Proposed Collection; Comment Request for Forms 1065, 1065-B, 1066, 1120, 1120-C, 1120-F, 1120-H, 1120-ND, 1120-S, 1120-SF, 1120-FSC, 1120-L, 1120-PC, 1120-REIT, 1120-RIC, 1120-POL and Related Attachments, 16859-16862 [2014-06657]
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Federal Register / Vol. 79, No. 58 / Wednesday, March 26, 2014 / Notices
DEPARTMENT OF TRANSPORTATION
Research and Innovative Technology
Administration
Advisory Council on Transportation
Statistics; Notice of Meeting
Office of the Assistant
Secretary for Research and Technology,
Bureau of Transportation Statistics, U.S.
Department of Transportation.
ACTION: Notice.
sroberts on DSK5SPTVN1PROD with NOTICES
AGENCY:
This notice announces, pursuant to
Section 10(a)(2) of the Federal Advisory
Committee Act (FACA) (Pub. L. 72–363;
5 U.S.C. app. 2), a meeting of the
Advisory Council on Transportation
Statistics (ACTS). The meeting will be
held on Thursday, April 24th from 8:30
a.m. to 4:00 p.m. E.S.T. at the U.S.
Department of Transportation, Room
E37–302, 1200 New Jersey Ave. SE.,
Washington, DC. Section 52011 of the
Moving Ahead for Progress in the 21st
Century Act (MAP–21) directs the U.S.
Department of Transportation to
establish an Advisory Council on
Transportation Statistics subject to the
Federal Advisory Committee Act (5
U.S.C., App. 2) to advise the Bureau of
Transportation Statistics (BTS) on the
quality, reliability, consistency,
objectivity, and relevance of
transportation statistics and analyses
collected, supported, or disseminated by
the Bureau and the Department. The
following is a summary of the draft
meeting agenda: (1) USDOT welcome
and introduction of Council Members;
(2) Discussion about the BTS Strategic
Plan; (3) Discussion about a proposed
Management Order concerning
statistical integrity; (4) Program office
Updates; (5) Public Comments and
Closing Remarks. Participation is open
to the public.
Members of the public who wish to
participate must notify Courtney
Freiberg at Courtney.Freiberg@dot.gov,
not later than April 7, 2014. Members of
the public may present oral statements
at the meeting with the approval of
Patricia Hu, Director of the Bureau of
Transportation Statistics. Noncommittee
members wishing to present oral
statements or obtain information should
contact Courtney Freiberg via email no
later than April 7, 2014.
Questions about the agenda or written
comments may be emailed
(Courtney.Freiberg@dot.gov) or
submitted by U.S. Mail to: U.S.
Department of Transportation, Office of
the Assistant Secretary for Research and
Technology, Bureau of Transportation
Statistics, Attention: Courtney Freiberg,
1200 New Jersey Avenue SE., Room #
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E34–429, Washington, DC 20590, or
faxed to (202) 366–3383. BTS requests
that written comments be received by
April 7, 2014. Access to the DOT
Headquarters building is controlled
therefore all persons who plan to attend
the meeting must notify Courtney
Freiberg at 202–366–1270 prior to April
7, 2014. Individuals attending the
meeting must report to the main DOT
entrance on New Jersey Avenue SE., for
admission to the building. Attendance is
open to the public, but limited space is
available. Persons with a disability
requiring special services, such as an
interpreter for the hearing impaired,
should contact Courtney Freiberg at
202–366–1270 at least seven calendar
days prior to the meeting.
Notice of this meeting is provided in
accordance with the FACA and the
General Services Administration
regulations (41 CFR part 102–3)
covering management of Federal
advisory committees.
0238. Assistance for the hearing
impaired is available through FIRS at
(800) 877–8339.
This action will not significantly
affect either the quality of the human
environment or energy conservation.
Issued in Washington, DC, on the 20th day
of March, 2014.
Rolf Schmitt,
Deputy Director, Bureau of Transportation
Statistics.
AGENCY:
[FR Doc. 2014–06581 Filed 3–25–14; 8:45 am]
BILLING CODE 4910–HY–P
DEPARTMENT OF TRANSPORTATION
Surface Transportation Board
[Docket No. EP 290 (Sub-No. 5) (2014–2)]
Quarterly Rail Cost Adjustment Factor
AGENCY:
Surface Transportation Board,
DOT.
ACTION:
Approval of rail cost adjustment
factor.
The Board has approved the
second quarter 2014 Rail Cost
Adjustment Factor (RCAF) and cost
index filed by the Association of
American Railroads. The second quarter
2014 RCAF (Unadjusted) is 0.975. The
second quarter 2014 RCAF (Adjusted) is
0.421. The second quarter 2014 RCAF–
5 is 0.397.
