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Notice

Submission for OMB Review; Comment Request; Proposed Revision to Collection; Comment Request for Form 1040 and Schedules A, B, C, C-EZ, D, D-1, E, EIC, F, H, J, R, and SE, Form 1040A and Schedules 1, 2, and 3, and Form 1040EZ, and All Attachments to These Forms

Document Details

Information about this document as published in the Federal Register.

Published Document

This document has been published in the Federal Register. Use the PDF linked in the document sidebar for the official electronic format.

Start Preamble December 7, 2007.

AGENCY:

Internal Revenue Service (IRS), Treasury.

ACTION:

Notice and request for comments.

SUMMARY:

The Department of the Treasury will submit the following public information collection requirement(s) to OMB for review and clearance under the Paperwork Reduction Act of 1995, Public Law 104-13 on or after the date of publication of this notice. Copies of the submission(s) may be obtained by calling the Treasury Bureau Clearance Officer listed. Comments regarding this information collection should be addressed to the OMB reviewer listed at the end of this notice, and to the Treasury Department Clearance Officer, Department of the Treasury, Room 11000, 1750 Pennsylvania Avenue, NW., Washington, DC 20220.

DATES:

Written comments should be received on or before January 14, 2008 to be assured of consideration.

End Preamble Start Supplemental Information

SUPPLEMENTARY INFORMATION:

PRA Approval of Forms Used by Individual Taxpayers

Under the PRA, OMB assigns a control number to each “collection of information” that it reviews and approves for use by an agency. 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.

The Individual Taxpayer Burden Model (ITBM) estimates the levels of burden experienced by individual taxpayers when complying with the Federal tax laws. This model reflects major changes over the past two decades in the way taxpayers prepare and file their returns; more than 85 percent of all individual tax returns are prepared utilizing computer software, either by the taxpayer or a paid provider, and less than 15 are prepared manually. The ITBM's approach to measuring burden focuses on the characteristics and activities of individual taxpayers rather than the forms they use. Key determinants of taxpayer burden in the model are the way the taxpayer prepares the return, e.g. with software or paid preparer, and the taxpayer's activities, e.g. recordkeeping and tax planning.

Burden is defined as the time and out-of-pocket costs incurred by taxpayers to comply with the Federal tax system. The time expended and the out-of-pocket costs are estimated separately. The methodology distinguishes among preparation methods, taxpayer activities, types of individual taxpayer, filing methods, and income levels.

Indicators of complexity in tax laws as reflected in tax forms and instructions are incorporated in the model. The preparation methods are:

  • Self-prepared without software.
  • Self-prepared with software.
  • Used a paid preparer.

The types of taxpayer activities measured in the model are:

  • Recordkeeping.
  • Form completion.
  • Form submission (electronic and paper). Start Printed Page 70935
  • Tax planning (this activity completed at individual taxpayer discretion).
  • Use of services (IRS and paid professional).
  • Gathering tax materials.

The methodology incorporates results from a burden survey of 14,932 taxpayers conducted in 2000 and 2001, and estimates taxpayer burden based on those survey results. Summary level results using this methodology are presented in the table below.

Taxpayer Burden Estimates

Time burden is broken out by taxpayer activity. The largest component of time burden is record keeping at roughly 58 percent for all taxpayers, as opposed to form completion and submission at only about 14 percent. In addition, the time burden associated with form completion and submission activities are closely tied to preparation method. That is, these time burden estimates fluctuate according to preparation method.

Both time and cost average burdens are national averages, and do not necessarily reflect a “typical” case. The average time burden for all taxpayers filing a 1040, 1040A, or 1040EZ in 2006 was 26.5 hours, with an average cost of $207 per return. This average includes all associated forms and schedules, across all preparation methods and all taxpayer activities. Taxpayers filing Form 1040 had an average burden of 34.0 hours, and taxpayers filing Form 1040A and Form 1040EZ averaged 10.2 hours. However, within each of these estimates, there is significant variation in taxpayer activity. Similarly, tax preparation fees vary extensively depending on the taxpayer's tax situation and issues, the type of professional preparer and geographic area.

