Return of U.S. Persons With Respect to Certain Foreign Partnerships

Forms and Documents

Document Name	Status
Form 8865 Return of U.S. Persons With Respect to Certain Foreign Partnerships Form	Modified
Form 8838 P Consent To Extend the Time To Assess Tax Pursuant to the Gain Deferral Method (Section 721(c)) Form and Instruction	Modified
2018-10-17_SS_1545-1668r.doc Supporting Statement A	2018-10-17

IC Document Collections

IC ID	Document Title	Status
41026	Return of U.S. Persons With Respect to Certain Foreign Partnerships Form	Modified
228236	Consent To Extend the Time To Assess Tax Pursuant to the Gain Deferral Method (Section 721(c)) Form and Instruction	Modified

ICR Details

OMB Control No: 1545-1668	ICR Reference No: 201810-1545-010
Status: Active	Previous ICR Reference No: 201709-1545-009
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Return of U.S. Persons With Respect to Certain Foreign Partnerships
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 12/19/2018
	Date Received in OIRA: 12/12/2018
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	12/31/2021	36 Months From Approved	12/31/2020
Responses	34,450	0	32,450
Time Burden (Hours)	281,974	0	254,084
Cost Burden (Dollars)	0	0	0

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Abstract: The Taxpayer Relief Act of 1997 significantly modified the information reporting requirements with respect to foreign partnerships. The Act made the following three changes (1) expanded section 6038B to require U.S. persons transferring property to foreign partnerships in certain transactions to report those transfers; (2) expanded section 6038 to require certain U.S. Partners of controlled foreign partnerships to report information about the partnerships; and (3) modified the reporting required under section 6046A with respect to acquisitions and dispositions of foreign partnership interests. Form 8838-P is used to extend the statute of limitations for U.S. persons who transfers appreciated property to partnerships with foreign partners related to the transferor. The form is filed when the transferor makes a gain recognition agreement. This agreement allows the transferor to defer the payment of tax on the transfer. The IRS uses Form 8838-P so that it may assess tax against the transferor after the expiration of the original statute of limitations.

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Authorizing Statute(s): US Code: 26 USC 721C Name of Law: Nonrecognition of gain or loss on contribution
   US Code: 26 USC 6103 Name of Law: Confidentiality and disclosure of returns and return information
   US Code: 26 USC 6038B Name of Law: Notice of certain transfers to foreign persons
   US Code: 26 USC 6038 Name of Law: Information reporting with respect to certain foreign
   US Code: 26 USC 6046A Name of Law: Returns as to interests in foreign partnerships
  

Citations for New Statutory Requirements: US Code: 26 USC 721(c)-3T Name of Law: Gain Deferral Method
US Code: 26 USC 721(c)-6T Name of Law: Procedural Reporting Requirements

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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:
	83 FR 49455	10/01/2018
30-day Notice:	Federal Register Citation:	Citation Date:
	83 FR 63967	12/12/2018
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
Return of U.S. Persons With Respect to Certain Foreign Partnerships	8865 Sch K-1, 8865 Sch P, 8865 , 8865 Sch O, 8865 Sch G, 8865 Sch O, 8865 , Sch P (Form 8865), Sch K-1 (Form 8865), 8865 Sch H	Return of U.S. Persons With Respect to Certain Foreign Partnerships ,   Partners Share of Income, Deductions, Credits, etc. ,   Acquisitions, Dispositions, and Changes of Interests in a Foreign Partnership ,   Return of U.S. Persons With Respect to Certain Foreign Partnerships (draft 2018) ,   Transfer of Property to a Foreign Partnership ,   Transfer of Property to a Foreign Partnership (draft 2018) ,   Partner's Share of Income, Deductions, Credits, etc. ,   Acquisitions, Dispositions, and Changes of Interests in a Foreign Partnership ,   Statement of Application of the Gain Deferral Method under Section 721(c) ,   Acceleration Events and Exceptions Reporting Relating to Gain Defferal Method Under Section 721(c)
Consent To Extend the Time To Assess Tax Pursuant to the Gain Deferral Method (Section 721(c))	8838 P	Consent To Extend the Time To Assess Tax Under Section 721(c) - Gain Deferral method

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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	34,450	32,450	2,000	0	0	0
Annual Time Burden (Hours)	281,974	254,084	27,890	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: Treasury Decision 9814. IRC 721(c) temporary regulations were issued to require specific information to be reported when appreciated section 721(c) property is contributed to a section 721(c) partnership by a U.S. transferor. Specifically, Temp. Treas. Regulation 1.721(c)-6T(b)(2) provides the reporting requirements of a U.S. transferor that must be satisfied under the gain deferral method under Temp. Treas. Regulation 1.721(c)-3T(b). New forms, Schedule G and Schedule H must be used to apply the gain deferral method. Schedule G of Form 8865 provides the specific information on the reporting of a gain deferral contribution required under Temp. Treas. Regulation 1.721(c)-6T(b)(2) as well as the annual reporting relating to the gain deferral method under Temp. Treas. Regulation 1.721(c)-6T(b)(3). Schedule H of Form 8865 provides specific information relating to certain subsequent events to a gain deferral contribution as part of the annual reporting, including acceleration, termination and successor events, as well as other transactions as required under Temp. Treas. Regulation 1.721(c)-6T(b)(3). The addition of these two forms results in an increase of overall response burden of 27,890 burden hours.

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Annual Cost to Federal Government: $226,569

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: 12/12/2018

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