83 FR 27376 - Proposed Collection; Comment Request for Form 8858

DEPARTMENT OF THE TREASURY
Internal Revenue Service

Federal Register Volume 83, Issue 113 (June 12, 2018)

Page Range		27376-27377
FR Document		2018-12577

The Internal Revenue Service (IRS), 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 information collections, as required by the Paperwork Reduction Act of 1995. The IRS is soliciting comments concerning Information Return of U.S. Persons With Respect To Foreign Disregarded Entities (FDEs) and Foreign Branches (FBs).

Federal Register, Volume 83 Issue 113 (Tuesday, June 12, 2018)

[Federal Register Volume 83, Number 113 (Tuesday, June 12, 2018)]
[Notices]
[Pages 27376-27377]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-12577]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Proposed Collection; Comment Request for Form 8858

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice and request for comments.

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SUMMARY: The Internal Revenue Service (IRS), 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 information collections, as required by the Paperwork Reduction Act 
of 1995. The IRS is soliciting comments concerning Information Return 
of U.S. Persons With Respect To Foreign Disregarded Entities (FDEs) and 
Foreign Branches (FBs).

DATES: Written comments should be received on or before August 13, 2018 
to be assured of consideration.

ADDRESSES: Direct all written comments to Laurie Brimmer, Internal 
Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 
20224.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the form and instructions should be directed to Martha R. 
Brinson, at (202) 317-5753, or at Internal Revenue Service, Room 6526, 
1111 Constitution Avenue NW, Washington, DC 20224, or through the 
internet at [email protected].

SUPPLEMENTARY INFORMATION: 
    Title: Information Return of U.S. Persons With Respect To Foreign 
Disregarded Entities (FDEs) and Foreign Branches (FBs).
    OMB Number: 1545-1910.
    Form Number: Form 8858 and Schedule M (Form 8858).
    Abstract: Form 8858 and Schedule M are used by certain U.S. persons 
that own a foreign disregarded entity (FDE) directly or, in certain 
circumstances, indirectly or constructively. These forms also now 
implement the relevant provisions of Public Law 115-97 (Schedule M 
(Form 8858)). Section 14302 of Public Law 115-97 (IRC 904(d)(1)(B)--FTC 
category for foreign branch income) requires additional reporting by a 
foreign branch (FB) owned by a U.S. person.

Form 8858

    Current Actions: (1) On page 1, we changed the title to include 
foreign branches as Form 8858 will be used to collect information from 
foreign branches as required by new sections 91 and 904(d)(1)(B). 
References to foreign branches are added throughout the Form 8858, and 
foreign disregarded entities and foreign branches are abbreviated as 
FDE and FB; (2) Also, on page 1, for purposes of filtering, we added 
checkboxes to identify whether the FB or FDE is owned by a U.S. person, 
controlled foreign corporation (CFC), or controlled foreign partnership 
(CFP), and whether this is the initial or final Form 8858 filed; (3) On 
page 2, Schedule C, we added several additional income line items, and 
one for income tax expense, to correspond to items reflected on Form 
1118, as modified, for FTC reporting by FBs pursuant to section 14302 
of Public Law 115-97; (4) Also, on page 2, Schedule C-1, we made 
changes requested by CC:INTL to clarify reporting of gains and losses 
on remittances by FDEs and FBs; (5) On page 3, Schedule G, we deleted 
old questions 4 and 5a to 5c, and added new questions 6 to 8, and 10 to 
13. Questions 6 and 7 were added to address base erosion under sections 
59A(d) and 59(c)(2). Question 8 was added to identify whether the FB or 
FDE was a qualified business unit under IRC 989(a), which will enhance 
reporting of FB activities and remittances under IRC 987. Questions 10 
to 13 are modifications of old questions 4 and 5a to 5c, regarding dual 
consolidated losses, to provide more transparent and accurate reporting 
of DCLs incurred by FBs or FDEs of a U.S. owner; (6) On page 4, we 
added Schedule I, Transferred Loss Amounts, which will indicate whether 
section 91 (section 14102 of Pub. L. 115-97) applies. Also, Schedule I 
will indicate whether a domestic corporation transferred foreign branch 
assets to a foreign corporation, which would invoke section 91, and 
require the inclusion of the transferred loss amount into income; (7) 
Also, on page 4, we added Schedule J, Income Taxes Paid or Accrued, 
which will provide additional information on the foreign taxes paid or 
accrued by the FB or FDE, converted to U.S. dollars and classified into 
separate FTC categories, including the new category under section 
904(d)(1)(B) (section 14302 of Pub. L. 115-97).