DATES: Effective Date: April 1, 2014.
FOR FURTHER INFORMATION CONTACT:
Pedro Ramirez, (202) 245–0333. Federal
Information Relay Service (FIRS) for the
hearing impaired: (800) 877–8339.
SUPPLEMENTARY INFORMATION:
Additional information is contained in
the Board’s decision, which is available
on our Web site, https://www.stb.dot.gov.
Copies of the decision may be
purchased by contacting the Office of
Public Assistance, Governmental
Affairs, and Compliance at (202) 245–
SUMMARY:
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Decided: March 20, 2014.
By the Board, Chairman Elliott and Vice
Chairman Begeman.
Jeffrey Herzig,
Clearance Clerk.
[FR Doc. 2014–06568 Filed 3–25–14; 8:45 am]
BILLING CODE 4915–01–P
DEPARTMENT OF THE TREASURY
Proposed Collection; Comment
Request for Forms 1065, 1065–B, 1066,
1120, 1120–C, 1120–F, 1120–H, 1120–
ND, 1120–S, 1120–SF, 1120–FSC,
1120–L, 1120–PC, 1120–REIT, 1120–
RIC, 1120–POL and Related
Attachments
Internal Revenue Service (IRS),
Treasury.
ACTION: Notice and request for
comments.
The Internal Revenue Service,
as part of its continuing effort to reduce
paperwork and respondent burden,
invites the general public and other
Federal agencies to take this
opportunity to comment on proposed
and continuing information collections,
as required by the Paperwork Reduction
Act of 1995 (PRA), Public Law 104–13
(44 U.S.C. 3506(c)(2)(A)). This notice
requests comments on all forms used by
business entity taxpayers: Forms 1065,
1065–B, 1066, 1120, 1120–C, 1120–F,
1120–H, 1120–ND, 1120–S, 1120–SF,
1120–FSC, 1120–L, 1120–PC, 1120–
REIT, 1120–RIC, 1120–POL; and all
attachments to these forms (see the
Appendix to this notice). With this
notice, the IRS is also announcing
significant changes to (1) the manner in
which tax forms used by business
taxpayers will be approved under the
PRA and (2) its method of estimating the
paperwork burden imposed on all
business taxpayers.
DATES: Written comments should be
received on or before April 25, 2014 to
be assured of consideration.
ADDRESSES: Send comments regarding
the burden estimate, or any other aspect
of the information collection, including
suggestion for reducing the burden, to
(1) Office of Information and Regulatory
Affairs, Office of Management and
Budget, Attention: Desk Officer for
Treasury, New Executive Office
Building, Room 10235, Washington, DC
20503, or email at OIRA_Submission@
SUMMARY:
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OMB.EOP.GOV and (2) Treasury PRA
Clearance Officer, 1750 Pennsylvania
Ave. NW., Suite 8140, Washington, DC
20220, or email at PRA@treasury.gov.
FOR FURTHER INFORMATION CONTACT:
Copies of the submission(s) may be
obtained by calling (202) 927–5331,
email at PRA@treasury.gov, or the entire
information collection request maybe
found at www.reginfo.gov.
SUPPLEMENTARY INFORMATION:
sroberts on DSK5SPTVN1PROD with NOTICES
Change in PRA Approval of Forms
Used by Business Taxpayers
Under the PRA, OMB assigns a
control number to each ‘‘collection of
information’’ that it reviews and
approves for use by an agency. A single
information collection may consist of
one or more forms, recordkeeping
requirements, and/or third-party
disclosure requirements. Under the PRA
and OMB regulations, agencies have the
discretion to seek separate OMB
approvals for business forms,
recordkeeping requirements, and thirdparty reporting requirements or to
combine any number of forms,
recordkeeping requirements, and/or
third-party disclosure requirements
(usually related in subject matter) under
one OMB Control Number. Agency
decisions on whether to group
individual requirements under a single
OMB Control Number or to disaggregate
them and request separate OMB Control
Numbers are based largely on
considerations of administrative
practicality.
The PRA also requires agencies to
estimate the burden for each collection
of information. Accordingly, each OMB
Control Number has an associated
burden estimate. The burden estimates
for each control number are displayed
in (1) the PRA notices that accompany
collections of information, (2) Federal
Register notices such as this one, and
(3) in OMB’s database of approved
information collections. If more than
one form, recordkeeping requirement,
and/or third-party disclosure
requirement is approved under a single
control number, then the burden
estimate for that control number reflects
the burden associated with all of the
approved forms, recordkeeping
requirements, and/or third-party
disclosure requirements.
