`[Federal Register Volume 89, Number 244 (Thursday, December 19, 2024)]
[Notices]
[Pages 103931-103933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30075]


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DEPARTMENT OF THE TREASURY


Proposed Collection; Comment Request for Forms 1065, 1066, 1120, 
1120-C, 1120-F, 1120-H, 1120-ND, 1120-S,1120-SF,1120-FSC,1120-L,1120-
PC,1120-REIT,1120-RIC,1120-POL, and Related Attachments

AGENCY: Departmental Offices, U.S. Department of the Treasury.

ACTION: Notice.

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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 (PRA). The IRS is soliciting comments 
on forms used by business entity taxpayers.

DATES: Comments should be received on or before January 21, 2025 to be 
assured of consideration.

ADDRESSES: Written comments and recommendations for the proposed 
information collection should be sent within 30 days of publication of 
this notice to www.reginfo.gov/public/do/PRAMain. Find this particular 
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.

FOR FURTHER INFORMATION CONTACT: Copies of the submissions may be 
obtained from Melody Braswell by emailing [email protected], calling 
(202) 622-1035, or viewing the entire information collection request at 
www.reginfo.gov.

SUPPLEMENTARY INFORMATION:

Internal Revenue Service (IRS)

    Title: U.S. Business Income Tax Return.
    OMB Number: 1545-0123.
    Form Numbers: Forms 1065, 1066, 1120, 1120-C, 1120-F, 1120-H, 1120-
ND, 1120-S, 1120-SF, 1120-FSC, 1120-L, 1120-PC, 1120-REIT, 1120-RIC, 
1120-POL and all attachments to these forms.
    Abstract: These forms are used by businesses to report their income 
tax liability.
    Current Actions: There have been changes in regulatory guidance 
related to various forms approved under this approval package during 
the past year. There have been additions and removals of forms included 
in this approval package This approval package is being submitted for 
renewal purposes.
    Type of Review: Revision of a currently approved collection.
    Affected Public: Corporations, Partnerships and Pass-Through 
Entities.
    Estimated Number of Respondents: 13,900,000.
    Estimated Time per Respondent (Hours): 67 hours, 25 minutes.
    Estimated Total Annual Time (Hours): 935,100,000.
    Estimated Total Annual Monetized Time ($): 56,152,000,000.
    Estimated Total Out-of-Pocket Costs ($): 71,617,000,000.

[[Page 103932]]

    Estimated Total Monetized Burden ($): 127,769,000,000.

    Note: Total Monetized Burden = Total Out-of-Pocket Costs + Total 
Annual Monetized Time.

    Tax Compliance Burden: Tax compliance burden is defined as the time 
and money taxpayers spend to comply with their tax filing 
responsibilities. Time-related activities include recordkeeping, tax 
planning, gathering tax materials, learning about the law and what you 
need to do, and completing and submitting the return. Out-of-pocket 
costs include expenses such as purchasing tax software, paying a third-
party preparer, and printing and postage. Tax compliance burden does 
not include a taxpayer's tax liability, economic inefficiencies caused 
by sub-optimal choices related to tax deductions or credits, or 
psychological costs.

                  Table 1--Fiscal Year 2025 Taxpayer Burden for Entities Taxed as Partnerships
----------------------------------------------------------------------------------------------------------------
                                                   Total number                                       Average
     Primary form filed or type of taxpayer       of returns (in   Average time   Average out-of-    monetized
                                                     millions)        (hrs.)        pocket cost       burden
----------------------------------------------------------------------------------------------------------------
All Partnerships................................             5.4              60          $5,000          $8,500
Small...........................................             5.0              50           3,100           5,100
Large *.........................................             0.4             190          28,200          50,000
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----------------------------------------------------------------------------------------------------------------
Forms 1065, 1066, and all attachments.