Schedule M (Form 8858)

    A third column heading was added to report transactions of an FDE 
or FB of a U.S. tax owner with corresponding changes to columns (a)-
(e). The instructions will clarify that the Schedule M (Form 8858) must 
be completed and attached to the Form 8858 to report transactions 
between the FB or FDE and the filer of Form 8858 or other related 
entity, regardless of the tax owner of the FB or FDE.

[[Page 27377]]

    Type of Review: Revision of a currently approved collection.
    Affected Public: Business or other for-profit organizations, and 
individuals or households.

Form 8858

    Estimated Number of Respondents: 20,000.
    Estimated Time per Respondent: 35.99 hours.
    Estimated Total Annual Burden Hours: 719,800 hours.

Schedule M (Form 8858)

    Estimated Number of Respondents: 8,000.
    Estimated Time per Respondent: 24.75 hours.
    Estimated Total Annual Burden Hours: 198,000 hours.
    The following paragraph applies to all of the collections of 
information covered by this notice:
    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.
    Request for Comments: Comments submitted in response to this notice 
will be summarized and/or included in the request for OMB approval. 
Comments will be 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 has 
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 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.

    Approved: June 5, 2018.
Laurie Brimmer,
Senior Tax Analyst.
[FR Doc. 2018-12577 Filed 6-11-18; 8:45 am]
BILLING CODE 4830-01-P

