[Federal Register Volume 62, Number 103 (Thursday, May 29, 1997)]
[Notices]
[Page 29186]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-14070]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Proposed Collection; Comment Request for Form 1120S, Schedule D, 
and Schedule K-1

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice and request for comments.

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SUMMARY: The Department of the Treasury, 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, Public Law 104-13 (44 U.S.C. 
3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning 
Form 1120S, U.S. Income Tax Return for an S Corporation, Schedule D 
(Form 1120S), Capital Gains and Losses and Built-In Gains, and Schedule 
K-1 (Form 1120S), Shareholder's Share of income, Credits, Deductions, 
etc.

DATES: Written comments should be received on or before July 28, 1997 
to be assured of consideration.

ADDRESSES: Direct all written comments to Garrick R. Shear, Internal 
Revenue Service, room 5571, 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, (202) 622-3869, Internal Revenue Service, room 5571, 1111 
Constitution Avenue NW., Washington, DC 20224.

SUPPLEMENTARY INFORMATION:

    Title: U.S. Income Tax Return for an S Corporation (Form 1120S), 
Capital Gains and Losses and Built-In Gains (Schedule D), and 
Shareholder's Share of Income, Credits, Deductions, etc. (Schedule K-
1).
    OMB Number: 1545-0130.
    Form Number: 1120S, Schedule D (Form 1120S), and Schedule K-1 (Form 
1120S).
    Abstract: Form 1120S, Schedule D (Form 1120S), and Schedule K-1 
(Form 1120S) are used by an S corporation to compute its tax liability, 
and income and other tax-related information to pass through to its 
shareholders. Schedule D is used to report gain or loss from sales or 
exchanges of capital assets and the computation of tax on certain 
capital gains and built-in capital gains imposed by Internal Revenue 
Code section 1374. Schedule K-1 is used to report to shareholders their 
share of the corporation's income, deductions, credits, etc.
    Current Actions: Changes to Form 1120S.
    (1) Item G on page 1 and the ``Designation of Tax Matters Person'' 
block on page 2 have been eliminated. The Small Business Job Protection 
Act of 1996 repealed the Tax Equity and Fiscal Responsibility Act of 
1982 (``TEFRA'') audit provisions applicable to S corporations. 
Therefore, an S corporation can no longer have a Tax Matters Person. 
Previous line H has been redesignated line G.
    (2) Under Schedule L, Balance Sheets per Books, new line 25, 
``Adjustments to shareholders'= equity,'' has been added. The purpose 
is to conform the balance sheet with ``Generally Accepted Accounting 
Principles'' (GAAP). Previous lines 25 and 26 have been redesignated 26 
and 27.
    (3) The instructions are being revised to reflect the provisions of 
the Small Business Job Protection Act of 1996.
    Type of Review: Revision of a currently approved collection.
    Affected Public: Business or other for-profit organizations and 
farms.
    Estimated Number of Respondents: 1,880,000.
    Estimated Time Per Respondent: 238 hr., 3 min.
    Estimated Total Annual Burden Hours: 447,539,160.
    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: May 21, 1997.
Garrick R. Shear,
IRS Reports Clearance Officer.
[FR Doc. 97-14070 Filed 5-28-97; 8:45 am]
BILLING CODE 4830-01-U