Form 8939 - Allocation of Increase in Basis for Property Received from a Decedent

Forms and Documents

Document Name	Status
Form Schedule B (Form 8 Schedule B - Property Acquired by Person Other Than Surviving Spouse Form	New
Form Schedule A (Form 8 Schedule A - Property Acquired by Surviving Spouse Form	New
Form 8939 Form 8939 - Allocation of Increase in Basis for Property Received from a Decedent Form	New
Supporting_Statement_REV.pdf Supporting Statement A	2010-12-06
ombat1.doc Supplementary Document	2010-12-03

IC Document Collections

IC ID	Document Title	Status
195581	Schedule B - Property Acquired by Person Other Than Surviving Spouse Form	New
195580	Schedule A - Property Acquired by Surviving Spouse Form	New
195579	Form 8939 - Allocation of Increase in Basis for Property Received from a Decedent Form	New

ICR Details

OMB Control No: 1545-2203	ICR Reference No: 201012-1545-002
Status: Historical Active	Previous ICR Reference No:
Agency/Subagency: TREAS/IRS	Agency Tracking No: Requesting Approval by 12/10/2010
Title: Form 8939 - Allocation of Increase in Basis for Property Received from a Decedent
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 12/10/2010
OIRA Conclusion Action: Approved without change	Conclusion Date: 12/17/2010
	Date Received in OIRA: 12/06/2010
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	06/30/2011	6 Months From Approved
Responses	188,000	0	0
Time Burden (Hours)	1,725,090	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: Section 6018 of the Internal Revenue Code requires this return to be filed by an executor the fair market value of all property (other than cash) acquired from the decedent is more than $1.3 million; in the case of a decedent who was a nonresident not a citizen of the United States, the fair market value of tangible property situated in the United States and other property acquired from the decedent by a United States person is greater than $60,000; or appreciated property is acquired from the decedent that the decedent acquired by gift within three years of death and a gift tax return was required to be filed on the transfer to the decedent. Section 6018(e) also requires executors who must file Form 8939 to provide the same information to recipients of the property as the executor must provide to the IRS.

Emergency Justfication: This is a new form to implement the filing requirement under section 6018, enacted by Pub. L. 107-16, sec. 542(b), and to permit executors of decedents' estates to allocate the basis increase permitted by section 1022, added by Pub. L. 107-16, section 542(a). Section 6018 is a new rule for 2010, or more precisely for decedents dying in 2010. Section 6018(a) of the Internal Revenue Code states: "If this section applies to property acquired from a decedent, the executor of the estate of such decedent shall make a return containing the information specified in subsection (c) with respect to such property." Section 6018(c) states: The information specified in this subsection with respect to any property acquired from the decedent is — (1) The name and TIN of the recipient of such property, (2) An accurate description of such property, (3) The adjusted basis of such property in the hands of the decedent and its fair market value at the time of death, (4) The decedent’s holding period for such property, (5) Sufficient information to determine whether any gain on the sale of the property would be treated as ordinary income, (6) The amount of basis increase allocated to the property under subsection (b) or (c) of section 1022, and (7) Such other information as the Secretary may by regulations prescribe. As of June, we did not know enough about the rules to create a form that we thought we could submit; nor could we get any feedback from Counsel or anyone else in the Service as to whether the June draft, which has been replaced, even remotely resembled the rules in the statute or the rules that are going to be interpreted to make the section work (these rules have yet to be finalized). We did not know whether the number of required filers would be a million or 50,000. Nor did we want to have our June draft, which would necessarily not look anything like the final form to be released on reginfo.gov. The primary reason, for our inability to find out what the actual rules were/are going to be is that until now, Counsel and Treasury were still expecting an extenders bill to reinstate the estate tax; Treasury's marching orders to Counsel have been to assume the rules above, which apply for only one year (2010), would be repealed. Because of uncertainty as to extender legislation, we were not sure that we would even need this one-year form. At this point in time, we must make this form available to avoid creating hardship situations on the taxpayer or the Agency in meeting the tax obligations. This form must be made available to taxpayers before the end of this year. Thus, we are requesting an emergency Paperwork Reduction Act review by December 10, 2010.

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Authorizing Statute(s): US Code: 26 USC 6018 Name of Law: Returns relating to large transfers at death
  

Citations for New Statutory Requirements: PL: Pub.L. 107 - 16 542(b)(1), 901 Name of Law: Economic Growth and Tax Relief Reconciliation Act of 2001

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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

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 3

IC Title	Form No.	Form Name
Form 8939 - Allocation of Increase in Basis for Property Received from a Decedent	8939	Allocation of Increase in Basis for Property Received from a Decedent
Schedule A - Property Acquired by Surviving Spouse	Schedule A (Form 8939)	Property Acquired by Surviving Spouse
Schedule B - Property Acquired by Person Other Than Surviving Spouse	Schedule B (Form 8939)	Property Acquired by Person Other Than Surviving Spouse

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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	188,000	0	188,000	0	0	0
Annual Time Burden (Hours)	1,725,090	0	1,725,090	0	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: This is a new form to implement the filing requirement under section 6018, enacted by Pub. L. 107-16, sec. 542(b), and to permit executors of decedents' estates to allocate the basis increase permitted by section 1022, added by Pub. L. 107-16, section 542(a). Section 6018 is a new rule for 2010, or more precisely for decedents dying in 2010. This creation of this form will result in an increase of 188,000 responses and 1,725,090 hours.

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Annual Cost to Federal Government: $3,476,502

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: 12/06/2010

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