As described below under the heading
‘‘New Burden Model,’’ the IRS’s new
Business Taxpayer Burden Model
(BTBM) estimates of taxpayer burden
are based on taxpayer characteristics
and activities, taking into account,
among other things, the forms and
schedules generally used by those
groups of business taxpayers and the
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recordkeeping and other activities
needed to complete those forms. The
BTBM represents the second phase of a
long-term effort to improve the ability of
IRS to measure the burden imposed on
various groups of taxpayers by the
federal tax system. While the new
methodology provides a more accurate
and comprehensive description of
business taxpayer burden, it will not
provide burden estimates on a form-byform basis, as has been done under the
previous methodology. When the prior
model was developed in the mid-1980s,
almost all tax returns were prepared
manually, either by the taxpayer or a
paid provider. In this context, it was
determined that estimating burden on a
form-by-form basis was an appropriate
methodology. Today, over 90 percent of
all business entity tax returns are
prepared using software or with
preparer assistance. In this
environment, in which many taxpayers’
activities are no longer as directly
associated with particular forms,
estimating burden on a form-by-form
basis is not an appropriate measurement
of taxpayer burden. The new model,
which takes into account broader and
more comprehensive taxpayer
characteristics and activities, provides a
much more accurate and useful estimate
of taxpayer burden.
Currently, there are 206 forms used by
business taxpayers. These include
Forms 1065, 1065–B, 1066, 1120, 1120–
C, 1120–F, 1120–H, 1120–ND, 1120–S,
1120–SF, 1120–FSC, 1120–L, 1120–PC,
1120–REIT, 1120–RIC, 1120–POL, and
their schedules and all the forms
business entity taxpayers attach to their
tax returns (see the Appendix to this
notice). For most of these forms, IRS has
in the past obtained separate OMB
approvals under unique OMB Control
Numbers and separate burden estimates.
The BTBM estimates the aggregate
burden imposed on business taxpayers,
based upon their tax-related
characteristics and activities. IRS
therefore will seek OMB approval of all
206 business-related tax forms as a
single ‘‘collection of information.’’ The
aggregate burden of these tax forms will
be accounted for under OMB Control
Number 1545–0123, which is currently
assigned to Form 1120 and its
schedules. OMB Control Number 1545–
0123 will be displayed on all business
tax forms and other information
collections. As a result of this change,
burden estimates for business taxpayers
will now be displayed differently in
PRA Notices on tax forms and other
information collections, and in Federal
Register notices.
This new way of displaying burden is
presented below under the heading
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‘‘Proposed PRA Submission to OMB.’’
Because 44 of the 206 forms used by
business taxpayers are also used by taxexempt organizations, trusts and estates
and other kinds of taxpayers, there will
be a transition period during which IRS
will report different burden estimates
for individual taxpayers (OMB Control
Number 1545–0074), business taxpayers
(OMB Control Number 1545–0123), and
another OMB Control Number for other
taxpayers using the same forms. For
those forms covered under OMB Control
Numbers 1545–0074 and/or 1545–0123
and also used by other taxpayers, IRS
will display the OMB Control Number
related to the other filers on the form
and provide the burden estimate for
those taxpayers in the form instructions.
The form instructions will refer readers
to the burden estimates for individual
and/or business taxpayers, as
applicable. The burden estimates for
business taxpayers will be reported and
accounted for as described in this
notice. The burden estimates for
individual taxpayers will continue to be
reported and accounted for under OMB
Control Number 1545–0074 using a
method similar to the method described
in this notice. The burden estimates for
other users of these forms will be
determined under prior methodology
based on form length and complexity.
New Burden Model
Data from the new BTBM revise the
estimates of the levels of burden
experienced by business taxpayers
when complying with the federal tax
laws. It replaces the earlier burden
measurement developed in the mid1980s. Since that time, improved
technology and modeling sophistication
have enabled the IRS to improve the
burden estimates. The new model
provides taxpayers and the IRS with a
more comprehensive understanding of
the current levels of taxpayer burden. It
reflects major changes over the past two
decades in the way taxpayers prepare
and file their returns. The new BTBM
also represents a substantial step
forward in the IRS’s ability to assess
likely impacts of administrative and
legislative changes on business
taxpayers.
The BTBM’s approach to measuring
burden focuses on the characteristics
and activities of business taxpayers
rather than the forms they use. Key
determinants of taxpayer burden in the
model are the type of entity, total assets,
total receipts, and activities reported on
the tax return (income, deductions,
credits, etc). In contrast, the previous
estimates primarily focused on the
length and complexity of each tax form.
The changes between the old and new
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burden estimates are due to the
improved ability of the new
methodology to measure burden and the
expanded scope of what is measured.
These changes create a one-time shift in
the estimate of burden levels that
reflects the better measurement of the
new model. The differences in estimates
between the models do not reflect any
change in the actual burden experienced
by taxpayers. Comparisons should not
be made between these and the earlier
published estimates, because the models
measure burden in different ways.
