[Federal Register Volume 83, Number 113 (Tuesday, June 12, 2018)]
[Notices]
[Pages 27376-27377]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-12577]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
Proposed Collection; Comment Request for Form 8858
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice and request for comments.
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SUMMARY: The Internal Revenue Service (IRS), 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 information collections, as required by the Paperwork Reduction Act
of 1995. The IRS is soliciting comments concerning Information Return
of U.S. Persons With Respect To Foreign Disregarded Entities (FDEs) and
Foreign Branches (FBs).
DATES: Written comments should be received on or before August 13, 2018
to be assured of consideration.
ADDRESSES: Direct all written comments to Laurie Brimmer, Internal
Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC
20224.
FOR FURTHER INFORMATION CONTACT: Requests for additional information or
copies of the form and instructions should be directed to Martha R.
Brinson, at (202) 317-5753, or at Internal Revenue Service, Room 6526,
1111 Constitution Avenue NW, Washington, DC 20224, or through the
internet at [email protected].
SUPPLEMENTARY INFORMATION:
Title: Information Return of U.S. Persons With Respect To Foreign
Disregarded Entities (FDEs) and Foreign Branches (FBs).
OMB Number: 1545-1910.
Form Number: Form 8858 and Schedule M (Form 8858).
Abstract: Form 8858 and Schedule M are used by certain U.S. persons
that own a foreign disregarded entity (FDE) directly or, in certain
circumstances, indirectly or constructively. These forms also now
implement the relevant provisions of Public Law 115-97 (Schedule M
(Form 8858)). Section 14302 of Public Law 115-97 (IRC 904(d)(1)(B)--FTC
category for foreign branch income) requires additional reporting by a
foreign branch (FB) owned by a U.S. person.
Form 8858
Current Actions: (1) On page 1, we changed the title to include
foreign branches as Form 8858 will be used to collect information from
foreign branches as required by new sections 91 and 904(d)(1)(B).
References to foreign branches are added throughout the Form 8858, and
foreign disregarded entities and foreign branches are abbreviated as
FDE and FB; (2) Also, on page 1, for purposes of filtering, we added
checkboxes to identify whether the FB or FDE is owned by a U.S. person,
controlled foreign corporation (CFC), or controlled foreign partnership
(CFP), and whether this is the initial or final Form 8858 filed; (3) On
page 2, Schedule C, we added several additional income line items, and
one for income tax expense, to correspond to items reflected on Form
1118, as modified, for FTC reporting by FBs pursuant to section 14302
of Public Law 115-97; (4) Also, on page 2, Schedule C-1, we made
changes requested by CC:INTL to clarify reporting of gains and losses
on remittances by FDEs and FBs; (5) On page 3, Schedule G, we deleted
old questions 4 and 5a to 5c, and added new questions 6 to 8, and 10 to
13. Questions 6 and 7 were added to address base erosion under sections
59A(d) and 59(c)(2). Question 8 was added to identify whether the FB or
FDE was a qualified business unit under IRC 989(a), which will enhance
reporting of FB activities and remittances under IRC 987. Questions 10
to 13 are modifications of old questions 4 and 5a to 5c, regarding dual
consolidated losses, to provide more transparent and accurate reporting
of DCLs incurred by FBs or FDEs of a U.S. owner; (6) On page 4, we
added Schedule I, Transferred Loss Amounts, which will indicate whether
section 91 (section 14102 of Pub. L. 115-97) applies. Also, Schedule I
will indicate whether a domestic corporation transferred foreign branch
assets to a foreign corporation, which would invoke section 91, and
require the inclusion of the transferred loss amount into income; (7)
Also, on page 4, we added Schedule J, Income Taxes Paid or Accrued,
which will provide additional information on the foreign taxes paid or
accrued by the FB or FDE, converted to U.S. dollars and classified into
separate FTC categories, including the new category under section
904(d)(1)(B) (section 14302 of Pub. L. 115-97).
Schedule M (Form 8858)
A third column heading was added to report transactions of an FDE
or FB of a U.S. tax owner with corresponding changes to columns (a)-
(e). The instructions will clarify that the Schedule M (Form 8858) must
be completed and attached to the Form 8858 to report transactions
between the FB or FDE and the filer of Form 8858 or other related
entity, regardless of the tax owner of the FB or FDE.
[[Page 27377]]
Type of Review: Revision of a currently approved collection.
Affected Public: Business or other for-profit organizations, and
individuals or households.
Form 8858
Estimated Number of Respondents: 20,000.
Estimated Time per Respondent: 35.99 hours.
Estimated Total Annual Burden Hours: 719,800 hours.
Schedule M (Form 8858)
Estimated Number of Respondents: 8,000.
Estimated Time per Respondent: 24.75 hours.
Estimated Total Annual Burden Hours: 198,000 hours.
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.
Comments will be 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 has
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 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: June 5, 2018.
Laurie Brimmer,
Senior Tax Analyst.
[FR Doc. 2018-12577 Filed 6-11-18; 8:45 am]
BILLING CODE 4830-01-P