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)

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, 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