Form 8886, Reportable Transaction Disclosure Statement; Form 14234, Pre-CAP and CAP Application Form

Forms and Documents

Document Name	Status
Form 8886 Reportable Transaction Disclosure Statement Form	Modified
Form 14234 Pre-CAP and CAP Application Form Form	Modified
2018-08-30_SS_1545-1800rAB.doc Supporting Statement A	2018-08-30

IC Document Collections

IC ID	Document Title	Status
43887	Reportable Transaction Disclosure Statement Form	Modified
194813	Pre-CAP and CAP Application Form Form	Modified

ICR Details

OMB Control No: 1545-1800	ICR Reference No: 201808-1545-029
Status: Historical Active	Previous ICR Reference No: 201706-1545-015
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Form 8886, Reportable Transaction Disclosure Statement; Form 14234, Pre-CAP and CAP Application Form
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 09/17/2018
OIRA Conclusion Action: Approved without change	Conclusion Date: 10/10/2018
	Date Received in OIRA: 09/14/2018
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	04/30/2019	6 Months From Approved	11/30/2020
Responses	42,578	0	42,521
Time Burden (Hours)	915,631	0	913,698
Cost Burden (Dollars)	0	0	0

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Abstract: Form 8886: Regulations section 1.6011-4 provides that certain taxpayers must disclose their direct or indirect participation in reportable transactions when they file their Federal income tax return. Pre-CAP and CAP Application Form (Form 14234): The Compliance Assurance Process (CAP) is a strictly voluntary program available to Large Business and International (LB&I) Division taxpayers that meet the selection criteria. CAP is a real-time review of completed business transactions during the CAP year with the goal of providing certainty of the tax return within 90 days of the filing. Taxpayers in CAP are required to be cooperative and transparent and report all material issues and items related to completed business transactions to the review team.

Emergency Justfication: The proposed changes are designed to improve operation of the program, make the best use of limited government resources and to ensure the sustainability of the program. The burden for this submission has been changed. For the 2019 application period beginning on October 1, 2018, in addition to the Application Form (Form 14234), taxpayers in the Compliance Assurance Program, will be required to submit the following forms: 1) Worldwide Tax Organization Chart 2) Preliminary Issue List 3) Research Credit Questionnaire 4) Material Inter-Company Transaction Template (MITT) The purpose in requiring this information with the application form is to allow an earlier and more effective risk assessment and examination planning process. It is also a critical aspect in allocating resources to issues with the highest compliance risk. As a result, there is an increase in burden.

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Authorizing Statute(s): US Code: 26 USC 6011 Name of Law: General requirement of return, statement or list.
  

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

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 2

IC Title	Form No.	Form Name
Pre-CAP and CAP Application Form	14234, 14234	Pre-CAP/CAP Application Form ,   Pre-CAP and CAP Application Form (Draft)
Reportable Transaction Disclosure Statement	8886	Reportable Transaction Disclosure Statement

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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	42,578	42,521	0	57	0	0
Annual Time Burden (Hours)	915,631	913,698	0	1,933	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The burden for this submission has been changed. For the 2019 application period beginning on October 1, 2018, in addition to the Application Form (Form 14234), taxpayers in the Compliance Assurance Program, will be required to submit the following forms: 1) Worldwide Tax Organization Chart 2) Preliminary Issue List 3) Research Credit Questionnaire 4) Material Inter-Company Transaction Template (MITT) The purpose in requiring this information with the application form is to allow an earlier and more effective risk assessment and examination planning process. It is also a critical aspect in allocating resources to issues with the highest compliance risk. As a result, there is an increase in burden.

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Annual Cost to Federal Government: $15,393

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     Yes

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     Yes

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)? 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: 09/14/2018

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