Deduction for Qualified Business Income (Form 8995 and Form 8995-A)

Forms and Documents

Document Name	Status
Form 8995 Qualified Business Income Deduction Form	Modified
2021 Supporting Statement 1545-2294.docx Supporting Statement A	2021-12-21

IC Document Collections

IC ID	Document Title	Status
237810	Qualified Business Income Deduction Form	Modified

ICR Details

OMB Control No: 1545-2294	ICR Reference No: 202108-1545-004
Status: Received in OIRA	Previous ICR Reference No: 201909-1545-016
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Deduction for Qualified Business Income (Form 8995 and Form 8995-A)
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 12/28/2021

	Requested	Previously Approved
Expiration Date	36 Months From Approved	12/31/2021
Responses	41,426,000	10,000
Time Burden (Hours)	336,107,360	30,000
Cost Burden (Dollars)	0	0

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Abstract: Forms 8995 and 8995-A (Schedules A-D) are used by eligible individuals, estates, and trusts to figure their qualified business income deduction.

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Authorizing Statute(s): PL: Pub.L. 115 - 97 11011 Name of Law: Deduction for Qualified Business Income
   US Code: 26 USC 199-A Name of Law: Qualified Business Income
  

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
60-day Notice:	Federal Register Citation:	Citation Date:
	86 FR 29360	06/01/2021
30-day Notice:	Federal Register Citation:	Citation Date:
	86 FR 73851	12/28/2021
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
Qualified Business Income Deduction	8995, 8995-A, 8995-A Schedule A, 8995-A Schedule B, 8995-A Schedule C, 8995-A Schedule D	Qualified Business Income Deduction Simplified Computation ,   Qualified Business Income Deduction ,   Specified Service Trades or Businesses ,   Aggregation of Business Operations ,   Loss Netting and Carryforward ,   Special Rules for Patrons of Agricultural or Horticultural Cooperatives

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ICR Summary of Burden

	Total Request	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	41,426,000	10,000	0	40,794,000	622,000	0
Annual Time Burden (Hours)	336,107,360	30,000	0	331,247,360	4,830,000	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 change in burden reflects the addition of Form 8895-A and Schedules A, B, C, and D, including the individual filer burden for Form 8995. This increases the burden by 40,794,000 responses and 331,247,360 hours due to Agency Discretion. The burden for the Form 8995 estate and trust filers has increased due to better estimates. This increases the burden by 622,000 responses and 4,830,000 hours due to Agency Estimate. The estimated number of responses was updated based on the number of taxpayers claiming the deduction.

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Annual Cost to Federal Government: $165,726

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? No

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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: 12/28/2021

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