The data shown are the best estimates from tax returns filed for 2006 currently available as of July 20, 2007. The estimates are subject to change as new forms and data become available. The estimates do not include burden associated with post-filing activities. However, operational IRS data indicate that electronically prepared and e-filed returns have fewer errors, implying a lower overall post-filing burden.

Taxpayer Burden Model

The tables below show burden estimates by form type for Tax Years 2004, 2005, and 2006. The data are being presented for these three years, because the 2006 estimates are based on an updated version of the ITBM. This updated version takes into account technical adjustments using improved data on taxpayer filing activities. Note that changes in burden reported for TY 2004 and 2005 versus prior published estimates, reflect not a change in actual burden but rather a change in methodology. Therefore, three years of data are presented below, based on the new methodology to show relative changes in burden over the past three years.

PRA Submission to OMB

Title: U.S. Individual Income Tax Return.

OMB Number: 1545-0074.

Form Numbers: Form 1040 and Schedules A, B, C, C-EZ, D, D-1, E, EIC, F, H, J, R, and SE; Form 1040A and Schedules 1, 2 and 3; Form 1040EZ; and all attachments to these forms (see the Appendix to this notice).

Abstract: These forms are used by individuals 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 some of the forms. These changes have resulted in an overall increase of 361,564,830 total hours in taxpayer burden previously approved by OMB.

Type of Review: Revision of a currently approved collection.

Affected Public: Individuals or households.

Estimated Number of Respondents: 133,912,900.

Total Estimated Time: 3.55 billion hours (3,548,691,850 hours).

Estimated Time Per Respondent: 26.5 hours.

Total Estimated Out-of-Pocket Costs: $27.7 billion ($27,719,970,300).

Estimated Out-of-Pocket Cost Per Respondent: $207.

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.

