IRC section 6012 requires that an
annual income tax return be filed for estates and trusts. Data is
used to determine that the estates, trusts, and beneficiaries file
the proper returns and paid the correct tax. The various schedules
(Schedule D, I, J, and K-I) are used in the collection of
information under the various authorizing statutes seen below
(Legal Statutes). The worksheets are used to figure various taxes
and deductions. Form 1041-V allows the Internal Revenue Service to
process the payment more accurately and efficiently. The IRS
strongly encourages the use of Form 1041-V, but there is no penalty
if it is not used. The FAQs posted to IRS.gov will assist taxpayers
in fulfilling their filing obligations for 2017.
PL 115-97, section 14103
has a retroactive effective date of 2017. This section is an
essential part of an administrative priority to collect deferred
foreign income from US and foreign partnerships and corporations.
Due to a lack of resources, the IRS must inform taxpayers how to
calculate and report the deferred foreign income on their 2017
returns without disrupting information technology programs. As a
result FAQs were developed to alert taxpayers how and where to
report this income on their 2017 return. This is seen as a priority
for the Internal Revenue Service as this is a high revenue raiser.
A critical part of this effort includes alerting taxpayers of their
filing obligations and educating them on how and where this would
be reported. If clearance of the is delayed, in addition to
delaying this high profile initiative, taxpayers will not be able
to fulfill their filing obligations and the IRS will lose out on a
revenue raiser section under PL 115-97. We ask that OMB approve the
collection of information on an expedited basis. LB&I and and
the Chief Counsel’s Office of the IRS have consulted in drafting
the guidance in order to take all practicable steps to minimize the
burden of the collection of information.
US Code:
26
USC 55(a) Name of Law: Alternatiive Minimum Tax Imposed
US Code: 26
USC 59(g) Name of Law: Other definitions and special rules; Tax
Benefit Rule
US Code: 26
USC 662 Name of Law: Inclusion of amounts in gross income of
beneficiaries of estates and trusts accumulating income or d
US Code: 26
USC 643(g) Name of Law: Definitions applicable to subparts A,
B, C, and D; Certain payments of estimated tax treated as pai
US Code: 26
USC 666 Name of Law: Accumulation distribution allocated to
preceding years
US Code: 26
USC 677 Name of Law: Income for benefit of grantor
US Code: 26
USC 679 Name of Law: Foreign trusts having one or more United
States beneficiaries
US Code: 26
USC 6654(1) Name of Law: Failure by individual to pay estimated
income tax;Addition to the Tax
PL:
Pub.L. 115 - 97 14103 Name of Law: Tax Cuts and Jobs Act
US Code: 26
USC 652 Name of Law: Inclusion of amounts in gross income of
beneficiaries of trusts distributing current income only
US Code: 26
USC 6012 Name of Law: Persons required to make returns of
income
US Code: 26
USC 641 Name of Law: Imposition of tax
US Code: 26
USC 671 Name of Law: Trust income, deductions, and credits
attributable to grantors and others as substantial owners
PL: Pub.L. 115 - 97 14103 Name of Law: Tax
Cuts and Jobs Act
PL 115-97, section 14103 has a
retroactive effective date of 2017. This section is an essential
part of an administrative priority to collect deferred foreign
income from US and foreign partnerships and corporations. Due to a
lack of resources, the IRS must inform taxpayers how to calculate
and report the deferred foreign income on their 2017 returns
without disrupting information technology programs. As a result
FAQs were developed to alert taxpayers how and where to report this
income on their 2017 return. This is seen as a priority for the
Internal Revenue Service as this is a high revenue raiser. A
critical part of this effort includes alerting taxpayers of their
filing obligations and educating them on how and where this would
be reported. This requirement results in an overall burden increase
of 60,000 (307,784,800 to 307,844,800), as the agency estimates
that there will be 5,000 respondents (increase from 9,428,703 to
9,433,703) and that it will take approximately 12 hours per
respondent to comply with the requirement.
$5,710,689
No
Yes
Yes
No
No
No
Uncollected
Walter Deliman 202
317-5890
No
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:
(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;
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.
Form 1041 U.S. Income Tax Return for Estates and Trusts
Supporting Statement 1545-0092 (FAQ addition).doc
U.S. Income Tax Return for Estates and Trusts