S Corporation Shareholder Stock and Debt Basis Limitations

Forms and Documents

Document Name	Status
Form 7203 Form 7203 Form	Modified
1545-2302 Supporting Statement.docx Supporting Statement A	2025-06-20

IC Document Collections

IC ID	Document Title	Status
249911	Form 7203 Form	Modified

ICR Details

OMB Control No: 1545-2302	ICR Reference No: 202504-1545-002
Status: Received in OIRA	Previous ICR Reference No: 202201-1545-038
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: S Corporation Shareholder Stock and Debt Basis Limitations
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 08/01/2025

	Requested	Previously Approved
Expiration Date	36 Months From Approved	07/31/2025
Responses	70,000	70,000
Time Burden (Hours)	214,200	265,300
Cost Burden (Dollars)	0	0

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Abstract: Internal Revenue Code (IRC) Section 1366 determines the shareholder’s tax liability from an S corporation. IRC Section 1367 details the adjustments to basis including the increase and decrease in basis, income items included in basis, the basis of indebtedness, and the basis of inherited stock. Form 7203 is used by S corporation shareholders to figure potential limitations of their share of the S corporation’s deductions, credits, and other items that can be deducted on the shareholder’s tax return.

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Authorizing Statute(s): US Code: 26 USC 1366 Name of Law: Pass-Thru Of Items To Shareholders
   US Code: 26 USC 1367 Name of Law: Adjustments To Basis Of Stock Of Shareholders, Etc.
  

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:
	90 FR 8839	02/03/2025
30-day Notice:	Federal Register Citation:	Citation Date:
	90 FR 36283	08/01/2025
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
Form 7203	7203	S Corporation Shareholder Stock and Debt Basis Limitations

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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	70,000	70,000	0	0	0	0
Annual Time Burden (Hours)	214,200	265,300	0	0	-51,100	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: There are no changes in the form previously approved by OMB. However, updates in the burden computation will result in a burden decrease of 51,100 hours. The IRS is making this submission to renew the OMB approval.

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Annual Cost to Federal Government: $24,271

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: 08/01/2025

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