IRS seeking comments on Form 7203
On July 19, 2021, the Internal Revenue Service (IRS) issued a notice and request for comments on information collections concerning Form 7203, S Corporation Shareholder Stock and Debt Basis Limitations. Although this is a new information collection, there are no changes being made to the form at this time.
A shareholder’s tax liability from an S corporation is determined under Internal Revenue Code (IRC) § 1366. Adjustments to a shareholder’s basis of stock, including the increase and decrease in basis, income items included in basis, the basis of indebtedness, and the basis of inherited stock, are determined under IRC § 1367. S corporation shareholders use Form 7203 to calculate their stock and debt basis.
Individuals, certain tax-exempt entities, and certain estates and trusts are the affected public for this rule. The IRS estimates that 70,000 respondents will have to complete Form 7203 and that it will take each respondent 3 hours and 46 minutes to complete the form, for a total annual burden of 257,600 hours.
The comment period closes on September 17, 2021.
Review the notice and send comments here.
Advocacy Contact: Charles Jeane at (202) 205-7168