Methodology
Burden is defined as the time and outof-pocket costs incurred by taxpayers to
comply with the federal tax system. As
has been done for individual taxpayer
burden since 2005, both the time
expended and the out-of-pocket costs
for business taxpayers are estimated.
The burden estimation methodology
relies on surveys that measure time and
out-of-pocket costs that taxpayers spend
on pre-filing and filing activities. The
methodology establishes econometric
relationships between tax return
characteristics and reported compliance
costs. The methodology controls for the
substitution of time and money by
monetizing time and reporting total
compliance costs in dollars. This
methodology better reflects taxpayer
compliance burden, because in a world
of electronic tax preparation, time and
out-of-pocket costs are governed by the
information required rather than the
form on which it is ultimately reported.
Importantly, even where various
businesses complete the same tax form
lines, the new methodology
differentiates the cost incurred to
complete those forms based on
characteristics of those businesses. Key
business characteristics that serve as
coefficients in the BTBM are:
•
•
•
•
Entity type
Total assets
Total receipts
Return complexity
The new model uses the following
classifications of business taxpayers:
• Partnerships (Forms 1065, 1065–B,
1066)
• Taxable corporations (Forms 1120,
1120–C, 1120–F, 1120–H, 1120–ND,
1120–SF, 1120–FSC, 1120–L, 1120–
PC, 1120–POL)
• Pass-through corporations (Forms
1120–REIT, 1120–RIC, 1120–S)
Each classification is further refined
to separate large and small businesses,
where a large business is generally
defined as one having end of year assets
totaling more than $10 million.
Taxpayer Burden Estimates
Tables 1, 2, and 3 below show the
burden model estimates for each of the
three classifications of business
taxpayers. The data shown are the best
estimates for 2013 business entity
income tax returns available as of
September 2013. The estimates are
subject to change as new forms and data
become available.
Proposed PRA Submission to OMB
Title: U.S. Business Income Tax
Return.
OMB Number: 1545–0123.
Form Numbers: Forms 1065, 1065–B,
1066, 1120, 1120–C, 1120–F, 1120–H,
1120–ND, 1120–S, 1120–SF, 1120–FSC,
1120–L, 1120–PC, 1120–REIT, 1120–
RIC, 1120–POL and all attachments to
these forms (see the Appendix to this
notice).
Abstract: These forms are used by
businesses to report their income tax
liability. The data is used to verify that
the items reported on the forms are
correct, and also for general statistics
use.
Current Actions: Changes are being
made to the forms and the method of
burden computation.
Type of Review: Extension of
currently approved collections.
Affected Public: Businesses.
Estimated Number of Respondents:
10,300,000.
Total Estimated Time: 2.8 billion
hours.
Estimated Time per Respondent: 275
hours.
Total Estimated Out-of-Pocket Costs:
$48.5 billion.
Estimated Out-of-Pocket Cost Per
Respondent: $4,700.
Note: Amounts below are for FY2014.
Reported time and cost burdens are national
averages and do not necessarily reflect a
‘‘typical’’ case. Most taxpayers experience
lower than average burden, with taxpayer
burden varying considerably by taxpayer
type. Detail may not add due to rounding.
TABLE 1
Number of
returns
(millions)
Primary form filed or type of taxpayer
All Partnerships ............................................................................................................................
Small ............................................................................................................................................
Large * ..........................................................................................................................................
3.6
3.4
0.2
Burden
Average time
Average cost
290
270
605
5,600
4,400
29,000
Forms 1065, 1065–B, 1066 and all attachments.
TABLE 2
Number of
returns
(millions)
Primary form filed or type of taxpayer
sroberts on DSK5SPTVN1PROD with NOTICES
All Taxable Corporations .............................................................................................................
Small ............................................................................................................................................
Large * ..........................................................................................................................................
2.1
2.1
0.1
Burden
Average time
Average cost
305
280
1,245
5,800
4,000
68,900
Forms 1120, 1120–C, 1120–F, 1120–H, 1120–ND, 1120–SF, 1120–FSC, 1120–L, 1120–PC, 1120–POL and all attachments.
TABLE 3
Number of
returns
(millions)
Primary form filed or type of taxpayer
All Pass-Through Corporations ...................................................................................................
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Burden
Average time
245
Average cost
3,500
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Federal Register / Vol. 79, No. 58 / Wednesday, March 26, 2014 / Notices
TABLE 3—Continued
Number of
returns
(millions)
Primary form filed or type of taxpayer
Small ............................................................................................................................................
Large ** ........................................................................................................................................
