Domestic Production Activities Deduction

Forms and Documents

Document Name	Status
Form 8903 Domestic Production Activities Deduction Form	Modified
Expiration Explanation.rtf Supplementary Document	2012-09-26
F8903_Sup Stmnt.doc Supporting Statement A	2012-09-26

IC Document Collections

IC ID	Document Title	Status
19729	Domestic Production Activities Deduction Form	Modified

ICR Details

OMB Control No: 1545-1984	ICR Reference No: 201209-1545-015
Status: Historical Active	Previous ICR Reference No: 200906-1545-007
Agency/Subagency: TREAS/IRS	Agency Tracking No: ah-1984-007
Title: Domestic Production Activities Deduction
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved with change	Conclusion Date: 03/12/2013
	Date Received in OIRA: 09/28/2012
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	03/31/2016	36 Months From Approved	03/31/2013
Responses	300,000	0	300,000
Time Burden (Hours)	7,398,000	0	6,450,000
Cost Burden (Dollars)	0	0	0

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Abstract: Taxpayers will use the Form 8903 and related instructions to calculate the domestic production activities deduction.

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Authorizing Statute(s): US Code: 26 USC 199 Name of Law: Income attributable to domestic production activities
   US Code: 26 USC 6103 Name of Law: Confidentiality and disclosure of returns and return information
  

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:
	77 FR 43429	07/24/2012
30-day Notice:	Federal Register Citation:	Citation Date:
	77 FR 59706	09/28/2012
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
Domestic Production Activities Deduction	8903	Domestic Production Activities Deduction

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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	300,000	300,000	0	0	0	0
Annual Time Burden (Hours)	7,398,000	6,450,000	0	948,000	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: No

Burden Reduction Due to:

Short Statement: Individuals, corporations, cooperatives, estates, and trusts use Form 8903 to figure their allowable Domestic Production Activities Deduction (DPAD) from certain trade or business activities. This ICR submission reflects a redesign of Form 8903 to include income from oil-related production activities. For tax years beginning after 2009, the applicable rate for the Domestic Production Activities Deduction (DPAD) of taxpayers with oil-related qualified production activities income (QPAI) increased from 6% to 9% on the smallest of the following amounts: Oil-related qualified production activities income (QPAI), QPAI (from an estate or trust), or Adjusted gross income (AGI) for an individual, estate, or trust (taxable income for all other taxpayers) figured without the DPAD. Line 13 allows for the computation of the 9% of QPAI. The addition of Lines 14a and 14b allows the filer to determine the least of :oil related QPAI, QPAI, or AGI. The addition of the two lines result in total estimated burden increase of 948,000 hours.

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Annual Cost to Federal Government: $1,000

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: 09/28/2012

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