27376 Federal Register / Vol. 83, No. 113 / Tuesday, June 12, 2018 / Notices

business. Taxpayers must separately DEPARTMENT OF THE TREASURY branches are added throughout the
state on Form 1098 the amount of points Form 8858, and foreign disregarded
and the amount of interest (other than Internal Revenue Service entities and foreign branches are
points) received during the taxable year abbreviated as FDE and FB; (2) Also, on
on a single mortgage and must provide Proposed Collection; Comment page 1, for purposes of filtering, we
to the payer of the points a separate Request for Form 8858 added checkboxes to identify whether
statement setting forth the information AGENCY: Internal Revenue Service (IRS), the FB or FDE is owned by a U.S.
being reported to the IRS. Treasury. person, controlled foreign corporation
Current Actions: There are no change (CFC), or controlled foreign partnership
ACTION: Notice and request for
to the form or existing regulation, (CFP), and whether this is the initial or
comments.
however Form 1098 and TD 8571 have final Form 8858 filed; (3) On page 2,
been consolidated under this collection. SUMMARY: The Internal Revenue Service Schedule C, we added several
(IRS), as part of its continuing effort to additional income line items, and one
Type of Review: Revision of a
reduce paperwork and respondent for income tax expense, to correspond to
currently approved collection.
burden, invites the general public and items reflected on Form 1118, as
Affected Public: Business or other for- modified, for FTC reporting by FBs
other Federal agencies to take this
profit organizations. pursuant to section 14302 of Public Law
opportunity to comment on information
Estimated Number of Respondents: collections, as required by the 115–97; (4) Also, on page 2, Schedule
77,908,660. Paperwork Reduction Act of 1995. The C–1, we made changes requested by
Estimated Time per Respondent: IRS is soliciting comments concerning CC:INTL to clarify reporting of gains
.23 hrs. Information Return of U.S. Persons With and losses on remittances by FDEs and
Estimated Total Annual Burden Respect To Foreign Disregarded Entities FBs; (5) On page 3, Schedule G, we
Hours: 17,913,039. (FDEs) and Foreign Branches (FBs). deleted old questions 4 and 5a to 5c,
The following paragraph applies to all DATES: Written comments should be
and added new questions 6 to 8, and 10
of the collections of information covered received on or before August 13, 2018 to 13. Questions 6 and 7 were added to
by this notice: to be assured of consideration. address base erosion under sections
59A(d) and 59(c)(2). Question 8 was
An agency may not conduct or ADDRESSES: Direct all written comments
added to identify whether the FB or FDE
sponsor, and a person is not required to to Laurie Brimmer, Internal Revenue was a qualified business unit under IRC
respond to, a collection of information Service, Room 6526, 1111 Constitution 989(a), which will enhance reporting of
unless the collection of information Avenue NW, Washington, DC 20224. FB activities and remittances under IRC
displays a valid OMB control number. FOR FURTHER INFORMATION CONTACT: 987. Questions 10 to 13 are
Books or records relating to a collection Requests for additional information or modifications of old questions 4 and 5a
of information must be retained as long copies of the form and instructions to 5c, regarding dual consolidated
as their contents may become material should be directed to Martha R. Brinson, losses, to provide more transparent and
in the administration of any internal at (202) 317–5753, or at Internal accurate reporting of DCLs incurred by
revenue law. Generally, tax returns and Revenue Service, Room 6526, 1111 FBs or FDEs of a U.S. owner; (6) On
tax return information are confidential, Constitution Avenue NW, Washington, page 4, we added Schedule I,
as required by 26 U.S.C. 6103. DC 20224, or through the internet at Transferred Loss Amounts, which will
Request for Comments: Comments Martha.R.Brinson@irs.gov. indicate whether section 91 (section
submitted in response to this notice will SUPPLEMENTARY INFORMATION: 14102 of Pub. L. 115–97) applies. Also,
be summarized and/or included in the Title: Information Return of U.S. Schedule I will indicate whether a
request for OMB approval. All Persons With Respect To Foreign domestic corporation transferred foreign
comments will become a matter of Disregarded Entities (FDEs) and Foreign branch assets to a foreign corporation,
public record. Comments are invited on: Branches (FBs). which would invoke section 91, and
(a) Whether the collection of OMB Number: 1545–1910. require the inclusion of the transferred
information is necessary for the proper Form Number: Form 8858 and loss amount into income; (7) Also, on
performance of the functions of the Schedule M (Form 8858). page 4, we added Schedule J, Income
agency, including whether the Abstract: Form 8858 and Schedule M Taxes Paid or Accrued, which will
information shall have practical utility; are used by certain U.S. persons that provide additional information on the
(b) the accuracy of the agency’s estimate own a foreign disregarded entity (FDE) foreign taxes paid or accrued by the FB
of the burden of the collection of directly or, in certain circumstances, or FDE, converted to U.S. dollars and
information; (c) ways to enhance the indirectly or constructively. These classified into separate FTC categories,
quality, utility, and clarity of the forms also now implement the relevant including the new category under
information to be collected; (d) ways to provisions of Public Law 115–97 section 904(d)(1)(B) (section 14302 of
minimize the burden of the collection of (Schedule M (Form 8858)). Section Pub. L. 115–97).
information on respondents, including 14302 of Public Law 115–97 (IRC
904(d)(1)(B)—FTC category for foreign Schedule M (Form 8858)
through the use of automated collection
techniques or other forms of information branch income) requires additional A third column heading was added to
technology; and (e) estimates of capital reporting by a foreign branch (FB) report transactions of an FDE or FB of
or start-up costs and costs of operation, owned by a U.S. person. a U.S. tax owner with corresponding
changes to columns (a)–(e). The
sradovich on DSK3GMQ082PROD with NOTICES

maintenance, and purchase of services Form 8858
to provide information. instructions will clarify that the
Current Actions: (1) On page 1, we Schedule M (Form 8858) must be
Approved: June 4, 2018. changed the title to include foreign completed and attached to the Form
Laurie Brimmer, branches as Form 8858 will be used to 8858 to report transactions between the
Senior Tax Analyst. collect information from foreign FB or FDE and the filer of Form 8858
[FR Doc. 2018–12574 Filed 6–11–18; 8:45 am] branches as required by new sections 91 or other related entity, regardless of the
BILLING CODE 4830–01–P and 904(d)(1)(B). References to foreign tax owner of the FB or FDE.

VerDate Sep<11>2014 16:21 Jun 11, 2018 Jkt 244001 PO 00000 Frm 00070 Fmt 4703 Sfmt 4703 E:\FR\FM\12JNN1.SGM 12JNN1

Document Created: 2018-06-12 00:47:30
Document Modified: 2018-06-12 00:47:30

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice and request for comments.
Dates		Written comments should be received on or before August 13, 2018 to be assured of consideration.
Contact		Requests for additional information or copies of the form and instructions should be directed to Martha R. Brinson, at (202) 317-5753, or at Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 20224, or through the internet at [email protected]
FR Citation		83 FR 27376

83 FR 27376 - Proposed Collection; Comment Request for Form 8858

DEPARTMENT OF THE TREASURYInternal Revenue Service

Federal Register Volume 83, Issue 113 (June 12, 2018)

DEPARTMENT OF THE TREASURY
Internal Revenue Service