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View ICR - OIRA Conclusion

OMB Control No: 1545-0092	ICR Reference No: 201803-1545-002
Status: Historical Active	Previous ICR Reference No: 201612-1545-029
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: U.S. Income Tax Return for Estates and Trusts
Type of Information Collection: Revision of a currently approved collection	Common Form ICR: No
Type of Review Request: Emergency	Approval Requested By: 03/06/2018
OIRA Conclusion Action: Approved without change	Conclusion Date: 03/08/2018
Retrieve Notice of Action (NOA)	Date Received in OIRA: 03/05/2018
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	09/30/2018	6 Months From Approved	03/31/2020
Responses	9,433,703	0	9,428,703
Time Burden (Hours)	307,844,800	0	307,784,800
Cost Burden (Dollars)	0	0	0

Abstract: IRC section 6012 requires that an annual income tax return be filed for estates and trusts. Data is used to determine that the estates, trusts, and beneficiaries file the proper returns and paid the correct tax. The various schedules (Schedule D, I, J, and K-I) are used in the collection of information under the various authorizing statutes seen below (Legal Statutes). The worksheets are used to figure various taxes and deductions. Form 1041-V allows the Internal Revenue Service to process the payment more accurately and efficiently. The IRS strongly encourages the use of Form 1041-V, but there is no penalty if it is not used. The FAQs posted to IRS.gov will assist taxpayers in fulfilling their filing obligations for 2017.

Emergency Justfication: PL 115-97, section 14103 has a retroactive effective date of 2017. This section is an essential part of an administrative priority to collect deferred foreign income from US and foreign partnerships and corporations. Due to a lack of resources, the IRS must inform taxpayers how to calculate and report the deferred foreign income on their 2017 returns without disrupting information technology programs. As a result FAQs were developed to alert taxpayers how and where to report this income on their 2017 return. This is seen as a priority for the Internal Revenue Service as this is a high revenue raiser. A critical part of this effort includes alerting taxpayers of their filing obligations and educating them on how and where this would be reported. If clearance of the is delayed, in addition to delaying this high profile initiative, taxpayers will not be able to fulfill their filing obligations and the IRS will lose out on a revenue raiser section under PL 115-97. We ask that OMB approve the collection of information on an expedited basis. LB&I and and the Chief Counsel’s Office of the IRS have consulted in drafting the guidance in order to take all practicable steps to minimize the burden of the collection of information.

Authorizing Statute(s): US Code: 26 USC 55(a) Name of Law: Alternatiive Minimum Tax Imposed
   US Code: 26 USC 59(g) Name of Law: Other definitions and special rules; Tax Benefit Rule
   US Code: 26 USC 662 Name of Law: Inclusion of amounts in gross income of beneficiaries of estates and trusts accumulating income or d
   US Code: 26 USC 643(g) Name of Law: Definitions applicable to subparts A, B, C, and D; Certain payments of estimated tax treated as pai
   US Code: 26 USC 666 Name of Law: Accumulation distribution allocated to preceding years
   US Code: 26 USC 677 Name of Law: Income for benefit of grantor
   US Code: 26 USC 679 Name of Law: Foreign trusts having one or more United States beneficiaries
   US Code: 26 USC 6654(1) Name of Law: Failure by individual to pay estimated income tax;Addition to the Tax
   PL: Pub.L. 115 - 97 14103 Name of Law: Tax Cuts and Jobs Act
   US Code: 26 USC 671 Name of Law: Trust income, deductions, and credits attributable to grantors and others as substantial owners
   US Code: 26 USC 652 Name of Law: Inclusion of amounts in gross income of beneficiaries of trusts distributing current income only
   US Code: 26 USC 6012 Name of Law: Persons required to make returns of income
   US Code: 26 USC 641 Name of Law: Imposition of tax

Citations for New Statutory Requirements: PL: Pub.L. 115 - 97 14103 Name of Law: Tax Cuts and Jobs Act

ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to Agency Discretion
Annual Number of Responses	9,433,703	9,428,703	5,000
Annual Time Burden (Hours)	307,844,800	307,784,800	60,000
Annual Cost Burden (Dollars)	0	0	0

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

Burden Increase Due to: Changing Regulations

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

Burden Reduction Due to:

Short Statement: PL 115-97, section 14103 has a retroactive effective date of 2017. This section is an essential part of an administrative priority to collect deferred foreign income from US and foreign partnerships and corporations. Due to a lack of resources, the IRS must inform taxpayers how to calculate and report the deferred foreign income on their 2017 returns without disrupting information technology programs. As a result FAQs were developed to alert taxpayers how and where to report this income on their 2017 return. This is seen as a priority for the Internal Revenue Service as this is a high revenue raiser. A critical part of this effort includes alerting taxpayers of their filing obligations and educating them on how and where this would be reported. This requirement results in an overall burden increase of 60,000 (307,784,800 to 307,844,800), as the agency estimates that there will be 5,000 respondents (increase from 9,428,703 to 9,433,703) and that it will take approximately 12 hours per respondent to comply with the requirement.

Annual Cost to Federal Government: $5,710,689

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? Uncollected

Agency Contact: Walter Deliman 202 317-5890