Special Rules for Long-Term Contracts Under Section 460

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
Form 8697 Interest Computation Under the Look-Back Method for Completed Long-Term	Form	Removed	Available
2026 1545-1732 Supporting Statement.docx	Supporting Statement A	Uploaded 2026-06-18	Available
FR 30-Day Notice 1545-1732.docx	Supplementary Document	Uploaded 2026-02-06	Available

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
222632	Form 8697 - Interest Computation Under the Look-Back Method for Completed Long-Term	Form	Removed	Interest Computation Under the Look-Back Method for Completed Long-Term
222632	Form 8697 - Interest Computation Under the Look-Back Method for Completed Long-Term	Instruction	Removed
222623	TD 8929 - Accounting for Long-Term Contracts		Unchanged
222621	TD 8775 - Election Not to Apply Look-Back Methods in De Minimis Cases		Unchanged
19246	TD 8995/TD 9137 - Mid-Contract Change in Taxpayer		Unchanged

ICR Details

OMB Control No: 1545-1732	ICR Reference No: 202601-1545-002
Status: Received in OIRA	Previous ICR Reference No: 202303-1545-016
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Special Rules for Long-Term Contracts Under Section 460
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: 06/30/2026

table that charts list comparision

	Requested	Previously Approved
Expiration Date	36 Months From Approved	07/31/2026
Responses	75,000	75,010
Time Burden (Hours)	26,500	26,668
Cost Burden (Dollars)	0	0

---

Abstract: IRC section 460 generally provides rules that requires taxpayers to determine taxable income from a long-term contract using the percentage-of-completion (PCM) method and pay, or be entitled to receive, interest computed using the look-back method. TD 8775 added Treasury Regulations section 1.460-6(j), providing taxpayers with the requirements to make an election not to apply the look-back method to long-term contracts in de minimis cases. TD 8929 added Treasury Regulations section 1.460-1(e)(4), requiring taxpayers to attach a statement with specific information to their income tax return if they sever an agreement or aggregate two or more agreements during the taxable year. TD 8995, as amended by TD 9137, added Treasury Regulations section 1.460-6(g)(3)(ii)(D) providing rules concerning a mid-contract change in taxpayer of a contract accounted for under a long-term contract method of accounting. The regulation requires the previous taxpayer to provide specific information to the new taxpayer to help the new taxpayer apply the look-back method when the income from a long-term contract has been previously reported by another taxpayer.

---

Authorizing Statute(s): US Code: 26 USC 460 Name of Law: Special rules for long-term contracts
  

Citations for New Statutory Requirements: None

---

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

---

Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	91 FR 3628	01/27/2026
30-day Notice:	Federal Register Citation:	Citation Date:
	91 FR 39720	06/30/2026
Did the Agency receive public comments on this ICR? No

---

Number of Information Collection (IC) in this ICR: 3

table that charts list of burden

IC Title	Form No.	Form Name
Form 8697 - Interest Computation Under the Look-Back Method for Completed Long-Term	8697	Interest Computation Under the Look-Back Method for Completed Long-Term
TD 8775 - Election Not to Apply Look-Back Methods in De Minimis Cases
TD 8929 - Accounting for Long-Term Contracts
TD 8995/TD 9137 - Mid-Contract Change in Taxpayer

---

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	75,000	75,010	0	0	-10	0
Annual Time Burden (Hours)	26,500	26,668	0	0	-168	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 were no changes made to the Treasury Decisions that resulted in any change to the burden previously reported to OMB. We are making this submission to renew the OMB approval. The decrease in burden estimates is accounted for trust and estate filers reported under 1545-0092 for Form 8697. This decrease in burden by -10 responses and -168 hours due to the burden assigned to the respective OMB control number. The IRS anticipates that there will be 75,000 respondents annually, for a total estimated burden of 26,500 hours annually.

---

Annual Cost to Federal Government: $0

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.     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

---

Common Form ICR:  No

---

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: 06/30/2026

---