TD 9866 (REG-951A) and Notice 2020-69 (S Corporation Guidance under Section 958 (Rules for Determining Stock Ownership) and Guidance Regarding the Treatment of Qualified Improvement Property under the

ICR 202008-1545-016

OMB: 1545-2291

Federal Form Document

ICR Details
1545-2291 202008-1545-016
Active
TREAS/IRS
TD 9866 (REG-951A) and Notice 2020-69 (S Corporation Guidance under Section 958 (Rules for Determining Stock Ownership) and Guidance Regarding the Treatment of Qualified Improvement Property under the
New collection (Request for a new OMB Control Number)   No
Emergency 08/31/2020
Approved without change 09/01/2020
Retrieve Notice of Action (NOA) 08/31/2020
It is anticipated that this information collection will be included in a future update of the PRA approval under OMB # 1545-0123 and that then this OMB number will be discontinued.
  Inventory as of this Action Requested Previously Approved
03/31/2021 6 Months From Approved
3,688 0 0
1,844 0 0
0 0 0

The Treasury Department and the IRS published final regulations (TD 9866) in the Federal Register (84 FR 29288) under § 951A (final regulations). The final regulations adopted “aggregate treatment” with respect to income inclusion amounts arising from section 951A (the global intangible low tax income inclusion or GILTI) for partnerships. Under aggregate treatment, for purposes of determining the GILTI inclusion amount of any partner of a domestic partnership, each partner is treated as proportionately owning the stock of a controlled foreign corporation (CFC) owned by the partnership within the meaning of § 958(a) in the same manner as if the domestic partnership were a foreign partnership. Because only a U.S. person that is a U.S. shareholder can have a GILTI inclusion amount, a partner that is not a U.S. shareholder of a partnership-owned CFC does not have a GILTI inclusion amount determined by reference to the partnership-owned CFC. Section 1.951A-1(e)(1) applies to taxable years of foreign corporations beginning after December 31, 2017, and to taxable years of U.S. shareholders in which or with which such taxable years of foreign corporations’ end.
(Notice 2020-XX (S Corporation Guidance under Section 958 (Rules for Determining Stock Ownership) and Guidance Regarding the Treatment of Qualified Improvement Property under the Alternative Depreciation System for Purposes of the QBAI Rules for FDII and GILTI)) This notice provides a transition rule for those S corporations that were impacted by the key rule change set forth in the GILTI final regulations. S corporations and their shareholders (if applicable) file a white paper election with their returns to apply the transition rule. This transition rule will result in a material change in the Federal income tax consequences of the GILTI rules as applied to certain S corporations. However, by September 15, 2020, S corporations must file a 2019 calendar year income tax return (Form 1120-S) and pay any tax, interest, and penalties due. To provide S corporations with sufficient time to take the transition rule into account in preparing their original 2019 Federal income tax returns (filed under extension), the Treasury Department and the IRS intend to release the Notice on August 31, 2020. Taxpayers have until March 15, 2021 to file the election on an amended 2019 return or with their 2020 returns. In light of the short timeline to provide guidance regarding this aspect of the GILTI rules, the IRS plans to issue the Notice on August 31, 2020, and thus requests approval of the control number by that date. Given the inability to seek public comment during such a short timeframe, IRS respectfully requests a waiver from the requirement to publish notice in the Federal Register seeking public comment during the period of Office of Management and Budget review.

US Code: 26 USC 1373 Name of Law: Foreign Income
  
None

Not associated with rulemaking

No

1
IC Title Form No. Form Name
(NOT-114860-20) S Corporation Guidance under Section 958 (Rules for Determining Stock Ownership)

  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 3,688 0 0 3,688 0 0
Annual Time Burden (Hours) 1,844 0 0 1,844 0 0
Annual Cost Burden (Dollars) 0 0 0 0 0 0
Yes
Changing Regulations
No
(Notice 2020-69 (S Corporation Guidance under Section 958 (Rules for Determining Stock Ownership) and Guidance Regarding the Treatment of Qualified Improvement Property under the Alternative Depreciation System for Purposes of the QBAI Rules for FDII and GILTI)) This notice provides a transition rule for those S corporations that were impacted by the key rule change set forth in the GILTI final regulations. S corporations and their shareholders (if applicable) file a white paper election with their returns to apply the transition rule. The Treasury Department and the IRS published final regulations (T.D. 9866) in the Federal Register (84 FR 29288) under § 951A (final regulations). The final regulations adopted “aggregate treatment” with respect to income inclusion amounts arising from section 951A (the global intangible low tax income inclusion or GILTI) for partnerships. This new notice will facilitate a new collection of information. This in turn will result in a burden with an estimated 3,688 respondents and annual burden of 1,844 hours.

$0
No
    No
    No
No
No
No
No
Jennifer Keeney 202 622-3060 jennifer.keeney@irscounsel.treas.gov

  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.
08/31/2020


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