2017-04-06 SS 1545-0807r

SUPPORTING STATEMENT

Internal Revenue Service

(1545-0807)

TD 7533 Domestic International Sales Corporation (DISC) Rules on Procedure and Administration; Rules on Export Trade Corporations

and TD 7896 Income from Trade Shows

1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION

Per the Code of Federal Regulations (CFR) 1.6071-1(b), the Internal Revenue Service (IRS) can prescribe a time for filing the income tax return for a short period if it is later than the time when the return would normally be due, when the taxpayer is able to show an unusual circumstance, except that no extension of time will be available to file the return of a Domestic International Sales Corporation (DISC). Section 1.6071-1(b) requires that when a taxpayer files a late return for a short period, proof of unusual circumstances for late filing must be given to the District Director.

Internal Revenue Code (IRC) § 6072 Paragraphs (a), (b), (c), and (d) specifies the due dates of income tax returns for individuals, partnerships, funds, trusts, domestic corporations, DISC's, foreign corporations, and cooperative associations filing fiscal year or calendar year returns. IRC § 6072(e) specifies the due date for the income tax returns of exempt organizations. Section 1.6072-2 (b),(c),(d), and (e) of the IRC deals with the filing dates of certain corporate returns and provides some of these taxpayers with additional guidance as to when their tax returns are due, and specifies the due dates for returns filed for taxable years (including short periods).

In January 1978, Treasury Decision 7533 amended Treasury Regulation 1.6072-2 which provides additional information concerning these filing dates. The information is used to insure timely filing of corporate income tax returns

On May 27, 1983, Treasury Decision 7896 finalized the treatment of income from qualified trade shows sponsored by certain exempt organizations. Changes to the applicable tax law were made by the Tax Reform Act of 1976. These regulations provide necessary guidance to the public for compliance with that Act and would affect certain exempt organizations that sponsor trade shows. The regulation also conforms the regulations to changes in the tax law concerning the time for filing an exempt organization's income tax return by amending paragraph 6, Section 1.6072-2, Time for filing returns of corporations.

2. USE OF DATA

The Code of Federal Regulations § 1.6071-1(b) is used to allow the IRS to determine whether there are unusual circumstances that should permit a taxpayer to file a return for a short period later than it would otherwise be due.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN

We have no plans at this time to offer electronic filing because of the low volume compared to the cost of electronic enabling. 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.

4. EFFORTS TO IDENTIFY DUPLICATION

The information obtained through this collection is unique and is not already available for use or adaptation from another source.

5. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES

There is no flexibility to reduce burden on small businesses or other small entities because the statutes apply to small businesses and small entities.

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES

With respect to income tax returns filed for short periods, if the IRS does not collect information regarding unusual circumstances that indicates it should permit a taxpayer to file the taxpayer’s return later than otherwise required by section 6072, it will not prescribe a later due date for the taxpayer’s return. A less frequent collection will not enable the IRS to verify the tax treatment in accordance could result in being unable to meet its mission.

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

We received no comments during the comment period in response to the Federal Register notice dated January 19, 2017 (82 FR 6727).

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

No payment or gift has been provided to any respondents.

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

There is no personally identifiable information (PII) in this collection.

12. ESTIMATED BURDEN OF INFORMATION COLLECTION

Regulation section 1.6071-1(b) provides that a taxpayer may obtain a later due date for its income tax return filed for a short period by showing the IRS that it has unusual circumstances. The IRS needs this information to determine if the taxpayer has a just reason for requesting a later due date.

Authority	Description	# of Respondents	# Responses per Respondent	Annual Responses	Hours per Response	Total Burden
1.6071-1(b)	Short period tax return	12,417	1	12,417	.25	3,104
Totals		12,417				3,104

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS

There are no start-up costs associated with this collection.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT

There are no known annualized costs to the federal government.

15. REASONS FOR CHANGE IN BURDEN

There is no change in the paperwork burden previously approved by OMB. We are making this submission to renew the OMB approval.

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION

There are no plans for tabulation, statistical analysis and publication.

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 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.

18. 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.