Agency will resubmit collection to address burden incorrectly categorized as a violation.
Inventory as of this Action
Requested
Previously Approved
36 Months From Approved
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This document contains proposed Income Tax Regulations that provide guidance relating to the taxation of the income of foreign governments from investments in the United States under section 892 of the Internal Revenue Code of 1986 (Code).
US Code:
26 USC 7805
Name of Law: Rules and regulations
US Code:
26 USC 1441
Name of Law: Withholding of tax on nonresident aliens
US Code:
26 USC 892
Name of Law: Income of foreign governments and of international organizations
These regulations will provide rules regarding the taxation of income of foreign governments and international organizations.
On June 27, 1988, temporary regulations under section 892 (TD 8211, 53 FR 24060) (1988 temporary regulations) with a cross-reference notice of proposed rulemaking (53 FR 24100) were published in the Federal Register to provide guidance concerning the taxation of income of foreign governments and international organizations from investments in the United States. These proposed regulations supplement the cross-reference notice of proposed rulemaking to provide additional guidance for determining when a foreign government's investment income is exempt from U.S. taxation.
After the 1988 temporary regulations were published, section 892(a)(2)(A) was amended by the Technical and Miscellaneous Revenue Act of 1988, Pub. L. No. 100-647, 102 Stat. 3342 (TAMRA) to provide that income derived from the disposition of any interest in a controlled commercial entity does not qualify for the exemption under section 892. These proposed regulations revise §1.892-5(a) to reflect the amendment of section 892 by TAMRA. The requirement that a taxpayer must have "written policies and operational procedures in place to monitor the entity's worldwide activities" at §1.892-5(a)(2)(ii)(B) will result in an estimated burden of 195 responses and an estimated annual burden of 975 hours attributed to a change due to agency discretion.
The original collection of information in the temporary regulations (TD 8211) was prescribed under §1.1441-8 utilizing Form 8709; subsequently replaced by Form W-8EXP and cleared on OMB number 1545-1621. This information is required to avoid withholding of tax at source with regard to specific types of income received by foreign governments and international organizations. The burden reduction of 30,000 responses and 42,600 hours is attributed to an adjustment in the reporting the burden associated with §1.1441-8 requirements under OMB number 1545-1621. This information collection is being reinstated to cover the requirements in this proposed regulation under §1.892-5(a)(2)(ii)(B) and §1.892-5(a)(2)(iv) which is required to determine if taxpayers qualify for exemption from tax under section 892.
$0
No
No
No
No
No
Uncollected
Richard Chewning 202 622-3850
No
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:
(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;
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.
Supporting Statement.doc
Exemption From Withholding on Investment Income of Foreign