Burden
Average time
4.4
0.1
240
605
Average cost
3,100
30,800
Forms 1120–REIT, 1120–RIC, 1120–S and all attachments.
* A large business is defined as one having end of year assets greater than $10 million.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless the collection of information
displays a valid OMB Control Number.
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.
Request for Comments
An open meeting of the
Taxpayer Advocacy Panel Notices and
Correspondence Project Committee will
be conducted. The Taxpayer Advocacy
Panel is soliciting public comments,
ideas, and suggestions on improving
customer service at the Internal Revenue
Service.
SUMMARY:
The meeting will be held
Wednesday, April 16, 2014.
DATES:
FOR FURTHER INFORMATION CONTACT:
Timothy Shepard at 1–888–912–1227 or
206–220–6095.
An open meeting of the
Taxpayer Advocacy Panel Tax Forms
and Publications Project Committee will
be conducted. The Taxpayer Advocacy
Panel is soliciting public comments,
ideas and suggestions on improving
customer service at the Internal Revenue
Service.
DATES: The meeting will be held April
9, 2014.
FOR FURTHER INFORMATION CONTACT:
Trena Derricott at 1–888–912–1227 or
801–620–3035.
SUPPLEMENTARY INFORMATION: Notice is
hereby given pursuant to section
10(a)(2) of the Federal Advisory
Committee Act, 5 U.S.C. App. (1988)
that an open meeting of the Taxpayer
Advocacy Panel Tax Forms and
Publications Project Committee will be
held Wednesday, April 9, 2014 at 11:00
a.m. Eastern Time via teleconference.
The public is invited to make oral
comments or submit written statements
for consideration. Due to limited
conference lines, notification of intent
to participate must be made with Ms.
Derricott. For more information please
contact Ms. Derricott at 1–888–912–
1227 or 801–620–3035, or write TAP
Office, Arka Monterey Park Building,
1973 North Rulon White Blvd., Ogden,
UT 84404–5402 or contact us at the Web
site: https://www.improveirs.org.
The committee will be discussing
various issues related to Tax Forms and
Publications and public input is
welcomed.
SUMMARY:
Comments submitted in response to
this notice will be summarized and/or
included in the request for OMB
approval. All comments will become a
matter of public record. Comments are
invited on: (a) Whether the collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information will have practical utility;
(b) the accuracy of the agency’s estimate
of the burden of the collection of
information; (c) ways to enhance the
quality, utility, and clarity of the
information to be collected; (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology; and (e) estimates of capital
or start-up costs and costs of operation,
maintenance, and purchase of services
to provide information.
Notice is
hereby given pursuant to Section
10(a)(2) of the Federal Advisory
Committee Act, 5 U.S.C. App. (1988)
that a meeting of the Taxpayer
Advocacy Panel Notices and
Correspondence Project Committee will
be held Wednesday, April 16, 2014, at
12 p.m. Eastern Time via teleconference.
The public is invited to make oral
comments or submit written statements
for consideration. Due to limited
conference lines, notification of intent
to participate must be made with
Timothy Shepard. For more information
please contact Mr. Shepard at 1–888–
912–1227 or 206–220–6095, or write
TAP Office, 915 2nd Avenue, MS W–
406, Seattle, WA 98174, or contact us at
the Web site: https://www.improveirs.org.
The agenda will include a discussion
on various letters, and other issues
related to written communications from
the IRS.
Approved: March 21, 2014.
Robert Dahl,
Treasury Departmental Clearance Officer.
Dated: March 21, 2014.
Otis Simpson,
Acting Director, Taxpayer Advocacy Panel.
[FR Doc. 2014–06657 Filed 3–25–14; 8:45 am]
[FR Doc. 2014–06703 Filed 3–25–14; 8:45 am]
Dated: March 21, 2014.
Otis Simpson,
Acting Director, Taxpayer Advocacy Panel.
BILLING CODE 4830–01–P
BILLING CODE 4830–01–P
[FR Doc. 2014–06667 Filed 3–25–14; 8:45 am]
SUPPLEMENTARY INFORMATION:
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
DEPARTMENT OF THE TREASURY
Internal Revenue Service
Internal Revenue Service
Open Meeting of the Taxpayer
Advocacy Panel Notices and
Correspondence Project Committee
Open Meeting of the Taxpayer
Advocacy Panel Tax Forms and
Publications Project Committee
Internal Revenue Service (IRS),
Treasury.
AGENCY:
DEPARTMENT OF THE TREASURY
sroberts on DSK5SPTVN1PROD with NOTICES
Internal Revenue Service
AGENCY:
ACTION:
Notice of meeting.
VerDate Mar<15>2010
17:43 Mar 25, 2014
Internal Revenue Service (IRS),
Treasury.
