Supporting Statement

SUPPORTING STATEMENT
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
Form 1097-BTC, Bond Tax Credit, is an information return used to report tax credit bond credits distributed to shareholders. Under The American Recovery and Reinvestment Act of 2009, section 1541 - effective for tax years after
February 17, 2009 - regulated investment companies (RICs), can elect to pass through to shareholders credits from tax
credit bonds, replacing the required pass-through of the credits. Shareholders of the RIC include in income their
proportionate share of the interest income attributable to the credits and are allowed the proportionate share of credits.
(Code section 853A(b)(3). A RIC must report the shareholder’s proportionate share of credits and gross income after
the close of the RIC's tax year. Form 1097-BTC, Bond Tax Credit, has been designed to report to the taxpayers and
the IRS the tax credit distributed. The Internal Revenue Code sections authorizing this collection are 6041 and 6049.

2. USE OF DATA
Form 1097-BTC will provide eligible taxpayers a standardized format to claim this credit.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
Form 1097-BTC can be filed through the FIRE system.

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 form is designed for a small business concern due to the statutory restrictions for eligibility.

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR
POLICY ACTIVITIES
Not applicable.

Form 14029 (Rev. 4-2009) Catalog Number 51944B Page 4

Department of the Treasury–Internal Revenue Service

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
Periodic meetings are held between IRS personnel and representatives of the American Bar Association, the
National Society of Public Accountants, the American Institute of Certified Public Accountants, and other
professional groups to discuss tax law and tax forms. During these meetings, there is an opportunity for those
attending to make comments regarding Form 1097-BTC.
In response to the Federal Register notice dated July 10, 2012 (77 FR 40703), we recieved no comments during the
comment period regarding form 1097-BTC.

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
The burden estimate is as follow:
Form

Number of Responses

Time per Response

1097-BTC

101,630,369

19 mins.

Total Hours
33,538,022

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

Form 14029 (Rev. 4-2009) Catalog Number 51944B

Page 5

Department of the Treasury–Internal Revenue Service

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
As suggested by OMB, our Federal Register notice dated July 10, 2012, 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 recieve any
response from taxpyaers 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
The primary cost to the government consists of the cost of printing Form 1097-BTC. We estimate that the cost of
printing the form is $500.

15. REASONS FOR CHANGE IN BURDEN
The form changes from quarterly to monthly reporting of the credits distributed. The change from quarterly reporting to
monthly reporting was requested by Treasury, Chief Counsel and the Information Reporting Program Advisory
Committee. Most recipients of this form are on a fiscal year for recordkeeping. This form was voluntary for 2011 but
will be required beginning January 2012. The estimated number of filers is 101,630,369. Document 6961 (2009
Update), Calendar Year Projections of Information and Withholding Documents for the United States and IRS
Campuses 2009-2017.
The methodology used to calcualte this burden has been changed from a "business" form to a "special business" form
to better reflect more realistic filing requirements. A business form's calculation variables include attachments, code
references, line items and responses. Special business forms only include line items and responses. The exlusion of
these business variables in the special business calcuation results in an overall decrease in burden of 794,749,486
hours.

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
Not applicable.

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
See attachment.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB PRA SUBMISSION FORM
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 inf

19. REASON FOR EMERGENCY SUBMISSION
N/A

Form 14029 (Rev. 4-2009) Catalog Number 51944B

Page 6

Department of the Treasury–Internal Revenue Service