Proposed Collection; Comment Request for Forms 1065, 1066, 1120, 1120-C, 1120-F, 1120-H, 1120-ND, 1120-S,1120-SF,1120-FSC,1120-L,1120-PC,1120-REIT,1120-RIC,1120-POL, and Related Attachments

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Published

December 19, 2024

Issuing agencies

Treasury Department

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 (PRA). The IRS is soliciting comments on forms used by business entity taxpayers.

Full Text

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[Federal Register Volume 89, Number 244 (Thursday, December 19, 2024)]
[Notices]
[Pages 103931-103933]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-30075]

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DEPARTMENT OF THE TREASURY

Proposed Collection; Comment Request for Forms 1065, 1066, 1120,
1120-C, 1120-F, 1120-H, 1120-ND, 1120-S,1120-SF,1120-FSC,1120-L,1120-
PC,1120-REIT,1120-RIC,1120-POL, and Related Attachments

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

ACTION: Notice.

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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 (PRA). The IRS is soliciting comments
on forms used by business entity taxpayers.

DATES: Comments should be received on or before January 21, 2025 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 Melody Braswell by emailing <a href="/cdn-cgi/l/email-protection#3363617273474156524046414a1d545c45"><span class="__cf_email__" data-cfemail="cb9b998a8bbfb9aeaab8beb9b2e5aca4bd">[email&#160;protected]</span></a>, calling
(202) 622-1035, 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: U.S. Business Income Tax Return.
OMB Number: 1545-0123.
Form Numbers: Forms 1065, 1066, 1120, 1120-C, 1120-F, 1120-H, 1120-
ND, 1120-S, 1120-SF, 1120-FSC, 1120-L, 1120-PC, 1120-REIT, 1120-RIC,
1120-POL and all attachments to these forms.
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. There have been additions and removals of forms included
in this approval package This approval package is being submitted for
renewal purposes.
Type of Review: Revision of a currently approved collection.
Affected Public: Corporations, Partnerships and Pass-Through
Entities.
Estimated Number of Respondents: 13,900,000.
Estimated Time per Respondent (Hours): 67 hours, 25 minutes.
Estimated Total Annual Time (Hours): 935,100,000.
Estimated Total Annual Monetized Time ($): 56,152,000,000.
Estimated Total Out-of-Pocket Costs ($): 71,617,000,000.

[[Page 103932]]

Estimated Total Monetized Burden ($): 127,769,000,000.

Note: Total Monetized Burden = Total Out-of-Pocket Costs + Total
Annual Monetized Time.

Tax Compliance Burden: Tax compliance burden is defined as the time
and money taxpayers spend to comply with their tax filing
responsibilities. Time-related activities include recordkeeping, tax
planning, gathering tax materials, learning about the law and what you
need to do, and completing and submitting the return. Out-of-pocket
costs include expenses such as purchasing tax software, paying a third-
party preparer, and printing and postage. Tax compliance burden does
not include a taxpayer's tax liability, economic inefficiencies caused
by sub-optimal choices related to tax deductions or credits, or
psychological costs.

Table 1--Fiscal Year 2025 Taxpayer Burden for Entities Taxed as Partnerships
----------------------------------------------------------------------------------------------------------------
Total number Average
Primary form filed or type of taxpayer of returns (in Average time Average out-of- monetized
millions) (hrs.) pocket cost burden
----------------------------------------------------------------------------------------------------------------
All Partnerships................................ 5.4 60 $5,000 $8,500
Small........................................... 5.0 50 3,100 5,100
Large *......................................... 0.4 190 28,200 50,000
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----------------------------------------------------------------------------------------------------------------
Forms 1065, 1066, and all attachments.

Table 2--Fiscal Year 2025 Taxpayer Burden for Entities Taxed as Taxable Corporations
----------------------------------------------------------------------------------------------------------------
Total number Average
Primary form filed or type of taxpayer of returns (in Average time Average out-of- monetized
millions) (hrs.) pocket cost burden
----------------------------------------------------------------------------------------------------------------
All Taxable Corporations........................ 2.3 100 $7,400 $15,400
Small........................................... 2.1 50 3,500 6,000
Large *......................................... 0.2 690 59,200 139,600
----------------------------------------------------------------------------------------------------------------
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--Fiscal Year 2025 Taxpayer Burden for Entities Taxed as Pass-Through Corporations
----------------------------------------------------------------------------------------------------------------
Total number Average
Primary form filed or type of taxpayer of returns (in Average time Average out-of- monetized
millions) (hrs.) pocket cost burden
----------------------------------------------------------------------------------------------------------------
All Pass-through Corporations................... 6.2 60 $4,500 $8,500
Small........................................... 6.1 60 3,900 5,100
Large *......................................... 0.1 300 40,600 50,000
----------------------------------------------------------------------------------------------------------------
Forms 1120-REIT, 1120-RIC, 1120-S, and all attachments.
Source: IRS:RAAS:KDA:BRDN (12-1-24).
* A large business is defined as one having end-of-year assets greater than $10 million. Total filer counts may
not equal the burden total estimates table due to rounding.

Tables 1A-3A show the average burden estimate for business entities
by total positive income. Total positive income is defined as the sum
of all positive income amounts reported on the return.

Table 1A--Fiscal Year 2025 Taxpayer Burden for Taxable Corporations on Form 1120
----------------------------------------------------------------------------------------------------------------
Average
Total positive income Average time Average out-of- monetized
(hrs.) pocket costs burden
----------------------------------------------------------------------------------------------------------------
1. <100k........................................................ 33 $1,412 $1,931
2. 100k to 1mil................................................. 49 4,559 6,604
3. 1mil to 10mil................................................ 93 13,893 23,988
4. 10mil to 100mil.............................................. 390 54,933 100,276
5. >100mil...................................................... 3,325 290,812 677,311
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Table 2A--Fiscal Year 2025 Taxpayer Burden for Pass-Through Corporations on Form 1120S
----------------------------------------------------------------------------------------------------------------
Average
Total positive income Average time Average out-of- monetized
(hrs.) pocket costs burden
----------------------------------------------------------------------------------------------------------------
1. <100k........................................................ 47 $1,686 $2,381
2. 100k to 1mil................................................. 52 4,014 5,934
3. 1mil to 10mil................................................ 72 10,223 17,779
4. 10mil to 100mil.............................................. 276 40,402 72,483

[[Page 103933]]

5. >100mil...................................................... 1,199 167,915 307,245
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Table 3A--Fiscal Year 2025 Taxpayer Burden for Partnerships on Form 1065
----------------------------------------------------------------------------------------------------------------
Average
Total positive income Average time Average out-of- monetized
(hrs.) pocket costs burden
----------------------------------------------------------------------------------------------------------------
1. <100k........................................................ 39 $1,663 $2,453
2. 100k to 1mil................................................. 49 4,743 7,319
3. 1mil to 10mil................................................ 86 13,803 23,334
4. 10mil to 100mil.............................................. 319 51,636 88,752
5. >100mil...................................................... 1,494 223,989 397,651
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Source: IRS: RAAS:KDA:BRDN (12-1-24).
Detail may not add to total due to rounding.

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

Melody Braswell,
Treasury PRA Clearance Officer.
[FR Doc. 2024-30075 Filed 12-18-24; 8:45 am]
BILLING CODE 4810-25-P

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