1545-0123 Supporting Statement 2021-01-12

SUPPORTING STATEMENT

Internal Revenue Service

U. S. Business Income Tax Returns

OMB Control Number 1545-0123

Forms: 1065, 1066, 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, 1120-REIT, 1120-RIC, 1120-S, 1120-SF and related attachments.

1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION

Section 6011 and 6012 of the Internal Revenue Code requires businesses to prepare and file income tax returns. These forms are used by businesses to report their income tax liability.

The data is used to verify that the items reported on the forms are correct, and also for general statistics use.

As is done with the individual tax form burden estimates (Forms 1040, 1040-EZ, 1040-A, 1040-X and 1040-NR), clearance for the burden estimate will be requested before the relevant tax filing season but after the IRS has had the opportunity to update its models with prior year data and to make necessary revisions to draft forms (including providing drafts to public for comment), and is sought on an annual basis instead of on the regular 3-year Paperwork Reduction Act (PRA) cycle. Doing so ensures that new and updated business forms can be made available for use on a timelier basis.

A list of forms related to OMB 1545-0123 is provided below. Forms that are used by other tax filers (e.g., individuals, tax-exempt organizations) are marked with an asterisk (*). These forms will continue to report burden for other taxpayers under separate OMB numbers.

Form 1065 and related schedules are used for reporting the income of every domestic partnership (syndicates, groups, pools, joint ventures, etc. and every foreign partnership doing business in the United States or receiving income from U.S. sources). IRC Sec. 6031; Reg.-Sec. 1.761-1(a)(2)(IV)(a); 1.6031-1; 1.6033-1(a)(5); and Separate Instructions. IRM 3162, 4131, and Subchapter 224.

Form 1065 Schedule B-1 is used by partnerships to provide the information applicable to certain entities, individuals, and estates that own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the partnership.

Form 1065 Schedule B-2 is used by certain partnerships with 100 or fewer partners that can elect out of the centralized partnership audit regime if each partner is an individual, a C corporation, a foreign entity that would be treated as a C corporation were it domestic, an S corporation, or an estate of a deceased partner.

Form 1065 Schedule C is used to provide answers to additional questions for filers of Schedule M-3 (Form 1065), Net Income (Loss) Reconciliation for Certain Partnerships.

Form 1065 Schedule D is used to report sales/exchanges of capital assets, capital gain distributions, and nonbusiness bad debts that are not specially allocated to partners.

Form 1065 Schedule K-1 is used for reporting the distributive share of a partnership income, credits, etc.

Form 1065 Schedule M-3 a reconciliation of financial statement, net income and return, required to be filed by all partnerships with total assets of $10 million or more.

Form 1065-X is used (by entities not filing electronically) to correct items on a previously filed Form 1065, Form 1065-B, or Form 1066; or to make an administrative adjustment request for a previously filed Form 1065, Form 1065-B, or Form 1066.

Form 1066 is used to report the income, deductions, and gains and losses from the operation of a real estate mortgage investment conduit (REMIC). In addition, the form is used by the REMIC to report and pay tax on net income from prohibited transactions.

Form 1066 Schedule Q is used to by real estate mortgage investment conduits (REMICs) to notify the residual interest holders of their share of the REMIC's quarterly taxable income (or net loss), excess inclusion, and section 212 expenses.

Form 1118 is used to compute the amount of foreign tax credit claimed on corporation income tax returns.

Form 1118 Schedule I is used by corporations claiming a credit for any tax paid or accrued on foreign oil and gas extraction to determine any reduction in the amount of the credit.

Form 1118 Schedule J is used by Corporations claiming foreign tax credit to compute adjustments to separate limitation income (losses) and year-end account balances.

Form 1118 Schedule K is used to reconcile the corporation's prior year foreign tax carryover with its current year foreign tax carryover.

Form 1120 and related forms are used to report the income, gains, losses, deductions, credits, and to figure the income tax liability of a corporation. Also see Publication 542, Corporations, for more information.

Form 1120, Schedule B is used to provide answers to additional questions for filers of Schedule M-3 (Form 1120), Net Income (Loss) Reconciliation for corporations With Total Assets of $10 Million or More.

Form 1120, Schedule D is used by corporations to report sales and exchanges of capital assets and gains on distributions to shareholders of appreciated capital assets.

Form 1120, Schedule G is used to provide information applicable to certain entities, individuals, and estates that own, directly, 20% or more, or own, directly, 50% or more of the total voting power of all classes of the corporation's stock entitled to vote.

Form 1120, Schedule H is by Personal service corporations (PSCs) that elected to have a tax year other than a calendar year use Schedule H to report if they met the minimum distribution requirement and, if not, the limits on deductions.

Form 1120 Schedule M-3, is required to be filed by all corporations with total assets of $10 million or more on Form 1120, Schedule L, line 15, column (d).

Form 1120 Schedule N is used by Corporations that, at any time during the tax year, had assets in or operated a business in a foreign country or a U.S. possession may have to file Schedule N.

Form 1120 Schedule O is used by a controlled group of corporations filing Form 1120 or other corporate return to consent to an apportionment plan and allocated income, taxes, and other items.

Form 1120 Schedule PH is used to compute Personal Holding Company tax.

Form 1120 Schedule UTP is used to provide information about tax positions that affect the U. S. federal income tax liabilities of certain corporations that issue or are included in audited financial statements and have assets that equal or exceed $100 million.

Form 1120-C is used by Cooperative Associations to report income, gains, losses, deductions, credits, and to figure the income tax liability of subchapter T cooperatives.

Form 1120-F is used to report the income, gains, losses, deductions, credits, and to figure the U.S. income tax liability of a foreign corporation.

Form 1120-F Schedule H, is used by a foreign corporation that files Form 1120-F to report the amount of the foreign corporation's deductible expenses that are allocated and apportioned under Regulations sections 1.861-8 and 1.861-17 and Temporary Regulations section 1.861-8T between ECI and non-ECI.

Form 1120-F Schedule I is used by foreign corporations to document allocation of interest expense in satisfaction of requirements of Regulations section 1.882-5.

Form 1120-F Schedule M-1 & Schedule M-2 are used to provide analysis information on how foreign corporation's net income (loss), and retained earnings reported on its books differ from figures reported on Form 1120-F return.

Form 1120-F Schedule M-3 is used by filers of Form 1120-F with total assets of $10 million or more would file Schedule M-3 (Form 1120-F) for the purpose of providing detailed information on differences between income per books and income per tax return.

Form 1120-F Schedule P is used by foreign corporations to disclose foreign partner interests in partnerships; documenting compliance with requirements of IRC sections 705 and 702, and Regulations section 1.884-1(d)(3).

Form 1120-F Schedule S is used by foreign corporations to claim an exclusion of income under section 883 and to provide reporting information required by the section 883 regulations.

Form 1120-F Schedule V is used to report required information for each vessel or aircraft with respect to which the corporation is subject to the 4% rate of tax on U.S. Source Gross Transportation Income (USSGTI) under section 887.

Form 1120-FSC is used to report the income, deductions, gains, losses, credits and tax liability of a foreign sales corporation.

Form 1120-FSC Schedule P is used to figure the allowable transfer price to charge or the allowable commission to pay a foreign sales corporation under the administrative pricing rules.

Form 1120-H, homeowners association uses Form 1120-H as its income tax return to take advantage of certain tax benefits that, in effect, allow it to exclude exempt function income from its gross income.

Form 1120-IC DISC is an information return filed by interest charge domestic international sales corporations (IC-DISCs), former DISCs and former IC-DISCs.

Form 1120-IC DISC Schedule K is a shareholder's statement of IC-DISC distribution.

Form 1120-IC DISC Schedule P is attached to Form 1120-IC-DISC to show the computation of IC-DISC taxable income used in computing: (1) the transfer price from a related supplier to an IC-DISC (Part II) or (2) the IC-DISC commission from a related supplier (Part III).

Form 1120-IC DISC Schedule Q is used by IC-DISC corporations to certify that the borrower is in compliance with the rules for producer's loans.

Form 1120-L is used to report the income, gains, losses, deductions, credits, and to figure the income tax liability of insurance companies, other than life insurance companies.

Form 1120-L (Schedule M-3) reconciles financial statement net income (loss) with taxable income reported on Form 1120-L. Filed by Insurance companies with total assets of $10 million or more, and may be voluntarily filed by life insurance companies that are not otherwise required to file Schedule M-3 (Form 1120-L).

*Form 1120-ND is used by nuclear decommissioning funds to report contributions received, income earned, administration expenses, and the tax on modified gross income. It is also sometimes used to report and pay the section 4951 taxes on self-dealing.

Form 1120-PC, U.S. Property and Casualty Insurance Company Income Tax Return, to report the income, gains, losses, deductions, credits, and to figure the income tax liability of insurance companies, other than life insurance companies.

Form 1120-PC Schedule M-3 is used to reconcile financial statement net income (loss) with taxable income reported on Form 1120-PC. It must be filed by non-life insurance companies with total assets of $10 million or more and may be voluntarily filed by non-life insurance companies that are not otherwise required to file Schedule M-3 (Form 1120-PC).

