Return of U.S. Persons With Respect to Certain Foreign Partnerships
Revision of a currently approved collection
No
Regular
12/31/2021
Requested
Previously Approved
36 Months From Approved
12/31/2021
3,695
34,450
84,057
281,974
0
0
The Taxpayer Relief Act of 1997 significantly modified the information reporting requirements with respect to foreign partnerships. The Act made the following three changes (1) expanded section 6038B to require U.S. persons transferring property to foreign partnerships in certain transactions to report those transfers; (2) expanded section 6038 to require certain U.S. Partners of controlled foreign partnerships to report information about the partnerships; and (3) modified the reporting required under section 6046A with respect to acquisitions and dispositions of foreign partnership interests.
Form 8838-P is used to extend the statute of limitations for U.S. persons who transfers appreciated property to partnerships with foreign partners related to the transferor. The form is filed when the transferor makes a gain recognition agreement. This agreement allows the transferor to defer the payment of tax on the transfer. The IRS uses Form 8838-P so that it may assess tax against the transferor after the expiration of the original statute of limitations.
US Code:
26 USC 721(c)
Name of Law: Nonrecognition of gain or loss on contribution
US Code:
26 USC 6038B
Name of Law: Notice of certain transfers to foreign persons
US Code:
26 USC 6103
Name of Law: Confidentiality and disclosure of returns and return information
US Code:
26 USC 6038
Name of Law: Information reporting with respect to certain foreign
US Code:
26 USC 6046A
Name of Law: Returns as to interests in foreign partnerships
US Code:
26 USC 250
Name of Law: Foreign-Derived Intangible Income and Global Intangible Low-Taxed Income
US Code:
26 USC 267A
Name of Law: Certain Related Party Amounts Paid or Accrued In Hybrid Transactions Or With Hybrid Entities
PL:
Pub.L. 115 - 97 multiple
Name of Law: Tax Cuts and Jobs Act
PL: Pub.L. 115 - 97 multiple Name of Law: Tax Cuts and Jobs Act
Acquisitions, Dispositions, and Changes of Interests in a Foreign Partnership
,
Acceleration Events and Exceptions Reporting Relating to Gain Defferal Method Under Section 721(c)
,
Partnersâ Distributive Share ItemsâInternational
,
Partnerâs Share of Income, Deductions, Credits, etc.âInternational
,
Partner's Share of Income, Deductions, Credits, etc.
,
Consent To Extend the Time To Assess Tax Pursuant to the Gain Deferral Method (Section 721(c))
,
Transfer of Property to a Foreign Partnership (draft 2018)
,
Return of U.S. Persons With Respect to Certain Foreign Partnerships
,
Instructions for Form 8865
,
Instructions for Schedules K-2 and K-3 (Form 8865)
,
Statement of Application of the Gain Deferral Method under Section 721(c)
Total Request
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
3,695
34,450
50
200
-31,005
0
Annual Time Burden (Hours)
84,057
281,974
4,440
51,420
-253,777
0
Annual Cost Burden (Dollars)
0
0
0
0
0
0
Yes
Miscellaneous Actions
Yes
Cutting Redundancy
The previously approved burden is being reduced to eliminate double counting of responses for individual and business filers which are reported under OMB numbers 1545-0074 and 1545-0123. The number of responses was reduced by 90 percent for each form and schedule in the collection, resulting in a decrease to the overall burden of 253,777 hours.
The Tax Cuts and Jobs Act, P.L. 115-97 added IRC sections requiring Form 8865 to collect additional information. Lines were added for IRC section 250, which allows a deduction for foreign-derived intangible income and global intangible low-taxed income. Lines were added for IRC section 267A, which disallows a deduction for certain interest and royalty payments or accruals. A line was added for the number of foreign partners subject to IRC section 864(c)(8). Lines were added for disclosure requirements under Treasury Regulations 1.703-3, 1.707-6, and 1.707-8. A line and new Schedule A-2 were added to collect information on IRC section 721(c) partnerships. The burdens for all forms and schedules have been recalculated to reflect changes.
New Schedule K-2 replaces, supplements, and clarifies reporting of certain amounts formerly reported on lines 16 and 20c of Schedule K. New Schedule K-3 replaces, supplements, and clarifies reporting of certain amounts formerly reported on lines 16 and 20 of Schedule K-1.
Form 8838-P was consolidated into main IC.
$451,693
No
Yes
Yes
No
No
No
No
Michael Cyrus 202 317-5777
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.
Return of U.S. Persons With Respect to Certain Foreign Partnerships and Consent To Extend the Time To Assess Tax Pursuant to the Gain Deferral Method (Section 721(c))