Supporting Statement 1545-2171

Supporting Statement 1545-2171.doc

Carryback of Consolidated Net Operating Losses to Separate Return Years (TD 9490 - Final)

OMB: 1545-2171

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OMB # 1545-2171

SUPPORTING STATEMENT

TD 9490



1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION


On June 23, 2010, the Treasury Department issued T.D. 9490 which promulgated new temporary regulations under IRC § 1502 to provide consolidated return filers with guidance in applying the five-year extended net operating loss carryback provision of IRC § 172(b)(1)(H), in response to the issues left unresolved by Rev. Proc. 2009-52.

This information is required to document the taxpayer’s election to carry back 5 years all or a portion of its consolidated net operating loss, which taxpayers are allowed to elect to do under section 172 (b)(1)(H), as amended by the Worker Homeownership, and Business Assistance Act of 2009 (“WHBAA”) that the President signed on November 6, 2009 (Pub. L. 111-92).


2. USE OF DATA


The data will be used by the Internal Revenue Service to ensure that taxpayers are preparing their returns in accordance with their elections. The collection of information is required to obtain a benefit. The respondents are corporations filing consolidated returns.


3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN


Taxpayers will file the election electronically with their returns.


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


This election is only available to corporations filing consolidated returns.


6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR

POLICY ACTIVITIES


The collection of information is required to obtain a benefit. With a less frequent collection, the Internal Revenue Service will not be able to ensure that taxpayers are preparing their returns in accordance with their elections.


7. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT

WITH GUIDELINES IN 5 CFR 1320.5(d)(2)


There are no special circumstances requiring data collection to be inconsistent with guidelines in 5 CFR 1320.5(d)(2).


8. CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS


In response to the Federal Register Notice dated May 5, 2016 (81 FR 27191), we received no comments during the comment period regarding TD 9490.


9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS


No payments or gifts are being provided.


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


No personally identifiable information is collected.



12. ESTIMATED BURDEN OF INFORMATION COLLECTION


This regulation will allow taxpayers to elect to carry back a consolidated net operating loss 5 years, instead of the 2 years previously allowed. Thus, respondents will benefit by making this election.


It is estimated that there will be 4,000 respondents. Each response will take 15 minutes, resulting in a total burden of 1,000 hours.


Total responses

Time per response

Total burden

4,000

15 minutes

1,000 hours



13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS


There is no estimated total annual cost burden to respondents.


14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT


There is no annualized cost to the Federal Government.


15. REASONS FOR CHANGE IN BURDEN


There are no changes to the burden previously approved.


16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION


There are no plans for tabulation.


17. 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 revenue procedure 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.



18. EXCEPTIONS TO THE CERTIFICATION STATEMENT


There are exceptions.



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 Typeapplication/msword
File TitleSUPPORTING STATEMENT FOR PAPERWORK REDUCTION ACT SUBMISSIONS
AuthorGlyer Grid R
Last Modified ByChristophe Elaine H
File Modified2016-07-19
File Created2016-07-07

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