Form 1120-POL is used by Political organizations and certain exempt organizations to report their political organization taxable income and income tax liability.

Form 1120-REIT is used to report the income, gains, losses, deductions, credits and to figure the income tax liability of real estate investment trusts (REIT) as defined in section 856.

Form 1120-RIC Annual return of tax payable on or before the 15th day of the 3rd month following the close of company's taxable year. Used with Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains. Prescribing instructions: IRC Sec. 52(b)(3)(d)(iv); Regs. Sec. 1.852-9.

Form 1120-S, Corporations that elect to be S corporations use Form 1120-S to report income, deductions, gains, losses, etc.

Form 1120-S Schedule B-1 is used to provide the information applicable to any shareholder in the S corporation that was a disregarded entity, a trust, an estate, or a nominee or similar person at any time during the tax year.

Form 1120-S Schedule D is used to report sales or exchanges of capital assets and gains on distributions to shareholders of appreciated capital assets.

Form 1120-S Schedule K-1 is used to report shareholders' pro rata shares of the corporation's income, credits, deductions, etc.

Form 1120-S Schedule M-3 must be filed by corporations with total assets of $10 million or more on the last day of the tax year.

Form 1120-SF is used to report transfers received, income earned, deductions claimed, distributions made, and the income tax liability of a designated or qualified settlement fund.

Form 1120-W is used by a corporation to assist the corporation in determining its tax liability and required installment payments.

Form 1120-X is used to amend a previously filed Form 1120 or 1120-A to make certain elections after the prescribed deadline.

Form 1122 is an authorization by a subsidiary to be included in consolidated return and consent to the consolidated regulations.

Form 1125-A is used by filers of Form 1120, 1120-C, 1120-F, 1120-S, 1065, or 1065-B, to calculate and claim a deduction for Costs of Goods Sold.

Form 1125-E is used by filers of Form 1120, 1120-C, or 1120-F, or 1120-RIC, whose gross receipts are $500,000 or more, if claiming a deduction for compensation of officers.

*Form 1127 is used to request extension of time to pay taxes. The conditions under which extensions may be granted under Section 6161 of the Internal Revenue Code are printed on the reverse of the application.

*Form 1128 is used to adopt, change or retain a certain tax year.

Form 1138 is used by a corporation expecting a net operating loss for the current year to request an extension of time for payment of tax for the immediately preceding tax year.

Form 1139 is used to apply for a quick refund of taxes from: carryback of a net operating loss, net capital loss, unused general business credit, or an overpayment of tax from a claim of right adjustment.

Form 2220 is used by corporations, certain tax-exempt organizations, and private foundations to determine whether they are subject to the penalty for underpayment of estimated tax and, if so, the amount of the penalty.

Form 2438 is used by regulated investment companies or real estate investment to figure income tax on certain undistributed capital gains.

Form 2439 is used by Regulated investment companies or real estate investment trusts use Form 2439 for each shareholder for whom it paid tax on certain undistributed capital gains. This form is used with Form 2438.

Form 2553 is filed by qualifying small business corporations and limited liability companies to make the election prescribed by Sec. 1362.

*Form 2848 is used to authorize an individual to represent another person before the IRS. The authorized individual must be eligible to practice before the IRS.

*Form 3115 is used to request a change in either an overall accounting method or the accounting treatment of any item.

*Form 3468 is used to claim the investment credit, which includes rehabilitation, energy, qualifying advanced coal project, qualifying gasification project, and qualifying advanced energy project credits.

*Form 3520 is used to report certain transactions with foreign trusts, and receipt of certain large gifts of bequests from certain foreign persons.

*Form 3520-A is used by a foreign trust with at least one U. S. owner who files this form annually to provide information about the trust, its U. S. beneficiaries, and any U.S. person who is treated as an owner of any portion of the foreign trust.

*Form 3800 is used to claim any of the general business credits.

*Form 4136 is used by Taxpayers (other than partnerships that are not electing large partnerships) to claim a credit for certain nontaxable uses or sales of fuel during the tax year.

*Form 4255 is used by Taxpayers who dispose of (or whose property ceases to be) investment credit property before the end of the useful life used in computing the investment credit, to figure the increase in tax for the recapture of investment credit claimed.

Form 4466 is used by corporations that overpaid their estimated tax for the year to apply for a quick refund. The overpayment must be at least $500 and at least 10% of the expected tax liability.

*Form 4562 is used to claim a deduction for depreciation or amortization, to make the section 179 election to expense certain property, and to provide information on the business/investment use of cars and other listed property.

Form 461 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.

Form 4626 is used to figure the alternative minimum tax (AMT) under section 55 for a corporation that is not exempt from the AMT.

*Form 4684 is used as a guide for reporting gains and losses resulting from casualties and thefts.

*Form 4797 is used to report the details of gains and losses from the sale, exchange, involuntary conversion (from other than casualty or theft loss), or disposition of the following: property used in your trade or business, depreciable or amortizable property, capital and non-capital (other than inventory) assets held in connection with the trade or business, or capital assets not reported on Schedule D.

*Form 4810 is prepared by a fiduciary representing a dissolving corporation or a decedent's estate to request a prompt assessment of tax.

Form 4876-A is used to elect to be treated as an interest charge domestic international sales corporation (IC-DISC).

Form 5452 is used if the corporations made non dividend distributions to their shareholders under section 301, section 1368 (c)(3) or section 1371.

*Form 5471 is used to satisfy the reporting requirements of section 6038 and 6046.

Form 5471 Schedule E is now a separate schedule (no longer part of the base Form 5471) because this schedule must now be completed separately for each applicable category of income.

Form 5471 Schedule H is now a separate schedule (no longer part of the base Form 5471) because this schedule must now be completed separately for each applicable category of income.

Form 5471 Schedule I-1 is a new form to implement P.L. 115-97, section 14201 Global Intangible Low-Taxed Income (GILTI) as it pertains to Form 5471 reporting.

*From 5471, Schedule J is used by filers of Form 5471 to report accumulated Earnings and Profits (E&P), in functional currency, computed under sections 964(a) and 986(b).

*Form 5471, Schedule M is used by U.S. persons who had control of a foreign corporation for an uninterrupted period of at least 30 days to report certain transactions that occurred during the corporation's annual accounting period.

*Form 5471 Schedule O is used by certain officers, directors, and shareholders of foreign corporations to report reorganization and acquisition/disposition of its stock.

*Form 5471 Schedule P is used to report Previously Taxed Earnings and Profits of U.S. Shareholders of Certain Foreign Corporations.

*Form 5472 is used to provide to provide required information under sections 6038A and 6038C for reportable transactions that occur during the tax year with a foreign or domestic related party.

*Form 56 is used by persons acting as a fiduciary to notify IRS of the creation or termination of the fiduciary relationship.

*Form 56F is used to notify the IRS of a fiduciary relationship only if that relationship is with respect to a financial institution (i.e., a bank or a thrift).

*Form 5713 is used by persons having operations in or related to countries which require participation in or cooperation with an international boycott, to report these operations.

*Form 5713, Schedule A is used by persons who participated in or cooperated with an international boycott to figure the international boycott factor to use in figuring the loss of tax benefits.

*Form 5713, Schedule B is used by persons who participated in or cooperated with an international boycott to specifically attribute taxes and income in order to figure the loss of tax benefits.

*Form 5713, Schedule C is used to compute the loss of tax benefits from participation in or cooperation with an international boycott.

*Form 5735 used to figure the American Samoa economic development credit under section 30A. The credit is generally allowed against income tax imposed by Chapter 1.

*Form 5735 Sch P Possessions corporations that elected to use either the cost sharing or the profit split method use Schedule P with Form 5735 to compute their taxable income.

*Form 5884 is used to claim the work opportunity credit for the first-year wages paid to or incurred for targeted group employees (including Hurricane Katrina employees) during the tax year.

*Form 5884-B is used for a new hire retention credit up to $1,000.00 is allow for each retained worker. A retained worker generally is a qualified employee whose first 52 consecutive weeks of employment ended in the current tax year.

*Form 6198 is used by individuals, estates, trusts, and certain corporations to figure the profit (loss) from an at-risk activity, the amount at risk, and the deductible amount of the loss.

*Form 6478 is used to figure the biofuel producer credit for the tax year in which the sale or use occurs.

*Form 6627 is used to figure the environmental tax on petroleum, ODCs, imported products that used ODCs as materials in the manufacture or production of the product, and the floor stocks tax on ODCs.

*Form 6765 is used to figure and claim the credit for increasing research activities.

*Form 6781 is used to report gains and losses on section 1256 contracts under the mark-to-market rules and under section 1092 from straddle positions.

*Form 7004 is used to request an automatic 6-month extension of time to file certain business income tax, information and other returns shown on the form.

Form 8023 is used by purchasing corporations to elect section 338 treatment for the qualified stock purchase of another (target) corporation.

Form 8050 is used to request that the IRS deposit a corporate income tax refund (including a refund of $1 million or more) directly into an account at any U.S. bank or other financial institution (such as a mutual fund or brokerage firm) that accepts direct deposits. It is also used to request an electronic funds transfer of an income tax refund to the corporation’s bank account for a corporation filing Form 1120, 1120-A or 1120s.

