Form 8886 - Reportable Transaction Disclosure Statement and Pre-CAP/CAP Application Form

Forms and Documents

Document Name	Status
Form Form 8886 Reportable Transaction Disclosure Statement Form	Modified
Pre-CAP and CAP Application Form Form	New
Emergency Justification Memorandum for new CAP application form.doc Supplementary Document	2010-10-08
SSNFORM.doc Supporting Statement A	2010-10-07

IC Document Collections

IC ID	Document Title	Status
43887	Reportable Transaction Disclosure Statement Form	Modified
194813	Pre-CAP and CAP Application Form Form	New

ICR Details

OMB Control No: 1545-1800	ICR Reference No: 201010-1545-015
Status: Historical Active	Previous ICR Reference No: 200908-1545-032
Agency/Subagency: TREAS/IRS	Agency Tracking No: ah-1800-015
Title: Form 8886 - Reportable Transaction Disclosure Statement and Pre-CAP/CAP Application Form
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 10/08/2010
OIRA Conclusion Action: Approved without change	Conclusion Date: 10/08/2010
	Date Received in OIRA: 10/08/2010
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	04/30/2011	6 Months From Approved	11/30/2012
Responses	512	0	400
Time Burden (Hours)	9,112	0	8,904
Cost Burden (Dollars)	0	0	0

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Abstract: Form 8886 is used to disclose participation in reportable transactions by taxpayers as described in regulations 1.6011-4. The Compliance Assurance Process (CAP) is a strictly voluntary program available to LMSB taxpayers that meet the selection criteria. CAP is a real-time review of completed business transactions during the CAP year with the goal of providing certainty of the tax return within 90 days of the filing. The Pre-CAP/CAP Application Form is used by taxpayers wanting to join the program each year. Participation in the CAP program is completely voluntary and is only available for LMSB Taxpayers.

Emergency Justfication: To improve tax compliance by LB&I taxpayers, meet our annual compliance plan objectives, and continue to move LB&I forward, it is essential that we make the distinction between taxpayer behaviors and balance enforcement efforts appropriately. The development and OMB approval of this CAP application form will help us meet our Agency obligations to the taxpayers. Failure to provide taxpayers with the proper tools and assistance to comply with the tax laws and responsibilities could result in an adverse financial impact on the taxpaying public and hinder the mission of the IRS. The new application form will become effective as soon as the permanency announcement is made. Once permanence is announced, this form must be available so taxpayers can apply for the program. Thus, we are requesting an emergency Paperwork Reduction Act review by October 8, 2010.

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Authorizing Statute(s): US Code: 26 USC 6011 Name of Law: General requirement of return, statement or list.
  

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:
	74 FR 27864	06/11/2009
30-day Notice:	Federal Register Citation:	Citation Date:
	74 FR 45522	09/02/2009
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
Reportable Transaction Disclosure Statement	Form 8886	Reportable Transatction Disclosure Statement
Pre-CAP and CAP Application Form	N/A	Pre-CAP/CAP Application Form

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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	512	400	0	112	0	0
Annual Time Burden (Hours)	9,112	8,904	0	208	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: Form 8886 is used to disclose participation in reportable transactions by taxpayers as described in regulations 1.6011-4. The Compliance Assurance Process (CAP) is a strictly voluntary program available to LMSB taxpayers that meet the selection criteria. CAP is a real-time review of completed business transactions during the CAP year with the goal of providing certainty of the tax return within 90 days of the filing. The Pre-CAP/CAP Application Form is used by taxpayers wanting to join the program each year. The new form (Pre-CAP/CAP Application), was added to this collection. This results is a net increase of 208 burden 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: 10/08/2010

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