Foreign Tax Credit (Individual, Estate, or Trust)

Forms and Documents

Document Name	Status
Form 1116 Foreign Tax Credit (Individual, Estate, or Trust) Form	Modified
ombat2.doc Supplementary Document	2007-07-20
SS.doc Supporting Statement A	2011-01-31

IC Document Collections

IC ID	Document Title	Status
39545	Foreign Tax Credit (Individual, Estate, or Trust) Form	Modified

ICR Details

OMB Control No: 1545-0121	ICR Reference No: 201010-1545-026
Status: Historical Active	Previous ICR Reference No: 200707-1545-014
Agency/Subagency: TREAS/IRS	Agency Tracking No: ah-0121-014
Title: Foreign Tax Credit (Individual, Estate, or Trust)
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved with change	Conclusion Date: 01/31/2011
	Date Received in OIRA: 11/30/2010
Terms of Clearance: Short statement and supporting statement were modified to address discretionary burden changes.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	01/31/2014	36 Months From Approved	01/31/2011
Responses	4,143,255	0	4,143,255
Time Burden (Hours)	25,066,693	0	22,093,974
Cost Burden (Dollars)	0	0	0

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Abstract: Form 1116 is used by individuals (including nonresident aliens) estates or trusts that paid foreign income taxes on U.S. taxable income to compute the foreign tax credit. This information is used by the IRS to verify the foreign tax credit.

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Authorizing Statute(s): US Code: 26 USC 904 Name of Law: Limitation on credit.
   US Code: 26 USC 901 Name of Law: Taxes of foreign countries and of possessions of United States
  

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:
	75 FR 44850	07/29/2010
30-day Notice:	Federal Register Citation:	Citation Date:
	75 FR 70775	11/18/2010
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Foreign Tax Credit (Individual, Estate, or Trust)	1116	Foreign Tax Credit

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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	4,143,255	4,143,255	0	0	0	0
Annual Time Burden (Hours)	25,066,693	22,093,974	0	2,972,719	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: The high tax kick out reclassification (HTKO) occurs when highly taxed passive income must be treated as general category income under IRC 904(d)(2)(F). In effect, this provision recategorizes (or "kicks out") passive income as general category income if the foreign taxes paid on the income exceed the highest U.S. tax that can be imposed on the income. Line 13 was added at the request of Chief Counsel. The HTKO was previously a write-in item and adding a separate line for the HTKO makes the entry simpler for both filers and the Service. It doesn't result from a new law but instead was added to ease administration. The new line also makes Form 1116 consistent with Form 1118, Foreign Tax Credit--Corporations, (Schedule B, line 4).

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Annual Cost to Federal Government: $7,775

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]? No

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: 11/30/2010

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