Foreign Tax Credit: Notification of Foreign Tax Redeterminations

Forms and Documents

Document Name	Status
2020 SS 1545-1056.docx Supporting Statement A	2020-12-18
REG- 209020-86.pdf Supplementary Document	2017-03-14

IC Document Collections

IC ID	Document Title	Status
17753	REG-209020-86 (NPRM & Temporary) - Foreign Tax Credit: Notification of Foreign Tax Redeterminations	Modified

ICR Details

OMB Control No: 1545-1056	ICR Reference No: 202011-1545-010
Status: Received in OIRA	Previous ICR Reference No: 201703-1545-008
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Foreign Tax Credit: Notification of Foreign Tax Redeterminations
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 12/30/2020

	Requested	Previously Approved
Expiration Date	36 Months From Approved	01/31/2021
Responses	13,500	13,000
Time Burden (Hours)	56,065	54,000
Cost Burden (Dollars)	0	0

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Abstract: Section 905(c) requires that a taxpayer notify the Internal Revenue Service of a change in the taxpayer's foreign income tax liability that may affect its foreign tax credit. Regulation section 1.905-4T provides rules concerning the time, manner, and contents of such notification. Should the taxpayer fail to notify the IRS, penalties under section 6689 may be imposed. Respondents are U.S. taxpayers that claim a foreign tax credit under section 901, 902, or 960.

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Authorizing Statute(s): PL: Pub.L. 105 - 34 1102(a), 1102(a)(2) Name of Law: Taxpayer Relief Act of 1997
   PL: Pub.L. 108 - 357 480(a) Name of Law: American Jobs Creation Act of 2004
   US Code: 26 USC 905(c) Name of Law: Adjustments to accrued taxes
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
1545-BP70	Proposed rulemaking	85 FR 72078	11/12/2020

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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

IC Title	Form No.	Form Name
REG-209020-86 (NPRM & Temporary) - Foreign Tax Credit: Notification of Foreign Tax Redeterminations

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ICR Summary of Burden

	Total Request	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	13,500	13,000	0	500	0	0
Annual Time Burden (Hours)	56,065	54,000	0	2,065	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: The burden for OMB Control Number 1545-1056 has been updated to reflect the issuance of TD 9922. Final regulations at §1.905-4, consistent with the former temporary regulations, provide an exception to the general notification rule that allows Large Business and International (LBI) taxpayers to notify the IRS of an FTR that occurs prior to an audit, and requires LBI taxpayers to notify the IRS of an FTR that occurs during the first 180 days of the audit, by providing the written statement to the examiner in lieu of filing an amended return. This change results in a response and respondent increase of 500 (13,000 to 13,500) and overall annual time burden increase of 2,065 hours (54,000 to 56,065).

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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.     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: 12/30/2020

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