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###### Department of the Treasury

###### Internal Revenue Service

# AGENCY:

Internal Revenue Service (IRS), Treasury.

# ACTION:

Notice and request for comments.

# 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 information collection requirements related to limitations on passive activity losses and credits.

# DATES:

Written comments should be received on or before March 24, 2025 to be assured of consideration.

# ADDRESSES:

                        Direct all written comments to Andres Garcia, Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 20224, or by email to                         *pra.comments@irs.gov*. Include OMB control number 1545-1244 or Limitations on Passive Activity Losses and Credits, in the subject line of the message.                    

# FOR FURTHER INFORMATION CONTACT:

                        Requests for additional information or copies of the regulation should be directed to Kerry Dennis at (202) 317-5751, or at Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington DC 20224, or through the internet, at                         *Kerry.L.Dennis@irs.gov*.                    

# SUPPLEMENTARY INFORMATION:

*Title:*                     Limitations on Passive Activity Losses and Credits.                

*OMB Number:*                     1545-1244.                

*Regulation Project Number:*                     TD 9013.                

*Abstract:*                     Regulation section 1.469-7(g) permits entities to elect to avoid application of section 1.469-7 in the event the passthrough entity chooses to not have the income from lending transactions with owners of interests in the entity recharacterized as passive activity gross income. The IRS will use this information to determine whether the entity has made a proper timely election and to determine that taxpayers are complying with the election in the taxable year of the election and subsequent taxable years.                

*Current Actions:*                     There is no change to the regulation or paperwork burden previously approved by OMB.                

*Type of Review:*                     Extension of a currently approved collection.                

*Affected Public:*                     Individuals or Households, businesses or other for-profit organizations.                

*Estimated Number of Respondents:*                     1,000.                

*Estimated Time per Respondent:*                     6 minutes.                

*Estimated Total Annual Burden Hours:*                     100.                

The following paragraph applies to all 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 if 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: January 16, 2025.

Kerry L. Dennis,

Tax Analyst.

[FR Doc. 2025-01573 Filed 1-22-25; 8:45 am]

BILLING CODE 4830-01-P