Document

Comment Request; U.S. Business Income Tax Returns

The Internal Revenue Service, as part of its continuing effort to reduce paperwork and respondent burden, invites the public and other Federal agencies to take this opportunity ...

Department of the Treasury
Agency Information Collection Activities; Submission for OMB Review;

AGENCY:

Departmental Offices, U.S. Department of the Treasury.

ACTION:

Notice of information collection; request for comment.

SUMMARY:

The Internal Revenue Service, as part of its continuing effort to reduce paperwork and respondent burden, invites the 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. Currently, the IRS is soliciting comments concerning the burden associated with the U.S. Business Income Tax Returns.

DATES:

Comments should be received on or before January 19, 2023 to be assured of consideration.

ADDRESSES:

Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to www.reginfo.gov/​public/​do/​PRAMain. Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function. Copies of the submissions may be obtained from Melody Braswell by emailing , calling (202) 622-1035, or viewing the entire information collection request at www.reginfo.gov.

SUPPLEMENTARY INFORMATION:

Internal Revenue Service (IRS)

Title: U.S. Business Income Tax Returns.

OMB Control Number: 1545-0123.

Form Numbers: 1065, 1066, 1120, 1120-C, 1120-F, 1120-FSC, 1120-H, 1120-L, 1120-ND, 1120-PC, 1120-POL, ( printed page 77962) 1120-REIT, 1120-RIC, 1120-S, 1120-SF and related attachments.

Abstract: These forms are used by businesses to report their income tax liability.

Current Actions: There have been changes in regulatory guidance related to various forms approved under this approval package during the past year. Additionally, there have been additions and removals of some forms included in this approval package.

Type of Review: Revision of currently approved collections.

Affected Public: Corporations and Pass-Through Entities.

Estimated Number of Respondents: 12,500,000.

Total Estimated Time: 952,000,000 hours.

Estimated Time per Respondent: 76 hours.

Total Estimated Out-of-Pocket Costs: $59,487,000,000.

Total Monetized Burden: $112,223,000,000.

Fiscal Year (FY) 2023 Burden Total Estimates for Form 1120 and 1065 Series and Associated Forms, Schedules, and Regulations FY2023

FY22 Program change due to adjustment Program change due to new legislation Program change due to agency FY23
Number of Taxpayers 12,300,000 200,000 0 0 12,500,000
Burden in Hours 1,138,000,000 (186,000,000) 0 0 952,000,000
Burden in Monetized Hours 55,915,000,000 (3,179,000,000) 52,736,000,000
Out-of-Pocket Costs $48,303,000,000 $11,184,000,000 0 0 $59,487,000,000
Total Monetized Burden * $104,218,000,000 $8,005,000,000 0 0 $112,223,000,000
* Total monetized burden = Monetized hours + Out-of-pocket costs.

Table 1—Taxpayer Burden for Entities Taxed as Partnerships

Primary form filed or type of taxpayer Total number of returns (in millions) Average time (hrs.) Average out-of-pocket cost Average monetized burden
All partnerships 4.9 70 $4,700 $8,500
Small 4.6 60 3,100 5,400
Large * 0.3 225 26,700 52,200
Forms 1065, 1066, and all attachments

Table 2—Taxpayer Burden for Entities Taxed as Taxable Corporations

Primary form filed or type of taxpayer Total number of returns (in millions) Average time (hrs.) Average out-of-pocket cost Average monetized burden
All Taxable Corporations 2.1 110 $7,200 $15,100
Small 2.0 65 3,600 6,400
Large * 0.1 770 61,700 148,500
Forms 1120, 1120-C, 1120-F, 1120-H, 1120-ND, 1120-SF, 1120-FSC, 1120-L, 1120-PC, 1120-POL and all attachments

Table 3—Taxpayer Burden for Entities Taxed as Pass-Through Corporations

Primary form filed or type of taxpayer Total number of returns (in millions) Average time (hrs.) Average out-of-pocket cost Average monetized burden
All Pass-through Corporations 5.4 70 $3,900 $7,100
Small 5.3 65 3,500 6,200
Large * 0.1 320 34,900 70,800
Forms 1120-REIT, 1120-RIC, 1120-S and all attachments
* A large business is defined as one having end-of-year assets greater than $10 million. Total filers counts may not equal the burden total estimates table due to rounding.

FY2023

Total positive income Average time (hrs.) Average out-of-pocket costs Average monetized burden
Table 1A—Taxpayer Burden for Taxable Corporations on Form 1120
1. <100k 55 1,569 2,547
2. 100k to 1mil 76 4,540 7,688
3. 1mil to 10mil 118 12,676 25,162
( printed page 77963)
4. 10mil to 100mil 491 52,315 107,655
5. >100mil 4,377 267,506 761,004
Table 2A—Taxpayer Burden for Pass-Through Corporations on Form 1120S
1. <100k 58 1,452 2,309
2. 100k to 1mil 66 3,593 6,062
3. 1mil to 10mil 88 9,093 18,128
4. 10mil to 100mil 319 34,954 70,796
5. >100mil 1,385 147,205 302,504
Table 3A—Taxpayer Burden for Partnerships on Form 1065
1. < 100k 52 1,633 2,683
2. 100k to 1mil 65 4,617 8,014
3. 1mil to 10mil 109 12,993 24,824
4. 10mil to 100mil 400 48,022 92,986
5. > 100mil 1,787 194,559 395,062

Authority:44 U.S.C. 3501 et seq.

Spencer W. Clark,

Treasury PRA Clearance Officer.

[FR Doc. 2022-27628 Filed 12-19-22; 8:45 am]

BILLING CODE 4830-01-P

Legal Citation

Federal Register Citation

Use this for formal legal and research references to the published document.

87 FR 77961

Web Citation

Suggested Web Citation

Use this when citing the archival web version of the document.

“Comment Request; U.S. Business Income Tax Returns,” thefederalregister.org (December 20, 2022), https://thefederalregister.org/documents/2022-27628/comment-request-u-s-business-income-tax-returns.