Notice 2008-XX, Guidance for Expatriates and Recipients of Foreign Source Gifts and Bequests Under Sections 877A, 2801, and 6039G

Forms and Documents

Document Name	Status
PL 110-245.pdf Justification for No Material/Nonsubstantive Change	2008-08-28
Notice re 877A DRAFT.doc Supplementary Document	2008-08-28
Supplemental statement for 877A(checked).doc Supporting Statement A	2008-08-28

IC Document Collections

IC ID	Document Title	Status
186350	Notice 2008-XX, Guidance for Expatriates and Recipients of Foreign Source Gifts and Bequests Under Sections 877A, 2801, and 6039G	New

ICR Details

OMB Control No: 1545-2123	ICR Reference No: 200808-1545-026
Status: Historical Active	Previous ICR Reference No:
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Notice 2008-XX, Guidance for Expatriates and Recipients of Foreign Source Gifts and Bequests Under Sections 877A, 2801, and 6039G
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: 08/29/2008
OIRA Conclusion Action: Approved without change	Conclusion Date: 10/23/2008
	Date Received in OIRA: 08/29/2008
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	04/30/2009	6 Months From Approved
Responses	100	0	0
Time Burden (Hours)	420	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: Section 301 of the Heroes Earnings Assistance and Relief Tax Act of 2008 (the "Act") enacted new sections 877A and 2801 of the Internal Revenue Code (“Code”), amended sections 6039G and 7701(a), made conforming amendments to sections 877(e) and 7701(b), and repealed section 7701(n). This notice provides guidance regarding certain federal tax consequences under these sections for individuals who renounce U.S. citizenship or cease to be taxed as lawful permanent residents of the United States.

Emergency Justfication: The Notice provides guidance for section 877A enacted on June 17, 2008, under the Heroes Earnings Assistance and Relief Tax Act of 2008. Given the very recent date of enactment of the legislation, IRS Counsel and Treasury are working in an expedited manner to provide guidance to taxpayers in order to comply with the legislation. The law is currently in effect, but there is no guidance for individuals expatriating after June 16, 2008 and there is much uncertainty about how to effectively expatriate and comply with the law. If a taxpayer wishes to expatriate but cannot pay the required mark to marked tax imposed under section 877(a) for the year of expatriation, section 877(b) allows for a deferral of tax by providing adequate security, such as a bond or letter of credit. However, there currently is no mechanism in place for the taxpayer to obtain the bond or letter of credit, and thus, the tax deferral mechanism cannot be used. This would mean that the taxpayer would have to pay the mark to market tax for the year of expatriation. The Service believes that the interest of both taxpayers and the Service would be best served if guidance on section 877A is published as soon as possible, and therefore, an emergency submission is requested.

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Authorizing Statute(s): US Code: 26 USC 877A Name of Law: TAX RESPONSIBILITIES OF EXPATRIATION.
   US Code: 26 USC 2801 Name of Law: IMPOSITION OF TAX
  

Citations for New Statutory Requirements: PL: Pub.L. 110 - 245 301 Name of Law: The Heroes Earnings Assistance and Relief Tax Act of 2008

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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
Notice 2008-XX, Guidance for Expatriates and Recipients of Foreign Source Gifts and Bequests Under Sections 877A, 2801, and 6039G

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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	100	0	100	0	0	0
Annual Time Burden (Hours)	420	0	420	0	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The Internal Revenue Service requires expatriates seeking advantage of the deferral of the mark to market exit tax imposed on the day prior to expatriation to obtain a bond or a letter of credit to be used as security against the deferral of tax. The information will be held on record until the tax owed is paid upon the disposition of the property. The respondents will be individuals, expatriates covered under the statute, electing to defer pursuant to the statute.

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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

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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: 08/29/2008

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