IRS Taxpayer Burden Surveys

OMB Control No: 1545-2212	ICR Reference No: 202303-1545-007
Status: Active	Previous ICR Reference No: 202001-1545-015
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: IRS Taxpayer Burden Surveys
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 07/18/2023
Retrieve Notice of Action (NOA)	Date Received in OIRA: 05/31/2023
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	07/31/2026	36 Months From Approved	07/31/2023
Responses	166,825	0	225,246
Time Burden (Hours)	13,272	0	109,659
Cost Burden (Dollars)	0	0	0

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Abstract: Each year, individual taxpayers in the United States submit more than 140 million tax returns to the Internal Revenue Service (IRS). The IRS uses the information in these returns, recorded on roughly one hundred distinct forms and supporting schedules, to administer a tax system whose rules span thousands of pages. Managing such a complex and broad-based tax system is costly but represents only a fraction of the total burden of the tax system. Equally, if not more burdensome, is the time and out-of-pocket expenses that taxpayers spend in order to comply with tax laws and regulations. Changes in tax regulations, tax administration, tax preparation methods, and taxpayer behavior continue to alter the amount and distribution of taxpayer burden. The purpose of these surveys is to gather data that will be used to update and expand the IRS Taxpayer Burden Model, a robust predictive model based on an improved burden estimation methodology. Information gathered by the surveys is not available in the administrative tax return data, so survey data are a critical input to the model. The survey data are not viewed discretely. Rather, because the data are used as inputs to the Taxpayer Burden Model, they provide an end-to-end, taxpayer facing view of compliance burden. The related behavioral studies further inform IRS’s understanding of taxpayer behavior, inform burden model design, and help IRS improve processes and identify opportunities to reduce taxpayer burden.

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Authorizing Statute(s): US Code: 44 USC 3501 Name of Law: COORDINATION OF FEDERAL INFORMATION POLICY

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	88 FR 5064	01/26/2023
30-day Notice:	Federal Register Citation:	Citation Date:
	88 FR 34229	05/26/2023
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 10

IC Title Form No. Form Name Excise Tax Return Filers 2019 Business Compliance (Post-Filing) Burden Survey (Data collection 3/1/2020 – 12/31/2020) 2019 Business Taxpayer Burden Survey (Data collection 6/1/2020 – 12/31/2021) 2019 Individual Taxpayer Burden Survey (Data collection 6/1/2020-5/31/2021) 2019 Individual Taxpayer Compliance (Post-Filing) Burden Survey (Data collection 3/1/2020 – 5/31/2021) 2020 Individual Taxpayer Burden Survey (Data collection 6/1/2021-5/31/2022) 2020 Individual Taxpayer Special Study (Data collection (3/1/2020 – 9/30/2020) 2020 individual Taxpayer Special Survey (Data collection 10/1/2020 – 12/31/2020) 2021 Nonfiler/Late-filer Burden Survey (Data collection 2/1/2022 – 12/31/2022) 2021 Other Taxpayer Segment Special Survey (Data collection 3/31/2022 – 5/31/2023) Business Entities Employers Form 706 Estate Tax Return Filers Form 709 Gift Tax Return Filers Individual Taxpayers Information Return Filers Pension Plan Return Filers Tax-Exempt Organizations Trust and Estate Form 1041 Filers

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	166,825	225,246	0	-117,746	59,325	0
Annual Time Burden (Hours)	13,272	109,659	0	-57,784	-38,603	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: Yes

Burden Reduction Due to: Miscellaneous Actions

Short Statement: The change in the burden hour estimate is updated to reflect the expected burden hours to be imposed for the relevant period 6/1/2023 – 5/31/2026. This effort represents a continuation of the IRS’s strategy to gather taxpayer burden data for all types of tax returns and information reporting documents in order to support Wage and Investment’s OMB Improvement Strategy to transition burden estimates for all taxpayers to the preferred RAAS burden estimation methodology. The estimated number of responses has been reduced to 166,825 from 225,246 based on updated IRS data. There is a burden change of -38,603 due to Agency Estimate based on the expected number of survey participants, and -57,784 burden change due to Agency Discretion to remove discontinued surveys.

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Annual Cost to Federal Government: $363,333

Does this IC contain surveys, censuses, or employ statistical methods? Yes Part B of Supporting Statement

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

Agency Contact: Brenda Schafer 202 803-9412

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
		(a) It is necessary for the proper performance of agency functions;
		(b) It avoids unnecessary duplication;
		(c) It reduces burden on small entities;
		(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;
		(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;
		(f) It indicates the retention periods for recordkeeping requirements;
		(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:
			(i) Why the information is being collected;
			(ii) Use of information;
			(iii) Burden estimate;
			(iv) Nature of response (voluntary, required for a benefit, or mandatory);
			(v) Nature and extent of confidentiality; and
			(vi) Need to display currently valid OMB control number;
		(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.
		(i) It uses effective and efficient statistical survey methodology (if applicable); and
		(j) It makes appropriate use of information technology.
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Certification Date: 05/31/2023

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