Start Printed Page 70936

Appendix

FormFiled by individuals and othersTitle
1040U.S. Individual Income Tax Return.
1040 AU.S. Individual Income Tax Return.
1040 EZIncome Tax Return for Single and Joint Filers With No Dependents.
1040 XAmended U.S. Individual Income Tax Return.
1040 NRU.S. Nonresident Alien Income Tax Return.
1040 NR-EZU.S. Income Tax Return for Certain Nonresident Aliens With No Dependents.
926XReturn by a U.S. Transferor of Property to a Foreign Corporation.
970XApplication To Use LIFO Inventory Method.
Start Printed Page 70937
972XConsent of Shareholder To Include Specific Amount in Gross Income.
982XReduction of Tax Attributes Due To Discharge of Indebtedness (and Section 1082 Basis Adjustment).
1040 A-SCH 1Interest and Ordinary Dividends for Form 1040A Filers.
1040 A-SCH 2Child and Dependent Care Expenses for Form 1040A Filers.
1040 A-SCH 3Credit for the Elderly or the Disabled+F66 for Form 1040A Filers.
1040 ES-EEstimated Tax for Individuals.
1040 ES-OCREstimated Tax for Individuals (Optical Character Recognition Without Form 1040V).
1040 ES-OCR-VPayment Voucher.
1040 ES-OTCEstimated Tax for Individuals.
1040 ES/V-OCREstimated Tax for Individuals (Optical Character Recognition With Form 1040V).
1040 SCH AItemized Deductions.
1040 SCH BInterest and Ordinary Dividends.
1040 SCH CXProfit or Loss From Business.
1040 SCH C-EZXNet Profit From Business.
1040 SCH DCapital Gains and Losses.
1040 SCH D-1Continuation Sheet for Schedule D.
1040 SCH EXSupplemental Income and Loss.
1040 SCH EICEarned Income Credit.
1040 SCH FXProfit or Loss From Farming.
1040 SCH HXHousehold Employment Taxes.
1040 SCH JIncome Averaging for Farmers and Fishermen.
1040 SCH RCredit for the Elderly or the Disabled.
1040 SCH SESelf-Employment Tax.
1040 VPayment Voucher.
1040 V-OCRPayment Voucher.
1040 V-OCR-ESPayment Voucher.
1045XApplication for Tentative Refund.
1116XForeign Tax Credit.
1128XApplication To Adopt, Change, or Retain a Tax Year.
1310Statement of Person Claiming Refund Due a Deceased Taxpayer.
2106 EZUnreimbursed Employee Business Expenses.
2106Employee Business Expenses.
2120Multiple Support Declaration.
2210 FXUnderpayment of Estimated Tax by Farmers and Fishermen.
2210XUnderpayment of Estimated Tax by Individuals, Estates, and Trusts.
2350Application for Extension of Time To File U.S. Income Tax Return.
2439XNotice to Shareholder of Undistributed Long-Term Capital Gains.
2441Child and Dependent Care Expenses.
2555 EZForeign Earned Income Exclusion.
2555Foreign Earned Income.
2848XPower of Attorney and Declaration of Representative.
3115XApplication for Change in Accounting Method.
3468XInvestment Credit.
3520XAnnual Return To Report Transactions With Foreign Trusts and Receipt of Certain Foreign Gifts.
3800XGeneral Business Credit.
3903Moving Expenses.
4029Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits.
4070 AEmployee's Daily Record of Tips.
4070Employee's Report of Tips to Employer.
4137Social Security and Medicare Tax on Unreported Tip Income.
4136XCredit for Federal Tax Paid On Fuels.
4255XRecapture of Investment Credit.
4361Application for Exemption From Self-Employment Tax for Use by Ministers, Members of Religious Orders, and Christian Science Practitioners.
4562XDepreciation and Amortization.
4563Exclusion of Income for Bona Fide Residents of American Samoa.
4684XCasualties and Thefts.
4797XSales of Business Property.
4835Farm Rental Income and Expenses.
4852Substitute for Form W-2 or Form 1099-R.
4868Application for Automatic Extension of Time To File Individual U.S. Income Tax Return.
4952XInvestment Interest Expense Deduction.
4970XTax on Accumulation Distribution of Trusts.
4972XTax on Lump-Sum Distributions.
5074Allocation of Individual Income Tax To Guam or the Commonwealth of the Northern Mariana Islands (CNMI).
5213XElection To Postpone Determination as To Whether the Presumption Applies That an Activity Is Engaged in for Profit.
5329Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts.
5471 SCH JXAccumulated Earnings and Profits (E&P) of Controlled Foreign Corporation.
Start Printed Page 70938