*Form 8082 is used when a Taxpayer reports an item on a K-1 differently that is shown on the K-1.

*Form 8275 is used to disclose items or positions, except those taken contrary to a regulation, that are not otherwise adequately disclosed on a tax return to avoid certain penalties.

* Form 8275R is used to disclose positions taken on a tax return that are contrary to Treasury regulations, to avoid certain portions of the accuracy-related penalty, if the return position has a reasonable basis.

*Form 8283 is used to claim a deduction for a charitable contribution of property or similar items of property, the claimed value of which exceeds $500.

*Form 8288 is used to report and transmit the amount withheld by buyers or transferees of U.S. real property interests, and a corporation, partnership, or fiduciary required to withhold tax.

*Form 8288 B is used to apply for a withholding certificate to reduce or eliminate withholding on dispositions by foreign persons of U.S. real property interests.

*Form 8300 is used by persons who, in the course of their business, receive more than $10,000 in cash in one transaction or in related transactions to report information on the transaction(s).

*Form 8302 is used to request an electronic funds transfer of an income tax refund of $1 million or more to the taxpayers’ bank account for a taxpayer filing Form 1045, 1139 or a tax return other than Form 1040, 1120, 1120-A 0r 1120-S.

*Form 8308 is used by Partnerships to report the sale or exchange of a partnership interest involving unrealized receivables or inventory items.

*Form 8329 is used by lenders of certified indebtedness amounts to provide the IRS with information regarding the issuance of Mortgage Credit Certificates (MCCs) under section 25.

*Form 8404 is used by shareholders of Interest Charge Domestic International Sales Corporations (IC-DISCs) to figure and report their interest on DISC-related deferred tax liability. Authority is Treasury reg. 1.995(f).

Form 8453-B is used to authenticate an electronic Form 1065-B, and to authorize an electronic return originator or intermediate service provider to transmit via a third-party transmitter.

Form 8453-C is used to authenticate an electronic Form 1120, authorize an ERO or ISP to transmit via a third-party, and authorize a corporation's consent to direct deposit any refund or electronic funds withdrawal for payment of federal taxes owed.

*Form 8453-I is used to: authenticate an electronic Form 1120-F, provide the corporation's consent to directly deposit any refund and/or authorize an electronic funds withdrawal for payment of federal taxes owed; authorize the ERO, if any, to transmit via a third-party transmitter; authorize the intermediate service provider (ISP) to transmit via a third-party transmitter if you are filing online (not using an ERO), and provide the corporation's consent to directly deposit any refund and/or authorize an electronic funds withdrawal for payment of federal taxes owed.

Form 8453-PE is used by partnerships to authenticate an electronic Form 1065, U.S. Return of Partnership's Income and authorize the intermediate service provider (ISP) to transmit via a third-party transmitter if you are filing online (not using an ERO).

Form 8453-S is used by S Corporations to authenticate an electronic Form 1120-S, U.S. Income Tax Return for an S Corporation; authorize the intermediate service provider (ISP) to transmit via a third-party transmitter if you are filing online (not using an ERO); and provide the corporation's consent to directly deposit any refund and/or authorize an electronic funds withdrawal for payment of federal taxes owed.

*Form 8453-X is used to certify electronic filing of form 8871.

Form 851 is used by the parent corporation of an affiliated group to identify the parent and affiliated members, report allocated amounts of payments, and determine that each subsidiary qualifies for the affiliated group.

*Form 8586 is used by owners of qualified residential rental buildings in low-income housing projects to figure the amount of their low-income housing credit.

*Form 8594 is used by both seller and purchaser of a group of assets that makes up a trade of business to report such a sale when goodwill or going concern value attaches or could attach to such assets and if the purchasers’ basis in the assets is determined by the amount paid for the assets.

*Form 8609 is used to obtain a housing credit allocation from the housing credit agency. In addition, the form contains the first-year certification completed by building owners with respect to the first year of the credit period.

*Form 8609-A must be completed by the building owner each year of the 15-year compliance period, whether or not a low-income housing credit (LIHC) is claimed for the tax year.

*Form 8611 is used by owners of residential low-income rental buildings to recapture the low-income housing credit taken in previous years due to a decrease in the qualified basis of a building or its disposition without posting a satisfactory bond.

*Form 8621 is used by direct or indirect shareholder of a passive foreign investment company or qualified electing fund each tax year in which the shareholder holds stock in a passive foreign investment company or qualified electing fund.

*Form 8621-A is used by shareholders of a former Passive Foreign Investment Company (PFIC) or a Section 1297(e)PFIC to make a late purging election under Section 1298(b)(1) to terminate their subjection to taxation under Section 1291.

*Form 8655 is used to designate a reporting agent to file certain tax returns electronically or on magnetic tape.

*Form 8693 is used by Taxpayers to post bond related to certain dispositions of residential rental buildings.

*Form 8697 is used by persons who complete long-term contracts that were accounted for using the percentage of completion or completion-capitalized cost methods to figure the interest due or to be refunded under the look-back method.

*Form 8703 is used by operators of residential rental projects to provide annual information used to determine if projects continue to be qualified residential projects under section 142(d) and whose bonds are considered exempt facility bonds.

*Form 8716 is filed by business entities to elect to have a tax year other than a required tax year.

Form 8752 is used by Partnerships and S corporations that elected to have a tax year other than a required tax year to figure and report the payment required under section 7519 or to obtain a refund of net prior year payments.

Form 8804 is used by Partnerships to report the total liability under section 1446 for the partnership's tax year.

Form 8804 Schedule A is used by Partnerships that have effectively connected taxable income (ECTI) allocable to foreign partners to determine whether they are subject to the penalty for underpayment of estimated tax and, if so, the amount of the underpayment penalty.

Form 8804 Schedule W is used by Partnerships to determine their foreign partners' tax liability and their estimated tax payments.

*Form 8805 is used to show the amount of effectively connected taxable income and the tax payments allocable to the foreign partner for the partnership's tax year.

Form 8806 is to report an acquisition of control or a substantial change in the capital structure of a domestic corporation.

Form 8810 is used by closely held C corporations and personal service corporations that have passive activity losses and/or credits.

Form 8813 is used to pay the withholding tax under section 1446 to the United States Treasury.

Form 8816 is used by insurance companies that elect to take an additional deduction under section 847.

*Form 8819 is used to elect the U.S. dollar as the functional currency of an eligible qualified business unit (QBU), as defined in Regulations Section 1.985-2(b)(1).

*Form 8820 is used to claim an orphan drug credit.

*Form 8822-B is used by business taxpayers to report a change of address or business location.

*Form 8824 is used to report each exchange of business or investment property for property of a like kind.

*Form 8825 is used to report income and deductible expenses from rental real estate activities, including those that flow through from partnerships, estates, or trusts.

*Form 8826 is used by eligible small businesses to claim the disabled access credit, a part of the general business credit.

Form 8827 is used by corporations to figure the minimum tax credit, if any, for alternative minimum tax incurred in prior tax years and to figure any minimum tax credit carryforward.

*Form 8830 is used to claim the enhanced oil recovery credit, a part of the general business credit.

*Form 8832 is used by eligible entities to choose how they are classified for Federal tax purposes: as an association taxable as a corporation or as a partnership, or as an entity inseparable from its owner.

*Form 8833 is used to make the treaty-based return position disclosure.

*Form 8834 is used by taxpayers to claim any qualified electric vehicle passive activity credit allowed for the current tax year.

*Form 8835 is used to claim the renewable electricity, refined coal, and Indian coal production credit. The credit is allowed only for the sale of electricity, refined coal, or Indian coal produced in the United States or U.S. possessions from qualified energy resources at a qualified facility.

*Form 8838 is used by U.S. transferors that entered into a gain recognition agreement under section 367(a) and 367(e)(2).

Form 8842 is used by corporations to elect one of the two annualization options that can be elected under section 6655(e)(2)(C) to figure the corporation's estimated tax payments under the annualized income installment method.

*Form 8844 is used by employers to claim the empowerment zone and renewal community employment credit.

*Form 8845 is used by Employers of American Indians who are qualified employees to claim the Indian employment credit.

*Form 8846 is used by certain food and beverage establishments to claim a credit for social security and Medicare taxes paid or incurred by the employer on certain employees' tips.

Form 8848 is used by foreign corporations if they completely terminated all of their U.S. trade or business according to regulations section 1.884-2(a) and (c) during the tax year.

*Form 8858 and schedules are used by certain U.S. persons that own a foreign disregarded entity (FDE) directly or, in certain circumstances, indirectly or constructively. The Form and schedules are used to satisfy the reporting requirements of sections 6011, 6012, 6031, and 6038, and related regulations.

*Form 8858 (Sch. M) is used by certain U.S. persons that are required to file Form 5471 with respect to a CFC or Form 8865 with respect to a CFP, that is a tax owner of an FDE, such as Category 4 filers of Form 5471, and Category 1 filers of Form 8865, must file Schedule M.

*Form 8864 is used to claim the biodiesel and renewable diesel fuels credit.

