Proposed Collection; Comment Request for Forms 1065, 1066, 1120, 1120-C, 1120-F, 1120-H, 1120-ND, 1120-S,1120-SF,1120-FSC,1120-L,1120-PC,1120-REIT,1120-RIC,1120-POL, and Related Attachments

<NOTICE> DEPARTMENT OF THE TREASURY <SUBAGY>Internal Revenue Service</SUBAGY> <SUBJECT>Proposed Collection; Comment Request for Forms 1065, 1066, 1120, 1120-C, 1120-F, 1120-H, 1120-ND, 1120-S,1120-SF,1120-FSC,1120-L,1120-PC,1120-REIT,1120-RIC,1120-POL, and Related Attachments</SUBJECT> <HD SOURCE="HED">AGENCY:</HD> Internal Revenue Service (IRS), Treasury. <HD SOURCE="HED">ACTION:</HD> Notice and request for comments. <SUM> <HD SOURCE="HED">SUMMARY:</HD> The Internal Revenue Service, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995 (PRA). The IRS is soliciting comments on forms used by business entity taxpayers. (See Appendix-A of this notice for a list of forms, schedules, and related attachments). </SUM> <DATES> <HD SOURCE="HED">DATES:</HD> Written comments should be received on or before November 12, 2024 to be assured of consideration. </DATES> <HD SOURCE="HED">ADDRESSES:</HD> Direct all written comments to Andres Garcia, Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 20224, or by email to <E T="03">pra.comments@irs.gov.</E> Include OMB Control No. 1545-0123 in the subject line of the message. <FURINF> <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD> Requests for additional information or copies of the form and instructions should be directed to LaNita Van Dyke, at (202)-317-6009, Internal Revenue Service, Room 6526, 1111 constitution Avenue NW, Washington, DC 20224, or through the internet at <E T="03">lanita.vandyke@irs.gov.</E> </FURINF> <SUPLINF> <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD> <HD SOURCE="HD1">Tax Compliance Burden</HD> Tax compliance burden is defined as the time and money taxpayers spend to comply with their tax filing responsibilities. Time-related activities include recordkeeping, tax planning, gathering tax materials, learning about the law and what you need to do, and completing and submitting the return. Out-of-pocket costs include expenses such as purchasing tax software, paying a third-party preparer, and printing and postage. Tax compliance burden does not include a taxpayer's tax liability, economic inefficiencies caused by sub-optimal choices related to tax deductions or credits, or psychological costs. <HD SOURCE="HD1">Proposed PRA Submission to OMB</HD> <E T="03">Title:</E> U.S. Business Income Tax Return. <E T="03">OMB Number:</E> 1545-0123. <E T="03">Form Numbers:</E> Forms 1065, 1066, 1120, 1120-C, 1120-F, 1120-H, 1120-ND, 1120-S, 1120-SF, 1120-FSC, 1120-L, 1120-PC, 1120-REIT, 1120-RIC, 1120-POL and all attachments to these forms (see the Appendices to this notice). <E T="03">Abstract:</E> These forms are used by businesses to report their income tax liability. <E T="03">Current Actions:</E> There have been changes in regulatory guidance related to various forms approved under this approval package during the past year. There have been additions and removals of forms included in this approval package. It is anticipated that these changes will have an impact on the overall burden and cost estimates requested for this approval package, however these estimates were not finalized at the time of release of this notice. These estimated figures are expected to be available by the release of the 30-day comment notice from Treasury. This approval package is being submitted for renewal purposes. <E T="03">Type of Review:</E> Revision of a currently approved collection. <E T="03">Affected Public:</E> Corporations, Partnerships and Pass-Through Entities. <E T="03">Preliminary Estimated Number of Respondents:</E> 13,500,000. <E T="03">Preliminary Estimated Time Per Respondent (Hours):</E> 70 hours, 4 minutes. <E T="03">Preliminary Estimated Total Annual Time (Hours):</E> 946,000,000. <E T="03">Preliminary Estimated Total Annual Monetized Time ($):</E> 56,955,000,000. <E T="03">Preliminary Estimated Total Out-of-Pocket Costs ($):</E> 68,491,000,000. <E T="03">Preliminary Estimated Total Monetized Burden ($):</E> 125,446,000,000. <NOTE> <HD SOURCE="HED"> <E T="04">Note:</E> </HD> Total Monetized Burden = Total Out-of-Pocket Costs + Total Annual Monetized Time. </NOTE> <NOTE> <HD SOURCE="HED"> <E T="04">Note:</E> </HD> Amounts below are estimates for Fiscal Year (FY) 2025. Reported