5471 SCH MXTransactions Between Controlled Foreign Corporation and Shareholders or Other Related Persons.
5471 SCH NXReturn of Officers, Directors, and 10%-or-More Shareholders of a Foreign Person Holding Company.
5471 SCH OXOrganization or Reorganization of Foreign Corporation, and Acquisitions and Dispositions of Its Stock.
5471XInformation Return of U.S. Persons With Respect To Certain Foreign Corporations.
5713 SCH AXInternational Boycott Factor (Section 999(c)(1)).
5713 SCH BXSpecifically Attributable Taxes and Income (Section 999(c)(2)).
5713 SCH CXTax Effect of the International Boycott Provisions.
5713XInternational Boycott Report.
5754XStatement by Person(s) Receiving Gambling Winnings.
5884XWork Opportunity Credit.
6198XAt-Risk Limitations.
6251Alternative Minimum Tax—Individuals.
6252XInstallment Sale Income.
6478XCredit for Alcohol Used as Fuel.
6765XCredit for Increasing Research Activities.
8082XNotice of Inconsistent Treatment or Administrative Adjustment Request (AAR).
6781XGains and Losses From Section 1256 Contracts and Straddles.
8271XInvestor Reporting of Tax Shelter Registration Number.
8275 RXRegulation Disclosure Statement.
8275XDisclosure Statement.
8283XNoncash Charitable Contributions.
8332Release of Claim to Exemption for Child of Divorced or Separated Parents.
8379Injured Spouse Claim and Allocation.
8396Mortgage Interest Credit.
8453 OLU.S. Individual Income Tax Declaration for an IRS e-file Online Return.
8453U.S. Individual Income Tax Declaration for an IRS e-file Return.
8582 CRXPassive Activity Credit Limitations.
8582XPassive Activity Loss Limitations.
8586XLow-Income Housing Credit.
8594XAsset Acquisition Statement.
8606Nondeductible IRAs.
8609 SCH AXAnnual Statement.
8611XRecapture of Low-Income Housing Credit.
8615Tax for Children Under Age 14 With Investment Income of More Than $1,600.
8621 AXReturn by a Shareholder Making Certain Late Elections to End Treatment as a Passive Foreign Investment Company.
8621XReturn by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund.
8689Allocation of Individual Income Tax To the Virgin Islands.
8693XLow-Income Housing Credit Disposition Bond.
8697XInterest Computation Under the Look-Back Method for Completed Long-Term Contracts.
8801XCredit for Prior Year Minimum Tax—Individuals, Estates, and Trusts.
8812Additional Child Tax Credit.
8814Parents' Election To Report Child's Interest and Dividends.
8815Exclusion of Interest From Series EE and I U.S. Savings Bonds Issued After 1989.
8818Optional Form To Record Redemption of Series EE and I U.S. Savings Bonds Issued After 1989.
8820XOrphan Drug Credit.
8821XTax Information Authorization.
8822XChange of Address.
8824XLike-Kind Exchanges.
8826XDisabled Access Credit.
8828Recapture of Federal Mortgage Subsidy.
8829Expenses for Business Use of Your Home.
8830XEnhanced Oil Recovery Credit.
8832XEntity Classification Election.
8833XTreaty-Based Return Position Disclosure Under Section 6114 or 7701(b)
8834XQualified Electric Vehicle Credit.
8835XRenewable Electricity and Refined Coal Production Credit.
8836 SCH AThird Party Affidavit.
8836 SCH BThird Party Affidavit.
8836 SPComprobante de Residencia para los Hijos(as) Calificados(as).
8836 SP-SCH ADeclaracion Jurada del Tercero.
8836 SP-SCH BDeclaracion Jurada del Tercero.
8836Qualifying Children Residency Statement.
8838XConsent To Extend the Time To Assess Tax Under Section 367—Gain Recognition Statement.
8839Qualified Adoption Expenses.
8840Closer Connection Exception Statement for Aliens.
8843Statement for Exempt Individuals and Individuals With a Medical Condition.
8844XEmpowerment Zone and Renewal Community Employment Credit.
8845XIndian Employment Credit.
8846XCredit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips.
Start Printed Page 70939
8847XCredit for Contributions to Selected Community Development Corporations.
8853Archer MSAs and Long-Term Care Insurance Contracts.
8854Initial and Annual Expatriation Information Statement.
8858XInformation Return of U.S. Persons With Respect to Foreign Disregarded Entities.
8858 SCH MXTransactions Between Controlled Foreign Disregarded Entity and Filer or Other Related Entities.
