Supporting Statement

SUPPORTING STATEMENT

Revenue Procedures 2003-43 and 2004-48

1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION

These revenue procedures require the collection of certain information in order for the

taxpayer to gain relief for late Subchapter S elections, Electing Small Business Trust

elections, Qualified Subchapter S Trust elections, and untimely Qualified Subchapter Subsidiary elections (late Election Under Subchapter S), and certain late classification elections. The information is designed to make sure that applications for relief meet the requirements set out in the revenue procedure.

2. USE OF DATA

The data will be used to determine whether the eligibility requirements for obtaining relief have been met.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN

IRS Publications, Regulations, Notices and Letters are to be electronically enabled on an as practicable basis in accordance with the IRS Reform and Restructuring Act of 1998.

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 procedures in this revenue procedures reduce the burden imposed on taxpayers by the private letter ruling process (Rev. Proc. 2005‑1).These revenue procedures allows small businesses to obtain relief for late elections without the time and cost of the private letter ruling process.

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES

Not applicable.

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

Revenue Procedure 98-55 was published in the Internal Revenue Bulletin on November 16, 1998 (1998-46 IRB 27). Revenue Procedure 2003-43 (2003-23 IRB 998) supersedes Revenue Procedure 98-55 was published in the Internal Revenue Bulletin in January 2003.

Revenue Procedure 2004-48 was published in the Internal Revenue Bulletin on August 9, 2004 (2003-32 IRB 172). .

We received no comments during the comment period in response to the Federal Register Notice (75 FR 78804), dated December 16, 2010.

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

This information is required to be submitted to the applicable service center in order to obtain relief for late elections under subchapter S, and certain entity classification elections. This information will be used to determine whether the eligibility requirements for obtaining relief have been met. The collection of information is required to obtain a benefit. The likely respondents are business or other for‑profit institutions. The estimated total annual reporting burden is 25,000 hours for each revenue procedure (50,000 hours). The estimated average annual burden per respondent is 1 hour to complete the statement. The estimated number of respondents is 25,000 for each revenue procedure (50,000 respondents).

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

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS

As suggested by OMB, our Federal Register notice dated (75 FR 78804), dated December 16, 2010, requested public comments on estimates of cost burden that are not captured in the estimates of burden hours, i.e., estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. However, we did not receive any response from taxpayers on this subject. As a result, estimates of the cost burdens are not available at this time.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT

Not applicable.

15. REASONS FOR CHANGE IN BURDEN

16. There are no changes in the paperwork burden previously approved by OMB.

We are making this submission to renew the OMB approval.

17. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION

Not applicable.

18. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE

We believe that displaying the OMB expiration date is inappropriate because it could cause confusion by leading taxpayers to believe that the revenue procedure sunset as of the expiration date. Taxpayers are not likely to be aware that the Service intends to request renewal of the OMB approval and obtain a new expiration date before the old one expires.

19. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB FORM 83-I

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.