Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent

Forms and Documents

Document Name	Status

No forms / supporting documents in this ICR. Check IC Document Collections.

IC Document Collections

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

ICR Details

OMB Control No: 1545-2203	ICR Reference No: 201107-1545-020
Status: Historical Active	Previous ICR Reference No: 201104-1545-003
Agency/Subagency: TREAS/IRS	Agency Tracking No: ah-2203-020
Title: Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 08/03/2011
OIRA Conclusion Action: Approved with change	Conclusion Date: 09/29/2011
	Date Received in OIRA: 08/01/2011
Terms of Clearance: Supporting statement and short statement revised to address errors in agency burden calculations and to include Schedule R.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	03/31/2012	6 Months From Approved	07/31/2014
Responses	48,000	0	188,000
Time Burden (Hours)	2,482,080	0	1,725,090
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. The Revenue Procedure requires the executor attach an appraisal to Form 8939 for certain properties listed on the form. This Revenue Procedure also requires the executor certify to allocations of certain basis increases and attach supporting documentation. The notice requires executors to attach Schedule R to Form 8939 to allocate the decedent's GST exemption, if applicable. Schedule R is used to allocate GST exemption to transfers occurring at death that have GST tax potential. Section 6018 requires the executor, within 30 days of filing Form 8939, send statements to all recipients of such property. It also allows the IRS to request additional information. The notice requires the executor to send original statements and revised statements to affected recipients if the amounts reported on Form 8939 are revised. The notice also requires the executor to include other information as required in the form instructions or other guidance.

Emergency Justfication: The notice provides guidance to the public regarding the manner in which an executor elects to have the provisions of section 1022 apply and allocates the decedent's GST exemption. Section 1022 is new and in effect for only one year. The form 8939, relating to this election, will be due in 2011, but will not be released until this guidance and the accompanying rev. proc. are published. Taxpayers need this guidance to complete the form. The form was originally due on 4/18/11, but was extended until a reasonable time after this guidance is published. Thus, we are requesting emergency status in order to publish this guidance and allow release of the form 8939 for filing in 2011. This revenue procedure provides guidance to the public regarding new IRC section 1022 and the new form 8939 to implement the filing requirement under section 6018, enacted by Pub. L. 107-16, sec. 542(b). The form will be due in 2011, but will not be released until this guidance and the accompanying notice are published because taxpayers need this guidance to complete the form. The form was originally due on 4/18/11, but was extended until a reasonable time after this guidance is published. Thus, we are requesting emergency status in order to publish this guidance to provide information to taxpayers and allow release of the form 8939 for filing in 2011.

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Authorizing Statute(s): PL: Pub.L. 107 - 16 542(b)(1), 901 Name of Law: Economic Growth and Tax Relief Reconciliation Act of 2001
   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) 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
	Other Documents for OIRA Review

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	76 FR 12416	03/07/2011
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
Form 8939, Allocation of Increase in Basis for Property Acquired From a Decedent	8939
Schedule A - Property Acquired by Surviving Spouse	Schedule A (Form 8939)
Schedule B - Property Acquired by Person Other Than Surviving Spouse	Schedule B (Form 8939)

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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	48,000	188,000	0	-140,000	0	0
Annual Time Burden (Hours)	2,482,080	1,725,090	0	756,990	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: Yes

Burden Reduction Due to: Cutting Redundancy

Short Statement: Form is being completey revised to clarify requirements in revenue procedure 2011-41 and notices 2011-66 and 2011-76. Also, schedule B was eliminated, and schedules A and R were included in the 8939 burden calculation, rather than being calculated separately. This results in a total burden of 2,482,080 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: 08/01/2011

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