Exempt Organization Business Income Tax Return (and proxy tax under section 6033(e))

Forms and Documents

Document Name	Status
Form 990-T Exempt Organization Business Income Tax Return Form	Modified
2018-03-09_SS_1545-0687r.docx Supporting Statement A	2018-03-12

IC Document Collections

IC ID	Document Title	Status
39809	Exempt Organization Business Income Tax Return Form	Modified
230572	FAQs for PL 115-97 Section 14103 Other-Guidance	New

ICR Details

OMB Control No: 1545-0687	ICR Reference No: 201606-1545-021
Status: Historical Active	Previous ICR Reference No: 201304-1545-010
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Exempt Organization Business Income Tax Return (and proxy tax under section 6033(e))
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: 03/12/2018
	Date Received in OIRA: 06/30/2016
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	03/31/2021	36 Months From Approved	03/31/2018
Responses	212,500	0	37,103
Time Burden (Hours)	29,489,725	0	5,262,319
Cost Burden (Dollars)	0	0	0

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Abstract: Form 990-T is used to figure and report unrelated business income tax imposed on exempt organizations by IRC section 511 and the proxy tax imposed by section 6033(e). It also used to claim a refund of income tax paid by a regulated investment company (RIC) or a real estate investment trust (REIT), on undistributed long-term capital gain. In addition Form 990-T can be used to request a credit for certain federal excise taxes paid or for small employer health insurance premiums paid, and report unrelated business income tax on reinsurance entities. The likely respondents are any domestic or foreign organization exempt under section 501(a) or section 529(a) if it has gross income of $1,000 or more from a regularly conducted unrelated trade or business. The return is required by IRC sections 6012(a)(2) and (4) and Regulations section 1.6012-2(e) and is to be filed annually at the end of the respondents tax year. IRS uses the information to enforce the tax. The FAQs posted to IRS.gov will assist taxpayers in fulfilling their filing obligations for 2017.

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Authorizing Statute(s): US Code: 26 USC 6012(a)(4) Name of Law: General Rule-Trusts
   US Code: 26 USC 6012(a)(2) Name of Law: Every Corporation Subject to Taxation under Subtitle A
   PL: Pub.L. 115 - 97 14103 Name of Law: Tax Cuts and Jobs Act
   US Code: 26 USC 511 Name of Law: Imposition of Tax on Unrelated Business Income of Charitable, etc., Organizations
  

Citations for New Statutory Requirements: PL: Pub.L. 115 - 97 14103 Name of Law: Tax Cuts and Jobs Act

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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:
	81 FR 17224	03/28/2016
30-day Notice:	Federal Register Citation:	Citation Date:
	81 FR 42794	06/30/2016
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 2

IC Title	Form No.	Form Name
Exempt Organization Business Income Tax Return	990-T	Exempt Organization Business Income Tax Return (and proxy tax under section
FAQs for PL 115-97 Section 14103

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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	212,500	37,103	5,000	0	170,397	0
Annual Time Burden (Hours)	29,489,725	5,262,319	60,000	0	24,167,406	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

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

Burden Increase Due to:

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

Burden Reduction Due to:

Short Statement: The agency has updated the Agency Estimates for number of responses based on its most recent filing data (31,703 to 207,500). The additional responses result in a burden increase of 24,167,406 hours. Changes due to new statute resulting from PL 115-97, section 14103 have a retroactive effective date of 2017. The agency has updated the Changes due to statute by adding another 5,000 respondents as a result. The additional responses create a further burden increase of 60,000 hours, which combined with the changes due to agency estimates result in a new total burden of 29,489,725 hours and 212,500 responses for the overall collection. The changes resulting from PL 115-97, section 14103 are an administrative priority to collect deferred foreign income from US and foreign partnerships and corporations. Due to a lack of resources, the IRS must inform taxpayers how to calculate and report the deferred foreign income on their 2017 returns without disrupting information technology programs. As a result, FAQs were developed to alert taxpayers how and where to report this income on their 2017 return. This is seen as a priority for the Internal Revenue Service as this is a high revenue raiser. A critical part of this effort includes alerting taxpayers of their filing obligations and educating them on how and where this would be reported. This change will affect approximately 5,000 Form 990-T filers and will take an estimated 12 hours to comply, resulting in an overall burden increase of 60,000 hours.

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Annual Cost to Federal Government: $1,637,480

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     Yes

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     Yes

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: 06/30/2016

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