SECTION 11. PAPERWORK

REDUCTION ACT

The collections of information contained in this revenue procedure have been reviewed and approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control number 1545–1551. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the col

lection of information displays a valid OMB control number.

The collections of information in this revenue procedure are in sections 4 and 5. This information is necessary and will be used to determine whether the taxpayer properly has adopted the principal-reduction method of accounting. The collections of information are required for the taxpayer to use the principal-reduction method of accounting. The likely respondents are business or other for-profit institutions.

The estimated total annual reporting and/or recordkeeping burden is 3,650 hours.

The estimated annual burden per respondent/record keeper varies from 12 hours to 14 hours depending on individual circumstances, with an estimated average of 12 hours. The estimated number of respondents and/or recordkeepers is 350. The estimated annual frequency of responses is on occasion.

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.

DRAFTING INFORMATION

This revenue procedure was drafted in the Office of Assistant Chief Counsel (Financial Institutions and Products). For further information regarding this revenue procedure, contact

William E. Blanchard on (202) 6223950 (not a toll free call).

26 CFR 601.105: Examination of returns and claims for refund, credit or abatement; determina- tion of correct tax liability.

(Also Part I, § 1362; 1.1362–6.)

Rev. Proc. 97–40