View Information Collection Request (ICR) Package

OMB Control No: 1545-2284	ICR Reference No: 201911-1545-005
Status: Historical Active	Previous ICR Reference No: 201811-1545-005
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Transitional Guidance Under Sections 162(f) and 6050X with Respect To Certain Fines, Penalties, and Other Amounts
Type of Information Collection: Revision of a currently approved collection	Common Form ICR: No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 01/31/2020
Retrieve Notice of Action (NOA)	Date Received in OIRA: 12/30/2019
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	01/31/2023	36 Months From Approved	01/31/2020
Responses	47,200	0	200
Time Burden (Hours)	5,664	0	24
Cost Burden (Dollars)	0	0	0

Abstract: The collection covers the new information reporting requirements under IRC 162(f) and new 6050X, which was added by the Tax Cuts and Jobs Act (TCJA). Generally, no deduction is allowed for any amount paid to, or at the direction of, a government or specified nongovernmental entity for the violation of any law. The general rule does not apply to the following exceptions: • Amounts that constitute restitution (including remediation of property); • Amounts paid to come into compliance with the law; • Amounts paid or incurred as the result of certain court orders in which no government or specified nongovernmental agency is a party; and • Amounts paid or incurred for taxes due. To be deductible under an exception, the Taxpayer must establish that an amount required to be paid is for restitution, remediation or to come into compliance with the law, AND the amount must be specifically identified in the settlement agreement or court order as restitution, remediation or to come into compliance with the law. Any amount paid or incurred as reimbursement to the Government for the costs of any investigation or litigation are not deductible under one of the exceptions (under prior law, these amounts were often considered compensatory and deductible). The 2017 Tax Cuts and Jobs Act also enacted IRC section 6050X, which requires government agencies or specified nongovernmental regulatory entities to file an information return which identifies: 1. The amount required to be paid as a result of the suit or agreement to which IRC section 162(f)(1) applies; 2. Any amount required to be paid as a result of the suit or agreement that constitutes restitution or remediation of property; and 3. Any amount required to be paid as a result of the suit or agreement for the purpose of coming into compliance with any law that was violated or involved in the investigation or inquiry. This reporting requirement will not be required with respect to amounts paid or incurred under a binding court order or agreement entered into before the date provided in the future proposed regulations, which will be no earlier than January 1, 2019. Notice 2018-23 provides information for section 6050X and transitional guidance under IRC § 162(f).

Authorizing Statute(s): PL: Pub.L. 115 - 97 13306 Name of Law: Tax Cuts and Jobs Act

Citations for New Statutory Requirements: PL: Pub.L. 115 - 97 13306 Name of Law: Tax Cuts and Jobs Act

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:
	84 FR 45834	08/30/2019
30-day Notice:	Federal Register Citation:	Citation Date:
	84 FR 72141	12/30/2019
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
Section 6050X- Reporting	1098-F	Fines, Penalties, and Other Amounts

ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to Adjustment in Estimate
Annual Number of Responses	47,200	200	47,000
Annual Time Burden (Hours)	5,664	24	5,640
Annual Cost Burden (Dollars)	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: The Treasury Department and the IRS intend to issue proposed regulations (1545-BO67), amending and adding sections to the Income Tax Regulations with respect to sections 162(f) and 6050X. To assist in the development of the proposed regulations, the IRS has requests comments from the public and affected governments and nongovernmental entities, on any and all issues related to the application and implementation of sections 162(f) and 6050X that the proposed regulations should address. Updated filing figures indicate an increase in the estimated annual responses by 47,000. This increase will result in a total estimated annual burden increase of 5,640 hours. This submission is being made to revise and extend the current approval as required in the Paperwork Reduction Act.

Annual Cost to Federal Government: $75,866

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: Christopher Wrobel 202 317-4612 christopher.wrobel@irscounsel.treas.gov

View ICR - OIRA Conclusion