SUPPORTING STATEMENT
(Form 5306-A) 

1.	CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION

Banks and insurance companies may establish prototype simplified employee pensions (SEP) or savings incentive match plans (SIMPLE).  In order to ensure that these prototypes meet the requirements under IRC section 408(k) or (p), these entities may request an approval letter from IRS.

2.	USE OF DATA              

The data is used by IRS to verify that these simplified employee pensions (SEP) or savings incentive match plans (SIMPLE) meet the requirements of the Code so that IRS may issue an approval letter.

3.	USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN

We have no plans at this time to offer electronic filing because of the low volume compared to the  cost of electronic enabling.

4.	 EFFORTS TO IDENTIFY DUPLICATION

We have attempted to eliminate duplication within the agency wherever possible.  

5.	METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER       SMALL ENTITIES

Not applicable.

6.	CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES

Not applicable.

7.	SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE     INCONSISTENT WITH GUIDELINES IN 5 CFR 1320.5(d)(2)

Not applicable.

8.	CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON     AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS

Periodic meetings are held between IRS personnel and representatives of the American Bar Association, the National Society of Public Accountants, the American Institute of Certified Public Accountants, and other professional groups to discuss tax law and tax forms. During these meetings, there is an opportunity for those attending to make comments regarding Form 5306-A.

In response to the Federal Register notice (75 FR 38177), dated July 1, 2010 we received no comments during the comment period regarding Form 5306-A.

9.	EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO     RESPONDENTS

Not applicable.

10.	ASSURANCE OF CONFIDENTIALITY OF RESPONSES

Generally, tax returns and tax return information are confidential as required by 26 USC 6103.

11.	JUSTIFICATION OF SENSITIVE QUESTIONS

Not applicable.

12.	ESTIMATED BURDEN OF INFORMATION COLLECTION
    
                                  Number of       Time per        Total
                                  Responses        Response        Hours

Form 5306-A      5,000              18.88             94,400 

Estimates of the annualized cost to respondents for the hour burdens shown are not available at this time.

13.	ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
    
As suggested by OMB, our Federal Register notice dated July 1, 2010, requested public comments on estimates of cost burden that are not captured in the estimates of burden hours, i.e., estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information.  However, we did not receive any response from taxpayers on this subject.  As a result, estimates of the cost burdens are not available at this time.  

14.	ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT    

The primary cost to the government consists of the cost of printing this form.  We estimate that the cost of printing the form is $1,000.

15.	REASONS FOR CHANGE IN BURDEN	

There were no changes to the form that resulted in any change to the total burden of the form. 	

	We are making this submission for renewal purposes.

16.	PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION

Not applicable.

17.	REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS     INAPPROPRIATE

See attachment.
18.	EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB FORM 83-I

Not applicable.

Note:  The following paragraph applies to all of the collections of information in this submission:

     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.