Cancellation of Debt

Forms and Documents

Document Name	Status
Form 1099-C Cancellation of Debt Form	Modified
ExecSummary for REG-118327-08.doc Justification for No Material/Nonsubstantive Change	2008-08-20
ombat1.doc Supplementary Document	2008-08-20
Supporting Statement for Form 1099-C.doc Supporting Statement A	2008-08-20

IC Document Collections

IC ID	Document Title	Status
18307	Cancellation of Debt Form	Modified

ICR Details

OMB Control No: 1545-1424	ICR Reference No: 200808-1545-022
Status: Historical Active	Previous ICR Reference No: 200509-1545-026
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Cancellation of Debt
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 11/20/2008
	Date Received in OIRA: 10/03/2008
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	11/30/2011	36 Months From Approved	11/30/2008
Responses	605,519	0	647,993
Time Burden (Hours)	102,939	0	110,159
Cost Burden (Dollars)	0	0	0

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Abstract: Form 1099-C is used for reporting canceled debt, as required by section 6050P of the Internal Revenue Code. It is used to verify that debtors are correctly reporting their income.

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Authorizing Statute(s): US Code: 26 USC 6050P Name of Law: Returns relating to the cancellation of indebtedness by certain entities
  

Citations for New Statutory Requirements: None

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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
60-day Notice:	Federal Register Citation:	Citation Date:
	73 FR 34358	06/17/2008
30-day Notice:	Federal Register Citation:	Citation Date:
	73 FR 57407	10/02/2008
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
Cancellation of Debt	1099-C	Cancellation of Debt

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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	605,519	647,993	0	0	-42,474	0
Annual Time Burden (Hours)	102,939	110,159	0	0	-7,220	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: As a result of new temporary and proposed regulations, the total burden estimate has decreased by 7,220 hours. These temporary regulations were introduced after our original 60-day notice was published. The proposed amendments will reduce the number of entities that are required to file information returns under section 6050P to report cancellation of indebtedness. One of the events that trigger information reporting under section 6050P is the 36-month nonpayment testing period (“the 36-month rule”). The amendments will reduce filers by limiting application of the 36-month rule to banks and other financial entities as defined in the original 1993 definition of applicable financial entities. Under the existing regulations, the 36-month rule also applies to any organization that lends money as a significant part of its trade or business.

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Annual Cost to Federal Government: $12,989

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: 10/03/2008

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