Notice2026-01621
Agency Information Collection Activities; 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 27, 2026
Issuing agencies
Treasury DepartmentInternal Revenue Service
Abstract
In accordance with the Paperwork Reduction Act of 1995, the IRS is inviting comments on the information collection request outlined in this notice.
Full Text
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<title>Federal Register, Volume 91 Issue 17 (Tuesday, January 27, 2026)</title>
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[Federal Register Volume 91, Number 17 (Tuesday, January 27, 2026)]
[Notices]
[Pages 3628-3629]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-01621]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
Agency Information Collection Activities; Special Rules for Long-
Term Contracts Under Section 460
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice of information collection; request for comments.
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SUMMARY: In accordance with the Paperwork Reduction Act of 1995, the
IRS is inviting comments on the information collection request outlined
in this notice.
DATES: Written comments should be received on or before March 30, 2026
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#2d5d5f4c034e4240404843595e6d445f5e034a425b"><span class="__cf_email__" data-cfemail="c0b0b2a1eea3afadada5aeb4b380a9b2b3eea7afb6">[email protected]</span></a>. Include ``OMB Control No.
1545-1732'' in the subject line of the message.
FOR FURTHER INFORMATION CONTACT: Requests for additional information or
copies of this collection should be directed to Jason Schoonmaker,
(801) 620-6008.
[[Page 3629]]
SUPPLEMENTARY INFORMATION: The IRS, in accordance with the Paperwork
Reduction Act of 1995 (PRA) (44 U.S.C. 3506(c)(2)(A)), provides the
general public and Federal agencies with an opportunity to comment on
proposed, revised, and continuing collections of information. This
helps the IRS assess the impact and minimize the burden of its
information collection requirements. 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, and
viewable on relevant websites. For this reason, please do not include
in your comments information of a confidential nature, such as
sensitive personal information. 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.
Title: Special Rules for Long-Term Contracts Under Section 460.
OMB Control Number: 1545-1732.
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.
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 a change to the existing collection. The
estimated burden for trusts and estates filing Form 8697 has been
removed from this control number, as it is approved under OMB control
number 1545-0092.
Type of Review: Revision of a currently approved collection.
Affected Public: Individuals and households, and business or other
for-profit organizations.
Estimated Number of Responses: 75,000.
Estimated Time per Response: 21 minutes.
Estimated Total Annual Burden Hours: 26,500.
Dated: January 23, 2026.
Jason M. Schoonmaker,
Tax Analyst.
[FR Doc. 2026-01621 Filed 1-26-26; 8:45 am]
BILLING CODE 4830-01-P
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