[Federal Register Volume 86, Number 128 (Thursday, July 8, 2021)]
[Notices]
[Pages 36188-36189]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-14557]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Proposed Collection; Requesting Comments on Form 8865

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 
continuing information collections, as required by the Paperwork 
Reduction Act of 1995. The IRS is soliciting comments concerning Form 
8865, Return of U.S. Persons with Respect to Certain Foreign 
Partnerships.

DATES: Written comments should be received on or before September 7, 
2021 to be assured of consideration.

ADDRESSES: Direct all written comments to Kinna Brewington, Internal 
Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 
20224. Please send separate comments for each specific information 
collection listed below. You must reference the information 
collection's title, form number, reporting or record-keeping 
requirement number, and OMB number in your comment.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the form and instructions should be directed to Jon Callahan, 
(737) 800-7639, at Internal Revenue Service, Room 6526, 1111 
Constitution Avenue NW, Washington, DC 20224, or through the internet 
at [email protected].

SUPPLEMENTARY INFORMATION: Currently, the IRS is seeking comments 
concerning the following information collection tools, reporting, and 
record-keeping requirements:
    Title: Return of U.S. Persons With Respect to Certain Foreign 
Partnerships.
    OMB Number: 1545-1668.
    Form Number: Form 8865, Schedules A, A-1, A-2, A-3, B, G, H, K, K-
1, K-2, K-3, L, M, M-1, M-2, N, O, P, and Form 8838 P.
    Abstract: The Taxpayer Relief Act of 1997 significantly modified 
the information reporting requirements with respect to foreign 
partnerships. The Act made the following three changes: (1) Expanded 
section 6038B to require U.S. persons transferring property to foreign 
partnerships in certain transactions to report those transfers, (2) 
expanded section 6038 to require certain U.S. Partners of controlled 
foreign partnerships to report information about the partnerships, and 
(3) modified the reporting required under section 6046A with respect to 
acquisitions and dispositions of foreign partnership interests. Form 
8865 is used by U.S. persons to fulfill their reporting obligations 
under sections 6038B, 6038, and 6046A. Form 8838-P is used to extend 
the statute of limitations for U.S. persons who transfers appreciated 
property to partnerships with foreign partners related to the 
transferor. The form is filed when the transferor makes a gain 
recognition agreement. This agreement allows the transferor to defer 
the payment of tax on the transfer.
    Current Actions: There are changes to the existing collection: (1) 
The number of responses for each form and schedule is being reduced to 
account for filers (individuals, businesses and tax-exempt 
organizations) being reported under OMB numbers 1545-0123 and 1545-
0074, (2) additional information is being collected to comply with the 
Tax Cuts and Jobs Act, Public Law 115-97, and new section 250, (3) 
information about the number of foreign partners subject to section 
864(c)(8) is being collected, (4) information about section 721(c) 
partnerships is being collected, (5) information is being collected for 
disclosure requirements under Treasury Regulations 1.703-3, 1.707-6, 
and 1.707-8, and (6) new Schedules K-2 and K-3 replace, supplement, and 
clarify certain amounts formerly reported on Schedules K and K-1 of 
Form 8865.
    Type of Review: Revision of a currently approved collection.
    Affected Public: Business or other for-profit organizations, 
individuals, and not-for-profit institutions.
    Estimated Number of Respondents: 3,695.
    Estimated Time per Respondent: 22 hours, 45 minutes.

[[Page 36189]]

    Estimated Total Annual Burden Hours: 84,057.
    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 2, 2021.
Jon R. Callahan,
Tax Analyst.
[FR Doc. 2021-14557 Filed 7-7-21; 8:45 am]
BILLING CODE 4830-01-P