Supporting_Statement_REV

SUPPORTING STATEMENT
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
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.

2. USE OF DATA
The data will be used by the IRS primarily to verify basis used in any future year in which such basis is used by
recipients of such property to compute income, gain, loss, deductions, or credits. The data will be used by recipients of
property to compute income, gain, loss, deductions, or credits as and when any of those computations include the
basis of property acquired from a decedent dying in 2010.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
It is not possible for this return to be filed electronically.

4. EFFORTS TO IDENTIFY DUPLICATION
None of the information in this collection is duplicated in any other collection. We are seeking only the information
required to be collected by 26 U.S.C. 6018(c).

5. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES
Not applicable.

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR
POLICY ACTIVITIES
Section 6018 of the U.S. Code permits no less frequent collection than one filing of this return occasioned by the death
of a decedent to which the section applies.

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 8939.
We will publish a notice in the Federal Register in the near future to solicit public comments on Form 8939.

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

Form 8939
Sch A (8939)
Sch B (8939)

Number of
Responses
100,000
45,000
43,000

Time per
Response
8 hrs 8 min
10 hrs 43 min
9 hrs 59 min

Total
Hours
814,000
481,950
429,140

Total
1,725,090
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

Page 5

Department of the Treasury–Internal Revenue Service

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
Estimates of the cost burdens are not available at this time.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
The estimated annualized cost to the government is $3,476,502.
.

15. REASONS FOR CHANGE IN BURDEN
This collection is a new collection, required by 26 U.S.C. 6018.

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

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

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
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.

19. REASON FOR EMERGENCY SUBMISSION
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 form must be made available to taxpayers before the end of this year.

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

Page 6

Department of the Treasury–Internal Revenue Service