*Form 8865 is used to report the information required under section 6038 (reporting with respect to controlled foreign partnerships), section 6038B (reporting of transfers to foreign partnerships), or section 6046A (reporting acquisitions, dispositions, and changes in foreign partnership interests).

*Form 8865, Schedules K-1, O, and Schedule P are used to report the information required under section 6038, section 6038B, or section 6046A.

*Form 8866 is used by taxpayers who depreciated certain property using the income forecast method (generally limited to motion picture films, video tapes, sound recordings, copyrights, books and patents) to figure the interest due or to be refunded under the look-back method.

Form 8869 is used by a parent S corporation to elect to treat one or more of its eligible subsidiaries as a qualified subchapter S subsidiary (Q-Sub).

*Form 8871 is used by political organizations to notify the IRS that the organization is to be treated as a tax-exempt section 527 organization.

Form 8872 is used by political organizations must use to report certain contributions received and expenditures made after July 1, 2000 (unless otherwise excluded).

*Form 8873 is used to figure the amount of extraterritorial income excluded from gross income for the tax year.

*Form 8874 is used to claim the new markets credit for qualified equity investments made in qualified community development entities (CDEs).

Form 8875 is used by a corporation (other than a REIT or an ineligible corporation) and a REIT to jointly elect to have the corporation treated as a taxable REIT subsidiary under section 856(l).

*Form 8878-A is used by persons authorized to sign an electronic funds withdrawal authorization and an electronic return originator (ERO) to use a personal identification number (PIN) to authorize an electronic funds withdrawal of the balance due on an electronic Form 7004.

Form 8879-B is used by an electronic return originator (ERO) and a general partner or limited liability company member manager when the general partner or limited liability company member manager wants to use a personal identification number (PIN) to electronically sign an electing large partnership electronic income tax return, and, if applicable, consent to electronic funds withdrawal.

Form 8879-C is used by a corporate officer and an electronic return originator when the corporate officer wants to use a PIN to electronically sign a corporation's electronic income tax return.

Form 8879-I used by foreign corporations to facilitate use of a corporate officer's PIN to electronically sign an electronically transmitted Form 1120-F.

Form 8879-PE is used by an electronic return originator (ERO) and a general partner or limited liability company member when the general partner or limited liability company member wants to use a personal identification number (PIN) to electronically sign a partnership's electronic income tax return.

Form 8879-S is used by an electronic return originator (ERO) and a corporate officer when the corporate officer wants to use a personal identification number (PIN) to electronically sign a corporation's electronic income tax return, and if applicable, consent to electronic funds withdrawal.

*Form 8881 is used to claim the credit f under section 45E or qualified startup costs incurred in establishing or administering an eligible employer plan.

*Form 8882 is used by employers to claim the credit for qualified childcare facility and resource and referral expenditures.

*Form 8883 is used to report information about transactions involving the deemed sale of corporate assets under Section 338.

*Form 8886 is used to disclose participation in reportable transactions by taxpayers as described in regulations 1.6011-4.

Form 8893 is used by small partnerships electing the unified audit and litigation procedures as set forth in Section 6231(a)(1)(B)(ii).

Form 8894 is used by small partnerships revoking a prior election of the unified audit and litigation procedures as set forth in Section 6231(a)(1)(B)(ii).

*Form 8896 is used to claim the credit for qualified low sulfur diesel fuel production costs.

*Form 8900 is used to claim the railroad track maintenance credit (RTMC) with respect to qualified railroad track maintenance expenditures (QRTME) paid or incurred during the tax year.

*Form 8902 is used by qualifying vessel operators (defined below) who are making an alternative tax election under section 1354(a) or who have made such an election previously.

*Form 8903 is used by corporations, individuals, partners (including partners of electing large partnerships), S corporation shareholders, estate and trusts, beneficiaries of estates and trusts, cooperatives and patrons of cooperatives to calculate and report the domestic production activities deduction.

*Form 8906 is used to claim the distilled spirits credit,

*Form 8907 is used to determine the amount of credit that can be claimed for the production and sale of qualified nonconventional source fuel.

*Form 8908 is used to claim a credit for each qualified energy efficient home sold or leased to another person during the tax year for use as a residence.

*Form 8909 is used by manufacturers of qualified energy efficient appliances (eligible dishwashers, clothes washers, and refrigerators (discussed below)) to claim the energy efficient appliance credit.

*Form 8910 is used to figure your credit for alternative motor vehicles you placed in service during your tax year.

*Form 8911 is used to figure your credit for alternative fuel vehicle refueling property placed in service during the tax year.

*Form 8912 is used to claim the credit for holding tax credit bonds.

Form 8916 is a required attachment to the Form 1120, 1120-L, or 1120-PC Schedule M-3 for certain filers referred to as mixed groups. It provides a reconciliation of the Schedule M-3 for Form 1120, 1120-L or 1120-PC with the corresponding consolidated Form 1120, Form 1120-L, or Form 1120-PC.

Form 8916-A is used to provide a detailed schedule of the amounts reported on the applicable Schedule M-3 for cost of goods sold, interest income and interest expense.

*Form 8918 is used by materials advisors with respect to disclose certain information about the reportable transaction with the IRS.

*Form 8923 is used by employers of underground mines in the US to claim a credit for the cost of training employees to serve as mine rescue team members.

*Form 8925 is to report all employer-owned life insurance contracts.

Form 8926 is used to figure the amount of any corporate interest expense deduction disallowed by section 163(j).

Form 8927 is used by a regulated investment company or real estate investment trust to make a self-determination for the purpose of paying deficiency dividends.

*Form 8931 to claim the agricultural chemicals security credit.

*Form 8932 is used to claim the credit for eligible differential wage payments you made to qualified employees during the tax year.

*Form 8933 is used to claim the carbon dioxide sequestration credit.

*Form 8936 is used to figure your credit for qualified plug-in electric drive motor vehicles you placed in service during your tax year.

Form 8937 is filed by an issuer of a specified security that takes an organizational action that affects the basis of that security.

*Form 8938 is filed to Report Foreign Financial Assets to comply with IRC section 6038D.

*Form 8941 is used to figure the credit for small employer health insurance premiums for tax years beginning after 2009. For tax years beginning after 2013, the credit is only available for a 2-consecutive -tax year credit period.

*Form 8947 is used to report the following information for all branded prescription drugs sold by covered entities to specified government programs (or sales due to coverage under the programs) during calendar year 2010.

*Form 8966 is used to report information with respect to certain U.S. accounts, based on the filer’s Chapter 4 status. An entity that is a financial institution is required to file form 8966.

*Form 8966-C is used to transmit paper Forms 8966, FATCA Report, to the Internal Revenue Service.

Form 8979 is used by partnerships subject to Bipartisan Budget Act and by Partnership Representatives to comply with the IRC and the proposed regulations.

Form 8990 is used to calculate the amount of business interest expense you can deduct and the amount to carry forward to the next year.

Form 8991 is used to determine an applicable taxpayer’s tax on its base erosion minimum tax amount for the year.

Form 8992 is used to figure a U. S. shareholder’s GILTI inclusion.

Form 8993 is used to figure the amount of the eligible deduction for FDII and GILTI under section 250.

Form 8994 is used to claim the new employer credit for paid family and medical leave for wages paid in tax years beginning after December 2017.

Form 8996 is used by a corporation or partnership to certify that it is organized to invest in qualified opportunity zone property.

*Form 926 is used to report certain transfers by individuals, partnerships, corporations, or estates or trusts of tangible or intangible property to a foreign corporation as required by IRC section 6038B.

Form 965-B is used by corporations to report their net section 965 tax liability and election to pay in installments, and to record the amount of net 965 tax liability they have paid by year.  Form 965-B is also used by electing REITs to report section 965 amounts accounted for over time.

Form 965 Schedules A, B, and C are used by U.S. shareholders of a DFIC to calculate section 965(a) inclusion amounts for both 2017 and 2018 tax years.

Form 965 Schedules D and E are used by U.S. shareholders of a DFIC to calculate their aggregate foreign cash and calculate section 965 (c) deductions that are not from U.S. shareholder pass-through entities.

Form 965 Schedule F, G, and H is used to determine the foreign taxes deemed paid with respect to their section 965(a) inclusions and the portion of such deemed paid foreign taxes disallowed under section 965(g).

Form 966 is used by a corporation if it is to be dissolved or if any of its stock is to be liquidated.

*Form 970 is used to elect to use the last-in, first-out (LIFO) inventory method.

*Form 972 is used by a shareholder who agrees to report a consent dividend as taxable income in the form of a dividend on the shareholder’s own tax return even though the shareholder receives no actual cash distribution of the consented amounts.

Form 973 is used by corporations to claim a consent deduction in their tax returns.

Form 976 is used by personal holding companies, regulated investment companies, and real estate investment trusts to claim a deficiency dividends deduction.

*Form 982 is used to determine under certain circumstances described in section 108 the amount of discharged indebtedness that can be excluded from gross income.

*Form 1000 is used by a citizen, resident individual, fiduciary, partnership or nonresident partnership all of whose members are citizens or residents in connection with interest on bonds of a domestic or resident corporation containing a tax-free covenant and issued before January 1, 1934.

