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
ICR 202008-1545-016
OMB: 1545-2291
Federal Form Document
⚠️ Notice: This information collection may be outdated. More recent filings for OMB 1545-2291 can be found here:
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
New
collection (Request for a new OMB Control Number)
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.
Inventory as of this Action
Requested
Previously Approved
03/31/2021
6 Months From Approved
3,688
0
0
1,844
0
0
0
0
0
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.
(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.
(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.
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.
S Corporation Guidance under Section 958, Guidance Regarding the Treatment of Qualified Improvement Property under the Alternative Depreciatio.docx
NOT-114860-20 - Emergency Justification Memo to OMB (08.28.20)_FINAL_Signed.pdf
(NOT-114860-20) S Corporation Guidance under Section 958 (Rules for Determining Stock Ownership)