              Table 2--Fiscal Year 2025 Taxpayer Burden for Entities Taxed as Taxable Corporations
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                                                   Total number                                       Average
     Primary form filed or type of taxpayer       of returns (in   Average time   Average out-of-    monetized
                                                     millions)        (hrs.)        pocket cost       burden
----------------------------------------------------------------------------------------------------------------
All Taxable Corporations........................             2.3             100          $7,400         $15,400
Small...........................................             2.1              50           3,500           6,000
Large *.........................................             0.2             690          59,200         139,600
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Forms 1120, 1120-C, 1120-F, 1120-H, 1120-ND, 1120-SF, 1120-FSC, 1120-L, 1120-PC, 1120-POL, and all attachments.


            Table 3--Fiscal Year 2025 Taxpayer Burden for Entities Taxed as Pass-Through Corporations
----------------------------------------------------------------------------------------------------------------
                                                   Total number                                       Average
     Primary form filed or type of taxpayer       of returns (in   Average time   Average out-of-    monetized
                                                     millions)        (hrs.)        pocket cost       burden
----------------------------------------------------------------------------------------------------------------
All Pass-through Corporations...................             6.2              60          $4,500          $8,500
Small...........................................             6.1              60           3,900           5,100
Large *.........................................             0.1             300          40,600          50,000
----------------------------------------------------------------------------------------------------------------
Forms 1120-REIT, 1120-RIC, 1120-S, and all attachments.
Source: IRS:RAAS:KDA:BRDN (12-1-24).
* A large business is defined as one having end-of-year assets greater than $10 million. Total filer counts may
  not equal the burden total estimates table due to rounding.

    Tables 1A-3A show the average burden estimate for business entities 
by total positive income. Total positive income is defined as the sum 
of all positive income amounts reported on the return.

                Table 1A--Fiscal Year 2025 Taxpayer Burden for Taxable Corporations on Form 1120
----------------------------------------------------------------------------------------------------------------
                                                                                                      Average
                      Total positive income                        Average time   Average out-of-    monetized
                                                                      (hrs.)       pocket costs       burden
----------------------------------------------------------------------------------------------------------------
1. <100k........................................................              33          $1,412          $1,931
2. 100k to 1mil.................................................              49           4,559           6,604
3. 1mil to 10mil................................................              93          13,893          23,988
4. 10mil to 100mil..............................................             390          54,933         100,276
5. >100mil......................................................           3,325         290,812         677,311
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             Table 2A--Fiscal Year 2025 Taxpayer Burden for Pass-Through Corporations on Form 1120S
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                                                                                                      Average
                      Total positive income                        Average time   Average out-of-    monetized
                                                                      (hrs.)       pocket costs       burden
----------------------------------------------------------------------------------------------------------------
1. <100k........................................................              47          $1,686          $2,381
2. 100k to 1mil.................................................              52           4,014           5,934
3. 1mil to 10mil................................................              72          10,223          17,779
4. 10mil to 100mil..............................................             276          40,402          72,483

[[Page 103933]]

 
5. >100mil......................................................           1,199         167,915         307,245
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                    Table 3A--Fiscal Year 2025 Taxpayer Burden for Partnerships on Form 1065
----------------------------------------------------------------------------------------------------------------
                                                                                                      Average
                      Total positive income                        Average time   Average out-of-    monetized
                                                                      (hrs.)       pocket costs       burden
----------------------------------------------------------------------------------------------------------------
1. <100k........................................................              39          $1,663          $2,453
2. 100k to 1mil.................................................              49           4,743           7,319
3. 1mil to 10mil................................................              86          13,803          23,334
4. 10mil to 100mil..............................................             319          51,636          88,752
5. >100mil......................................................           1,494         223,989         397,651
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Source: IRS: RAAS:KDA:BRDN (12-1-24).
Detail may not add to total due to rounding.


(Authority: 44 U.S.C. 3501 et seq.)

Melody Braswell,
Treasury PRA Clearance Officer.
[FR Doc. 2024-30075 Filed 12-18-24; 8:45 am]
BILLING CODE 4810-25-P`