Election Involving the Repeal of the Bonding Requirement under § 42(j)(6)

Forms and Documents

Document Name	Status

No forms / supporting documents in this ICR. Check IC Document Collections.

IC Document Collections

IC ID	Document Title	Status
186600	RP 2008-XX - Election Involving the Repeal of the Bonding Requirement under § 42(j)(6)	New

ICR Details

OMB Control No: 1545-2120	ICR Reference No: 200809-1545-012
Status: Historical Active	Previous ICR Reference No:
Agency/Subagency: TREAS/IRS	Agency Tracking No: Requested Response by 9/29/2008
Title: Election Involving the Repeal of the Bonding Requirement under § 42(j)(6)
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: 09/29/2008
OIRA Conclusion Action: Approved without change	Conclusion Date: 09/29/2008
	Date Received in OIRA: 09/17/2008
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	03/31/2009	6 Months From Approved
Responses	7,800	0	0
Time Burden (Hours)	7,800	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: The Internal Revenue Service is notifying taxpayers how to make the election out of the former bond requirement of § 42(j)(6) mandated by the Housing Assistance Tax Act of 2008.

Emergency Justfication: The repeal of the surety bond and TDA requirements is effective July 30, 2008, the date of enactment of the election under section 3004(i)(2)(B)(ii) of the Housing Assistance Tax Act of 2008. The election is designed to relieve taxpayers of the financial burden of paying premiums for surety bonds or establishing TDAs. With the credit crisis in the financial markets, surety bond premiums are rapidly rising which is causing a severe financial burden for taxpayers, particularly financial institutions. Some taxpayers’ surety bonds are being terminated due to their heighten credit risk and those taxpayers will be subject to recapture tax unless the can furnish a superseding surety bond to the IRS. Emergency approval of the revenue procedure is requested so that taxpayers are relieved of the financial burden of paying unneeded surety bond premiums. For taxpayers that established TDAs, the revenue procedure will allow taxpayers access to Treasury securities which are currently pledged to the Service and unavailable to the taxpayers.

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Authorizing Statute(s): US Code: 26 USC 42(j)(6) Name of Law: No recapture on disposition of building (or interest therein) where bond posted
  

Citations for New Statutory Requirements: PL: Pub.L. 110 - 289 3004(i)(2)(B)(ii) Name of Law: Housing Assistance Tax Act of 2008

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking
	Other Documents for OIRA Review

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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
RP 2008-XX - Election Involving the Repeal of the Bonding Requirement under § 42(j)(6)

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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	7,800	0	7,800	0	0	0
Annual Time Burden (Hours)	7,800	0	7,800	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: This revenue procedure provides guidance on how a taxpayer makes the election under section 3004(i)(2)(B)(ii) of the Housing Assistance Tax Act of 2008 if the taxpayer disposed of a qualified low-income building under § 42 (or an interest therein) on or before July 30, 2008, and, under the former § 42(j)(6) of the Internal Revenue Code, either furnished a surety bond to the Secretary, or established a Treasury Direct Account (TDA) funded with Treasury securities under Rev. Proc. 99-11, 1999-1 C.B. 275.

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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: 09/17/2008

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