NOT-151178-06 (Announcement 2006-XX) Embassy Settlement Initiative

Forms and Documents

Document Name	Status
Embassy Employees NOT-151178-06 Circ FINAL11-7-06(checked).doc Supplementary Document	2006-11-08
SSNOT-151178-06.doc Supporting Statement A	2006-11-08

IC Document Collections

IC ID	Document Title	Status
45934	NOT-151178-06 (2006-XX) Embassy Settlement Initiative	New

ICR Details

OMB Control No: 1545-2045	ICR Reference No: 200611-1545-010
Status: Historical Active	Previous ICR Reference No:
Agency/Subagency: TREAS/IRS	Agency Tracking No: ah-XXXX-010
Title: NOT-151178-06 (Announcement 2006-XX) Embassy Settlement Initiative
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 11/16/2006
OIRA Conclusion Action: Approved without change	Conclusion Date: 11/16/2006
	Date Received in OIRA: 11/09/2006
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	05/31/2007	6 Months From Approved
Responses	5,500	0	0
Time Burden (Hours)	11,000	0	0
Cost Burden (Dollars)	0	0	0

---

Abstract: The IRS has determined a substantial number of U.S. citizens and lawful permanent residents working in the international community have failed to fulfill their U.S. tax obligations. The IRS needs the information in order to apply the terms of the settlement and determine the amount of taxes, applicable statutory interest and penalties. The respondents are individuals employed by foreign embassies, foreign consular offices or international organizations in the United States.

Emergency Justfication: Approval is needed by November 16, 2006. The Internal Revenue Service (“IRS”) has determined that a significant number of U.S. citizens and lawful permanent residents working at foreign embassies, foreign consular offices, and international organizations have failed to fulfill their U.S. tax obligations. Frank Y. Ng, Deputy Commissioner, Large and Mid-Size Business (International) has established a high priority initiative to bring these employees into compliance. Due to sensitive diplomatic and political considerations, Mr. Ng has coordinated this effort with the State Department’s Office of Foreign Missions and the Department of Homeland Security. On November 17, 2006, the State Department is hosting a meeting with representatives of foreign embassies and international organizations to discuss this situation. Two high level managers from each embassy and international organization have been invited to attend. Deputy Commissioner Ng will present details of the initiative at that meeting. The IRS representatives will answer questions about U.S. tax obligations of their employees and this compliance initiative. Time is of the essence in this matter and expedited processing is necessary. The compliance initiative covers the 2003 filing season for these employees and, absent immediate action, the statute of limitations will expire on the 2003 tax year before compliance is achieved. The IRS estimates approximately 5,500 employees will owe additional tax for the 2003 tax year and that the revenue impact will be significant. Further, the State Department facilities are subject to extremely limited availability and the meeting cannot be rescheduled within an appropriate time.

---

Authorizing Statute(s): US Code: 44 USC 3507(c) Name of Law: null
   US Code: 26 USC 6103 Name of Law: null
  

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: 1

IC Title	Form No.	Form Name
NOT-151178-06 (2006-XX) Embassy Settlement Initiative

---

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	5,500	0	0	5,500	0	0
Annual Time Burden (Hours)	11,000	0	0	11,000	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: New collection.

---

Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? Uncollected

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Uncollected

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? Uncollected

Is this ICR related to the Pandemic Response? Uncollected

---

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: 11/09/2006

---