ACTION:
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Open meeting of the Taxpayer
Advocacy Panel Taxpayer Assistance
Center Improvements Project
Committee
Internal Revenue Service (IRS),
Treasury.
AGENCY:
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[Federal Register Volume 79, Number 58 (Wednesday, March 26, 2014)]
[Notices]
[Pages 16859-16862]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-06657]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Proposed Collection; Comment Request for Forms 1065, 1065-B,
1066, 1120, 1120-C, 1120-F, 1120-H, 1120-ND, 1120-S, 1120-SF, 1120-FSC,
1120-L, 1120-PC, 1120-REIT, 1120-RIC, 1120-POL and Related Attachments
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Notice and request for comments.
-----------------------------------------------------------------------
SUMMARY: The Internal Revenue Service, as part of its continuing effort
to reduce paperwork and respondent burden, invites the general public
and other Federal agencies to take this opportunity to comment on
proposed and continuing information collections, as required by the
Paperwork Reduction Act of 1995 (PRA), Public Law 104-13 (44 U.S.C.
3506(c)(2)(A)). This notice requests comments on all forms used by
business entity taxpayers: Forms 1065, 1065-B, 1066, 1120, 1120-C,
1120-F, 1120-H, 1120-ND, 1120-S, 1120-SF, 1120-FSC, 1120-L, 1120-PC,
1120-REIT, 1120-RIC, 1120-POL; and all attachments to these forms (see
the Appendix to this notice). With this notice, the IRS is also
announcing significant changes to (1) the manner in which tax forms
used by business taxpayers will be approved under the PRA and (2) its
method of estimating the paperwork burden imposed on all business
taxpayers.
DATES: Written comments should be received on or before April 25, 2014
to be assured of consideration.
ADDRESSES: Send comments regarding the burden estimate, or any other
aspect of the information collection, including suggestion for reducing
the burden, to (1) Office of Information and Regulatory Affairs, Office
of Management and Budget, Attention: Desk Officer for Treasury, New
Executive Office Building, Room 10235, Washington, DC 20503, or email
at OIRA--Submission@
[[Page 16860]]
OMB.EOP.GOV and (2) Treasury PRA Clearance Officer, 1750 Pennsylvania
Ave. NW., Suite 8140, Washington, DC 20220, or email at
PRA@treasury.gov.
FOR FURTHER INFORMATION CONTACT: Copies of the submission(s) may be
obtained by calling (202) 927-5331, email at PRA@treasury.gov, or the
entire information collection request maybe found at www.reginfo.gov.
SUPPLEMENTARY INFORMATION:
Change in PRA Approval of Forms Used by Business Taxpayers
Under the PRA, OMB assigns a control number to each ``collection of
information'' that it reviews and approves for use by an agency. A
single information collection may consist of one or more forms,
recordkeeping requirements, and/or third-party disclosure requirements.
Under the PRA and OMB regulations, agencies have the discretion to seek
separate OMB approvals for business forms, recordkeeping requirements,
and third-party reporting requirements or to combine any number of
forms, recordkeeping requirements, and/or third-party disclosure
requirements (usually related in subject matter) under one OMB Control
Number. Agency decisions on whether to group individual requirements
under a single OMB Control Number or to disaggregate them and request
separate OMB Control Numbers are based largely on considerations of
administrative practicality.
The PRA also requires agencies to estimate the burden for each
collection of information. Accordingly, each OMB Control Number has an
associated burden estimate. The burden estimates for each control
number are displayed in (1) the PRA notices that accompany collections
of information, (2) Federal Register notices such as this one, and (3)
in OMB's database of approved information collections. If more than one
form, recordkeeping requirement, and/or third-party disclosure
requirement is approved under a single control number, then the burden
estimate for that control number reflects the burden associated with
all of the approved forms, recordkeeping requirements, and/or third-
party disclosure requirements.
As described below under the heading ``New Burden Model,'' the
IRS's new Business Taxpayer Burden Model (BTBM) estimates of taxpayer
burden are based on taxpayer characteristics and activities, taking
into account, among other things, the forms and schedules generally
used by those groups of business taxpayers and the recordkeeping and
other activities needed to complete those forms. The BTBM represents
the second phase of a long-term effort to improve the ability of IRS to
measure the burden imposed on various groups of taxpayers by the
federal tax system. While the new methodology provides a more accurate
and comprehensive description of business taxpayer burden, it will not
provide burden estimates on a form-by-form basis, as has been done
under the previous methodology. When the prior model was developed in
the mid-1980s, almost all tax returns were prepared manually, either by
the taxpayer or a paid provider. In this context, it was determined
that estimating burden on a form-by-form basis was an appropriate
methodology. Today, over 90 percent of all business entity tax returns
are prepared using software or with preparer assistance. In this
environment, in which many taxpayers' activities are no longer as
directly associated with particular forms, estimating burden on a form-
by-form basis is not an appropriate measurement of taxpayer burden. The
new model, which takes into account broader and more comprehensive
taxpayer characteristics and activities, provides a much more accurate
and useful estimate of taxpayer burden.