*Form 1042 is used by withholding agents to report tax withheld at source on certain income paid to nonresident alien individuals, foreign partnerships, or corporations not engaged in trade or business in the United States.

*Form SS-4 is used to apply for an employer identification number (EIN), a nine-digit number assigned for tax filing and reporting purposes.

*Form SS-4PR is used by employers in Puerto Rico who have not obtained an EIN before & pay wages to one or more employee, or non-employers who are required to have a EIN number on certain returns or documents.

*Form T-Timber is used to provide information on timber accounts when a sale or deemed sale under sections 631(a), 631(b), or other exchange has occurred during the tax year.

*Form W-8BEN is used by foreign persons who are subject to U.S. tax at a 30% rate of income they receive from U.S. sources that consists of; interests, dividends, rents, royalties, premiums, annuities, compensation of services performed, substitute payments in a securities lending transactions or other fixed or determinable annual or periodical gains, profits, or income.

*Form W-8 BEN-E is used as a withholding certificate for foreign entities. The form is provided to U.S. taxpayers so that the correct amount of tax (if any) is withheld or to claim exemption from withholding. Previously, entities would use Form W-8BEN for this purpose.

*Form W-8 ECI is used by Foreign persons who are generally subject to U.S. tax at a 30% rate on income they receive from U.S. sources. However, no withholding under section 1441 or 1442 is required on income that is, or is deemed to be effectively connected with the conduct of a trade or business in the U. S. and is includible in the beneficial owner’s gross income for the tax year.

*Form W-8IMY is used by foreign persons who are subject to U.S. tax at a 30% rate on income they receive from U.S. sources that consists of interest (including certain original issue discount (OID)), dividends, rent, premiums, annuities, compensation for or on expectation of, services performed or other fixed or determinable annual or periodical gains profits, or income.

As noted above, forms marked with an asterisk (*) are also filed by other taxpayers (e.g., individuals, tax-exempt organizations).

To prevent duplicate reporting of taxpayer burden, the following regulations should continue to be assigned to OMB 1545-0123. The burden imposed by these regulations is entirely reflected in the business estimated burden for the Forms listed above.

1.338

1.468A-3

1.468A-4

1.468A-4(d)(1)

1.468A-7

1.468A-8

1.528-8(a)

1.6011(c)

1.6012(a)

1.6012(a)(2)

1.6012(a)(3)

1.6012‑2(b)

1.6012‑6(b)

1.6012-2(c)(1)

1.6031-1

1.6033-1(a)(5)

1.6050Y

1.6081

1.280H

All regs. related to IRC sections 771-777

All regs. Related to IRC sections 671-679

All regs related to IRC section 801

All regs related to IRC section 831

All regs related to IRC sections 860A – 860G

1.851-2(a)

1.856-2(b)

All regs related to IRC sections 861–897

All regs related to IRC sections 881-882

All regs related to IRC section 884

All regs related to IRC section 199A

301.7701-2 and 3

All regs related to P.L. 115-97

2. USE OF DATA

Forms 1065, 1066, 1120, 1120-C, 1120-F, 1120-H, 1120-ND, 1120-S, 1120-SF,1120-FSC, 1120-L, 1120-PC, 1120-REIT, 1120-RIC, 1120-POL and all attachments to these forms, are used by businesses to report their income tax liability. The data is used to verify that the items reported on the forms are allowable, and also for general statistical use.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN

Approximately 90% of this collection is filed electronically. For more information on the electronic filings of, see the Publication 6292-Table 1 in supplementary documents.

4. EFFORTS TO IDENTIFY DUPLICATION

The information obtained through this collection is unique and is not already available for use or adaptation from another source.

1. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES

It is not possible to reduce reporting requirements for small businesses, however the burden on a given entity will depend on the complexity of their enterprise. Small businesses will generally have a much lower burden of compliance than large and complex businesses.

5. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES

Consequences of less frequent collection on federal programs or policy activities could consist of a decrease in the amount of taxes collected by the Service, inaccurate and untimely filing of tax returns, and an increase in tax violations.

5. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT WITH GUIDELINES IN 5 CFR 1320.5(d)(2)

There are no special circumstances requiring data collection to be inconsistent with guidelines in 5 CFR 1320.5(d)(2).

8. CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS

In response to the Federal Register Notices dated November 3, 2020 (85 FR 68687), we received a comment from the National Association of Real Estate Investment Trusts (NAREIT). This submission contained identical comments from NAREIT during both comment periods (82 FR 24447 and 82 FR 41310). The comment focused on forms 1120-REIT and 8875.  Below is a summary of the comments received from NAREIT:

The National Association of Real Estate Investment Trusts (NAREIT) had comments regarding:

• Enabling E-filing of both Forms 1120-REIT and 8875.

• Form 1120-REIT:

  • Part I, line 21 concerning net operating losses (NOLS) should be prospectively modified to reflect statutory changes.

  • Part III Should Be Modified to Calculate a REIT’s Gross Income for Purposes of Section 857(b)(5)

  • Part III Should Exclude Income from Hedging Transactions under Section 856(c)(5)(G) for Purposes of Section 857(b)(5)

  • Part III Should Include a Line for Taxable Income that is Excluded from Gross Income

  • Changes to the Instructions

• Form 8875:

  • Part I of Form 8875 should be amended to require contact information of an officer or legal representative of the TRS.

  • Changes to Part III Line 16

  • Changes to the instructions

  • Allow automatic extension of time to file TR

  • Changes to the TRS election.

IRS is currently undergoing discussions regarding the NAREIT comments applicable to the listed items. The NAREIT comment has been forwarded to the appropriate contacts and is being taken under advisement. The comments are technical, requiring extensive research on REITs and taxable REIT subsidiaries

Form 8875, IRS is not scheduled to be revised this year and we will look into the suggested changes. IRS is unable to give a detailed response as to whether or not we are going to adopt these changes at this time.

1. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS

No payment or gift has been provided to any respondents.

9. ASSURANCE OF CONFIDENTIALITY OF RESPONSES

Generally, tax returns and tax return information are confidential as required by 26 USC 6103.

9. JUSTIFICATION OF SENSITIVE QUESTIONS

A privacy impact assessment (PIA) has been conducted for information collected under this request as part of the “ Business Master File  (BMF) ” , “Corporate Data Initiative (CDI)” system and Privacy Act System of Records notices (SORN) has been issued for these systems under Treasury/IRS 24.030–Customer Account Data Engine Individual Master File; Treasury/IRS 24.046-Business Master File and IRS 34.037–IRS Audit Trail and Security Records System, Treasury/IRS 42.001-Examination Administrative File; Treasury/IRS 42.021-Compliance Programs and Project Files.  The Internal Revenue Service PIAs can be found at http://www.IRS.gov/privacy/PIAs/Pages/default.aspx

Title 26 USC 6109 requires inclusion of identifying numbers in returns, statements, or other documents for securing proper identification of persons required to make such returns, statements, or documents and is the authority for social security numbers (SSNs) in IRS systems. 

9. ESTIMATED BURDEN OF INFORMATION COLLECTION

Today, over 90 percent of all business entity tax returns are prepared using software by the taxpayer or with preparer assistance. These are forms used by business taxpayers. These include Forms 1065, 1066, 1120, 1120-C, 1120-F, 1120-H, 1120-ND, 1120-S, 1120-SF, 1120-FSC, 1120-L, 1120-PC, 1120-REIT, 1120-RIC, 1120-POL, and related schedules, that business entity taxpayers attach to their tax returns.

Tax Compliance Burden Model:

Tax compliance burden model is defined as the time and money taxpayers spend to comply with their tax filing responsibilities. Time-related activities include recordkeeping, tax planning, gathering tax materials, learning about the law and what you need to do, and completing and submitting the return. Out-of-pocket costs include expenses such as purchasing tax software, paying a third-party preparer, and printing and postage. Tax compliance burden does not include a taxpayer’s tax liability, economic inefficiencies caused by sub-optimal choices related to tax deductions or credits, or psychological costs.

Estimates for Forms 1120 and 1065 Series of returns and supporting forms, schedules, and regulations
FY2021
	FY20	Change due to Adjustment in Agency Estimates	Program Change due to New Legislation	Program Change due to Agency Discretion	FY21
Number of Taxpayers	12,000,000	(200,000)	-	-	11,800,000
Burden in Hours	3,344,000,000	(2,259,000,000)	-	-	1,085,000,000
Burden in Dollars	61,558,000,000	(17,279,000,000)	-	-	44,279,000,000
Monetized Total Burden	190,981,000,000	(95,178,000,000)	-	-	95,803,000,000
* Detail may not add to total due to rounding

*The projected number of tax filers was derived based on trends in the number of filers per Publication 6292.

Tables 1, 2, and 3 below show the burden model estimates for each of the three classifications of business taxpayers: Partnerships (Table 1), corporations (Table 2) and S corporations (Table 3). As the tables show, the average filing compliance is different for the three forms of business. Showing a combined average burden for all businesses would understate the burden for corporations and overstate the burden for the two pass-through entities (partnerships and corporations). In addition, the burden for small and large businesses is shown separately for each type of business entity in order to clearly convey the substantially higher burden faced by the largest businesses.

