Form 461 - Limitation on Business Losses

Forms and Documents

Document Name	Status
Form 461 Form 461 - Limitation on Business Losses Form	New
2018-10-30_ss_1545-XXXXF461trustrCD.docx Supporting Statement A	2018-10-30

IC Document Collections

IC ID	Document Title	Status
233067	Form 461 - Limitation on Business Losses Form	New

ICR Details

OMB Control No: 1545-2283	ICR Reference No: 201809-1545-004
Status: Active	Previous ICR Reference No:
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Form 461 - Limitation on Business Losses
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved with change	Conclusion Date: 12/19/2018
	Date Received in OIRA: 12/12/2018
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	12/31/2021	36 Months From Approved
Responses	2,909,026	0	0
Time Burden (Hours)	1,105,430	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: Form 461 and its separate instructions calculates the limitation on business losses, and the excess business losses that will be treated as net operating loss (NOL) carried forward to subsequent taxable years. In the case of a partnership or S corporation, the provision applies at the partner or shareholder level. This form will used by noncorporate taxpayers and will attached to a tax return (F1040, 1040NR, 1041, 1041-QFT, 1041-N, or 990-T).

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Authorizing Statute(s): US Code: 26 USC 461(I) Name of Law: limitation on excess business losses of noncorporate taxpayers
  

Citations for New Statutory Requirements: US Code: 26 USC 461(I) Name of Law: limitation on excess business losses of noncorporate taxpayers
PL: Pub.L. 115 - 97 11012 Name of Law: LIMITATION ON LOSSES FOR TAXPAYERS OTHER THAN. CORPORATIONS

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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:
	83 FR 49456	10/01/2018
30-day Notice:	Federal Register Citation:	Citation Date:
	83 FR 63967	12/12/2018
Did the Agency receive public comments on this ICR? Yes

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

IC Title	Form No.	Form Name
Form 461 - Limitation on Business Losses	461	Limitation on Business Losses

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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	2,909,026	0	2,909,026	0	0	0
Annual Time Burden (Hours)	1,105,430	0	1,105,430	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: This is a new form developed as a result of the Tax Cuts and Jobs Act of 2017 limiting the losses attributable to the trade or businesses of non-corporate taxpayers. Losses in excess of a threshold amount ($250,000 for all filers except for married filing jointly, which is $500,000) are not allowed to be deducted in the current year. That amount is adjusted for inflation. However, the amount of the excess business loss is treated as a net operating loss carryover to the 2019 tax year. Taxpayers use the new Form 461 to compute the excess business loss. The excess business loss is treated as an additional income item on the tax return. The burden listed in the collection is applicable to all other filers except business filers which is accounted for under OMB control number 1545-0123.

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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: 12/12/2018

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