8859District of Columbia First-Time Homebuyer Credit.
8860XQualified Zone Academy Bond Credit.
8861XWelfare-to-Work Credit.
8862Information to Claim Earned Income Credit After Disallowance.
8863Education Credits.
8864XBiodiesel Fuels Credit.
8865 SCH K-1XPartner's Share of Income, Credits, Deductions, etc.
8865 SCH OXTransfer of Property to a Foreign Partnership.
8865 SCH PXAcquisitions, Dispositions, and Changes of Interests in a Foreign Partnership.
8865XReturn of U.S. Persons With Respect To Certain Foreign Partnerships.
8866XInterest Computation Under the Look-Back Method for Property Depreciated Under the Income Forcast Method.
8873XExtraterritorial Income Exclusion.
8874XNew Markets Credit.
8878 SPAutorizacion de firma para presentar por medio del IRS e-file—Solicitud de prorroga del plazo.
8878IRS e-file Signature Authorization for Application for Extension of Time to File.
8879 SPAutorizacion de firma para presentar por medio del IRS e-file.
8879IRS e-file Signature Authorization.
8880Credit for Qualified Retirement Savings Contributions.
8881XCredit for Small Employer Pension Plan Startup Costs.
8882XCredit for Employer-Provided Childcare Facilities and Services.
8885Health Coverage Tax Credit.
8886XReportable Transaction Disclosure Statement.
8889Health Savings Accounts (HSAs).
8891U.S. Information Return for Beneficiaries of Certain Cana.
8896XLow Sulfur Diesel Fuel Production Credit.
8898Statement for Individuals Who Begin or End Bona Fide Residence in a U.S. Possession.
8900XQualified Railroad Track Maintenance Credit.
8901Information on Qualifying Children Who Are Not Dependents (For Child Tax Credit Only).
8903XDomestic Production Activities Deduction.
9465 SPPeticion para un Plan de Pagos a Plazos.
9465Installment Agreement Request.
SS-4XApplication for Employer Identification Number.
SS-8XDetermination of Employee Work Status for Purposes of Federal Employment Taxes and Income Tax Withholding.
T (Timber)XForest Activities Schedules.
W-4 PWithholding Certificate for Pension or Annuity Payments.
W-4 SRequest for Federal Income Tax Withholding From Sick Pay.
W-4 SPCertificado de descuentos del(la) empleado(a) para la retencion.
W-4 VVoluntary Withholding Request.
W-4Employee's Withholding Allowance Certificate.
W-5 SPCertificado del pago por adelantado del Credito por Ingreso del Trabajo.
W-5Earned Income Credit Advance Payment Certificate.
W-7 AApplication for Taxpayer Identification Number for Pending U.S. Adoptions.
W-7 SPSolicitud de Numero de Identicacion Personal del Contribuyente el Servicio de Impuestos Internos.
W-7Application for IRS Individual Taxpayer Identification Number.
Notice 160920-05Deduction for Energy Efficient Commercial Buildings.
8906Distills Spirits Credit.
8908Energy Efficient Home Credit.
8910Alternative Motor Vehicle Credit.
8911Alternative Fuel Vehicle Refueling Property Credit.
8914Exemption Amount For Taxpayers Housing Individuals Displaced by Hurricane Katrina.
8915Qualified Hurricane Retirement Plan Distribution and Repayments.
1040ES (NR)U.S. Estimated Tax for Nonresident Alien Individuals.
2350 SPSolicitud de Prorroga para Presentar la Declaracion del Impuesto sobre el Ingreso de los Estados Unidos.
4868 SPSolicitud de Prorroga Automatica para Presentar la Declaracion del Impuesto sobre el Ingreso Personal de los Estados Unidos.
5695Residential Energy Credits.
8888Direct Deposit of Refund to More Than One Account.
8907Nonconventional Source Fuel Credit.
8913XCredit For Federal Telephone Excise Tax Paid.
8919Uncollected Social Security and Medicare Tax on Wages.
Start Printed Page 70940

Clearance Officer: Glenn P. Kirkland, (202) 622-3428, Internal Revenue Service, Room 6516, 1111 Constitution Avenue, NW., Washington, DC 20224.

OMB Reviewer: Alexander T. Hunt, (202) 395-7316, Office of Management and Budget, Room 10235, New Executive Office Building, Washington, DC 20503.

Start Signature

Robert Dahl,

Treasury PRA Clearance Officer.

End Signature End Supplemental Information

BILLING CODE 4830-01-P

BILLING CODE 4830-01-C

[FR Doc. E7-24152 Filed 12-12-07; 8:45 am]

BILLING CODE 4830-01-P