-1545-032
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Notice 97-66, Certain Payments Made Pursuant to a Securities Lending Transaction; NOT-152783-09 - Guidance regarding Prevention of Over-Withholding and U.S. Tax Avoidance with Respect to Certain Subst
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 07/21/2010
	Date Received in OIRA: 05/18/2010
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	07/31/2013	36 Months From Approved	07/31/2010
Responses	383,500	0	377,500
Time Burden (Hours)	62,750	0	61,750
Cost Burden (Dollars)	0	0	0

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Abstract: Notice 97-66 modifies final regulations which are effective November 14, 1997. The Notice relaxes the statement requirement with respect to substitute interest payments relating to securities loans and repurchased transactions. It also provides a withholding mechanism to eliminate excessive withholding on multiple payments in a chain of substitute dividend payments. NOT-152783-09 modifies Notice 97-66, by providing necessary information to ensure taxpayers are not subject to excessive tax pursuant to IRC section 871(l). The information will allow a withholding agent to make a substitute dividend payment to certain counterparties in a series of securities lending transactions without withholding and depositing additional excessive tax.

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Authorizing Statute(s): US Code: 26 USC 871 Name of Law: Tax on nonresident alien individuals
  

Citations for New Statutory Requirements: PL: Pub.L. 111 - 147 541 Name of Law: Hiring Incentives to Restore Employment Act

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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:
	75 FR 2931	01/19/2010
30-day Notice:	Federal Register Citation:	Citation Date:
	75 FR 27860	05/18/2010
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 2

IC Title	Form No.	Form Name
Not-152783-09 - Guidance regarding Prevention of Over-Withholding and U.S. Tax Avoidance with Respect to Certain Substitute Dividend Payments
Notice 97-66, Certain Payments Made Pursuant to a Securities Lending Transaction

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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	383,500	377,500	6,000	0	0	0
Annual Time Burden (Hours)	62,750	61,750	1,000	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: On March 18, 2010, the Hiring Incentives to Restore Employment Act, Pub. L. No. 111-147, 124 Stat. 71 (2010) (“HIRE Act”) was enacted. Section 541 of the HIRE Act added new § 871(l) to the Internal Revenue Code (the “Code”), which provides that certain dividend equivalent payments are treated as U.S.-source dividends, effective for payments made on or after the date that is 180 days after the date of enactment. The term “dividend equivalent” is defined for this purpose to include “any substitute dividend made pursuant to a securities lending or sale-repurchase transaction that (directly or indirectly) is contingent upon, or determined by reference to, the payment of a dividend from sources within the United States.” § 871(l)(2)(A). Section 871(l)(6) authorizes the Secretary to reduce tax with respect to a chain of dividend equivalents “but only to the extent that the taxpayer can establish that such tax has been paid with respect to another dividend equivalent in such chain, or is not otherwise due, or as the Secretary determines is appropriate to address the role of financial intermediaries in such chain.” This document (NOT-152783-09), provides administrative relief in the form of transition rules that will apply during the time beginning on the effective date of new § 871(l) until regulations are issued. This document will increase the estimated burden by 6,000 responses and 1,000 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]? 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)? No

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: 05/18/2010

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