Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund

Forms and Documents

Document Name	Status
Form 8621 Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund Form	Modified
1545-1002 SS 2021 NPRM.docx Supporting Statement A	2022-03-08

IC Document Collections

IC ID	Document Title	Status
39950	Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund Form	Modified

ICR Details

OMB Control No: 1545-1002	ICR Reference No: 202203-1545-003
Status: Received in OIRA	Previous ICR Reference No: 202109-1545-003
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 03/08/2022

	Requested	Previously Approved
Expiration Date	36 Months From Approved	02/28/2025
Responses	1,372,333	1,333
Time Burden (Hours)	67,230,594	65,304
Cost Burden (Dollars)	0	0

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Abstract: Form 8621 is filed by a U.S. shareholder who owns stock in a foreign investment company. The form is used to report income, make an election to extend the time for payment of tax, and to pay an additional tax and interest amount. The IRS uses Form 8621 to determine if these shareholders have correctly reported amounts of income, made the election correctly, and have correctly computed the additional tax and interest amount.

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Authorizing Statute(s): US Code: 26 USC 1296 Name of Law: Election of mark to market for marketable stock
   US Code: 26 USC 1298 Name of Law: Special rules
   US Code: 26 USC 1297 Name of Law: Passive foreign investment company
   US Code: 26 USC 1295 Name of Law: Qualified electing fund
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
1545-BP94	Proposed rulemaking	87 FR 3890	01/25/2022

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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
Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund	8621	Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund

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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	1,372,333	1,333	0	1,371,000	0	0
Annual Time Burden (Hours)	67,230,594	65,304	0	67,165,290	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: In general, proposed §§1.1295-1(d)(2)(i)(A), 1.1295-1(d)(2)(ii)(A), 1.1296-1(h)(1)(i), and 1.1298-1(b)(1) shift the burden of making QEF and MTM elections, and filing an annual Form 8621 with respect to a PFIC, from domestic partnerships and S corporations that own PFIC stock to their partners and shareholders, respectively. There is an increase in burden as the estimated number or responses/respondents has changed from 1,333 to 1,371,000, for a total of 1,372,333 responses. The estimated time to complete the form remains the same (48.99), but due to the increase in the number of responses, the overall time burden estimate has increased by 67,165,290 hours (65,304 to 67,230,594).

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Annual Cost to Federal Government: $23,434

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: 03/08/2022

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