Table 1 – Taxpayer Burden for Partnerships
Forms 1065, 1066, and all attachments
Primary Form Filed or Type of Taxpayer	Total Number of Returns (in millions)	Average Time (hours)	Average Out-of-pocket Cost ($)	Average Monetized Burden (Labor Cost) ($)
All Partnerships	4.5	85	3,800	7,700
Small	4.2	75	2,700	5,200
Large*	0.3	245	20,100	44,900
Table 2 – Taxpayer Burden for Taxable Corporations
Forms 1120, 1120-C, 1120-F, 1120-H, 1120-ND, 1120-SF, 1120-FSC, 1120-L, 1120-PC, 1120-POL and all attachments
Primary Form Filed or Type of Taxpayer	Total Number of Returns (in millions)	Average Time (hours)	Average Out-of-pocket Cost ($)	Average Monetized Burden (Labor Cost) ($)
All Taxable Corporations	2.0	135	5,700	14,100
Small	1.9	90	3,000	6,100
Large*	0.1	920	48,100	140,800
Table 3 – Taxpayer Burden Pass-Through Corporations
Forms 1120-REIT, 1120-RIC, 1120-S and all attachments
Primary Form Filed or Type of Taxpayer	Total Number of Returns (in millions)	Average Time (hours)	Average Out-of-pocket Cost ($)	Average Monetized Burden (Labor Cost) ($)
All Pass-Through Corporations	5.3	80	3,000	6,200
Small	5.2	80	2,700	5,500
Large*	0.1	325	23,400	56,100

*A large business is defined as one having end-of-year assets greater than $10 million. A large business is defined the same way for partnerships,

taxable corporations, and pass-through corporations. A small business is any business that doesn't meet the definition of a large business.

Tables 1A – 3A show the average burden estimate for business entities by total positive income. Total positive income is defined as the sum of all positive income amounts reported on the return.

Table 1A – Taxpayer Burden for Partnerships
Forms 1065, 1066, and all attachments
Total Positive Income*	Average Time (hrs)	Average Out of Pocket Costs ($)	Total Average Monetized Burden (Labor Cost) ($)
< $100,000	65	1,425	2,571
$100,000 to $999,999	82	3,952	7,605
$1,000,000 to $9,999,999	124	10,244	22,224
$10,000,000 to $99,999,999	425	35,128	77,928
> $100,000,000	1,850	136,090	322,521
Table 2A – Taxpayer Burden for Taxable Corporations
Forms 1120, 1120-C, 1120-F, 1120-H, 1120-ND, 1120-SF, 1120-FSC, 1120-L, 1120-PC, 1120-POL and all attachments
Total Positive Income*	Average Time (hrs)	Average Out of Pocket Costs ($)	Total Average Monetized Burden (Labor Cost) ($)
< $100,000	72	1,239	2,330
$100,000 to $999,999	100	3,801	7,358
$1,000,000 to $9,999,999	138	9,904	22,866
$10,000,000 to $99,999,999	571	40,910	98,491
> $100,000,000	5,173	201,463	722,794

Table 3A – Taxpayer Burden Pass-Through Corporations
Forms 1120-REIT, 1120-RIC, 1120-S and all attachments
Total Positive Income*	Average Time (hrs)	Average Out of Pocket Costs ($)	Total Average Monetized Burden (Labor Cost) ($)
< $100,000	67	1,096	1,990
$100,000 to $999,999	80	2,866	5,503
$1,000,000 to $9,999,999	124	10,244	22,224
$10,000,000 to $99,999,999	425	35,128	77,928
> $100,000,000	1,850	136,090	322,521
*Total positive income is the sum of all positive income amounts reported on the return
Source: RAAS (11-15-20)

Note: The data shown are the best estimates for business entity income tax returns. Reported time and cost burdens are national averages and do not reflect a “typical” case. Most taxpayers experience lower than average burden varying considerably by taxpayer type. The estimates are subject to change as new forms and data become available.

Note: See Appendix A- OMB numbers that will no longer be separately reported in order to eliminate duplicate burden reporting. For Business Filers the OMB numbers are or will be retired resulting in a total reduction of 48,912,072 reported burden hours.

9. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS

Estimated Number of Respondents: 11,800,000.

Total Estimated Time: 1.085 billion hours.

Estimated Time per Respondent: 92 hours.

Total Estimated Out-of-Pocket Costs: $44.279 billion.

Estimated Out-of-Pocket Cost per Respondent: $3,752.

Total Monetized Burden (Labor Costs): $95,803 billion.

Estimated Total Monetized Burden (Labor Costs) Per Respondent: $8,119.

Note: Out-of-pocket costs include money spent on paid preparer fees, tax preparation software, tax planning, postage, etc. Reported time and cost burdens are national averages and do not necessarily reflect a “typical” case. Most taxpayers experience lower than average burden, with taxpayer burden varying considerably by taxpayer type. Detail may not add due to rounding.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT

The Federal government cost estimate is based on a model that considers the following three cost factors for each information product: aggregate labor costs for development, including annualized start-up expenses, operating and maintenance expenses, and distribution of the product that collects the information.

The government computes cost using a multi-step process. First, the government creates a weighted factor for the level of effort to create each information collection product based on variables such as; complexity, number of pages, type of product and frequency of revision. Second, the total costs associated with developing the product such as labor cost, and operating expenses associated with the downstream impact such as support functions, are added together to obtain the aggregated total cost. Then, the aggregated total cost and factor are multiplied together to obtain the aggregated cost per product. Lastly, the aggregated cost per product is added to the cost of shipping and printing each product to IRS offices, National Distribution Center, libraries and other outlets. The result is the Government cost estimate per product.

The government cost estimate for this collection is summarized in the table below.

Products		Aggregate Cost per Product (factor applied section)		Printing and Distribution		Government Cost
Business Forms and Instructions		$11,455,023	+	24,139	=	$11,479,162
Totals		$11,455,023	+	24,139	=	$11,479,162
Table costs are based on 2020 actuals obtained from IRS Chief Financial Office and Media and Publications

*See supplementary document for cost per form and instructions.

15. REASONS FOR CHANGE IN BURDEN

Changes in estimated aggregate compliance burden are due entirely to adjustments in agency estimates. IRS has conducted a re-baselining of the burden estimates for business entity filers based on new survey data, which indicate that the previous burden was significantly over-estimated.

The following table provides an overview of these technical adjustments:

Annual Responses and Burden with Changes

	FY 2021 Requested	Program Change Due to New Statute	Program Change Due to Agency Discretion	Change Due to Adjustment in Agency Estimate	Change Due to Potential Violation of the PRA	FY 2020 Previously Approved
Annual Number of Responses	11,800,000	0	0	(200,000)	0	12,000,000
Annual Time Burden (Hours)	1,085,000,000	0	0	(2,259,000,000)	0	3,344,000,000
Annual Out-of-pocket Cost Burden (Dollars)	44,279,000,000	0	0	(17,279,000,000)	0	61,558,000,000
Total Monetized Labor Costs (Dollars)	95,803,000,000	0	0	(95,178,000,000)	0	190,981,000,000

	Change in Filers	Change in Time (Hours)	Change in Out-of-Pocket Costs ($)	Change in Monetized Labor Cost Burden ($)
Updated FY20 Baseline	(142,857)	(1,485,866,310)	(11,472,039,883)	(62,880,278,605)
Update FY21 Forecasting Parameters	(57,143)	(773,133,690)	(5,806,960,117)	(32,297,721,395)
Total	(200,000)	(2,259,000,000)	(17,279,000,000)	(95,178,000,000)

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION

The intent of this collection is to collect data in areas of income, gains, losses, deductions, credits, and to figure the income tax liability of a business taxpayer.

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE

We believe that displaying the OMB expiration date is inappropriate because it could cause confusion by leading taxpayers to believe that the forms sunset as of the expiration date. Taxpayers are not likely to be aware that the Service intends to request renewal of the OMB approval and obtain a new expiration date before the old one expires.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT

There are no exceptions to the certification statement.

Note: The following paragraph applies to all of the collections of information in this submission:

An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.

Appendix A

OMB numbers that will no longer be separately reported in order to eliminate duplicate burden reporting. For business filers, the following OMB numbers are or will be retired resulting in a total reduction of 48,912,072 reported burden hours.

