8873.Sup

8873.Sup.doc

Extraterritorial Income Exclusion

OMB: 1545-1722

Document [doc]
Download: doc | pdf

SUPPORTING STATEMENT

(Form 8873)




  1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION


The FSC and Extraterritorial Income Exclusion Act of 2000 added section 114 to the Internal Revenue Code. Section 114 provides for an exclusion from gross income for certain transactions occurring after September 30, 2000, with respect to foreign trading gross receipts. Deductions attributable to the excluded income are disallowed.


2. USE OF DATA

The IRS uses the information to determine who is claiming the exclusion and the amount excluded.


3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN


Low filing volume does not justify the cost of electronic enabling for Form 8873.


  1. 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


An exception to the Foreign Economic Process Requirements has been provided for taxpayers with $5 million in gross receipts or less. In addition, an exception from filing tabular schedules has been provided for taxpayers meeting that same gross receipts limitation.

  1. 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.






  1. 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 8873.


In response to the Federal Register Notice dated June 10, 2010 (75 F.R. 32990), we received no comments during the comment period regarding Form 8873.


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


Not applicable.


  1. 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


The burden estimate is as follows:


Number of Time per Total

Responses Response Hours


Form 8873 750,000 25.45 19,087,500


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 June 10, 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


The primary cost to the government consists of the cost of printing Form 8873. We estimate that the cost of printing the form is $10,000.


  1. REASONS FOR CHANGE IN BURDEN


There is no change in the form previously approved by OMB.


We are making this submission to renew the OMB approval.


16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION


Not applicable.


  1. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE


See attachment.


  1. 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.



File Typeapplication/msword
Last Modified Byqhrfb
File Modified2010-08-12
File Created2007-04-12

© 2024 OMB.report | Privacy Policy