[Federal Register Volume 85, Number 141 (Wednesday, July 22, 2020)]
[Notices]
[Page 44379]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15829]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Proposed Collection; Comment Request for Certificate of Foreign 
Contracting Party Receiving Federal Procurement Payments

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice and request for comments.

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SUMMARY: The Internal Revenue Service, 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. Currently, the IRS is soliciting 
comments concerning Certificate of Foreign Contracting Party Receiving 
Federal Procurement Payments.

DATES: Written comments should be received on or before September 21, 
2020 to be assured of consideration.

ADDRESSES: Direct all written comments to Chakinna Clemons, Internal 
Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 
20224. Requests for additional information or copies of the form and 
instructions should be directed to LaNita Van Dyke, at (202)317-6009, 
at Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW, 
Washington, DC 20224, or through the internet at 
[email protected].

SUPPLEMENTARY INFORMATION: 
    Title: Certificate of Foreign Contracting Party Receiving Federal 
Procurement Payments.
    OMB Number: 1545-2263.
    Form Number: Form W-14.
    Abstract: Tax on Certain Foreign Procurement, Notice of Purposed 
Rulemaking, contains proposed regulations under section 5000C of the 
Internal Revenue Code. The proposed regulations affect U.S. government 
acquiring agencies and foreign persons providing certain goods or 
services to the U.S. government pursuant to a contract. This document 
also contains proposed regulations under section 6114, with respect to 
foreign persons claiming an exemption from the tax under an income tax 
treaty. Section 5000C imposes a 2% tax on foreign persons (as defined 
in section 7701(a)(30)), that are parties to specified Federal 
procurement contracts with the U.S. government entered into on and 
after January 2, 2011. This tax is imposed on the gross amount of 
specified Federal procurement payments and is generally collected by 
increasing the amount withheld under chapter 3. A Form W-14 must be 
provided to the acquiring agency (U.S. government department, agency, 
independent establishment, or corporation) to: Establish that they are 
a foreign contracting party; and If applicable, claim an exemption from 
withholding based on an international agreement (such as a tax treaty); 
or Claim an exemption from withholding, in whole or in part, based on 
an international procurement agreement or because goods are produced, 
or services are performed in the United States. A Form W-14 must be 
provided to the acquiring agency if a foreign contracting party has 
been paid a specified Federal procurement payment and the foreign 
contracting party is seeking to claim an exemption (in whole or in 
part) from the tax imposed by section 5000C. Form W-14 must be 
submitted when requested by the acquiring agency, whether or not an 
exemption (in whole or in part) is claimed from withholding under 
section 5000C.
    Current Actions: There are no changes being made to the form at 
this time.
    Type of Review: Extension of a currently approved collection.
    Affected Public: Federal government.
    Estimated Number of Annual Responses: 2,000.
    Estimated Time Per Response: 5 hrs., 55 mins.
    Estimated Total Annual Burden Hours: 11,840.
    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: July 9, 2020.
Chakinna B. Clemons,
Supervisory Tax Analyst.
[FR Doc. 2020-15829 Filed 7-21-20; 8:45 am]
BILLING CODE 4830-01-P