Report of Employer-Owned Life Insurance Contracts

Forms and Documents

Document Name	Status
Form 8925 Report of Employer-Owned Life Insurance Contracts Form and Instruction	Modified
07f8925_Justification_OMB.pdf Justification for No Material/Nonsubstantive Change	2008-01-03
F8925_brdn_busi_Chg.pdf Supplementary Document	2008-01-03

IC Document Collections

IC ID	Document Title	Status
182415	Report of Employer-Owned Life Insurance Contracts Form and Instruction	Modified

ICR Details

OMB Control No: 1545-2089	ICR Reference No: 200801-1545-001
Status: Historical Active	Previous ICR Reference No: 200710-1545-030
Agency/Subagency: TREAS/IRS	Agency Tracking No: CB-2089-001
Title: Report of Employer-Owned Life Insurance Contracts
Type of Information Collection: No material or nonsubstantive change to a currently approved collection	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 12/06/2007
OIRA Conclusion Action: Approved without change	Conclusion Date: 01/17/2008
	Date Received in OIRA: 01/10/2008
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	05/31/2008	05/31/2008	05/31/2008
Responses	16,000	0	20,000
Time Burden (Hours)	71,360	0	69,000
Cost Burden (Dollars)	0	0	0

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Abstract: IRC 6039I requires every policyholder of employer-owned life insurance contracts to file a return showing the number of contracts owned, the total number of employees at the end of the year, the number of such employees insured, and that the policyholder has a valid consent for each insured employee. Form 8925 will be used to report this information. Regulation §1.6039I-1T, Reporting of certain employer-owned life insurance contracts. (a) In general. The Commissioner may prescribe the form and manner of satisfying the reporting requirements imposed by section 6039I on applicable policyholders owning one or more employer-owned life insurance contracts issued after August 17, 2006. As a result of this timeframe, IRS must receive Emergency approval to meet Agency responsibilities. It also ensure taxpayers have the necessary tools to meet their tax obligations.

Emergency Justfication: Form 8925, Report of Employer-Owned Life Insurance Contracts, will be required to be filed with the 2007 income tax returns. The Pension Protection Act of 2006 added section 6039I to the Internal Revenue Code concerning employer-owned life insurance contracts. The reporting requirements of section 6039I are effective for employer-owned life insurance contracts issued after August 17, 2006. To ensure taxpayers have ample time to understand meet the new filing requirements, this form must be made available prior to the upcoming filing season. IRC 6039I requires every policyholder of employer-owned life insurance contracts to file a return showing the number of contracts owned, the total number of employees at the end of the year, the number of such employees insured, and that the policyholder has a valid consent for each insured employee. Preparation of the form could not begin until clear regulations were developed in relation to IRC 6039I. New regulations in relationship to IRC 6039I, are being prepared for release to the public. To ensure the IRS meetings its' fundamental reponsibilities to the general public and adhere to the requirements within our mission statement, we are requesting emergency approval of this form.

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Authorizing Statute(s): PL: Pub.L. 109 - 280 120 Stat. 780 Name of Law: The Pension Protection Act
   US Code: 26 USC 6039 Name of Law: Information required in connection with certain options
   US Code: 26 USC 6103 Name of Law: Confidentiality and disclosure of returns and return information
  

Citations for New Statutory Requirements: US Code: 26 USC 6039I Name of Law: RETURNS AND RECORDS WITH RESPECT TO EMPLOYER-OWNED LIFE INSURANCE CONTRACTS

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Report of Employer-Owned Life Insurance Contracts	8925	Report of Employer-Owned Life Insurance Contracts

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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	16,000	20,000	0	-4,000	0	0
Annual Time Burden (Hours)	71,360	69,000	0	2,360	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: The revision of Form 8925 and Instructions resulted in an addition of 5 code references. The responses were decreased by 4,000 to allow for individual taxpayers filing this form, which is approved under OMB control number 1545-0074. These changes created an overall increase of burden hours to 71,360.

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Annual Cost to Federal Government: $25,000

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

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Common Form ICR:  No

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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: 01/10/2008

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