TD 9866 (REG-951A) and Notice 2020-69 (S Corporation Guidance under Section 958 (Rules for Determining Stock Ownership) and Guidance Regarding the Treatment of Qualified Improvement Property under the

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
S Corporation Guidance under Section 958, Guidance Regarding the Treatment of Qualified Improvement Property under the Alternative Depreciatio.docx	Supplementary Document	Uploaded 2020-08-31	Available
NOT-114860-20 - Emergency Justification Memo to OMB (08.28.20)_FINAL_Signed.pdf	Supplementary Document	Uploaded 2020-08-31	Available
Supporting statement 1545-2291.docx	Supporting Statement A	Uploaded 2020-08-31	Available

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
243396	(NOT-114860-20) S Corporation Guidance under Section 958 (Rules for Determining Stock Ownership)		New

ICR Details

OMB Control No: 1545-2291	ICR Reference No: 202008-1545-016
Status: Active	Previous ICR Reference No:
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: TD 9866 (REG-951A) and Notice 2020-69 (S Corporation Guidance under Section 958 (Rules for Determining Stock Ownership) and Guidance Regarding the Treatment of Qualified Improvement Property under the
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: 08/31/2020
OIRA Conclusion Action: Approved without change	Conclusion Date: 09/01/2020
	Date Received in OIRA: 08/31/2020
Terms of Clearance: It is anticipated that this information collection will be included in a future update of the PRA approval under OMB # 1545-0123 and that then this OMB number will be discontinued.

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	03/31/2021	6 Months From Approved
Responses	3,688	0	0
Time Burden (Hours)	1,844	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: The Treasury Department and the IRS published final regulations (TD 9866) in the Federal Register (84 FR 29288) under § 951A (final regulations). The final regulations adopted “aggregate treatment” with respect to income inclusion amounts arising from section 951A (the global intangible low tax income inclusion or GILTI) for partnerships. Under aggregate treatment, for purposes of determining the GILTI inclusion amount of any partner of a domestic partnership, each partner is treated as proportionately owning the stock of a controlled foreign corporation (CFC) owned by the partnership within the meaning of § 958(a) in the same manner as if the domestic partnership were a foreign partnership. Because only a U.S. person that is a U.S. shareholder can have a GILTI inclusion amount, a partner that is not a U.S. shareholder of a partnership-owned CFC does not have a GILTI inclusion amount determined by reference to the partnership-owned CFC. Section 1.951A-1(e)(1) applies to taxable years of foreign corporations beginning after December 31, 2017, and to taxable years of U.S. shareholders in which or with which such taxable years of foreign corporations’ end.

Emergency Justfication: (Notice 2020-XX (S Corporation Guidance under Section 958 (Rules for Determining Stock Ownership) and Guidance Regarding the Treatment of Qualified Improvement Property under the Alternative Depreciation System for Purposes of the QBAI Rules for FDII and GILTI)) This notice provides a transition rule for those S corporations that were impacted by the key rule change set forth in the GILTI final regulations. S corporations and their shareholders (if applicable) file a white paper election with their returns to apply the transition rule. This transition rule will result in a material change in the Federal income tax consequences of the GILTI rules as applied to certain S corporations. However, by September 15, 2020, S corporations must file a 2019 calendar year income tax return (Form 1120-S) and pay any tax, interest, and penalties due. To provide S corporations with sufficient time to take the transition rule into account in preparing their original 2019 Federal income tax returns (filed under extension), the Treasury Department and the IRS intend to release the Notice on August 31, 2020. Taxpayers have until March 15, 2021 to file the election on an amended 2019 return or with their 2020 returns. In light of the short timeline to provide guidance regarding this aspect of the GILTI rules, the IRS plans to issue the Notice on August 31, 2020, and thus requests approval of the control number by that date. Given the inability to seek public comment during such a short timeframe, IRS respectfully requests a waiver from the requirement to publish notice in the Federal Register seeking public comment during the period of Office of Management and Budget review.

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Authorizing Statute(s): US Code: 26 USC 1373 Name of Law: Foreign Income
  

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

Did the Agency receive public comments on this ICR? No

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

table that charts list of burden

IC Title	Form No.	Form Name
(NOT-114860-20) S Corporation Guidance under Section 958 (Rules for Determining Stock Ownership)

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ICR Summary of Burden

table that charts list 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	3,688	0	0	3,688	0	0
Annual Time Burden (Hours)	1,844	0	0	1,844	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: Changing Regulations

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

Burden Reduction Due to:

Short Statement: (Notice 2020-69 (S Corporation Guidance under Section 958 (Rules for Determining Stock Ownership) and Guidance Regarding the Treatment of Qualified Improvement Property under the Alternative Depreciation System for Purposes of the QBAI Rules for FDII and GILTI)) This notice provides a transition rule for those S corporations that were impacted by the key rule change set forth in the GILTI final regulations. S corporations and their shareholders (if applicable) file a white paper election with their returns to apply the transition rule. The Treasury Department and the IRS published final regulations (T.D. 9866) in the Federal Register (84 FR 29288) under § 951A (final regulations). The final regulations adopted “aggregate treatment” with respect to income inclusion amounts arising from section 951A (the global intangible low tax income inclusion or GILTI) for partnerships. This new notice will facilitate a new collection of information. This in turn will result in a burden with an estimated 3,688 respondents and annual burden of 1,844 hours.

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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.     No

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.     No

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: 08/31/2020

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