2017-09-11 Ss 1545-1112

SUPPORTING STATEMENT

Internal Revenue Service

26 CFR 301-9100-8, Time and Manner of making Certain Elections Under the

Technical and Miscellaneous Revenue Act of 1988

OMB No. 1545-1112

1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION

Regulation section 301.9100-8, formerly section 5h.6, provides final income, estate and gift, and employment tax regulations relating to elections made under the Technical and Miscellaneous Revenue Act of 1988. These regulations enable taxpayers to take advantage of various benefits provided by the Internal Revenue Code.

Manner of making elections. The elections described in paragraph 301.9100-8(a)(1) must be made by attaching a statement to the tax return for the first taxable year for which the election is to be effective. If such tax return is filed prior to the making of the election, the statement must be attached to an amended tax return of the first taxable year for which the election is to be effective. Except as otherwise provided in the return or in the instructions accompanying the return for the taxable year, the statement must—

(i) Contain the name, address and taxpayer identification number of the electing taxpayer;

(ii) Identify the election;

(iii) Indicate the section of the Code (or, if the provision is not codified, the section of the Act) under which the election is made;

(iv) Specify, as applicable, the period for which the election is being made and the property or other items to which the election is to apply; and

(v) Provide any information required by the relevant statutory provisions and any information requested in applicable forms and instructions, such as the information necessary to show that the taxpayer is entitled to make the election.

2. USE OF DATA

The information contained in these regulations will be used to determine the requirements with respect to various elections made under the Act.

3. 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. IRS intends to offer electronic filing to the extent it is practicable however in this case it isn’t practicable because of the evaluative nature of the determination.

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

The collections of information in these regulations will not have a significant economic impact on a substantial number of small entities.

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

Consequences of less frequent collection on federal programs or policy activities would consist of decreased amount of taxes collected by the Service, inaccurate and untimely filing of tax returns, and an increase in tax violations.

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 June 27, 2017 (82 FR 29177).

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 sensitive personally identifiable information (PII) in this collection.

12. ESTIMATED BURDEN OF INFORMATION COLLECTION

General rules regarding the time for making the elections are provided in paragraph (a)(2) of § 301.9100-8. General rules regarding the manner for making the elections are provided in paragraph (a)(3) and special rules regarding the time and manner for making certain elections are contained in paragraphs (a) through (i).

Burden associated with specific elections are identified on the attached burden table and the total burden identified is:

# Respondents	# Responses Per Respondent	Total Annual Responses	Hours Per Response	Total Burden
21,740	1	21,740	0.276	6010

Estimates of the annualized cost to respondents for the hour burdens shown are not available at this time.

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS

To ensure more accuracy and consistency across its information collections, IRS is currently in the process of revising the methodology it uses to estimate burden and costs. Once this methodology is complete, IRS will update this information collection to reflect a more precise estimate of burden and costs.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT

To ensure more accuracy and consistency across its information collections, IRS is currently in the process of revising the methodology it uses to estimate burden and costs. Once this methodology is complete, IRS will update this information collection to reflect a more precise estimate of burden and costs.

15. REASONS FOR CHANGE IN BURDEN

This revision makes adjustments to correct the calculation of the burden associated with the elections identified under §301.9100-8. We are making this submission to renew the OMB approval.

Section 1002(a)(23)(B) of the Act provides an uncodified election in regard to property placed in service and disposed of in the same taxable year. We estimate that approximately 200 elections will be made per year and that it will take approximately .25 hours to complete the election. The total burden for this election is 50 hours. This

election is obsolete.

Section 1006(d)(15) of the Act provides for an uncodified election by a 1088 corporation not to apply a general rule for a firm commitment underwriter. We estimate that approximately 40 elections will be made and that it will take approximately 1 hour to complete the election. The total burden for this election is 40 hours. This election could only be made for transactions that took place in the late 1980s so the election cannot be made any longer.

Section 1006(j)(1)(C) of the Act provides for an uncodified election to reduce interest payments received on certain bonds by allocable bond premium. We estimate that approximately 200 elections will be made per year and that it will take approximately .25 hours to complete the election. The total burden for this election is 50 hours. This election can no longer be made.

Section 1006(t)(18)(B) of the Act provides for an uncodified election not to treat a REMIC (Real estate mortgage investment conduit) as a partnership for purposes of determining who may sign the REMIC return. We estimate that approximately 200 elections will be made per year and that it will take approximately .25 hours to complete the election. The total burden for this election is 50 hours. This election can only be made a REMIC with a start-up date before November 10, 1988. Because we do not believe that there are any existing REMICs with a startup date before 11/10/88, this election can no longer be made.

Section 1010(f)(2) of the Act provides for an election under section 835(a) of the Code for an interinsurer or reciprocal underwriter mutual insurance company subject to section 831(a) to be subject to section 835(b) limitation. We estimate that approximately 200 elections will be made per year and that it will take approximately .25 hours to complete the election. The total burden for this election is 50 hours. The approximately elections changed from 200 to 10 per year. The total burden changed from 50 to 2.5. hours.

Section 1011(a) of the Act provides for an election under section 219(g)(4) of the Code in regard to the treatment of certain contributions made to an individual retirement plan for 1987 by a spouse filing a separate return. We estimate that approximately 200 elections will be made per year and that it will take approximately .25 hours to complete the election. The total burden for this election is 50 hours. The election at issue was only applicable for tax year 1987. Thus, all who wanted to make the election would have made it and the election can no longer be made.

Section 1012(n)(3) of the Act provides for an uncodified election to reduce the amount of qualified possession source investment income for certain corporations. We estimate that approximately 200 elections will be made per year and that it will take approximately .25 hours to complete the election. The total burden for this election is 50 hours. This election is obsolete.

