Notice2023-02187
Agency Information Collection Activities; Submission for OMB Review; Comment Request; Provisional Foreign Tax Credit Agreement
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
February 2, 2023
Issuing agencies
Treasury Department
Abstract
The Department of the Treasury will submit the following information collection request to the Office of Management and Budget (OMB) for review and clearance in accordance with the Paperwork Reduction Act of 1995, on or after the date of publication of this notice. The public is invited to submit comments on this request.
Full Text
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<title>Federal Register, Volume 88 Issue 22 (Thursday, February 2, 2023)</title>
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[Federal Register Volume 88, Number 22 (Thursday, February 2, 2023)]
[Notices]
[Pages 7129-7130]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-02187]
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DEPARTMENT OF THE TREASURY
Agency Information Collection Activities; Submission for OMB
Review; Comment Request; Provisional Foreign Tax Credit Agreement
AGENCY: Departmental Offices, U.S. Department of the Treasury.
ACTION: Notice of information collection; request for comment.
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SUMMARY: The Department of the Treasury will submit the following
information collection request to the Office of Management and Budget
(OMB) for review and clearance in accordance with the Paperwork
Reduction Act of 1995, on or after the date of publication of this
notice. The public is invited to submit comments on this request.
DATES: Comments should be received on or before March 6, 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 <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a>. Find this particular
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.
FOR FURTHER INFORMATION CONTACT: Copies of the submissions may be
obtained from Spencer W. Clark by emailing <a href="/cdn-cgi/l/email-protection#09595b48497d7b6c687a7c7b70276e667f"><span class="__cf_email__" data-cfemail="cb9b998a8bbfb9aeaab8beb9b2e5aca4bd">[email protected]</span></a>, calling
(202) 927-5331, or viewing the entire information collection request at
<a href="http://www.reginfo.gov">www.reginfo.gov</a>.
SUPPLEMENTARY INFORMATION:
Internal Revenue Service (IRS)
Title: Provisional Foreign Tax Credit Agreement.
OMB Control Number: 1545-2296.
Type of Review: Revision of a currently approved collection.
Description: Sections 901 and 905 allow a taxpayer to claim a
foreign tax credit for foreign income taxes paid or accrued in a
taxable year, depending on taxpayer's method of accounting for such
taxes. However, regardless of the year in which the credit is allowed
based on taxpayer's method of accounting, the foreign tax credit is
allowed only to the extent the foreign income taxes are ultimately both
owed and actually remitted to the foreign country. For accrual method
taxpayers, section 461(f) (flush language), section 1.461-2(a)(2)(i),
and section 1.905-1(d)(3) provide that a foreign income tax liability
that is contested does not accrue and is not creditable until the
contest is resolved. For cash method taxpayers, a foreign income tax
liability that is contested is not a reasonable approximation of the
taxpayer's final foreign income tax liability and, thus, under section
1.901-2(e)(2)(i), is not considered an amount of tax paid for purposes
of section 901 until the contest is resolved.
However, sections 1.905-1(c)(3) and 1.905-1(d)(4) allow taxpayers
to make an election to claim a provisional foreign tax credit for a
contested foreign income tax liability to the extent that the taxpayer
has remitted the contested tax to the foreign country. As a condition
for making this election, the taxpayer must enter into a provisional
foreign tax credit agreement, in which the taxpayer gives the IRS
information
[[Page 7130]]
regarding the contested foreign income tax liability and agrees to
comply with the conditions of the election, including agreeing to not
to assert the statute of limitations on assessment as a defense to
assessment of taxes and interest by the IRS with respect to the
contested tax for a period of three years from the year in which
taxpayer notifies the IRS of the resolution of the contest. See section
1.905-1(d)(4)(ii). The IRS is adding a new Form 7204 for respondents to
report this information.
Form: 7204.
Affected Public: U.S. persons who pay or accrue foreign income
taxes.
Estimated Number of Respondents: 11,400.
Frequency of Response: Annually, On Occasion.
Estimated Total Number of Annual Responses: 11,400.
Estimated Time per Response: 2 hours.
Estimated Total Annual Burden Hours: 22,800.
Authority: 44 U.S.C. 3501 et seq.
Spencer W. Clark,
Treasury PRA Clearance Officer.
[FR Doc. 2023-02187 Filed 2-1-23; 8:45 am]
BILLING CODE 4830-01-P
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