View Information Collection Request (ICR) Package

OMB Control No: 1545-2072	ICR Reference No: 200703-1545-010
Status: Historical Active	Previous ICR Reference No:
Agency/Subagency: TREAS/IRS	Agency Tracking No: ah-XXXX-010
Title: RP-144921-06 Statistical Sampling for purposes of Section 199
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR: No
Type of Review Request: Emergency	Approval Requested By: 04/25/2007
OIRA Conclusion Action: Approved without change	Conclusion Date: 05/10/2007
	Date Received in OIRA: 04/23/2007
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	11/30/2007	6 Months From Approved
Responses	300	0	0
Time Burden (Hours)	2,400	0	0
Cost Burden (Dollars)	0	0	0

Abstract: The revenue procedure provides for determining when statistical sampling may be used for purposes of section 199, which provides a deduction for income attributable to domestic production activities, and establishes acceptable statistical sampling methodologies. The collection of information in the proposed revenue procedure involves a recordkeeping requirement for taxpayer that use statistical sampling under section 199.

Emergency Justfication: We are requesting emergency review of this submission and seek OMB approval by April 2, 2007. Section 199 was added to the Internal Revenue Code by section 102 of the American Jobs Creation Act of 2004 (Public Law 108-357), and amended by section 403(a) of the Gulf Opportunity Zone Act of 2005 (Public Law 109-135), section 514 of the Tax Increase Prevention and Reconciliation Act of 2005 (Public Law 109-222), and section 401 of the Tax Relief and Health Care Act of 2006 (Public Law 109-432). Section 199 is a complex tax provision requiring taxpayers, particular large corporate taxpayers with multiple businesses and subsidiaries, to make very complicated calculations. The IRS published proposed regulations in the Federal Register on November 4, 2005 (70 FR 67220). The proposed regulations state that certain large taxpayers may use statistical sampling for §199 purposes. The proposed regulations and final regulations published in the Federal Register on June 1, 2006 (71 FR 31268) do not provide specific rules on the use of statistical sampling for §199 purposes. The proposed revenue procedure provides statistical sampling rules and many large corporate taxpayers have told the IRS that they will use statistical sampling for their 2006 tax returns. Without statistical sampling, taxpayers may forgo the benefit of §199 due to the tremendous cost of complying with the provision. Publication of the proposed revenue procedure later in 2007 will limit the availability of statistical sampling for 2006 returns. Furthermore, taxpayers have expressed a pressing need for guidance in this area in order to comply with their financial reporting obligations under FIN 48 which is generally required to be implemented by publicly traded companies in the first quarter of 2007. Therefore, we respectfully request that the consideration of this submission and provision of an OMB number be completed by April 2, 2007. Any other result will be detrimental to the taxpaying public and will interfere with the mission of the IRS.

Authorizing Statute(s): US Code: 26 USC 6103 Name of Law: Confidentiality and disclosure of returns and return
   US Code: 18 USC 2257 Name of Law: Record keeping requirements
   PL: Pub.L. 108 - 357 102 Name of Law: American Jobs Creation Act of 2004
   PL: Pub.L. 109 - 222 514 Name of Law: Tax Increase Prevention and Reconciliation Act of 2005
   PL: Pub.L. 109 - 432 401 Name of Law: An act to amend the Internal Revenue Code of 1986 to extend expiring provisions, and for other purpo

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
Did the Agency receive public comments on this ICR? No

Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
RP-144921-06, Statistical Sampling for purposes of Section 199

ICR Summary of Burden

	Total Approved	Change Due to Agency Discretion
Annual Number of Responses	300	300
Annual Time Burden (Hours)	2,400	2,400
Annual Cost Burden (Dollars)	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

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

Burden Reduction Due to:

Short Statement: This is a new collection.

Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? Uncollected

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Uncollected

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? Uncollected

Is this ICR related to the Pandemic Response? Uncollected

Agency Contact: Paul Handleman 202 622-3040

View ICR - OIRA Conclusion