Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)

Forms and Documents

Document Name	Status
Form 982 Reducation of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) Form and Instruction	Modified
2009 Burden.PDF Supplementary Document	2009-09-02
Supporting Statement Form 982.doc Supporting Statement A	2009-11-23
Change Worksheet 2009.doc Justification for No Material/Nonsubstantive Change	2009-08-19

IC Document Collections

IC ID	Document Title	Status
43851	Reducation of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) Form and Instruction	Modified

ICR Details

OMB Control No: 1545-0046	ICR Reference No: 200908-1545-039
Status: Historical Active	Previous ICR Reference No: 200607-1545-014
Agency/Subagency: TREAS/IRS	Agency Tracking No: db-0046-039
Title: Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved with change	Conclusion Date: 11/23/2009
	Date Received in OIRA: 09/16/2009
Terms of Clearance: Updated supporting statement.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	11/30/2012	36 Months From Approved	11/30/2009
Responses	667	0	667
Time Burden (Hours)	7,491	0	7,171
Cost Burden (Dollars)	0	0	0

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Abstract: Internal Revenue Code section 108 allows taxpayers to exclude from gross income amounts attributable to discharge of indebtedness in title 11 cases, insolvency, or qualified farm indebtedness. Code section 1081(b) allows corporations to exclude from gross income amounts attributable to certain transfers of property. The data is used to verify adjustments to basis of property and reduction of tax attributes.

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Authorizing Statute(s): US Code: 26 USC 108 Name of Law: Income from discharge of indebtedness
  

Citations for New Statutory Requirements: PL: Pub.L. 110 - 343 702 (e)(4) Name of Law: Tax Extenders and Alternative Minimum Tax Relief
PL: Pub.L. 110 - 142 2 Name of Law: Mortgage Forgiveness Debt Relief Act of 2007

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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:
	74 FR 22804	05/14/2009
30-day Notice:	Federal Register Citation:	Citation Date:
	74 FR 47039	09/14/2009
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
Reducation of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)	982	Reducation of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment)

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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	667	667	0	0	0	0
Annual Time Burden (Hours)	7,491	7,171	320	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: File Form 982 to report the exclusion and the reduction of certain tax attributes either dollar for dollar or 33 1/3 cents per dollar under certain circumstances described in section 108. The form was revised to reflect the new exclusion from gross income for discharges of certain indebtedness of a qualified individual because of Midwestern disasters as discribed in P.L. 110-343, Division C, Tax Extenders and Alternative Minimum Tax Relief, Act Section 702(e)(4). Line 10b was added to reflect the reduction of the basis of an individual’s principal residence as permitted in the Mortgage Forgiveness Debt Relief Act of 2007 (P.L. 110-142, Act Section 2). The Emergency Economic Stabilization Act of 2008 extended the exclusion from gross income for the discharge of qualified principal residence indebtedness by an additional 3 years. This exclusion now applies to debt discharged after 2006 and before 2013. The Heartland Disaster Tax Relief Act of 2008 allows qualified individuals to exclude from gross income discharges of certain indebtedness because of Midwestern disasters. The American Recovery and Reinvestment Act of 2009 allows certain businesses to elect to defer and include ratably over five tax years any income from the discharge of business debt arising from the reacquisition of certain types of business debt repurchased in 2009 and 2010. These changes and updates to the law will result in a total burden increase of 320 hours.

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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)? No

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: 09/16/2009

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