time and cost burdens are national averages and do not necessarily reflect a “typical case.” Most taxpayers experience lower than average burden, with taxpayer burden varying considerably by taxpayer type. Detail may not add due to rounding. </NOTE> <GPOTABLE COLS="4" OPTS="L2,i1" CDEF="s100,15,15,15"> <TTITLE>Estimates for Form 1120, 1120S and 1065 Series of Returns and Forms and Schedules</TTITLE> FY2025 <CHED H="1"> </CHED> <CHED H="1">FY 24</CHED> <CHED H="1">Program change due to adjustment</CHED> <CHED H="1">FY 25</CHED> <ROW> <ENT I="01">Number of Respondents</ENT> <ENT>13,300,000</ENT> <ENT>200,000</ENT> <ENT>13,500,000</ENT> </ROW> <ROW> <ENT I="01">Burden in Hours</ENT> <ENT>920,000,000</ENT> <ENT>26,000,000</ENT> <ENT>946,000,000</ENT> The following paragraph applies to all the collections of information contained within the OMB approval for 1545-0123. <EXTRACT> An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB Control Number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103. </EXTRACT> <HD SOURCE="HD1">Request for Comments</HD> Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information will have practical utility; (b) the accuracy of the agency's estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. <SIG> <DATED>Approved: September 6, 2024.</DATED> <NAME>Jon R. Callahan,</NAME> Senior Tax Analyst. </SIG> <HD SOURCE="HD1">Appendix A</HD> <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s75,r150"> <TTITLE> </TTITLE> <CHED H="1">Product</CHED> <CHED H="1">Title</CHED> <ROW> <ENT I="01">* Form 1042</ENT> <ENT>Annual Withholding Tax Return for U.S. Source Income of Foreign Persons.</ENT> </ROW> <ROW> <ENT I="01">* Form 1042 (SCH Q)</ENT> <ENT>Schedule Q (Form 1042).</ENT> </ROW> <ROW> <ENT I="01">* Form 1042-S</ENT> <ENT>Foreign Person's U.S. Source Income Subject to Withholding.</ENT> </ROW> <ROW> <ENT I="01">* Form 1042-T</ENT> <ENT>Annual Summary and Transmittal of Forms 1042-S.</ENT> </ROW> <ROW> <ENT I="01">Form 1065</ENT> <ENT>U.S. Return of Partnership Income.</ENT> </ROW> <ROW> <ENT I="01">Form 1065 (SCH B-1)</ENT> <ENT>Information for Partners Owning 50% or More of the Partnership.</ENT> </ROW> <ROW> <ENT I="01">Form 1065 (SCH B-2)</ENT> <ENT>Election Out of the Centralized Partnership Audit Regime.</ENT> </ROW> <ROW> <ENT I="01">Form 1065 (SCH C)</ENT> <ENT>Additional Information for Schedule M-3 Filers.</ENT> </ROW> <ROW> <ENT I="01">Form 1065 (SCH D)</ENT> <ENT>Capital Gains and Losses.</ENT> </ROW> <ROW> <ENT I="01">Form 1065 (SCH K-1)</ENT> <ENT>Partner's Share of Income, Deductions, Credits, etc.</ENT> </ROW> <ROW> <ENT I="01">Form 1065 (SCH K-2)</ENT> <ENT>Partner's Distributive Share Items-International.</ENT> </ROW> <ROW> <ENT I="01">Form 1065 (SCH K-3)</ENT> <ENT>Partner's Share of Income, Deductions, Credits, etc.-International.</ENT> </ROW> <ROW> <ENT I="01">Form 1065 (SCH M-3)</ENT> <ENT>Net Income (Loss) Reconciliation for Certain Partnerships.</ENT> </ROW> <ROW> <ENT I="01">Form 1065X</ENT> <ENT>Amended Return or Administrative Adjustment Request (AAR).</ENT> </ROW> <ROW> <ENT I="01">Form 1066</ENT> <ENT>U.S. Real Estate Mortgage Investment Conduit (REMIC) Income Tax Return.</ENT> </ROW> <ROW> <ENT I="01">Form 1066 (SCH Q)</ENT> <ENT>Quarterly Notice to Residual Interest Holder of REMIC Taxable Income or Net Loss Allocation.</ENT> </ROW> <ROW> <ENT I="01">Form 1118</ENT> <ENT>Foreign Tax Credit-Corporations.</ENT> </ROW> <ROW> <ENT I="01">Form 1118 (SCH I)</ENT> <ENT>Reduction of Foreign Oil and Gas Taxes.</ENT> </ROW> <ROW> <ENT I="01">Form 1118 (SCH J)</ENT> <ENT>Adjustments to Separate Limitation Income (Loss) Categories for Determining Numerators of Limitation Fractions, Year-End Recharacterization Balances, and Overall Foreign and Domestic Loss Account Balances.</ENT> </ROW> <ROW> <ENT I="01">Form 1118 (SCH K)</ENT> <ENT>Foreign Tax Carryover Reconciliation Schedule.</ENT> </ROW> <ROW> <ENT I="01">Form 1118 (SCH L)</ENT> <ENT>Foreign Tax Redeterminations.</ENT> </ROW> <ROW> <ENT I="01">Form 1120</ENT> <ENT>U.S. Corporation Income Tax Return.</ENT> </ROW> <ROW> <ENT I="01">Form 1120 (SCH B)</ENT> <ENT>Additional Information for Schedule M-3 Filers.</ENT> </ROW> <ROW> <ENT I="01">Form 1120 (SCH D)</ENT> <ENT>Capital Gains a ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ Preview showing 10k of 65k characters. 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