Form 1116, Foreign Tax Credit

Forms and Documents

Document Name	Status
Form 1116 Foreign Tax Credit (Estate or Trust) Form	Modified
Form 1116 Schedule C Foreign Tax Redeterminations (Estate or Trust) Form	New
Form 1116 Schedule B Foreign Tax Carryover Reconciliation (Estate or Trust) Form	New
1545-0121 Supporting Statement.docx Supporting Statement A	2021-12-23

IC Document Collections

IC ID	Document Title	Status
39545	Foreign Tax Credit (Estate or Trust) Form	Modified
250918	Foreign Tax Redeterminations (Estate or Trust) Form	New
250917	Foreign Tax Carryover Reconciliation (Estate or Trust) Form	New

ICR Details

OMB Control No: 1545-0121	ICR Reference No: 202112-1545-011
Status: Received in OIRA	Previous ICR Reference No: 202010-1545-010
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Form 1116, Foreign Tax Credit
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 01/14/2022

	Requested	Previously Approved
Expiration Date	36 Months From Approved	12/31/2023
Responses	454,326	414,326
Time Burden (Hours)	2,531,600	2,506,600
Cost Burden (Dollars)	0	0

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Abstract: Form 1116 and its schedules are used by individuals, estates, and trusts to claim a credit for certain taxes paid or accrued during the taxable year to a foreign country or a possession of the United States, subject to the limitations of IRC section 904. This information is used by the IRS to verify the foreign tax credit. The information collection burden estimates associated with the filing of Form 1116 and its schedules by individuals are covered under OMB Control Number 1545-0074. This information collection request (ICR) reflects only the burdens associated with the filing of Form 1116 and its schedules by estates and trusts that are claiming the foreign tax credit.

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Authorizing Statute(s): US Code: 26 USC 904 Name of Law: Limitation on credit.
   US Code: 26 USC 905 Name of Law: Applicable Rules
   US Code: 26 USC 901 Name of Law: Taxes of foreign countries and of possessions of United States
   US Code: 26 USC 6011 Name of Law: General Requirement Of Return, Statement, Or List
   PL: Pub.L. 115 - 97 14101-14103 Name of Law: Tax Cuts and Jobs Act
  

Citations for New Statutory Requirements: PL: Pub.L. 115 - 97 14101-14103 Name of Law: Tax Cuts and Jobs Act

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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 59270	10/26/2021
30-day Notice:	Federal Register Citation:	Citation Date:
	87 FR 1486	01/11/2022
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 3

IC Title	Form No.	Form Name
Foreign Tax Carryover Reconciliation (Estate or Trust)	1116 Schedule B	Foreign Tax Carryover Reconciliation Schedule
Foreign Tax Credit (Estate or Trust)	1116	Foreign Tax Credit (Individual, Estate, or Trust)
Foreign Tax Redeterminations (Estate or Trust)	1116 Schedule C	Foreign Tax Redeterminations

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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	454,326	414,326	40,000	0	0	0
Annual Time Burden (Hours)	2,531,600	2,506,600	25,000	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: Form 1116 Schedules B and C were developed to assist taxpayers in complying with the changes made to the Internal Revenue Code by the Tax Cuts and Jobs Act, P.L. 115-97, and accurately report the required information to the IRS.

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Annual Cost to Federal Government: $144,874

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: 01/14/2022

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