Currently, there are 206 forms used by business taxpayers. These
include Forms 1065, 1065-B, 1066, 1120, 1120-C, 1120-F, 1120-H, 1120-
ND, 1120-S, 1120-SF, 1120-FSC, 1120-L, 1120-PC, 1120-REIT, 1120-RIC,
1120-POL, and their schedules and all the forms business entity
taxpayers attach to their tax returns (see the Appendix to this
notice). For most of these forms, IRS has in the past obtained separate
OMB approvals under unique OMB Control Numbers and separate burden
estimates.
The BTBM estimates the aggregate burden imposed on business
taxpayers, based upon their tax-related characteristics and activities.
IRS therefore will seek OMB approval of all 206 business-related tax
forms as a single ``collection of information.'' The aggregate burden
of these tax forms will be accounted for under OMB Control Number 1545-
0123, which is currently assigned to Form 1120 and its schedules. OMB
Control Number 1545-0123 will be displayed on all business tax forms
and other information collections. As a result of this change, burden
estimates for business taxpayers will now be displayed differently in
PRA Notices on tax forms and other information collections, and in
Federal Register notices.
This new way of displaying burden is presented below under the
heading ``Proposed PRA Submission to OMB.'' Because 44 of the 206 forms
used by business taxpayers are also used by tax-exempt organizations,
trusts and estates and other kinds of taxpayers, there will be a
transition period during which IRS will report different burden
estimates for individual taxpayers (OMB Control Number 1545-0074),
business taxpayers (OMB Control Number 1545-0123), and another OMB
Control Number for other taxpayers using the same forms. For those
forms covered under OMB Control Numbers 1545-0074 and/or 1545-0123 and
also used by other taxpayers, IRS will display the OMB Control Number
related to the other filers on the form and provide the burden estimate
for those taxpayers in the form instructions. The form instructions
will refer readers to the burden estimates for individual and/or
business taxpayers, as applicable. The burden estimates for business
taxpayers will be reported and accounted for as described in this
notice. The burden estimates for individual taxpayers will continue to
be reported and accounted for under OMB Control Number 1545-0074 using
a method similar to the method described in this notice. The burden
estimates for other users of these forms will be determined under prior
methodology based on form length and complexity.
New Burden Model
Data from the new BTBM revise the estimates of the levels of burden
experienced by business taxpayers when complying with the federal tax
laws. It replaces the earlier burden measurement developed in the mid-
1980s. Since that time, improved technology and modeling sophistication
have enabled the IRS to improve the burden estimates. The new model
provides taxpayers and the IRS with a more comprehensive understanding
of the current levels of taxpayer burden. It reflects major changes
over the past two decades in the way taxpayers prepare and file their
returns. The new BTBM also represents a substantial step forward in the
IRS's ability to assess likely impacts of administrative and
legislative changes on business taxpayers.
The BTBM's approach to measuring burden focuses on the
characteristics and activities of business taxpayers rather than the
forms they use. Key determinants of taxpayer burden in the model are
the type of entity, total assets, total receipts, and activities
reported on the tax return (income, deductions, credits, etc). In
contrast, the previous estimates primarily focused on the length and
complexity of each tax form. The changes between the old and new
[[Page 16861]]
burden estimates are due to the improved ability of the new methodology
to measure burden and the expanded scope of what is measured. These
changes create a one-time shift in the estimate of burden levels that
reflects the better measurement of the new model. The differences in
estimates between the models do not reflect any change in the actual
burden experienced by taxpayers. Comparisons should not be made between
these and the earlier published estimates, because the models measure
burden in different ways.
Methodology
Burden is defined as the time and out-of-pocket costs incurred by
taxpayers to comply with the federal tax system. As has been done for
individual taxpayer burden since 2005, both the time expended and the
out-of-pocket costs for business taxpayers are estimated. The burden
estimation methodology relies on surveys that measure time and out-of-
pocket costs that taxpayers spend on pre-filing and filing activities.
