IRC section 6012 requires that an annual income tax return be filed for estates and trusts. Data is used to determine that the estates, trusts, and beneficiaries file the proper returns and paid the correct tax. The various schedules (Schedule D, I, J, and K-I) are used in the collection of information under the various authorizing statutes seen below (Legal Statutes). The worksheets are used to figure various taxes and deductions. Form 1041-V allows the Internal Revenue Service to process the payment more accurately and efficiently. The IRS strongly encourages the use of Form 1041-V, but there is no penalty if it is not used. The FAQs posted to IRS.gov will assist taxpayers in fulfilling their filing obligations for 2017.
PL 115-97, section 14103 has a retroactive effective date of 2017. This section is an essential part of an administrative priority to collect deferred foreign income from US and foreign partnerships and corporations. Due to a lack of resources, the IRS must inform taxpayers how to calculate and report the deferred foreign income on their 2017 returns without disrupting information technology programs. As a result FAQs were developed to alert taxpayers how and where to report this income on their 2017 return. This is seen as a priority for the Internal Revenue Service as this is a high revenue raiser. A critical part of this effort includes alerting taxpayers of their filing obligations and educating them on how and where this would be reported. If clearance of the is delayed, in addition to delaying this high profile initiative, taxpayers will not be able to fulfill their filing obligations and the IRS will lose out on a revenue raiser section under PL 115-97. We ask that OMB approve the collection of information on an expedited basis. LB&I and and the Chief Counsel’s Office of the IRS have consulted in drafting the guidance in order to take all practicable steps to minimize the burden of the collection of information.
US Code:
26 USC 55(a)
Name of Law: Alternatiive Minimum Tax Imposed
US Code:
26 USC 59(g)
Name of Law: Other definitions and special rules; Tax Benefit Rule
US Code:
26 USC 662
Name of Law: Inclusion of amounts in gross income of beneficiaries of estates and trusts accumulating income or d
US Code:
26 USC 643(g)
Name of Law: Definitions applicable to subparts A, B, C, and D; Certain payments of estimated tax treated as pai
US Code:
26 USC 666
Name of Law: Accumulation distribution allocated to preceding years
US Code:
26 USC 677
Name of Law: Income for benefit of grantor
US Code:
26 USC 679
Name of Law: Foreign trusts having one or more United States beneficiaries
US Code:
26 USC 6654(1)
Name of Law: Failure by individual to pay estimated income tax;Addition to the Tax
PL:
Pub.L. 115 - 97 14103
Name of Law: Tax Cuts and Jobs Act
US Code:
26 USC 652
Name of Law: Inclusion of amounts in gross income of beneficiaries of trusts distributing current income only
US Code:
26 USC 6012
Name of Law: Persons required to make returns of income
US Code:
26 USC 641
Name of Law: Imposition of tax
US Code:
26 USC 671
Name of Law: Trust income, deductions, and credits attributable to grantors and others as substantial owners
PL: Pub.L. 115 - 97 14103 Name of Law: Tax Cuts and Jobs Act
PL 115-97, section 14103 has a retroactive effective date of 2017. This section is an essential part of an administrative priority to collect deferred foreign income from US and foreign partnerships and corporations. Due to a lack of resources, the IRS must inform taxpayers how to calculate and report the deferred foreign income on their 2017 returns without disrupting information technology programs. As a result FAQs were developed to alert taxpayers how and where to report this income on their 2017 return. This is seen as a priority for the Internal Revenue Service as this is a high revenue raiser. A critical part of this effort includes alerting taxpayers of their filing obligations and educating them on how and where this would be reported. This requirement results in an overall burden increase of 60,000 (307,784,800 to 307,844,800), as the agency estimates that there will be 5,000 respondents (increase from 9,428,703 to 9,433,703) and that it will take approximately 12 hours per respondent to comply with the requirement.
$5,710,689
No
Yes
Yes
No
No
No
Uncollected
Walter Deliman 202 317-5890
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.
Form 1041 U.S. Income Tax Return for Estates and Trusts
Supporting Statement 1545-0092 (FAQ addition).doc
U.S. Income Tax Return for Estates and Trusts