Income of Foreign Governments and International Organizations

Forms and Documents

Document Name	Status
Supporting Statement.doc Supporting Statement A	2011-09-23

IC Document Collections

IC ID	Document Title	Status
40010	Exemption From Withholding on Investment Income of Foreign	Removed
199399	REG-146537-06 (NPRM) Income of Foreign Governments and International Organizations	New

ICR Details

OMB Control No: 1545-1053	ICR Reference No: 201109-1545-025
Status: Historical Inactive	Previous ICR Reference No: 200103-1545-031
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Income of Foreign Governments and International Organizations
Type of Information Collection: Reinstatement with change of a previously approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Improperly submitted	Conclusion Date: 06/11/2012
	Date Received in OIRA: 11/04/2011
Terms of Clearance: Agency will resubmit collection to address burden incorrectly categorized as a violation.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date		36 Months From Approved
Responses	0	0	0
Time Burden (Hours)	0	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: 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).

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Authorizing Statute(s): 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
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
1545-BG08	Proposed rulemaking	76 FR 68119	11/03/2011

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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: 1

IC Title	Form No.	Form Name
REG-146537-06 (NPRM) Income of Foreign Governments and International Organizations
Exemption From Withholding on Investment Income of Foreign	FORM-8709

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Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

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

Burden Reduction Due to:

Short Statement: 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.

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Annual Cost to Federal Government: $0

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: 11/04/2011

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