38204 Federal Register / Vol. 86, No. 135 / Monday, July 19, 2021 / Notices 

conducted in coordination with the Board of 

Governors of the Federal Reserve Board, Federal 

Deposit Insurance Corporation, and other banking 

agencies with similar authorities. The scope of 

examinations focuses on the services provided and 

key technology and operational controls 

communicated in the FFIEC Information 

Technology Examination Handbook and other 

regulatory guidance. 

15Existing OCC and interagency guidance 

potentially applicable to alternative data includes 

‘‘Policy Statement on Discrimination in Lending’’ 

(59 FR 18266 (April 15, 1994)); OCC Bulletin 1997– 

24, ‘‘Credit Scoring Models: Examination 

Guidance;’’ OCC Bulletin 2011–12, ‘‘Sound 

Practices for Model Risk Management: Supervisory 

Guidance on Model Risk Management;’’ OCC 

Bulletin 2013–29, ‘‘Third-Party Relationships: Risk 

Management;’’ and OCC Bulletin 2017–43, ‘‘New, 

Modified, or Expanded Bank Products and Services: 

Risk Management Principles.’’ 

16Refer to OCC Bulletin 2019–62, ‘‘Consumer 

Compliance: Interagency Statement on the Use of 

Alternative Data in Credit Underwriting,’’ for more 

information about compliance risk management 

considerations regarding the use of alternative data. 

Also refer to Consumer Financial Protection Bureau 

(CFPB), ‘‘Request for Information Regarding Use of 

Alternative Data and Modeling Techniques in the 

Credit Process,’’ 82 FR 11183 (February 21, 2017). 

17The information in this list is consistent with 

the Interagency Policy Statement on the Use of 

Alternative Data in Credit Underwriting. 

• Conduct due diligence on third 

parties before selecting and entering 

into contracts. The degree of due 

diligence should be commensurate with 

the risk to the bank from the third-party 

relationship. 

• ensure that alternative data usage 

comports with safe and sound 

operations. Appropriate data controls 

include rigorous assessment of the 

quality and suitability of data to support 

prudent banking operations. 

Additionally, the OCC’s model risk 

management guidance contains 

important principles, including those 

that may leverage alternative data. 

• analyze relevant consumer 

protection laws and regulations to 

understand the opportunities, risks, and 

compliance requirements before using 

alternative data. Based on that analysis, 

data that present greater compliance risk 

warrant more robust compliance 

management. Robust compliance 

management includes appropriate 

testing, monitoring, and controls to 

ensure that compliance risks are 

understood and addressed. 

• conduct ongoing monitoring on 

third parties in a manner and with a 

frequency commensurate with the risk 

to the bank from the third-party 

relationship. 

• discuss its plans with an OCC 

portfolio manager, examiner-in-charge, 

or supervisory office if the use of 

alternative data from a third-party 

relationship constitutes a substantial 

deviation from the bank’s existing 

business plans or material changes in 

the bank’s use of alternative data. 

Michael J. Hsu, 

Acting Comptroller of the Currency. 

By order of the Board of Governors of the 

Federal Reserve System 

Ann Misback, 

Secretary of the Board. Federal Deposit 

Insurance Corporation. 

Dated at Washington, DC, on July 12, 2021. 

James P. Sheesley, 

Assistant Executive Secretary. 

BILLING CODE 6210–01–P; 6714–01–P; 4810–33–P 

[FR Doc. 2021–15308 Filed 7–16–21; 8:45 am] 

BILLING CODE 4810–33–6210–01–6714–01P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

Proposed Collection; Comment 

Request for Form 7203 

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 proposed 

and/or continuing information 

collections, as required by the 

Paperwork Reduction Act of 1995 

(PRA). The IRS is soliciting comments 

for Form 7203, S Corporation 

Shareholder Stock and Debt Basis 

Limitations. 

DATES: Written comments should be 

received on or before September 17, 

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. 

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 jon.r.callahan@

irs.gov. 

SUPPLEMENTARY INFORMATION: The IRS is 

currently seeking comments concerning 

the following information collection 

tools, reporting, and record-keeping 

requirements: 

Title: S Corporation Shareholder 

Stock and Debt Basis Limitations. 

OMB Number: 1545–XXXX. 

Form Number: 7203. 

Abstract: Internal Revenue Code (IRC) 

Section 1366 determines the 

shareholder’s tax liability from an S 

corporation. IRC Section 1367 details 

the adjustments to basis including the 

increase and decrease in basis, income 

items included in basis, the basis of 

indebtedness, and the basis of inherited 

stock. Shareholders will use Form 7203 

to calculate their stock and debt basis, 

ensuring the losses and deductions are 

accurately claimed. 

Current Actions: There are no changes 

being made to this form at this time. 

Type of Review: New Information 

Collection. 

Affected Public: Individuals, Tax 

Exempt entities, and Estates and Trusts. 

Estimated Number of Respondents: 

70,000. 

Estimated Time per Respondent: 3 

hours, 46 minutes. 

Estimated Total Annual Burden 

Hours: 257,600 hours. 

The following paragraph applies to all 

of the collections of information covered 

by this notice: 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 86, No. 135 / Monday, July 19, 2021 / Notices 38205 

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 14, 2021. 

Jon R. Callahan, 

Tax Analyst. 

[FR Doc. 2021–15257 Filed 7–16–21; 8:45 am] 

BILLING CODE 4830–01–P 


lotter on DSK11XQN23PROD with NOTICES1