View Information Collection Request (ICR) Package
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Please note that the OMB number and expiration date may not have been determined when this Information Collection Request and associated Information Collection forms were submitted to OMB. The approved OMB number and expiration date may be found by clicking on the Notice of Action link below.
View ICR - OIRA Conclusion
OMB Control No:
1545-1292
ICR Reference No:
202202-1545-011
Status:
Historical Active
Previous ICR Reference No:
202008-1545-015
Agency/Subagency:
TREAS/IRS
Agency Tracking No:
Title:
Enhanced Oil Recovery Credit
Type of Information Collection:
Revision of a currently approved collection
Common Form ICR:
No
Type of Review Request:
Emergency
Approval Requested By:
03/23/2022
OIRA Conclusion Action:
Approved without change
Conclusion Date:
03/22/2022
Retrieve Notice of Action (NOA)
Date Received in OIRA:
03/08/2022
Terms of Clearance:
In response to the emergency request memorandum submitted by Treasury on 3/8/2022, OIRA is approving the Treasury's request for emergency approval of OMB control # 1545-1292 for a period of six months. Prior to the expiration of this package in six months, Treasury shall undertake standard PRA notice and comment procedures.
Inventory as of this Action
Requested
Previously Approved
Expiration Date
09/30/2022
6 Months From Approved
03/31/2024
Responses
1,590
0
40
Time Burden (Hours)
12,527
0
1,460
Cost Burden (Dollars)
0
0
0
Abstract:
This regulation provides guidance concerning the costs subject to the enhanced oil recovery credit, the circumstances under which the credit is available, and procedures for certifying to the Internal Revenue Service that a project meets the requirements of section 43(c) of the Internal Revenue Code. Owners of operating mineral interests use Form 8830 to claim the enhanced oil recovery credit, a part of the general business credit.
Emergency Justfication:
Section 43(a) provides that for purposes of section 38, the enhanced oil recovery credit for any taxable year is an amount equal to 15 percent of the taxpayer’s qualified enhanced oil recovery costs for such taxable year. The credit is claimed on Form 8830. Section 43(b)(1) provides that the amount of the credit determined under subsection (a) for any taxable year shall be reduced by an amount which bears the same ratio to the amount of such credit (determined without regard to this paragraph) as — (A) the amount by which the reference price for the calendar year preceding the calendar year in which the taxable years begins exceeds $28, bears to (B) $6. Section 43(b)(3)(B) of the Internal Revenue Code requires the Secretary to publish an inflation adjustment factor. Thus, taxpayers do not know whether the section 43 credit is available until the inflation adjustment information is published by the Secretary. The enhanced oil recovery credit under § 43 for any taxable year is reduced if the “reference price,” determined under § 45K(d)(2)(C), for the calendar year preceding the calendar year in which the taxable year begins is greater than $28 multiplied by the inflation adjustment factor for that year. For taxable years 2019 and 2020, the section 43 credit was completely phased out and the Form 8830 was not needed. For taxable year 2021, due to a decrease in oil prices, the section 43 credit was not phased out and was fully available, Notice 2021-47. However, because the publication of the inflation adjustment information was published later than usual, the Form 8830 was not able to be revised under normal procedures. It is being revised currently and needs to be published for use by taxpayers in preparing their returns for the 2021 taxable year. The IRS plans to release Form 8830 on March 30, 2022, and thus requests approval of the control number by that date. Given the inability to seek public comment during such a short timeframe, IRS respectfully requests a waiver from the requirement to publish notice in the Federal Register seeking public comment during the period of Office of Management and Budget review. However, public comment will be solicited in conjunction with the subsequent extension of the approval to collect this information.
Authorizing Statute(s):
US Code:
26 USC 43
Name of Law: Enhanced oil recovery credit
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:
2
IC Title
Form No.
Form Name
26 CFR 1.43-3 - Certification
Form 8830
8830
Enhanced Oil Recovery Credit
ICR Summary of Burden
Total Approved
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
1,590
40
0
1,550
0
0
Annual Time Burden (Hours)
12,527
1,460
0
11,067
0
0
Annual Cost Burden (Dollars)
0
0
0
0
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:
Form 8830 was not issued for 2019 and 2020 because it did not apply for those years due to the price of crude oil; however, it applied again for tax years beginning in 2021. Notice 2021-47 includes the previously published figures for tax years beginning in the 1991 through 2020 calendar years and reflects that for calendar year 2021, the guidance is similar to that provided for 2016 and 2017 when the enhanced oil recovery credit was determined without regard to the phase-out for crude oil price increases. The changes in burden hours for this ICR, were made to reflect said changes notified in Notice 2021-47. This will increase the number of responses by 1,550 and annual burden by 11,067 hours.
Annual Cost to Federal Government:
$68,486
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
Agency Contact:
Brendan Coppinger 202 317-6853 brendan.p.coppinger@irscounsel.treas.gov
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:
03/08/2022
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