SUPPORTING STATEMENT
OMB No. 1545-1908
(REG-121475-03)
TD 9495(final)
CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
This regulation provides guidance to state and local governments that issue qualified zone academy bonds and to banks, issuance companies, and other taxpayers that hold those bonds on the program requirements for qualified zone academy bonds. The regulations implement the amendments to section 1397E of the Internal Revenue Code and provides guidance on the maximum term, permissible used of proceeds, and remedial action for qualified zone academy bonds.
Section 1.1397E-1(h) of the regulations state that in order to maintain the qualified status of its bonds, a state or local government that issued qualified zone academy bonds may establish a defeasance escrow for the purpose of paying such bonds as they mature. Under the same regulation, investment earnings derived from the investment of fund in the defeasance escrow must be paid over (rebated) to the United States.
USE OF DATA
In order to ensure compliance with the rebate requirement, the issuers of qualified zone academy bonds must send a notice of the establishment of the defeasance escrow to the IRS, which will ensure that the rebate is paid as it becomes due.
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
This collection of information will not have a significant
impact on a substantial number of small businesses or other entities.
CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES
Issuers of qualified zone academy bonds, would not be in compliance with the rebate requirement.
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).
CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS
A notice of proposed rulemaking was published in the Federal Register on July 16, 2007 (72 FR 38802), soliciting comments and requests for a public hearing. No comments were received associated with the information collection burden, nor a public hearing requested.
In response to the Federal Register notice dated, September 26, 2016 (81 FR 66130), we received no comments regarding REG-121475-03 (TD 9495-final).
EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
No payment or gift has been provided to any respondents.
ASSURANCE OF CONFIDENTIALITY OF RESPONSES
Generally, tax returns, tax return information and closing agreements are confidential as required by 26 U.S.C. 6103.
JUSTIFICATION OF SENSITIVE QUESTIONS
No personally identifiable information (PII) is collected.
ESTIMATED BURDEN OF INFORMATION COLLECTION
The collection of information is in §1.1397E-1(h). This requirement comprised of notifying the IRS that the respondent established a defeasance escrow, information sufficient to identify the escrow, the respondent, and the issue of bonds for the payment of which the escrow is established. We estimate that approximately 6 respondents will provide this notice, and that it will take 30 minutes to prepare the notice. The total reporting burden is 3 hours.
ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
There are no capital/start-up or ongoing operation/ maintenance cost associated with this information collection.
ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
There is no estimated annualized cost to the federal government.
15. REASONS FOR CHANGE IN BURDEN
There are no changes to the paperwork burden previously approved by OMB. We are making this submission to renew the OMB approval.
PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
There are no plans for tabulation, statistical analysis and publication.
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.
EXCEPTIONS TO THE CERTIFICATION STATEMENT
There are no exceptions to the certification statement.
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 | application/msword |
| File Title | SUPPORTING STATEMENT |
| Author | FD3BB |
| Last Modified By | Department of Treasury |
| File Modified | 2016-12-02 |
| File Created | 2013-09-12 |