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Persons & Collections of Information and form 1040

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  • Carrol
    Any time one completes the 1040 form titled “U.S. Individual Income Tax Return”, they establish the fact under OMB 1545-0074 and corresponding provisions
    Message 1 of 1 , Feb 18, 2010
      Any time one completes the 1040 form titled “U.S. Individual Income
      Tax Return”, they establish the fact under OMB 1545-0074 and
      corresponding
      provisions in IRM 9.4.4.2.1.3, that the taxpayer shown on the 1040 form
      is an entity,
      and that data is contained in the entity module.

      “IRM 9.4.4.2.1.3 (01-30-2001)
      (2)The returns filed include Income Tax Forms 1040, 1040A,
      1040NR, 1040 C, 1040SS, 1040PR and Estimated Tax Returns
      1040ES. Each taxpayer account has an entity module and one
      or more tax modules. The entity module contains data which
      describes that taxpayer as an entity and which applies to all
      records of the taxpayer.”

      It is clear that the taxpayer who files form 1040 is classified
      as an entity in their records. The Internal Revenue manual
      states this as a fact which is being maintained in their records
      and I have no choice but to believe that to be true.

      IRS collections of information under OMB 1545-1486,
      published at 61 FR 66584, December 18, 1996 is titled
      “Simplification of Entity Classification Rules”. Stated
      by these regulations, “Summary: This document contains
      final regulations that classify certain business organizations
      under an elective regime. These regulations replace the existing
      classification rules.”

      “(a) Organizations for federal tax purposes-(1) In general.
      The Internal Revenue Code prescribes the classification
      of various organizations for federal tax purposes....
      (4) Single Owner organizations. Under §§ 301-7701-2
      and 301-7701-3, certain organizations that have a single
      owner can choose to be recognized or disregarded as
      entities separate from their owners.” OMB 1545-1486,
      61 FR 65588 & 65589, 26 CFR §301-7701-1

      69 FR 43317 July 20, 2004
      “Background
      Section 301.7701-3(a) provides that an eligible entity with
      two or more owners may elect to be classified as an association
      (and thus a corporation under § 301.7701-2(b)(2)) or a
      partnership, and a eligible entity with a single owner may
      elect to be classified as an association or to be disregarded
      as an entity separate from its owner. Section 301.7701-3(b)
      provides that unless the entity elects otherwise, a domestic
      eligible entity is a partnership if it has two or more owners
      or is disregarded as an entity separate from its owner if it has
      a single owner.”

      69 FR 43318, July 20, 2004
      “If the late or invalid election is not perfected, the default rules
      will maintain passthrough taxation treatment by classifying the
      entity as a partnership or a disregarded entity.”

      Any taxpayer who files form 1040 according to their rules in
      OMB 1545-1486 and its regulations is identified in
      their records as “an entity disregarded as separate from its owner”
      absent any election for a different classification as specified in
      69 FR 43317 and 43318. No other classification is provided for
      in these Entity Classification Rules.

      Since the entity classification applies to all records of the taxpayer,
      this classification applies to any correspondence they send, any you
      send back to them.

      The taxpayer, an entity, disregarded as being separate from its owner AKA
      a disregarded entity. No other default classification applies. For
      instance,
      no collections of information allows for classification of
      non-entities and
      none is specified. None other applies nor does IRM section 9.4.4.2.1.3
      state any.

      Also, OMB 1545-1486 has no form attached, however it is a
      collections of information. Just because there is no form attached does
      not nullify the collection of information. It IS collected in some way.
      This is not just a form driven system, it is a collections of
      information driven
      system which direct you to complete specific forms. The collections of
      information attached to regulations is what drives their forms.

      Facts for Form 1040
      the taxpayer = a disregarded entity (under the default classification
      rules)
      The one signing the form = an owner, trustee, a fiduciary.
      passthrough taxation
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