Lr-200.76.sup

5

SUPPORTING STATEMENT

1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION

(1) Section 170(a)(1) of the Internal Revenue Code of 1986

(Code) allows an income tax deduction for any charitable

contribution (defined in Code section 170(c)), payment of which is made during the taxable year. Code section 170(f)(3)generally denies the deduction for charitable contributions of certain partial interests in real property, but not "qualified conservation contributions." That term is defined by Code section 170(h) to mean contributions of a "qualified real property interest" to a qualified organization exclusively for conservation purposes.

Code section 170(h)(2) provides that a "qualified real

property interest" can be a restriction on the use which may be

made of the real property, but that restriction (the conservation

interest) must be granted in perpetuity. To carry out this rule,

section 1.170A‑14(g)(5)(i) provides that if a taxpayer retains a

property interest which may have an adverse impact on the

qualified conservation interest (e.q., retaining the right to

mine property for which the scenic view is donated to a

conservation organization for the benefit of the general public),

the taxpayer must make available to the conservation organization

documentation establishing the condition of the qualified

conservation interest (e.q., a picture of property). This is the

minimum information necessary for the donee conservation

organization (or any successor organization) to have in order to

enforce its property interest. For example, in the

parentheticals above, if the taxpayer starts mining the property,

the conservation organization must have a picture of the property

in its original state in order to determine that the scenic view

is, or is not, being damaged.

The value of a perpetual conservation restriction, and

accordingly the amount of the charitable deduction, will

generally be equal to the difference between the fair market

value of the land it encumbers before and after the granting of

the restriction. However, code section 170(a)(1) provides that

the charitable deduction is only allowed if verified under

regulations prescribed by the Secretary. To carry out this rule,

section 1.170A‑14(i) requires a taxpayer claiming a charitable

deduction to maintain records of (1) the fair market value of the

underlying property before and after the donation and (2) the

conservation purpose of the donation. That information will be

required to be included with the taxpayer's income tax return if

required by the return or its instructions.

2. USE OF DATA

The information is used by the IRS and the taxpayer to

verify that the proper amount of tax is reported or

excluded.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN

We have no plans to offer electronic filing. IRS publication, regulations, notices and letters are to be electronically enabled on an practicable basis in accordance with the IRS Reform and Restructuring Act of 1998.

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

Businesses have only to record this information one time.

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES

Not applicable.

7. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE

INCONSISTENT WITH GUIDELINES IN 5 CFR 1320.5(d)(2)

Not applicable.

8. CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON

AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY

OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS

These regulations were published in the Federal Register as

a Notice of Proposed Rulemaking on May 23, 1983 (48 FR 22940). A public hearing was held on September 15, 1983, following a 60‑day period in which public comments upon any aspect of the proposed regulations were submitted. They were published as final regulations on January 14, 1986 and were approved by OMB prior to publication.

In response to the Federal Register Notice dated March 4, 2010 (75 F.R. 10025), we received no comments during the comment period regarding LR-200-76.

9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO

RESPONDENTS

Not applicable.

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 applicable.

12. ESTIMATED BURDEN OF INFORMATION COLLECTION

Sections 1.170A‑14(g)(5)(i) and 1.170A‑14(i) impose

recordkeeping requirements that will affect 1,000

recordkeepers and will take them approximately 1.25 hours to

complete. The total burden is 1,250 hours.

Estimates of the annualized cost to respondents for the hour burdens shown are not available at this time.

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS

As suggested by OMB, our Federal Register notice dated March 4, 2010, requested public comments on estimates of cost burden that are not captured in the estimates of burden hours, i.e., estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. However, we did not receive any response from taxpayers on this subject. As a result, estimates of the cost burdens are not available at this time.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT

Not applicable.

15. REASONS FOR CHANGE IN BURDEN

There is no change in the paperwork burden previously approved by OMB. We are making this submission to renew the OMB approval.

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION

Not applicable.

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS

INAPPROPRIATE

We believe that displaying the OMB expiration date is inappropriate because it could cause confusion by leading taxpayers to believe that the regulation sunsets as of the expiration date. Taxpayers are not likely to be aware that the Service intends to request renewal of the OMB approval and obtain a new expiration date before the old one expires.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB FORM 83-I

Not applicable.

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.