[Federal Register Volume 65, Number 122 (Friday, June 23, 2000)]
[Notices]
[Pages 39230-39231]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-15873]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Proposed Collection; Comment Request for Form 1120-FSC and 
Schedule P (Form 1120-FSC)

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 1120-FSC, U.S. Income Tax Return of a Foreign Sales Corporation, 
and Schedule P (Form 1120-FSC), Transfer Price or Commission.

DATES: Written comments should be received on or before August 22, 2000 
to be assured of consideration.

ADDRESSES: Direct all written comments to Garrick R. Shear, Internal 
Revenue Service, room 5244, 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 Carol Savage, 
(202) 622-3945, Internal Revenue Service, room 5242, 1111 Constitution 
Avenue NW., Washington, DC 20224.

SUPPLEMENTARY INFORMATION:
    Title: Form 1120-FSC, U.S. Income Tax Return of a Foreign Sales 
Corporation, and Schedule P (Form 1120-FSC), Transfer Price or 
Commission.
    OMB Number: 1545-0935.
    Form Number: 1120-FSC and Schedule P (Form 1120-FSC).
    Abstract: Form 1120-FSC is filed by foreign corporations that have 
elected to be FSCs or small FSCs. The FSC uses Form 1120-FSC to report 
income and expenses and to figure its tax liability. IRS uses Form 
1120-FSC and Schedule P (Form 1120-FSC) to determine whether the FSC 
has correctly reported its income and expenses and figured its tax 
liability correctly.
    Current Actions: The following changes are being considered: On 
page 2 of Form 1120-FSC in the section, Additional Information, new 
questions 5 and 6 are added. Question 5 asks whether, during the FSC's 
tax year, the FSC owned any foreign entities that are disregarded as 
entities separate from their owners under Regulations sections 
301.7701-2 and 301.7701-3. Question 6 asks whether, during the FSC's 
tax year, the FSC owned at least a 10% interest, directly or 
indirectly, in any foreign partnerships. As a result of changes made to 
the alternative minimum tax (AMT) lines on the individual tax forms due 
to section 501 of the Tax Relief Extension Act of 1999, the business 
credit forms are being revised to relocate their AMT lines. For 
consistency of presentation, on Schedule J of Form 1120-FSC the AMT 
line (line 7) is similarly being relocated to line 4 and a new subtotal 
line (line 5) is added. On Schedule P of Form 1120-FSC a new checkbox 
(checkbox 1b) is added for reporting on the transaction-by-transaction 
basis. The new checkbox indicates that the FSC is choosing to aggregate 
its transactions on a tabular

[[Page 39231]]

schedule rather than reporting on Schedule P.
    Type of Review: Revision of a currently approved collection.
    Affected Public: Business or other for-profit organizations.
    Estimated Number of Respondents: 5,000.
    Estimated Time Per Respondent: 214 hours, 53 minutes.
    Estimated Total Annual Burden Hours: 1,074,400.
    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: June 16, 2000.
Garrick R. Shear,
IRS Reports Clearance Officer
[FR Doc. 00-15873 Filed 6-22-00; 8:45 am]
BILLING CODE 4830-01-P