Form 8904 - Credit for Oil and Gas Production From Marginal Wells

Forms and Documents

Document Name	Status
Form 8904 Credit for Oil and Gas Production From Marginal Wells Form	New
2017-12-05 SS 1545-0046.doc Supporting Statement A	2017-12-05

IC Document Collections

IC ID	Document Title	Status
228677	Credit for Oil and Gas Production From Marginal Wells Form	New

ICR Details

OMB Control No: 1545-2278	ICR Reference No: 201710-1545-012
Status: Historical Active	Previous ICR Reference No:
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Form 8904 - Credit for Oil and Gas Production From Marginal Wells
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 12/22/2017
OIRA Conclusion Action: Approved without change	Conclusion Date: 12/21/2017
	Date Received in OIRA: 12/19/2017
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	06/30/2018	6 Months From Approved
Responses	20,000	0	0
Time Burden (Hours)	59,200	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: P.L. 108-357, Title III, Subtitle C, section 341(a) has caused IRS to develop a credit for oil and gas production from marginal wells, which is reflected on Form 8904 and its instructions. Tax year 2017 will be the first year Form 8904 and its instructions will be released.

Emergency Justfication: Since its enactment in 2004, the IRC section 45I credit for producing oil or natural gas from marginal wells hasn’t been available (fully phased out) because market prices were too high. However, because natural gas prices were low enough in 2015, Counsel informally indicated that the credit for natural gas production may be claimed by taxpayers for tax years beginning in 2016 (the credit for oil production was unavailable for the 2016 tax year). IRS decided to make Form 8904 a continuous-use form due to the extreme lateness upon which Treasury and Counsel indicate the credit availability for 2016 and similar late determinations may be applicable for future years. The delay was caused by controversy related to applicable natural gas price. The controversy prevented taxpayers from timely claiming the 2016 credit for natural gas production. However, after the release of Notice 2017-51, published September 12, 2017, taxpayers finally are allowed to use the continuous-use Form 8904 (Rev. 2017) to claim the credit for natural gas production in 2016. After the form is released, taxpayers can amend their 2016 tax return to claim the credit for producing natural gas. The credit is also expected to be available for taxpayers to claim for tax years beginning in 2017, and potentially future years. Form 8904 needs to be release ASAP. We ask that OMB expedite our request for assignment of an attachment number and an OMB number.

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Authorizing Statute(s): PL: Pub.L. 108 - 357 341(a) Name of Law: American Jobs Creation Act of 2004
   US Code: 26 USC 45I Name of Law: Credit for producing oil and gas from marginal wells
  

Citations for New Statutory Requirements: PL: Pub.L. 108 - 357 341(a) (Title III Subtitle C) Name of Law: Oil and gas from marginal wells

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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 45950	10/02/2017
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Credit for Oil and Gas Production From Marginal Wells	8904	Credit for Oil and Gas Production From Marginal Wells

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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	20,000	0	20,000	0	0	0
Annual Time Burden (Hours)	59,200	0	59,200	0	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

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

Burden Increase Due to:

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

Burden Reduction Due to:

Short Statement: P.L. 108-357, Title III, Subtitle C, section 341(a) has caused us to develop a credit for oil and gas production from marginal wells, which is reflected on Form 8904 and its instructions. Tax year 2017 will be the first year Form 8904 and its instructions will be released.

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Annual Cost to Federal Government: $0

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: 12/19/2017

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