[Federal Register Volume 81, Number 77 (Thursday, April 21, 2016)]
[Notices]
[Pages 23552-23553]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-09297]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Proposed Collection; Comment Request for Form 5227

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 5227, Split-Interest Trust Information Return.

DATES: Written comments should be received on or before June 20, 2016 
to be assured of consideration.

ADDRESSES: Direct all written comments to Martha R. Brinson, 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, Internal Revenue Service, Room 6526, 1111 Constitution Avenue 
NW., Washington, DC 20224, or through the Internet at 
[email protected].

SUPPLEMENTARY INFORMATION: 
    Title: Split-Interest Trust Information Return.
    OMB Number: 1545-0196.
    Form Number: 5227.
    Abstract: Form 5227 is used to report the financial activities of a 
split-interest trust described in Internal Revenue Code section 
4947(a)(2), and to determine whether the trust is treated as a private 
foundation and is subject to the excise taxes under chapter 42 of the 
Code.
    Current Actions: There is an increase in the paperwork burden 
previously approved by OMB. Charitable remainder trusts have begun 
tracking net investment income (NII) received and distributed under 
section 1411(c). The form was updated to report the tracking of NII 
receipts and distributions (part II and Schedule A). Charitable 
remainder trusts (CRT) may elect to apply a simplified NII calculation 
(reported on part I-B of Schedule A). For charitable remainder trusts 
that own interests, directly or indirectly, in certain controlled 
foreign corporations (CFCs) or certain passive foreign investment 
companies (PFICs), the trust may make a special election to align the 
NIIT treatment of those CFCs and PFICs with their treatment for regular 
tax purposes. In addition, the Department estimates an increase of 
responses based on its most recent data on Form 5227 filings, from 
220,000, to 340,000. The form changes and the estimated increase in the 
number of responses will increase the estimated annual burden hours 
from 15,152,550 to 33,138,550.
    Type of Review: Revisions of a currently approved collection.
    Affected Public: Business or other for-profit organizations.
    Estimated Number of Responses: 340,000.
    Estimated Time per Respondent: 97 hr., 28 min.
    Estimated Total Annual Burden Hours: 33,138,550.
    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

[[Page 23553]]

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: April 11, 2016.
Martha R. Brinson,
IRS, Tax Analyst.
[FR Doc. 2016-09297 Filed 4-20-16; 8:45 am]
 BILLING CODE 4830-01-P