IRS Trims Tax Form Burden: 51K Hours Saved, Snooze
Published Date: 2/3/2025
Notice
Summary
The IRS wants to keep collecting info from S corporation shareholders using Form 7203 but is asking for public feedback by April 4, 2025. This form helps shareholders figure out their stock and debt basis so they claim the right tax losses and deductions. Good news: the paperwork time is expected to drop by over 51,000 hours, making life easier for about 70,000 people like estates and trusts.
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Paperwork burden reduced by 51,100 hours
The IRS updated its burden estimate for Form 7203 and reports a decrease of 51,100 total paperwork hours. The form applies to about 70,000 respondents (listed as estates and trusts), with an estimated time per respondent of 3 hours, 2 minutes and total annual burden hours now 214,200.
Form 7203 stays required
If you are an S corporation shareholder, you must use Form 7203 to calculate your stock and debt basis so you can claim losses and deductions. The IRS says there are no changes to the form previously approved by OMB.
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