Notice2023-00337
Proposed Collection; Requesting Comments on Special Rules for Long-Term Contracts Under Section 460
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
January 11, 2023
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
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. The IRS is soliciting comments concerning Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts, and final regulations in Treasury Decisions (TD) 8775, 8929. 8995, and 9137 relating to special rules for long-term contracts under Internal Revenue Code (IRC) section 460.
Full Text
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<title>Federal Register, Volume 88 Issue 7 (Wednesday, January 11, 2023)</title>
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[Federal Register Volume 88, Number 7 (Wednesday, January 11, 2023)]
[Notices]
[Pages 1633-1634]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-00337]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
Proposed Collection; Requesting Comments on Special Rules for
Long-Term Contracts Under Section 460
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice and request for comments.
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SUMMARY: 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. The IRS is soliciting comments
concerning Form 8697, Interest Computation Under the Look-Back Method
for Completed Long-Term Contracts, and final regulations in Treasury
Decisions (TD) 8775, 8929. 8995, and 9137 relating to special rules for
long-term contracts under Internal Revenue Code (IRC) section 460.
DATES: Written comments should be received on or before March 13, 2023
to be assured of consideration.
ADDRESSES: Direct all written comments to Andres Garcia, Internal
Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC
20224, or by email to <a href="/cdn-cgi/l/email-protection#532321327d303c3e3e363d2720133a21207d343c25"><span class="__cf_email__" data-cfemail="453537246b262a2828202b3136052c37366b222a33">[email protected]</span></a>. Include OMB Control No.
1545-1732 in the subject line of the message.
[[Page 1634]]
FOR FURTHER INFORMATION CONTACT: Requests for additional information or
copies of this collection should be directed to Jon Callahan, (737)
800-7639, at Internal Revenue Service, Room 6526, 1111 Constitution
Avenue NW, Washington, DC 20224, or through the internet at
<a href="/cdn-cgi/l/email-protection#573d383979257934363b3b363f3639173e252479303821"><span class="__cf_email__" data-cfemail="e18b8e8fcf93cf82808d8d8089808fa1889392cf868e97">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION: The IRS is currently seeking comments
concerning the following information collection tools, reporting, and
record-keeping requirements:
Title: Special Rules for Long-Term Contracts Under Section 460.
OMB Number: 1545-1732.
Form Number: 8697.
Regulation Project Number: 8775, 8929, 8995, and 9137.
Abstract: IRC section 460 generally provides rules that requires
taxpayers to determine taxable income from a long-term contract using
the percentage-of-completion (PCM) method and pay, or be entitled to
receive, interest computed using the look-back method.
Form 8697 is used by taxpayers to figure the interest due or to be
refunded under the look-back method of IRC section 460(b)(2) on certain
long-term contracts that are accounted for under either the PCM method
or the percentage-of-completion capitalized cost method.
TD 8775 added Treasury Regulations section 1.460-6(j), providing
taxpayers with the requirements to make an election not to apply the
look-back method to long-term contracts in de minimis cases.
TD 8929 added Treasury Regulations section 1.460-1(e)(4), requiring
taxpayers to attach a statement with specific information to their
income tax return if they sever an agreement or aggregate two or more
agreements during the taxable year.
TD 8995, as amended by TD 9137, added Treasury Regulations section
1.460-6(g)(3)(ii)(D) providing rules concerning a mid-contract change
in taxpayer of a contract accounted for under a long-term contract
method of accounting. The regulation requires the previous taxpayer to
provide specific information to the new taxpayer to help the new
taxpayer apply the look-back method when the income from a long-term
contract has been previously reported by another taxpayer.
Current Actions: There is no change to the existing collection.
However, the estimated burden for individuals filing Form 8697 is
approved under OMB control number 1545-0074. The estimated burden for
businesses filing Form 8697 is approved under OMB control number 1545-
0123.
Type of Review: Extension of a currently approved collection.
Affected Public: Individuals and households, and business or other
for-profit organizations.
Estimated Number of Responses: 75,010.
Estimated Time per Respondent: 22 minutes.
Estimated Total Annual Burden Hours: 26,668.
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. 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 shall 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.
Approved: January 5, 2023.
Jon R. Callahan,
Tax Analyst.
[FR Doc. 2023-00337 Filed 1-10-23; 8:45 am]
BILLING CODE 4830-01-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.