SUPPORTING STATEMENT
T.D. 9248 (REG-159243-03)
Residence Rules Involving U.S. Possessions
1545-1930
CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
T.D. 9248 contains final regulations that provide rules for determining bona fide residency in the following U.S. possessions: American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the United States Virgin Islands under sections
937(a) and 881(b) of the Internal Revenue Code (Code).
The collection of information required by § 1.937–1(h) is to ensure that individuals claiming to become, or cease to be, residents of a U.S. possession file notice of such a claim with the Internal Revenue Service in accordance with section 937(c) of the Code. Individuals subject to this reporting requirement must retain information to establish their residency as required by section 937(c) of the Code and § 1.937–1.
An additional collection of information in the final regulations is in § 1.937–1(c)(4)(iii). This information is required to satisfy the documentation and production requirements for individuals who come within an exception to the presence test of § 1.937–1(c) as a consequence of receiving (or accompanying certain family members who receive) qualifying medical treatment.
USE OF DATA
The recordkeeping requirements will be used to verify that taxpayers’ determination of residency and reporting of source of income in a U.S. possession is accurate. The collections of information will be used for audit and examination purposes.
USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
IRS Publications, Regulations, Notices and Letters are to be electronically enabled on an as practicable basis in accordance with the IRS Reform and Restructuring Act of 1998.
EFFORTS TO IDENTIFY DUPLICATION
We have attempted to eliminate duplication within the agency wherever possible.
METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES
Not applicable.
CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES
Not applicable.
SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT WITH GUIDELINES IN 5 CFR 1320.5(d)(2)
Not applicable.
CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS
The final regulations were published in the Federal Register on January 31, 2006 (71 FR 4996).
We received no comments during the comment period in response to the Federal Register Notice dated August 22, 2014 (79 FR 49844).
EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
Not applicable.
ASSURANCE OF CONFIDENTIALITY OF RESPONSES
Generally, tax returns and tax return information are confidential as required by
26 USC 6103.
JUSTIFICATION OF SENSITIVE QUESTIONS
No personally identifiable information (PII) is collected.
ESTIMATED BURDEN OF INFORMATION COLLECTION
We estimate that 75,000 respondents will keep records and/or report annually as required by § 1.937–1(h) and § 1.937–1(c)(4)(iii) of the Code. The estimated annual burden per respondent is 4 hours. The total recordkeeping/reporting requirement is 300,000 hours.
Estimates of the annualized cost to respondents for the hour burdens shown are not available at this time.
ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
As suggested by OMB, our Federal Register Notice dated August 22, 2014 (79 FR 49844), 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 purchases of services to provide information. However we did not receive any response from taxpayers on this subject. As a result, estimates of the cost burdens are not available at this time.
ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
Not applicable.
REASONS FOR CHANGE IN BURDEN
There are no changes in burden previously reported to OMB. We are making this
submission to extend a currently approved collection.
PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
Not applicable.
REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
We believe that displaying the OMB expiration date is inappropriate because it could
cause confusion by leading taxpayers to believe that the regulation sunsets as of the
expiration date. Taxpayers are not likely to be aware that the Service intends to request
renewal of the OMB approval and obtain a new expiration date before the old one
expires.
EXCEPTIONS TO THE CERTIFICATION STATEMENT
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 information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.
| File Type | text/rtf |
| File Title | SUPPORTING STATEMENT |
| Author | NOCLJDV |
| Last Modified By | Department of Treasury |
| File Modified | 2014-11-19 |
| File Created | 2008-09-09 |