Section 2004(j)(1) of the Act provides for an uncodified election by a member of an affiliated group filing a consolidated return on the sale of intragroup stock to reduce the member's basis in the indebtedness of the subsidiary. We estimate that approximately 50 elections will be made and that it will take approximately .25 hours to complete the election. The total burden for this election is 13 hours. This election could only be made for transactions that took place in the late 1980s so the election cannot be made any longer.

Section 2004(m)(5) of the Act provides for an uncodified election to have amendments made by section 2004(m) of the Act not apply. We estimate that approximately 50 elections will be made and that it will take approximately .25 hours to complete the election. The total burden for this election is 13 hours. This election could only be made for transactions that took place in the late 1980s so the election cannot be made any longer.

Section 4008(b) of the Act provides for an election under section 41(h) of the Code to have the research credit under section 41 not apply for any taxable year. We estimate that approximately 200 elections will be made per year and that it will take approximately .25 hours to complete the election. The total burden for this election is 50 hours. This election has been repealed and can no longer be made.

Section 5012(e)(4) of the Act provides for an uncodified election to recognize gain on exchange of life insurance contracts to avoid the characterization of life insurance contract as a modified endowment contract. We estimate that approximately 200 elections will be made per year and that it will take approximately .25 hours to complete the election. The total burden for this election is 50 hours. This election can no longer be made.

Section 6026(a) of the Act provides for an election under section 263A(h) of the Code concerning eligible taxpayers who have elected the simplified method for deducting business expenses. We estimate that approximately 200 elections will be made per year and that it will take approximately .25 hours to complete the election. The total burden for this election is 50 hours. This election is obsolete.

Section 6026(b)(1) of the Act provides for an election under section 263(d)(1) of the Code that allows a taxpayer to revoke a previous election to deduct currently the costs relating to the production of any animal. We estimate that approximately 200 elections will be made per year and that it will take approximately .25 hours to complete the election. The total burden for this election is 50 hours. This election is obsolete.

Section 6181(c)(2) of the Act provides for an uncodified election by an issuer of tax-exempt bonds to apply the amendments made by 148(b) of the Code to amounts deposited after such date in bona fide debt service funds. We estimate that approximately 200 elections will be made per year and that it will take approximately .25 hours to complete the election. The total burden for this election is 50. The approximately elections changed from 200 to 5 per year. The total burden changed from 50 to 1.25. hours.

Section 6277 of the Act provides for an election under sections 382 and 383 of the Code by a 1088 corporation that otherwise qualifies for the exception of section 621(f)(5) of the 1986 Act to not apply that exception. We estimate that approximately 40 elections will be made and that it will take approximately 1 hour to complete the election. The total burden for this election is 40 hours. This election could only be made for transactions that took place in the late 1980s so the election cannot be made any longer.

Section of Act	Section of Code	Description of election from CFR	Annual Responses	Hours per Response	Total Burden in hours	Total Respondent Change	Total Hour Change	Reason for change
1002(a)(23)B)	168(d)(3)(B)	disregard property placed in service and disposed of in the same taxable year. 40 % mid-quarter	200	0.25	200	(200.00)	(50.00)	obsolete.
1006(d)(15)	382	offering of a loss corporation's stock not treated as acquiring underwritten stock if is is disposed of on or before 60 days after the initial offering.	40	1	40	(40.00)	(40.00)	Expired
1006(j)(1)(c)	171(e)	reduce interest payments received on a certain bonds section 171(e) of the code	200	0.25	50	(200.00)	(50.00)	Expired
1006(t)(18)(B)	860F(e)	Election not treat REIMIC as a partnership	200	0.25	50	(200.00)	(50.00)	No population remains
1010(f)(2)	835(a)	interinisurer or reciprocal underwriter mutual insurance company	10	0.25	2.5	(190.00)	(47.50)	Reduced Population
1011(a)	219(g)(4)	married individual not married for purposes of IRA	200	0.25	50	(200.00)	(50.00)	Expired
1012(n)(3)	936	qualified possession source investment income corporations - 75 % business income	200	0.25	50	(200.00)	(50.00)	Obsolete
2004(j)(1)	1503(e)	disposing member's basis adjustment in the indebtedness , in lieu of negative basis	50	0.25	13	(50.00)	(13.00)	expired
2004(m)(5)	384	limit preacquisition losses to offset corporate built in gains	50	0.25	13	(50.00)	(13.00)	expired
4008(b)	41(h)	research credit under section 41	200	0.25	50	(200.00)	(50.00)	repealed
5012(e)(4)	7002A(c)(3)	recognize gain on exchange of life insurance contracts to avoid modified endowment contract	200	0.25	50	(200.00)	(50.00)	expired
6026(a)	263A(h)	authors, photographers, and artists to apply the exemption from the Uniform capitalization rules	200	0.25	50	(200.00)	(50.00)	obsolete
6026(a)	263A(d)(1)	Revoke election capiatalization of certain expenses for the production of animals	200	0.25	50	(200.00)	(50.00)	obsolete
6181(c)(2)	148(f)(4)(A)	One time election by the issuer of tax exempt bonds to apply section 148(b) to deposits	5	0.25	1.25	(195.00)	(48.75)	reduced population
6277	382, 383	loss corporation excepted from section 621(f)(5) of the 1986 Act not to apply that exception.	40	1	40	(40.00)	(40.00)	Expired
				Total		(2365.00)	(652.25)
				In ROCIS		2365.00	651.00
				Difference		(00.00)	(01.25)*

*Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures.

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 ON OMB FORM 83-I

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.

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