The federal government is giving life insurance companies a chance to ask for changes in their main tax form.[@@]
The Office of Management and Budget is conducting a regular review of Internal Revenue Service Form 1120-L, the U.S. life insurance company income tax return.
The IRS and other agencies must submit forms to the OMB on a regular basis to comply with the Paperwork Reduction Act of 1995.
Keeping the records needed to fill out Form 1120-L and filling out the form takes 2,440 U.S. life insurers a total of about 448,007 hours of staff time per year, the IRS estimates in a form review notice published today in the Federal Register.
Each life insurer spends an average of about 40 hours of staff time learning about the form, 62 hours of staff time preparing the form, and about 83 hours of staff time on form-related recordkeeping, the IRS estimates.
The OMB also is conducting a review of IRS Form 709, the U.S. gift and generation-skipping transfer tax return.
Filling out Form 709 takes 278,500 individual taxpayers and families a total of about 1.6 million hours of reporting and recordkeeping time, the IRS estimates.
The OMB reviewer for the IRS life tax form and the gift tax form is Joseph Lackey Jr.
Public comments are due Oct. 4.
More information about the OMB form review is on the Web at http://a257.g.akamaitech.net/7/257/2422/06jun20041800/edocket.access.gpo.gov/2004/04-20026.htm