Form 1097-BTC, Bond Tax Credit.

Forms and Documents

Document Name	Status
Form 1097-BTC Form 1097-BTC, Bond Tax Credit Form and Instruction	New
Expiration Explanation.rtf Supplementary Document	2010-10-13
Supp. Statmnt, Form 1097-BTC.pdf Supporting Statement A	2010-10-19

IC Document Collections

IC ID	Document Title	Status
194836	Form 1097-BTC, Bond Tax Credit Form and Instruction	New

ICR Details

OMB Control No: 1545-2197	ICR Reference No: 201010-1545-021
Status: Historical Active	Previous ICR Reference No:
Agency/Subagency: TREAS/IRS	Agency Tracking No: jg-xxxx-021
Title: Form 1097-BTC, Bond Tax Credit.
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: 10/22/2010
OIRA Conclusion Action: Approved with change	Conclusion Date: 10/20/2010
	Date Received in OIRA: 10/15/2010
Terms of Clearance: Supporting and short statement modified to describe new statutory reporting requirement.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	04/30/2011	6 Months From Approved
Responses	101,630,369	0	0
Time Burden (Hours)	828,287,508	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: This is an information return for reporting tax credit bond credits distributed to holders of tax credit bonds. The taxpayer holding a tax credit bond on an allowance date during a tax year is allowed a credit against federal income tax equivalent to the interest that the bond would otherwise pay. The bondholder must include the amount of the credit in gross income and treat it as interest income. The issuers and holders of the tax credit bond will send Form 1097-BTC to the bond holders quarterly and file the return with the IRS annually.

Emergency Justfication: The Recovery and Reinvestment Act of 2009, section 1541 - Effective for tax years beginning after February 17, 2009, regulated investment companies (RICs), commonly known as mutual funds, can elect to pass through to shareholders credits from tax credit bonds, replacing the requirement that the credits be passed through. Where the election is made, shareholders of the RIC are to include in income the shareholder’s proportionate share of the interest income attributable to the credits and are simultaneously allowed to proportionate share of credits (as outlined in Code section 853A(b)(3)). A RIC must report to shareholders the shareholder’s proportionate share of credits and gross income in respect to the credits no later than 60 days after the close of the RIC’s tax year. Form 1097-BTC, Bond Tax Credit, has been designed (for the issuers of these certain tax credit bonds), to report to the taxpayers and IRS the tax credit distributed. Attempts were initiated to process this ICR under normal circumstances, and a Federal Register notice was published on September 14, 2010 (75 FR 55849). In light of current economic conditions and the need to understand and use the form, we are requesting to make this form available to the taxpayers by the end of October. Since the provision is applicable to tax years beginning after February 17, 2009, we are asking for an emergency review and approval of this ICR by 10/22/2010. Failure to provide this form to the issuers or recipients will prevent the accurate and timely tax reporting of this credit. This could have a significantly negative impact on the taxpayers and agency alike, creating additional burden on everyone if delayed any longer.

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Authorizing Statute(s): US Code: 26 USC 853A(f) Name of Law: as added by the 2009 Recovery Act
   US Code: 26 USC 6041 Name of Law: Returns and Records
  

Citations for New Statutory Requirements: PL: Pub.L. 111 - 5 1541 Name of Law: American Recovery and Reinvestment Act of 2009

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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:
	75 FR 55849	09/14/2010
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
Form 1097-BTC, Bond Tax Credit	1097-BTC	Bond Tax Credit

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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	101,630,369	0	101,630,369	0	0	0
Annual Time Burden (Hours)	828,287,508	0	828,287,508	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: According to section 1541 of the American Recovery and Reinvestment Act of 2009, regulated investment companies (RICs), commonly known as mutual funds, can elect to pass through to shareholders credits from tax credit bonds, replacing the requirement that the credits be passed through. This is effective for tax years beginning after February 17, 2009. Where the election is made, shareholders of the RIC are to include in income the shareholder’s proportionate share of the interest income attributable to the credits and are simultaneously allowed to proportionate share of credits (as outlined in Code section 853A(b)(3)). A RIC must report to shareholders the shareholder’s proportionate share of credits and gross income in respect to the credits no later than 60 days after the close of the RIC’s tax year. Form 1097-BTC, Bond Tax Credit, has been designed (for the issuers of these certain tax credit bonds), to report to the taxpayers and IRS the tax credit distributed.

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Annual Cost to Federal Government: $500

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]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? Yes

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: 10/15/2010

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