Guidance Regarding the Transition Tax Under Section 965 and Related Provision

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
Supporting Statement.docx	Supporting Statement A	Uploaded 2022-08-22	Repair queued

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
232675	Guidance Regarding the Transition Tax Under Section 965 and Related Provisions		Modified

ICR Details

OMB Control No: 1545-2280	ICR Reference No: 202205-1545-020
Status: Historical Active	Previous ICR Reference No: 201902-1545-011
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Guidance Regarding the Transition Tax Under Section 965 and Related Provision
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved with change	Conclusion Date: 03/22/2023
Retrieve Notice of Action (NOA)	Date Received in OIRA: 08/31/2022
Terms of Clearance: Supporting statement updated during OMB review.

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	03/31/2026	36 Months From Approved	03/31/2023
Responses	9,601	0	100,000
Time Burden (Hours)	9,601	0	500,000
Cost Burden (Dollars)	0	0	0

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Abstract: This information collection request contains final regulations implementing section 965 of the Internal Revenue Code (the “Code”). Section 965 was amended by the Tax Cuts and Jobs Act, which was enacted on December 22, 2017. This document finalizes the proposed regulations published on August 9, 2018. The final regulations affect United States persons with direct or indirect ownership interests in certain foreign corporations.

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Authorizing Statute(s): PL: Pub.L. 115 - 97 1403 Name of Law: Tax Cuts and Job Acts
   US Code: 26 USC 965 Name of Law: Treatment of deferred foreign income upon transition to participation exemption system of taxation
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	87 FR 17138	03/25/2022
30-day Notice:	Federal Register Citation:	Citation Date:
	87 FR 53551	08/31/2022
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
Guidance Regarding the Transition Tax Under Section 965 and Related Provisions

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ICR Summary of Burden

table that charts list of burden

	Total Approved	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	9,601	100,000	0	0	-90,399	0
Annual Time Burden (Hours)	9,601	500,000	0	0	-490,399	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The burden in this submission is being reduced to account for most of the elections and statements in the initial submission being made by taxpayers in previous years. The revised burden reflects that the only collections of information remaining are those with respect to transfer and consent agreements for taxpayers who previously made section 965(h) and section 965(i) elections and with respect to the annual reporting requirement for taxpayers who previously made section 965(i) elections. The burden estimate is based on the number of taxpayers who made section 965(h) and section 965(i) elections who have not fully paid their section 965 tax liabilities. This number is overinclusive compared to the number of taxpayers who will actually be required to provide information in one of these collections because not all taxpayers who made section 965(h) elections will enter into transfer agreements. IRS is making this submission for renewal purposes.

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Annual Cost to Federal Government: $162,434

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.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

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

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

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

Is this ICR related to the Pandemic Response? No

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Common Form ICR:  No

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

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

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

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

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

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

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

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

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

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

(v) Nature and extent of confidentiality; and

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

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

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

(j) It makes appropriate use of information technology.

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

Certification Date: 08/31/2022

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