Foreign Tax Credit: Notification of Foreign Tax Redeterminations
Revision of a currently approved collection
No
Regular
12/30/2020
Requested
Previously Approved
36 Months From Approved
01/31/2021
13,500
13,000
56,065
54,000
0
0
Section 905(c) requires that a taxpayer notify the Internal Revenue Service of a change in the taxpayer's foreign income tax liability that may affect its foreign tax credit. Regulation section 1.905-4T provides rules concerning the time, manner, and contents of such notification. Should the taxpayer fail to notify the IRS, penalties under section 6689 may be imposed. Respondents are U.S. taxpayers that claim a foreign tax credit under section 901, 902, or 960.
The burden for OMB Control Number 1545-1056 has been updated to reflect the issuance of TD 9922. Final regulations at §1.905-4, consistent with the former temporary regulations, provide an exception to the general notification rule that allows Large Business and International (LBI) taxpayers to notify the IRS of an FTR that occurs prior to an audit, and requires LBI taxpayers to notify the IRS of an FTR that occurs during the first 180 days of the audit, by providing the written statement to the examiner in lieu of filing an amended return. This change results in a response and respondent increase of 500 (13,000 to 13,500) and overall annual time burden increase of 2,065 hours (54,000 to 56,065).
$0
No
Yes
No
No
No
No
No
Jeffrey Cowan 202 622-3860
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:
(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;
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.
2020 SS 1545-1056.docx
REG- 209020-86.pdf
REG-209020-86 (NPRM & Temporary) - Foreign Tax Credit: Notification of Foreign Tax Redeterminations