Return of U.S. Persons With Respect to Certain Foreign Partnerships

Forms and Documents

Document Name	Status
Form 8865 Return of U.S. Persons With Respect to Certain Foreign Partnerships Form	Modified
2017-09-25 SS 1545-1668r.doc Supporting Statement A	2017-09-25
Non-Display Expiration Date Statement.docx Supplementary Document	2013-09-30

IC Document Collections

IC ID	Document Title	Status
41026	Return of U.S. Persons With Respect to Certain Foreign Partnerships Form	Modified
228236	Consent To Extend the Time To Assess Tax Pursuant to the Gain Deferral Method (Section 721(c))	New

ICR Details

OMB Control No: 1545-1668	ICR Reference No: 201709-1545-009
Status: Historical Active	Previous ICR Reference No: 201612-1545-002
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Return of U.S. Persons With Respect to Certain Foreign Partnerships
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: 12/21/2017
	Date Received in OIRA: 10/25/2017
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	12/31/2020	36 Months From Approved	03/31/2020
Responses	32,450	0	31,450
Time Burden (Hours)	254,084	0	245,074
Cost Burden (Dollars)	0	0	0

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Abstract: The Taxpayer Relief Act of 1997 significantly modified the information reporting requirements with respect to foreign partnerships. The Act made the following three changes (1) expanded section 6038B to require U.S. persons transferring property to foreign partnerships in certain transactions to report those transfers; (2) expanded section 6038 to require certain U.S. Partners of controlled foreign partnerships to report information about the partnerships; and (3) modified the reporting required under section 6046A with respect to acquisitions and dispositions of foreign partnership interests. Form 8838-P is used to extend the statute of limitations for U.S. persons who transfers appreciated property to partnerships with foreign partners related to the transferor. The form is filed when the transferor makes a gain recognition agreement. This agreement allows the transferor to defer the payment of tax on the transfer. The IRS uses Form 8838-P so that it may assess tax against the transferor after the expiration of the original statute of limitations.

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Authorizing Statute(s): US Code: 26 USC 6038 Name of Law: Information reporting with respect to certain foreign
   US Code: 26 USC 6103 Name of Law: Confidentiality and disclosure of returns and return information
   US Code: 26 USC 721C Name of Law: Nonrecognition of gain or loss on contribution
   US Code: 26 USC 6038B Name of Law: Notice of certain transfers to foreign persons
   US Code: 26 USC 6046A Name of Law: Returns as to interests in foreign partnerships
  

Citations for New Statutory Requirements: None

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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:
	82 FR 40229	08/24/2017
30-day Notice:	Federal Register Citation:	Citation Date:
	82 FR 49480	10/25/2017
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
Return of U.S. Persons With Respect to Certain Foreign Partnerships	8865 , Sch P (Form 8865), Sch O (Form 8865), Sch K-1 (Form 8865)	Return of U.S. Persons With Respect to Certain Foreign Partnerships ,   Partners Share of Income, Deductions, Credits, etc. ,   Acquisitions, Dispositions, and Changes of Interests in a Foreign Partnership
Consent To Extend the Time To Assess Tax Pursuant to the Gain Deferral Method (Section 721(c))	Form 8838-P

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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	32,450	31,450	0	1,000	0	0
Annual Time Burden (Hours)	254,084	245,074	0	9,010	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

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

Burden Reduction Due to:

Short Statement: The Form 8838-P is being added to this collection due to the fact it can only be filed as an attachment to the Form 8865 Schedule O. On the Form 8865 Schedule O line 1a states “Is the partnership a section 721(c) partnership (as defined in Regulation section 1.72(c)-1T(b)(14)? 1b states “If “Yes” was the gain deferral method applied to avoid the recognition of gain upon the contribution of property? If filer’s check” Yes” they are required to file, the Form 8838-P. Based upon the correlation of the two forms we are adding this form to the existing collection 1545-1668. Changes were made to the burden previously approved to update the estimated number of responses based upon adding the new Form 8839-P. The annual number of responses requested is 32,450 an increase of (1,000) from the previously approved 31,450. The annual time burden is 254,084 an increase of (9,010) from the previously approved 245,074.

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Annual Cost to Federal Government: $503

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: 10/25/2017

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