Form 8697--Internet Computation Under the Look-Back Method for Completed Long-Term Contracts

Forms and Documents

Document Name	Status
Form Form 8697 Internet Computation Under the Look-Back Method for Completed Long-Term Contracts Form	Modified
1545-1031_SS_Form8697_REV.doc Supporting Statement A	2011-12-29
Summary of Changes.pdf Supplementary Document	2011-12-05
Expiration Explanation.rtf Supplementary Document	2008-09-05

IC Document Collections

IC ID	Document Title	Status
39997	Internet Computation Under the Look-Back Method for Completed Long-Term Contracts Form	Modified

ICR Details

OMB Control No: 1545-1031	ICR Reference No: 201112-1545-007
Status: Historical Active	Previous ICR Reference No: 200809-1545-003
Agency/Subagency: TREAS/IRS	Agency Tracking No: EC-1545-1031-003
Title: Form 8697--Internet Computation Under the Look-Back Method for Completed Long-Term Contracts
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 03/25/2012
	Date Received in OIRA: 12/29/2011
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	03/31/2015	36 Months From Approved	03/31/2012
Responses	4,333	0	3,333
Time Burden (Hours)	72,578	0	40,557
Cost Burden (Dollars)	0	0	0

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Abstract: Taxpayers required to account for all or part of any long-term contract entered into after February 28, 1986, under the percentage of completion method must use Form 8697 to compute and report interest due or to be refunded under IRC section 460(b)(3). The IRS uses Form 8697 to determine if the interest has been figured correctly. Taxpayers may compute interest using the actual method (Part I) or the Simplified Marginal Impact Method (Part II).

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Authorizing Statute(s): US Code: 26 USC 460(b)(3) Name of Law: Special rules.
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	76 FR 47648	08/05/2011
30-day Notice:	Federal Register Citation:	Citation Date:
	76 FR 81557	12/28/2011
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
Internet Computation Under the Look-Back Method for Completed Long-Term Contracts	Form 8697, Form 8697 (Draft 2011)	Interest Computation Under the Look-Back Mehtod for Completed Long-term Contracts ,   Interest Computation Under the Look-Back Method for Completed Long-Term Contacts

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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	4,333	3,333	0	0	1,000	0
Annual Time Burden (Hours)	72,578	40,557	0	19,851	12,170	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: No

Burden Reduction Due to:

Short Statement: An increase in the number of responses by 1,000, for a total of 4,300, is attributed to an adjustment in agency estimate. This adjustment reflects an increase in burden by 12,170 hours. Numerous recommendations were adopted from a committee organized to review Form 8697. 1. We added a column on page 1 for the year the contract was completed. The income adjustments from the prior years are based on amounts computed when the contract is completed. (Reg. 1.460-6(c)(3)); 2. For line 2, we removed the shading from the totals column. The adjustments should net to zero since look-back interest only allocates interest between the years; 3. We added an explanation to the headings in Parts I and II to explain to taxpayers the reason to complete each part; 4. In the signature block, we added a line in case a spouse has to sign the form. The processing of Form 8697 has been delayed in the past if the spouse's signature was missing, and 5. In the signature block for paid preparer's, we removed the reference to SSN since every preparer is required to have a PTIN. These program changes increased the burden by 19,851 hours due to agency discretion. A total of 72,578 burden hours are requested, an increase of 32,021 hours from the previously approved burden of 40,557 hours.

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Annual Cost to Federal Government: $5,572

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: 12/29/2011

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