Proposed Collection; Requesting Comments on Special Rules for Long-Term Contracts Under Section 460, 1633-1634 [2023-00337]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 88, Number 7 (Wednesday, January 11, 2023)]
[Notices]
[Pages 1633-1634]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-00337]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Proposed Collection; Requesting Comments on Special Rules for 
Long-Term Contracts Under Section 460

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. The IRS is soliciting comments 
concerning Form 8697, Interest Computation Under the Look-Back Method 
for Completed Long-Term Contracts, and final regulations in Treasury 
Decisions (TD) 8775, 8929. 8995, and 9137 relating to special rules for 
long-term contracts under Internal Revenue Code (IRC) section 460.

DATES: Written comments should be received on or before March 13, 2023 
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 [email protected]. Include OMB Control No. 
1545-1732 in the subject line of the message.

[[Page 1634]]


FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of this collection 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: The IRS is currently seeking comments 
concerning the following information collection tools, reporting, and 
record-keeping requirements:
    Title: Special Rules for Long-Term Contracts Under Section 460.
    OMB Number: 1545-1732.
    Form Number: 8697.
    Regulation Project Number: 8775, 8929, 8995, and 9137.
    Abstract: IRC section 460 generally provides rules that requires 
taxpayers to determine taxable income from a long-term contract using 
the percentage-of-completion (PCM) method and pay, or be entitled to 
receive, interest computed using the look-back method.
    Form 8697 is used by taxpayers to figure the interest due or to be 
refunded under the look-back method of IRC section 460(b)(2) on certain 
long-term contracts that are accounted for under either the PCM method 
or the percentage-of-completion capitalized cost method.
    TD 8775 added Treasury Regulations section 1.460-6(j), providing 
taxpayers with the requirements to make an election not to apply the 
look-back method to long-term contracts in de minimis cases.
    TD 8929 added Treasury Regulations section 1.460-1(e)(4), requiring 
taxpayers to attach a statement with specific information to their 
income tax return if they sever an agreement or aggregate two or more 
agreements during the taxable year.
    TD 8995, as amended by TD 9137, added Treasury Regulations section 
1.460-6(g)(3)(ii)(D) providing rules concerning a mid-contract change 
in taxpayer of a contract accounted for under a long-term contract 
method of accounting. The regulation requires the previous taxpayer to 
provide specific information to the new taxpayer to help the new 
taxpayer apply the look-back method when the income from a long-term 
contract has been previously reported by another taxpayer.
    Current Actions: There is no change to the existing collection. 
However, the estimated burden for individuals filing Form 8697 is 
approved under OMB control number 1545-0074. The estimated burden for 
businesses filing Form 8697 is approved under OMB control number 1545-
0123.
    Type of Review: Extension of a currently approved collection.
    Affected Public: Individuals and households, and business or other 
for-profit organizations.
    Estimated Number of Responses: 75,010.
    Estimated Time per Respondent: 22 minutes.
    Estimated Total Annual Burden Hours: 26,668.
    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: January 5, 2023.
Jon R. Callahan,
Tax Analyst.
[FR Doc. 2023-00337 Filed 1-10-23; 8:45 am]
BILLING CODE 4830-01-P