Guidance on Cost Recovery Under the Income Forecast Method

Forms and Documents

Document	Type	Status	Availability
Form 8866 Form 8866-Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method	Form	Modified	Available
SS 1545-1622__Final.docx	Supporting Statement A	Uploaded 2020-10-29	Available

IC Document Collections

IC ID	Collection	Type	Status	Form
40974	Form 8866-Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method	Form	Modified

ICR Details

OMB Control No: 1545-1622	ICR Reference No: 202006-1545-020
Status: Active	Previous ICR Reference No: 201703-1545-024
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Guidance on Cost Recovery Under the Income Forecast Method
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 12/08/2020
	Date Received in OIRA: 10/29/2020
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	12/31/2023	36 Months From Approved	12/31/2020
Responses	3,300	0	3,300
Time Burden (Hours)	45,738	0	45,738
Cost Burden (Dollars)	0	0	0

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Abstract: The Small Business Job Protection Act of 1996 requires taxpayers whom claim depreciation deductions on property placed in service after September 13, 1995, under the income forecast method to pay (allow taxpayers to receive) interest based on the recalculation of depreciation. Form 8866 must be used in order to compute and report interest due or to be refunded under IRC 167 (g)(2). The IRS uses Form 8866 to determine if the interest has been figured correctly.

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Authorizing Statute(s): US Code: 26 USC 167(g)(2) Name of Law: Depreciation
  

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:
	85 FR 22246	04/21/2020
30-day Notice:	Federal Register Citation:	Citation Date:
	85 FR 86415	10/28/2020
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
Form 8866-Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method	8866	Interest Computation Under the Look-Back Method for Property Depreciated Under the Income Forecast Method

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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	3,300	3,300	0	0	0	0
Annual Time Burden (Hours)	45,738	45,738	0	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:

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Annual Cost to Federal Government: $12,758

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? No

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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: 10/29/2020

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