Burden Hours:	OMB Number:	Title
1005	1545-0731	Definition of an S Corporation
41	1545-0746	LR-100-78 (Final) Creditability of Foreign Taxes
205	1545-0755	Related Group Election With Respect to Qualified Investments in Foreign Base Company Shipping Operations
37,922,688	1545-0771	TD 8864 (Final); EE-63-88 (Final and temp regulations) Taxation of Fringe Benefits and Exclusions From Gross Income for Certain Fringe Benefits; IA-140-86 (Temporary) Fringe Benefits Treas. reg 1.274
3104	1545-0807	(TD 7533) Final, DISC Rules on Procedure and Administration; Rules on Export Trade Corporations, and (TD 7896) Final, Income from Trade Shows
8125	1545-0879	TD 8426 - Certain Returned Magazines, Paperbacks or Records (IA-195-78)
978	1545-1018	FI-27-89 (Temporary and Final) Real Estate Mortgage Investment Conduits; Reporting Requirements and Other Administrative Matters; FI-61-91 (Final) Allocation of Allocable Investment
1025	1545-1041	TD 8316 Cooperative Housing Corporations
50417	1545-1068	T.D. 8618 - Definition of a Controlled Foreign Corporation, Foreign Base Company Income, and Foreign Personal Holding Company Income of a Controlled Foreign Corporation (INTL-362-88)
12694	1545-1070	Effectively connected income and the branch profits tax
3250	1545-1072	INTL-952-86 (Final-TD 8410) and TD 8228 Allocation and Apportionment of Interest Expense and Certain Other Expenses
1620	1545-1083	Treatment of Dual Consolidated Losses
40	1545-1093	Final Minimum Tax-Tax Benefit Rule (TD 8416)
4008	1545-1102	PS-19-92 (TD 9420 -Final) Carryover Allocations and Other Rules Relating to the Low-Income Housing Credit
19,830	1545-1130	Special Loss Discount Account and Special Estimated Tax Payments for Insurance Companies
1500	1545-1138	TD-8350 (Final) Requirements For Investments to Qualify under Section 936(d)(4) as Investments in Qualified Caribbean Basin Countries
70	1545-1146	Applicable Conventions Under the Accelerated Cost
640000	1545-1191	Information with Respect to Certain Foreign- Owned Corporations - IRC Section 6038A
662	1545-1218	CO-25-96 (TD 8824 - Final) Regulations Under Section 1502 of the Internal Revenue Code of 1986; Limitations on Net Operating Loss Carryforwards and Certain Built-in Losses and Credits Following
1000	1545-1224	T. D. 8337 (Final) Allocation and Apportionment of Deduction for State Income Taxes (INTL-112-88)
1,000	1545-1233	Adjusted Current Earnings (IA-14-91)(Final)
2,000	1545-1237	REG-209831-96 (TD 8823) Consolidated Returns--Limitation on the Use of Certain Losses and Deductions
49,950	1545-1251	TD 8437 - Limitations on Percentage Depletion in the Case of Oil and Gas Wells
50	1545-1254	TD 8396 - Conclusive Presumption of Worthlessness of Debts Held by Banks (FI-34-91)
1	1545-1260	CO-62-89 (Final) Final Regulations under Section 382 of the Internal Revenue Code of 1986; Limitations on Corporate Net Operating Loss Carryforwards
2390	1545-1271	Treatment of transfers of stock or securities to foreign corporations
200	1545-1275	Limitations on net operating loss carryforwards and certain built-in losses following ownership change
2070	1545-1287	FI-3-91 (TD 8456 - Final) Capitalization of Certain Policy Acquisition Expenses
625	1545-1290	TD 8513 - Bad Debt Reserves of Banks
3542	1545-1299	TD 8459 - Settlement Funds
2200	1545-1300	Treatment of Acquisition of Certain Financial Institutions: Certain Tax Consequences of Federal Financial Assistance to Financial Institutions
322	1545-1308	TD 8449 (Final) Election, Revocation, Termination, and Tax Effect of Subchapter S Status
63	1545-1324	CO-88-90 (TD 8530) Limitation on Net Operating Loss Carryforwards and Certain Built-in Losses Following Ownership Change; Special Rule for Value of a Loss Corporation Under the Jurisdiction...
5	1545-1338	Election Out of Subchapter K for Producers of Natural Gas - TD 8578
18,600	1545-1344	TD 8560 (CO-30-92) Consolidated Returns--Stock Basis and Excess Loss Accounts, Earnings and Profits, Absorption of Deductions and Losses, Joining and Leaving Consolidated Groups, Worthless (Final)
2000	1545-1352	TD 8586 (Final) Treatment of Gain From Disposition of Certain Natural Resource Recapture Property
104899	1545-1357	PS-78-91 (TD 8521)(TD 8859) Procedures for Monitoring Compliance with Low- Income Housing Credit Requirements; PS-50-92 Rules to Carry Out the Purposes of Section 42 and for Correcting
9350	1545-1364	Methods to Determine Taxable Income in connection with a Cost Sharing Arrangement - IRC Section 482
20000	1545-1412	FI-54-93 (Final) Clear Reflection of Income in the Case of Hedging Transactions
4,332	1545-1417	Form 8845 - Indian Employment Credit
1050	1545-1433	Consolidated and Controlled Groups- Intercompany Transactions and Related Rules
875	1545-1434	CO-26-96 (Final) Regulations Under Section 382 of the Internal Revenue Code of 1986; Application of Section 382 in Short Taxable Years and With Respect to Controlled Groups
333	1545-1438	TD 8643 (Final) Distributions of Stock and Stock Rights
10000	1545-1440	TD 8611, Conduit Arrangements Regulations - Final (INTL-64-93)
2,000	1545-1447	CO-46-94 (TD 8594 - Final) Losses on Small Business Stock
1250	1545-1476	Source of Income From Sales of Inventory and Natural Resources Produced in One Jurisdiction and Sold in Another Jurisdiction
171050	1545-1480	TD 8985 - Hedging Transactions
2500	1545-1491	TD 8746 - Amortizable Bond Premium
1000	1545-1493	TD 8684 - Treatment of Gain From the Disposition of Interest in Certain Natural Resource Recapture Property by S Corporations and Their Shareholders
212500	1545-1507	(TD 8701)--Treatment of Shareholders of Certain Passive Investment Companies; (TD 8178)--Passive Foreign Investment Companies.
326,436	1545-1522	Revenue Procedure 2017-52, 2017-1, 2017-3 Rulings and determination letters
10467	1545-1530	Rev. Proc. 2007-32 - Tip Rate Determination Agreement (Gaming Industry); Gaming Industry Tip Compliance Agreement Program
10,000	1545-1539	REG-208172-91 (TD 8787 -final) Basis Reduction Due to Discharge of Indebtedness
18,553	1545-1541	Revenue Procedure 97-27, Changes in Methods of Accounting
278,622	1545-1546	Revenue Procedure 97-33, EFTPS (Electronic Federal Tax Payment System)
50,000	1545-1548	Rev. Proc. 2013-30, Uniform Late S Corporation Election Revenue Procedure
296896	1545-1549	Tip Reporting Alternative Commitment (TRAC) Agreement and Tip Rate Determination (TRDA) for Use in the Food and Beverage Industry
30580	1545-1551	Changes in Methods of Accounting (RP 2016-29)
623	1545-1555	REG-115795-97 (Final) General Rules for Making and Maintaining Qualified Electing Fund Elections
500	1545-1556	TD 8786 - Source of Income From Sales of Inventory Partly From Sources Within a Possession of the U.S.; Also, Source of Income Derived From Certain Purchases From a Corp. Electing Sec. 936
1000	1545-1558	Rev. Proc. 98-46 (modifies Rev. Proc.97-43)--Procedures for Electing Out of Exemptions Under Section 1.475(c)-1; and Rev. Rul. 97-39, Mark-to-Market Accounting Method for Dealers in Securities
100000	1545-1559	Revenue Procedures 98-46 and 97-44, LIFO Conformity Requirement
2000	1545-1566	Notice 2010-46, Prevention of Over-Withholding of U.S. Tax Avoidance With Respect to Certain Substitute Dividend Payments
904000	1545-1588	Adjustments Following Sales of Partnership Interests
10,110	1545-1590	REG-251698-96 (T.D. 8869 - Final) Subchapter S Subsidiaries
500	1545-1617	REG-124069-02 (Final) Section 6038 - Returns Required with Respect to Controlled Foreign Partnerships; REG-118966-97 (Final) Information Reporting with Respect to Certain Foreign Partnership
3000	1545-1634	TD 9595 (REG-141399-07) Consolidated Overall Foreign Losses, Separate Limitation Losses, and Overall Domestic Losses
500	1545-1641	Rev. Proc. 99-17 - Mark to Market Election for Commodities Dealers and Securities and Commodities Traders
50	1545-1642	TD 8853 (Final), Recharacterizing Financing Arrangements Involving Fast-Pay Stock
1	1545-1646	TD 8851 - Return Requirement for United States Persons Acquiring or Disposing of an Interest in a Foreign Partnership, or Whose Proportional Interest in a Foreign Partnership Changes
75	1545-1647	Revenue Procedure 2001-21 Debt Roll-Ups
1,620	1545-1657	Revenue Procedure 99-32 -- Conforming Adjustments Subsequent to Section 482 Allocations
25	1545-1658	Purchase Price Allocations in Deemed Actual Asset Acquisitions
10000	1545-1661	Qualified lessee construction allowances for short-term leases
