Supp. Statmnt, Form 1097-BTC

SUPPORTING STATEMENT
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
Form 1097-BTC, Bond Tax Credit, is an information return used to report tax credit bond credits distributed to shareholders. Under The American Recovery and Reinvestment Act of 2009, section 1541 - effective for tax years after
February 17, 2009 - regulated investment companies (RICs), can elect to pass through to shareholders credits from tax
credit bonds, replacing the required pass-through of the credits. Shareholders of the RIC include in income their
proportionate share of the interest income attributable to the credits and are allowed the proportionate share of credits.
(Code section 853A(b)(3). A RIC must report the shareholder’s proportionate share of credits and gross income after
the close of the RIC's tax year. Form 1097-BTC, Bond Tax Credit, has been designed to report to the taxpayers and
the IRS the tax credit distributed. The Internal Revenue Code sections authorizing this collection are 6041 and 6049.

2. USE OF DATA
Form 1097-BTC will provide eligible taxpayers a standardized format to claim this credit.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
Form 1097-BTC can be filed through the FIRE system.

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
The form is designed for a small business concern due to the statutory restrictions for eligibility.

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR
POLICY ACTIVITIES
Not applicable.

Form 14029 (Rev. 4-2009) Catalog Number 51944B Page 4

Department of the Treasury–Internal Revenue Service

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
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 1097-BTC.
We will publish a notice in the Federal Register in the near future to solicit public comments on this form.

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
The burden estimate is as follow:
Form

Number of Responses

Time per Response

Total Hours

1097-BTC

101,630,369

8 hrs., 9 mins.

828,287,508

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

Form 14029 (Rev. 4-2009) Catalog Number 51944B

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Department of the Treasury–Internal Revenue Service

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide
information 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 1097-BTC. We estimate that the cost of
printing the form is $500.

15. REASONS FOR CHANGE IN BURDEN
This is a new collection.

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
Not applicable.

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
See attachment.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB PRA SUBMISSION FORM
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 inf

19. REASON FOR EMERGENCY SUBMISSION
Attempts were initiated to process this ICR under normal circumstances; a Federal Register Notice was published on
September 14, 2010, (75 FR 55849). Due to current economic conditions, we are requesting to make this important
form available to the taxpayers by the end of October. Since the provision is applicable to tax years beginning after
February 17, 2009, we are asking for an emergency review and approval of this ICR by 10/22/2010. Failure to provide
this form will prevent the accurate and timely tax reporting of this credit. This could have a significant negative impact
on the taxpayers and agency alike, creating additional burden on all stakeholders if delayed any longer.

Form 14029 (Rev. 4-2009) Catalog Number 51944B

Page 6

Department of the Treasury–Internal Revenue Service