Return of U.S. Persons With Respect to Certain Foreign Partnerships

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability

No forms / supporting documents in this ICR. Check IC Document Collections.

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
41026	Return of U.S. Persons With Respect to Certain Foreign Partnerships and Consent To Extend the Time To Assess Tax Pursuant to the Gain Deferral Method (Section 721(c))	Form	Modified
228236	Consent To Extend the Time To Assess Tax Pursuant to the Gain Deferral Method (Section 721(c))	Form and Instruction	Removed

ICR Details

OMB Control No: 1545-1668	ICR Reference No: 202109-1545-005
Status: Received in OIRA	Previous ICR Reference No: 201810-1545-010
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Return of U.S. Persons With Respect to Certain Foreign Partnerships
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 12/31/2021

table that charts list comparision

	Requested	Previously Approved
Expiration Date	36 Months From Approved	12/31/2021
Responses	3,695	34,450
Time Burden (Hours)	84,057	281,974
Cost Burden (Dollars)	0	0

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Abstract: The Taxpayer Relief Act of 1997 significantly modified the information reporting requirements with respect to foreign partnerships. The Act made the following three changes (1) expanded section 6038B to require U.S. persons transferring property to foreign partnerships in certain transactions to report those transfers; (2) expanded section 6038 to require certain U.S. Partners of controlled foreign partnerships to report information about the partnerships; and (3) modified the reporting required under section 6046A with respect to acquisitions and dispositions of foreign partnership interests. Form 8838-P is used to extend the statute of limitations for U.S. persons who transfers appreciated property to partnerships with foreign partners related to the transferor. The form is filed when the transferor makes a gain recognition agreement. This agreement allows the transferor to defer the payment of tax on the transfer. The IRS uses Form 8838-P so that it may assess tax against the transferor after the expiration of the original statute of limitations.

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Authorizing Statute(s): US Code: 26 USC 721(c) Name of Law: Nonrecognition of gain or loss on contribution
   US Code: 26 USC 6038B Name of Law: Notice of certain transfers to foreign persons
   US Code: 26 USC 6103 Name of Law: Confidentiality and disclosure of returns and return information
   US Code: 26 USC 6038 Name of Law: Information reporting with respect to certain foreign
   US Code: 26 USC 6046A Name of Law: Returns as to interests in foreign partnerships
   US Code: 26 USC 250 Name of Law: Foreign-Derived Intangible Income and Global Intangible Low-Taxed Income
   US Code: 26 USC 267A Name of Law: Certain Related Party Amounts Paid or Accrued In Hybrid Transactions Or With Hybrid Entities
   PL: Pub.L. 115 - 97 multiple Name of Law: Tax Cuts and Jobs Act
  

Citations for New Statutory Requirements: PL: Pub.L. 115 - 97 multiple Name of Law: Tax Cuts and Jobs Act

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking
	Other Documents for OIRA Review

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	86 FR 36188	07/08/2021
30-day Notice:	Federal Register Citation:	Citation Date:
	86 FR 73851	12/28/2021
Did the Agency receive public comments on this ICR? No

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

table that charts list of burden

IC Title	Form No.	Form Name
Consent To Extend the Time To Assess Tax Pursuant to the Gain Deferral Method (Section 721(c))	8838 P	Consent To Extend the Time To Assess Tax Under Section 721(c) - Gain Deferral method
Return of U.S. Persons With Respect to Certain Foreign Partnerships and Consent To Extend the Time To Assess Tax Pursuant to the Gain Deferral Method (Section 721(c))	8865 Sch P, 8865, 8865 Sch H, 8865 Sch K-2, 8865 Sch K-3, 8865 Sch K-2 and Sch K-3, 8838-P, 8865 Sch K-1, 8865 Sch G, 8865 Sch O, 8865	Acquisitions, Dispositions, and Changes of Interests in a Foreign Partnership ,   Acceleration Events and Exceptions Reporting Relating to Gain Defferal Method Under Section 721(c) ,   Partners’ Distributive Share Items—International ,   Partner’s Share of Income, Deductions, Credits, etc.—International ,   Partner's Share of Income, Deductions, Credits, etc. ,   Consent To Extend the Time To Assess Tax Pursuant to the Gain Deferral Method (Section 721(c)) ,   Transfer of Property to a Foreign Partnership (draft 2018) ,   Return of U.S. Persons With Respect to Certain Foreign Partnerships ,   Instructions for Form 8865 ,   Instructions for Schedules K-2 and K-3 (Form 8865) ,   Statement of Application of the Gain Deferral Method under Section 721(c)

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ICR Summary of Burden

table that charts list 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	3,695	34,450	50	200	-31,005	0
Annual Time Burden (Hours)	84,057	281,974	4,440	51,420	-253,777	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: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: Yes

Burden Reduction Due to: Cutting Redundancy

Short Statement: The previously approved burden is being reduced to eliminate double counting of responses for individual and business filers which are reported under OMB numbers 1545-0074 and 1545-0123. The number of responses was reduced by 90 percent for each form and schedule in the collection, resulting in a decrease to the overall burden of 253,777 hours. The Tax Cuts and Jobs Act, P.L. 115-97 added IRC sections requiring Form 8865 to collect additional information. Lines were added for IRC section 250, which allows a deduction for foreign-derived intangible income and global intangible low-taxed income. Lines were added for IRC section 267A, which disallows a deduction for certain interest and royalty payments or accruals. A line was added for the number of foreign partners subject to IRC section 864(c)(8). Lines were added for disclosure requirements under Treasury Regulations 1.703-3, 1.707-6, and 1.707-8. A line and new Schedule A-2 were added to collect information on IRC section 721(c) partnerships. The burdens for all forms and schedules have been recalculated to reflect changes. New Schedule K-2 replaces, supplements, and clarifies reporting of certain amounts formerly reported on lines 16 and 20c of Schedule K. New Schedule K-3 replaces, supplements, and clarifies reporting of certain amounts formerly reported on lines 16 and 20 of Schedule K-1. Form 8838-P was consolidated into main IC.

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Annual Cost to Federal Government: $451,693

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     Yes

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     Yes

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 12/31/2021

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