1500	1545-1671	REG-209709-94 (Final-TD 8865) Amortization of Intangible Property
70	1545-1672	T.D. 9047 - Certain Transfers of Property to Regulated Investment Companies (RICs) and Real Estate Investment Trusts (REITs)
470	1545-1675	Treatment of taxable income of a residual interest holder in excess of daily accruals
23900	1545-1677	Exclusions From Gross Income of Foreign Corporations
13134	1545-1684	Pre-Filing Agreements Program
400	1545-1690	Notice 2000-28, Coal Exports
400	1545-1699	TD 9715; Rev. Proc. 2015-26 (Formerly TD 9002; Rev Proc 2002-43), Agent for Consolidated Group
3200	1545-1701	Revenue Procedure 2000-37 - Reverse Like-kind Exchanges (as modified by Rev Proc. 2004-51)
2000	1545-1706	TD 9315 - Section 1503(d) Closing Agreement Requests
1800	1545-1711	TD 9273 - Stock Transfer Rules: Carryover of Earnings and Taxes (REG-116050-99)
4877	1545-1714	Tip Reporting Alternative Commitment (TRAC) for most industries
870	1545-1716	Employer-Designed Tip Reporting Program for the Food and Beverage Industry (EmTRAC Program) - Notice 2001-1
1897	1545-1717	Tip Rate Determination Agreement (TRDA) for Most Industries
1250	1545-1718	Source of Income from Certain Space and Ocean Activities; Source of Communications Income (TD 9305 - final)
15	1545-1730	Manner of making election to terminate tax-exempt bond financing
19	1545-1731	Extraterritorial Income Exclusion Elections
1318	1545-1736	Advanced Insurance Commissions - Revenue Procedure 2001-24
500	1545-1748	Changes in Accounting Periods - REG-106917-99 (TD 8669 / Final)
5950	1545-1752	Revenue Procedure 2008-38, Revenue Procedure 2008-39, Revenue Procedure 2008-40, Revenue Procedure 2008-41, Revenue Procedure 2008-42
100000	1545-1756	Revenue Procedure 2001-56, Demonstration Automobile Use
530090	1545-1765	T.D. 9171, New Markets Tax Credit
500	1545-1768	Revenue Procedure 2003-84, Optional Election to Make Monthly Sec. 706 Allocations
7700	1545-1774	Extensions of Time to Elect Method for Determining Allowable Loss
100	1545-1784	Rev Proc 2002-32 as Modified by Rev Proc 2006-21, Waiver of 60-month Bar on Reconsolidation after Disaffiliation
600	1545-1786	Changes in Periods of Accounting
300	1545-1799	Notice 2002-69, Interest Rates and Appropriate Foreign Loss Payment Patterns For Determining the Qualified Insurance Income of Certain Controlled Corporations under Section 954(f)
7,500	1545-1801	Revenue Procedure 2002-67, Settlement of Section 351 Contingent Liability Tax Shelter Cases
300	1545-1820	Revenue Procedure 2003-33, Section 9100 Relief for 338 Elections
15,000	1545-1828	TD 9048; 9254 - Guidance under Section 1502; Suspension of Losses on Certain Stock Disposition (REG-131478-02)
100	1545-1831	TD 9157 (Final) Guidance Regarding the Treatment of Certain Contingent Payment Debt Instruments w/ one or more Payments that are Denominated in, or Determined by Reference to, a Nonfunctional Currency
625	1545-1833	Revenue Procedure 2003-37, Documentation Provisions for Certain Taxpayers Using the Fair Market Value Method of Interest Expense Apportionment
8600	1545-1834	Revenue Procedure 2003-39, Section 1031 LKE (Like-Kind Exchanges) Auto Leasing Programs
2,000	1545-1837	Revenue Procedure 2003-36, Industry Issue Resolution Program
3200	1545-1847	Revenue Procedure 2004-29 - Statistical Sampling in Sec. 274 Context
24,000	1545-1855	TD 9285 - Limitation on Use of the Nonaccrual-Experience Method of Accounting Under Section 448(d)(5)
50	1545-1861	Revenue Procedure 2004-19 - Probable or Prospective Reserves Safe Harbor
3000	1545-1870	TD 9107 - Guidance Regarding Deduction and Capitalization of Expenditures
1500	1545-1893	Rollover of Gain from Qualified Small Business Stock to Another Qualified Small Business Stock
3000	1545-1905	TD 9289 (Final) Treatment of Disregarded Entities Under Section 752
200	1545-1906	TD 9210 - LIFO Recapture Under Section 1363(d)
76190	1545-1915	Notice 2005-4, Fuel Tax Guidance, as modified
552100	1545-1939	Notification Requirement for Transfer of Partnership Interest in Electing Investment Partnership (EIP)
52182	1545-1945	26 U.S. Code section 475 - Mark to market accounting method for dealers in securities
2765	1545-1946	T.D. 9315 (Final) Dual Consolidated Loss Regulations
250	1545-1965	TD 9360 (REG-133446-03)(Final) Guidance on Passive Foreign Company (PFIC) Purging Elections
1,985	1545-1983	Qualified Railroad Track Maintenance Credit
3,034,765	1545-1986	Notice 2006-47, Elections Created or Effected by the American Jobs Creation Act of 2004.
12	1545-1990	Application of Section 338 to Insurance Companies
150	1545-2001	Rev. Proc. 2006-16, Renewal Community Depreciation Provisions
1,700	1545-2002	Notice 2006-25 (superseded by Notice 2007-53), Qualifying Gasification Project Program
4950	1545-2003	Notice 2006-24, Qualifying Advanced Coal Project Program
3761	1545-2004	Deduction for Energy Efficient Commercial Buildings
171,160	1545-2008	Nonconventional Source Fuel Credit
25	1545-2014	TD 9452 - Application of Separate Limitations to Dividends From Noncontrolled Section 902 Corporations
500	1545-2017	Notice 2006-46 Announcement of Rules to be included in Final Regulations under Section 897(d) and (e) of the Internal Revenue Code
375000	1545-2019	TD 9451 - Guidance Necessary To Facilitate Business Election Filing; Finalization of Controlled Group Qualification Rules (TD 9329)
200	1545-2028	Fuel Cell Motor Vehicle Credit
35	1545-2030	REG-120509-06 (TD 9465 -Final), Determination of Interest Expense Deduction of Foreign Corporations
100	1545-2036	Taxation and Reporting of REIT Excess Inclusion Income by REITs, RICs, and Other Pass-Through Entities (Notice 2006-97)
2400	1545-2072	Revenue Procedure 2007-35 - Statistical Sampling for Purposes of Section 199
2500	1545-2091	TD 9512 (Final) - Nuclear Decommissioning Funds
25	1545-2096	Loss on Subsidiary Stock - REG-157711-02 (TD 9424 - Final)
120	1545-2103	Election to Expense Certain Refineries
3000	1545-2110	REG-127770-07 (Final), Modifications of Commercial Mortgage Loans Held by a Real Estate Mortgage Investment Conduit.
26000	1545-2114	S Corporation Guidance under AJCA of 2004 (TD 9422 Final - REG-143326-05)
389,330	1545-2122	Form 8931 - Agricultural Chemicals Security Credit
1000	1545-2125	REG-143544-04 Regulations Enabling Elections for Certain Transaction Under Section 336(e)
2,700	1545-2133	Rev. Proc. 2009-16, Section 168(k)(4) Election Procedures and Rev. Proc. 2009-33, Section 168(k)(4) Extension Property Elections
350	1545-2134	Notice 2009-41- Credit for Residential Energy Efficient Property
100	1545-2145	Notice 2009-52, Election of Investment Tax Credit in Lieu of Production Tax Credit; Coordination with Department of Treasury Grants for Specified Energy Property in Lieu of Tax Credits
300000	1545-2147	Internal Revenue Code Section 108(i) Election
4500	1545-2149	Treatment of Services Under Section 482; Allocation of Income and Deductions From Intangibles; Stewardship Expense (TD 9456)
250	1545-2150	Notice 2009-58, Manufacturers' Certification of Specified Plug-in Electric Vehicles
550000	1545-2151	Qualifying Advanced Energy Project Credit - Notice 2013-12
180	1545-2153	Notice 2009-83 - Credit for Carbon Dioxide Sequestration Under Section 45Q
1,000	1545-2155	TD 9469 (REG-102822-08) Section 108 Reduction of Tax Attributes for S Corporations
36000	1545-2156	Revenue Procedure 2010-13, Disclosure of Activities Grouped under Section 469
1500	1545-2158	Notice 2010-54: Production Tax Credit for Refined Coal
5988	1545-2165	Notice of Medical Necessity Criteria under the Mental Health Parity and Addiction Equity Act of 2008
3260	1545-2183	Transfers by Domestic Corporations That Are Subject to Section 367(a)(5); Distributions by Domestic Corporations That Are Subject to Section 1248(f). (TD 9614 & 9615)
694750	1545-2186	TD 9504, Basis Reporting by Securities Brokers and Basis Determination for Stock; TD 9616,TD9713, and TD 9750
1000	1545-2194	Rules for Certain Rental Real Estate Activities
1800	1545-2209	REG-112805-10 - Branded Prescription Drugs
403177	1545-2242	REG-135491-10 - Updating of Employer Identification Numbers
200	1545-2245	REG-160873-04 - American Jobs Creation Act Modifications to Section 6708, Failure to Maintain List of Advisees With Respect to Reportable Transactions
75000	1545-2247	TD 9633 - Limitations on Duplication of Net Built-in Losses
400	1545-2259	Performance & Quality for Small Wind Energy Property
1800	1545-2276	Safe Harbor for Inadvertent Normalization Violations
48,912,072	Total:

25