Proposed Collection; Comment Request for Form 8881, 78472-78473 [2023-25148]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 88, Number 219 (Wednesday, November 15, 2023)]
[Notices]
[Pages 78472-78473]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-25148]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Proposed Collection; Comment Request for Form 8881

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice and request for comments.

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SUMMARY: The Internal Revenue Service (IRS), 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 information collections, as required by the Paperwork Reduction Act 
of 1995. The IRS is soliciting comments concerning the Form 8881--
Credit for Small Employer Pension Plan Startup Costs, Auto-Enrollment, 
and Military Spouse Retirement Plan, as amended to include changes by 
the SECURE 2.0 Act.

DATES: Written comments should be received on or before January 16, 
2024 to be assured of consideration.

ADDRESSES: Direct all written comments to Andres Garcia, Internal 
Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 
20224, or by email to [email protected]. Include ``OMB Number 1545-
1810--Form 8881--Credit for Small Employer Pension Plan Startup Costs, 
Auto-Enrollment, and Military Spouse Retirement Plan'' in the subject 
line of the message.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of this collection should be directed to Martha R. Brinson, at 
(202)317-5753, or at Internal Revenue Service, Room 6526, 1111 
Constitution Avenue NW, Washington, DC 20224, or through the internet 
at [email protected].

SUPPLEMENTARY INFORMATION: 
    Title: Credit for Small Employer Pension Plan Startup Costs, Auto-
Enrollment, and Military Spouse Retirement Plan.
    OMB Number: 1545-1810.
    Form Number: 8881.
    Abstract: Qualified small employers use Form 8881 to claim a credit 
for start-up costs and auto-enrollment arrangements related to eligible 
retirement plans. Form 8881 implements section 45E of the Internal

[[Page 78473]]

Revenue Code (IRC), which provides a credit based on costs incurred by 
an employer in establishing or administering an eligible employer plan 
or for the retirement-related education of employees with respect to 
the plan.
    Form 8881 also implements IRC section 45T, which provides a credit 
for including an eligible automatic contribution arrangement (as 
defined in section 414(w)(3)) in a qualified employer plan sponsored by 
the employer. For an eligible employer, the section 45E credit is 50% 
of the qualified start-up costs for a tax year, up to $500 for the tax 
year in which the plan is established or becomes effective and each of 
the two subsequent tax years. For an eligible employer, the section 45T 
credit is $500 for the first tax year in which the automatic 
contribution arrangement is included in the plan and for each of the 
two subsequent tax years.
    Current Actions: The Secure 2.0 Act of 2022 added new IRC section 
45AA, Military Spouse Retirement Plan Eligibility Credit for Small 
Employers. Section 45AA provides a general business tax credit to 
eligible small employers who offer defined contribution plans with 
specific features that benefit military spouses. The section 45AA 
credit is, for a tax year during which a military spouse participates 
in the plan, up to 3 tax years beginning with the tax year during which 
the military spouse began participating in the plan, $200, plus the 
amount of employer contributions (other than elective deferrals) made 
on behalf of the military spouse for any of the 3 tax years, up to $300 
for a tax year. The Form 8881 is being revised to add the Section 45AA 
credit. Additionally, the Secure 2.0 Act amended section 45E to permit 
eligible employers, with 1-50 employees, an increased start-up costs 
credit of 100% of the qualified start-up costs for a tax year, up to 
$500 for the tax year in which the plan is established or becomes 
effective and each of the two subsequent tax years. The Secure 2.0 Act 
also amended section 45E to permit an additional credit for employer 
contributions by certain eligible employers, in an amount equal to an 
applicable percentage of eligible employer contributions to a defined 
contribution plan, for up to 5 tax years beginning with the tax year in 
which the plan is established. The Form 8881 is being revised to 
include these additions under section 45E.
    Type of Review: Revision of a currently approved collection.
    Affected Public: Businesses or other for-profit organizations.
    Estimated Number of Respondents: 66,667.
    Estimated Time per Respondent: 8 hours, 38 minutes.
    Estimated Total Annual Burden Hours: 575,337.
    The following paragraph applies to all of the collections of 
information covered by this notice:
    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. 
Comments will be 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 has 
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 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: November 7, 2023.
Martha R. Brinson,
Tax Analyst.
[FR Doc. 2023-25148 Filed 11-14-23; 8:45 am]
BILLING CODE 4830-01-P