The methodology establishes econometric relationships between tax
return characteristics and reported compliance costs. The methodology
controls for the substitution of time and money by monetizing time and
reporting total compliance costs in dollars. This methodology better
reflects taxpayer compliance burden, because in a world of electronic
tax preparation, time and out-of-pocket costs are governed by the
information required rather than the form on which it is ultimately
reported. Importantly, even where various businesses complete the same
tax form lines, the new methodology differentiates the cost incurred to
complete those forms based on characteristics of those businesses. Key
business characteristics that serve as coefficients in the BTBM are:
Entity type
Total assets
Total receipts
Return complexity
The new model uses the following classifications of business
taxpayers:
Partnerships (Forms 1065, 1065-B, 1066)
Taxable corporations (Forms 1120, 1120-C, 1120-F, 1120-H,
1120-ND, 1120-SF, 1120-FSC, 1120-L, 1120-PC, 1120-POL)
Pass-through corporations (Forms 1120-REIT, 1120-RIC, 1120-S)
Each classification is further refined to separate large and small
businesses, where a large business is generally defined as one having
end of year assets totaling more than $10 million.
Taxpayer Burden Estimates
Tables 1, 2, and 3 below show the burden model estimates for each
of the three classifications of business taxpayers. The data shown are
the best estimates for 2013 business entity income tax returns
available as of September 2013. The estimates are subject to change as
new forms and data become available.
Proposed PRA Submission to OMB
Title: U.S. Business Income Tax Return.
OMB Number: 1545-0123.
Form Numbers: Forms 1065, 1065-B, 1066, 1120, 1120-C, 1120-F, 1120-
H, 1120-ND, 1120-S, 1120-SF, 1120-FSC, 1120-L, 1120-PC, 1120-REIT,
1120-RIC, 1120-POL and all attachments to these forms (see the Appendix
to this notice).
Abstract: These forms are used by businesses to report their income
tax liability. The data is used to verify that the items reported on
the forms are correct, and also for general statistics use.
Current Actions: Changes are being made to the forms and the method
of burden computation.
Type of Review: Extension of currently approved collections.
Affected Public: Businesses.
Estimated Number of Respondents: 10,300,000.
Total Estimated Time: 2.8 billion hours.
Estimated Time per Respondent: 275 hours.
Total Estimated Out-of-Pocket Costs: $48.5 billion.
Estimated Out-of-Pocket Cost Per Respondent: $4,700.
Note: Amounts below are for FY2014. Reported time and cost
burdens are national averages and do not necessarily reflect a
``typical'' case. Most taxpayers experience lower than average
burden, with taxpayer burden varying considerably by taxpayer type.
Detail may not add due to rounding.
Table 1
----------------------------------------------------------------------------------------------------------------
Number of Burden
Primary form filed or type of taxpayer returns -------------------------------
(millions) Average time Average cost
----------------------------------------------------------------------------------------------------------------
All Partnerships................................................ 3.6 290 5,600
Small........................................................... 3.4 270 4,400
Large *......................................................... 0.2 605 29,000
----------------------------------------------------------------------------------------------------------------
Forms 1065, 1065-B, 1066 and all attachments.
Table 2
----------------------------------------------------------------------------------------------------------------
Number of Burden
Primary form filed or type of taxpayer returns -------------------------------
(millions) Average time Average cost
----------------------------------------------------------------------------------------------------------------
All Taxable Corporations........................................ 2.1 305 5,800
Small........................................................... 2.1 280 4,000
Large *......................................................... 0.1 1,245 68,900
----------------------------------------------------------------------------------------------------------------
Forms 1120, 1120-C, 1120-F, 1120-H, 1120-ND, 1120-SF, 1120-FSC, 1120-L, 1120-PC, 1120-POL and all attachments.
Table 3
----------------------------------------------------------------------------------------------------------------
Number of Burden
Primary form filed or type of taxpayer returns -------------------------------
(millions) Average time Average cost
----------------------------------------------------------------------------------------------------------------
All Pass-Through Corporations................................... 4.5 245 3,500
[[Page 16862]]
Small........................................................... 4.4 240 3,100
Large **........................................................ 0.1 605 30,800
----------------------------------------------------------------------------------------------------------------
Forms 1120-REIT, 1120-RIC, 1120-S and all attachments.
* A large business is defined as one having end of year assets greater than $10 million.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless the collection of
information displays a valid OMB Control Number.
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.
Request for Comments
Comments submitted in response to this notice will be summarized
and/or included in the request for OMB approval. All comments will
become a matter of public record. Comments are invited on: (a) Whether
the collection of information is necessary for the proper performance
of the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the collection of information; (c) ways to enhance the
quality, utility, and clarity of the information to be collected; (d)
ways to minimize the burden of the collection of information on
respondents, including through the use of automated collection
techniques or other forms of information technology; and (e) estimates
of capital or start-up costs and costs of operation, maintenance, and
purchase of services to provide information.
Approved: March 21, 2014.
Robert Dahl,
Treasury Departmental Clearance Officer.
[FR Doc. 2014-06657 Filed 3-25-14; 8:45 am]
BILLING CODE 4830-01-P
