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:
1545-0096
ICR Reference No:
202211-1545-008
Status:
Active
Previous ICR Reference No:
202011-1545-016
Agency/Subagency:
TREAS/IRS
Agency Tracking No:
Title:
Form 1042, Schedule Q (Form 1042), Form 1042-S, Form 1042-T, and Section 871(m) Transactions
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:
02/13/2023
Retrieve Notice of Action (NOA)
Date Received in OIRA:
11/30/2022
Terms of Clearance:
OMB understands that the IRS is currently in the process of revising the methodology it uses to estimate burden and costs. OMB expects that future ICRs under this OMB control number will include dollar estimates of annual burden costs to taxpayers calculated using this revised methodology.
Inventory as of this Action
Requested
Previously Approved
Expiration Date
02/28/2026
36 Months From Approved
02/28/2023
Responses
8,558,200
0
3,617,200
Time Burden (Hours)
6,704,249
0
2,949,074
Cost Burden (Dollars)
0
0
0
Abstract:
Internal Revenue Code (IRC) sections 871, 877A, 1441, 1442, 1445, 1446, 1471, 1472, 5000C, and 6049 require withholding agents to deduct and withhold specified amounts of income paid to certain expatriates, nonresident aliens, foreign persons, foreign partnerships, and foreign corporations for tax liabilities under IRC Subtitle A. IRC sections 1461 and 1474, and their associated regulations, make these withholding agents liable for such tax and require reporting of taxes and payments to the IRS. Treasury Regulations section 1.871-15(p) was added by Treasury Decision (TD) 9734, as amended by TD 9815, as amended by TD 9887. This regulation provides that any party to an IRC section 871(m) transaction may request information regarding that transaction from another party to the transaction. There is no prescribed form required. Any statement required by section 1.871-15(p) may be provided in paper or electronic form. The regulation allows taxpayers to share information in any reasonable manner agreed to by the parties. See 1.871-15(p)(3)(i). Form 1042, Annual Withholding Tax Return for U.S. Source Income of Foreign Persons, is used by withholding agents to report tax amounts withheld from payments to certain expatriates, nonresident aliens, foreign persons, foreign partnerships, and foreign corporations to the IRS. Schedule Q (Form 1042), Tax Liability of Qualified Derivatives Dealer (QDD), is used by a taxpayer, or any branch of the taxpayer, that was a QDD to report tax liabilities as required by Treasury Regulations section 1.441-1(e)(6)(i)(D)(3). Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, is an information return used by the withholding agent to report certain income and amounts withheld to the payee and the IRS. Form 1042-T, Annual Summary and Transmittal of Forms 1042-S, is used by the withholding agent to transmit paper Forms 1042-S to the IRS.
Authorizing Statute(s):
US Code:
26 USC 1442
Name of Law: Withholding of tax on foreign corporations
US Code:
26 USC 1461
Name of Law: Liability for withheld tax
US Code:
26 USC 877A
Name of Law: Tax Responsibilities Of Expatriation
US Code:
26 USC 871
Name of Law: Tax on nonresident alien individuals
US Code:
26 USC 1445
Name of Law: Withholding Of Tax On Dispositions Of United States Real Property Interests
US Code:
26 USC 1446
Name of Law: Withholding Of Tax On Foreign Partners' Share Of Effectively Connected Income
US Code:
26 USC 1471
Name of Law: Withholdable Payments To Foreign Financial Institutions
US Code:
26 USC 1472
Name of Law: Withholdable Payments To Other Foreign Entities
US Code:
26 USC 1474
Name of Law: Special Rules
US Code:
26 USC 5000C
Name of Law: Imposition Of Tax On Certain Foreign Procurement
US Code:
26 USC 6049
Name of Law: Returns Regarding Payments Of Interest
US Code:
26 USC 1441
Name of Law: Withholding of tax on nonresident aliens
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
60-day Notice:
Federal Register Citation:
Citation Date:
87 FR 53048
08/30/2022
30-day Notice:
Federal Register Citation:
Citation Date:
87 FR 72590
11/25/2022
Did the Agency receive public comments on this ICR?
No
Number of Information Collection (IC) in this ICR:
5
IC Title
Form No.
Form Name
Annual Summary and Transmittal of Forms 1042-S
1042-T
Annual Summary and Transmittal of Forms 1042-S
Annual Withholding Tax Return for U.S. Source Income of Foreign Persons
1042
Annual Withholding Tax Return for U.S. Source Income of Foreign Persons
Foreign Person's U.S. Source Income Subject to Withholding
1042-S
Foreign Person's U.S. Source Income Subject to Withholding
Section 871(m) Transactions
Tax Liability of Qualified Derivatives Dealer (QDD)
Schedule Q (Form 1042)
Tax Liability of Qualified Derivatives Dealer (QDD)
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
8,558,200
3,617,200
0
2,100
4,938,900
0
Annual Time Burden (Hours)
6,704,249
2,949,074
0
1,735
3,753,440
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:
Schedule Q (Form 1042) was developed to replace the previous requirement to attach a statement to the Form 1042 providing information regarding a QDD's tax liability. The burden associated with TD 9884, previously approved under OMB control number 1545-1725, was incorporated into Form 1042-S and its instructions. This increases the burden by 2,100 responses and 1,735 hours due to Agency Discretion. The burden for Form 1042 was recalculated to provide better estimates. The number of respondents and responses were also updated to reflect current filing data. This increases the burden by 4,938,900 responses and 3,753,440 hours due to Agency Estimates.
Annual Cost to Federal Government:
$399,333
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?
No
Agency Contact:
Christine Best 859 320-3410 christine.a.best@irs.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:
11/30/2022
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