Document
Supporting Statement A
ICR 202604-1545-027 · OMB 1545-2310 · Object 171303700.
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| File Type | application/vnd.openxmlformats-officedocument.wordprocessingml.document |
|---|---|
| File Title | Supporting Statement A |
| Author | Jon R. Callahan |
| Last Modified By | Writer |
| File Modified | 2026-08-27 |
| File Created | 2026-09-12 |
| Conversion State | complete |
Extracted Text
SUPPORTING STATEMENT
Internal Revenue Service (IRS)
Pre-Filing Registration for Elective Payment and Transfer Elections
OMB Control Number 1545-2310
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
Internal Revenue Code (IRC) section 48D allows for the advanced manufacturing investment credit for purposes of investment credits outlined in IRC section 46. Eligible taxpayers may elect to treat the credit as making a payment of tax. IRC section 6417 allows certain taxpayers to treat certain credits as a direct payment rather than a credit against their federal income tax liabilities. IRC section 6418 permits eligible credits to be transferred from eligible taxpayers to unrelated taxpayers.
Treasury Decisions (TD) 9988, 9989, and 9993 prescribe the procedures to register and make payment elections under IRC sections 48D, 6417, and 6418. Before making elections or transfers allowed by these sections, taxpayers must complete a pre-election registration process through an IRS electronic portal. IRS Publication 5884, Elective Pay and Transfer Election Pre-Filing Registration User Guide, informs the taxpayer how to register using the online portal.
2. USE OF DATA
The information collected at registration will be used by the IRS for entity validation as guardrails for deterring fraud and duplication. An eligible taxpayer registering through the IRS electronic registration portal will receive a unique registration number from the IRS that will allow the IRS to track the transfer of the eligible credit to prevent duplication, fraud, and excessive credit transfers.
The IRS will review the information and issue a registration number to each qualified property, and the manufacturer must report the registration number on the federal income tax return for the taxable year of the elective payment election with respect to such property. The registration number will enable the IRS to track the credit or transfer to avoid duplication, fraud, improper payments, and excessive payments.
3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
The IRS utilizes an electronic registration portal for this information collection.
4. EFFORTS TO IDENTIFY DUPLICATION
The information obtained through this collection is unique and is not already available for use or adaptation from another source.
5. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES
The IRS proactively works with both internal and external stakeholders to minimize the burden on small businesses, while maintaining tax compliance. The Agency also seeks input regarding the burden estimates from the public via notices and tax product instructions. There will be minimal if any impact to small businesses. The IRS electronic registration portal must be filed electronically, which further reduces any burden to small businesses.
6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES
Consequences of less frequent collection on federal programs or policy activities would consist of decreased amount of taxes collected by the IRS, inaccurate and untimely filing of tax returns, and an increase in tax violations.
The information collected through the IRS electronic registration portal will be used by the IRS for entity validation, to track transfers of eligible credits, to prevent duplication or fraud, and excessive credit transfers. Failure of the IRS to obtain this information will hinder the IRS from meeting its mission.
7. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT WITH GUIDELINES IN 5 CFR 1320.5(d)(2)
There are no special circumstances requiring data collection to be inconsistent with guidelines in 5 CFR 1320.5(d)(2).
8. CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS
In response to the Federal Register notice dated May 20, 2026, 91 FR 29522, we received no public comments during the comment period regarding Pre-Filing Registration for Elective Payment and Transfer Elections.
9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
No payment or gift has been provided to any respondents.
10. ASSURANCE OF CONFIDENTIALITY OF RESPONSES
Generally, tax returns and tax return information are confidential as required by 26 U.S.C. 6103.
11. JUSTIFICATION OF SENSITIVE QUESTIONS
A privacy impact assessment (PIA) has been conducted for information collected under this request as part of the “Business Master File (BMF)” system and a Privacy Act System of Records notice (SORN) has been issued for this system under IRS 24.046-Customer Account Data Engine Business Master File. The Internal Revenue Service PIAs can be found at https://www.irs.gov/uac/Privacy-Impact-Assessments-PIA.
Title 26 U.S.C. 6109 requires inclusion of identifying numbers in returns, statements, or other documents for securing proper identification of persons required to make such returns, statements, or documents and is the authority for social security numbers (SSNs) in IRS systems.
12. ESTIMATED BURDEN OF INFORMATION COLLECTION
Burden associated with specific elections are identified on the attached burden table and the total burden identified is:
Form/Reg.
# Respondents
# Responses Per Respondent
Total Annual Responses
Hours Per Response
Total Burden
Advanced Manufacturing Investment Credit
1.48D–6(b)
50
1
50
5.41
271
Elective Payment of Applicable Credits
1.6417-5
20,000
1
20,000
6.31
126,200
Transfer of Certain Credits
1.6418-4
50,000
1
50,000
6.16
308,000
Total
70,050
434,471
We are asking for continued approval of these regulations that are associated with the IRS electronic registration portal. Please continue to assign OMB number 1545-22310 to these regulations.
1.48D-6(b)
1.6417-5
1.6418-4
13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
There are no start-up or maintenance costs for this collection. The collection does not require respondents to obtain specialized equipment or professional services.
14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
Based upon an approximate life of 10 years, IRS has estimated an annualized cost of approximately $2.5 Million.
15. REASONS FOR CHANGE IN BURDEN
There is no change in the paperwork burden previously approved by OMB. However, the temporary regulations in TD 9975 were replaced with final regulations in TDs 9988, 9989, and 9993. The IRS is making this submission to renew the OMB approval.
16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
There are no plans for tabulation, statistical analysis, and publication.
17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
The IRS believes that displaying the OMB expiration date is inappropriate because it could cause confusion by leading taxpayers to believe that the regulations expire as of the expiration date. Taxpayers are not likely to be aware that the IRS intends to request renewal of the OMB approval and obtain a new expiration date before the old one expires.
18. EXCEPTIONS TO THE CERTIFICATION STATEMENT
There are no exceptions to the certification statement.