[Federal Register Volume 84, Number 148 (Thursday, August 1, 2019)]
[Notices]
[Pages 37711-37714]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-16381]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service


Proposed Collection; Comment Request for U.S. Employment Tax 
Returns and Related Forms; Forms CT-1, CT-1X, CT-2, SS-8, SS-8 (PR), W-
2, W-2 AS, W-2 C, W-2 GU, W-2 VI, W-3, W-3 (PR), W-3 C, W-3 C (PR), W-3 
SS, 940, 940 (PR), 940 SCH A, 940 SCH A (PR), 940 SCH R, 941, 941 (PR), 
941 SCH B, 941 SCH B (PR), 941 SCH D, 941 SCH R, 941 SS, 941 X, 941 X 
(PR), 943, 943 (PR), 943 A, 943 A (PR), 943 SCH R, 943 X, 943 X (PR), 
944, 944 X, 945, 945 A, 945 X, 2032, 2678, 8027, 8027 T, 8453 EMP, 8879 
EMP, 8922, 8952, and 8974

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice and request for comments.

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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/or continuing information collections, as required by the 
Paperwork Reduction Act of 1995 (PRA). The IRS is soliciting comments 
on U.S. Employment Tax Returns and related Forms.

DATES: Written comments should be received on or before September 30, 
2019 to be assured of consideration.

ADDRESSES: Direct all written comments to Laurie Brimmer, Internal 
Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 
20224.

FOR FURTHER INFORMATION CONTACT: Requests for additional information or 
copies of the form and instructions should be directed to Kerry Dennis, 
at (202) 317-5751, Internal Revenue Service, Room 6526, 1111 
Constitution Avenue NW, Washington, DC 20224, or through the internet, 
at [email protected] .

SUPPLEMENTARY INFORMATION: Today, over 70 percent of all employment 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.
    There are 50 employment tax related forms used by 7,000,000 
taxpayers. These include Forms CT-1, CT-1X, CT-2, SS-8, SS-8 (PR), W-2, 
W-2 AS, W-2 C, W-2 GU, W-2 VI, W-3, W-3 (PR), W-3 C, W-3 C (PR), W-3 
SS, 940, 940

[[Page 37712]]

(PR), 940 SCH A, 940 SCH A (PR), 940 SCH R, 941, 941 (PR), 941 SCH B, 
941 SCH B (PR), 941 SCH D, 941 SCH R, 941 SS, 941 X, 941 X (PR), 943, 
943 (PR), 943 A, 943 A (PR), 943 SCH R, 943 X, 943 X (PR), 944, 944 X, 
945, 945 A, 945 X, 2032, 2678, 8027, 8027 T, 8453 EMP, 8879 EMP, 8922, 
8952, and 8974.
    Related Internal Revenue Service and The Department of Treasury 
Guidance:

26 CFR 31.6001-1 Records in general; 26 CFR 31.6001-2 Additional 
Records under FICA; 26 CFR 31.6001-3, Additional records under Railroad 
Retirement Tax Act; 26 CFR 31.6001-5 Additional records
Tip Reporting Alternative Commitment (TRAC) Agreement for Use in the 
Cosmetology and Barber Industry to Employment Tax
Reg-111583-07(TD 9405)(Final)--Employment Tax Adjustments; REG-130074-
11--Rules Relating to Additional Medicare Tax

    For most of these collections, IRS has in the past obtained 
separate OMB approvals under unique OMB Control Numbers and separate 
burden estimates. With this notice, the IRS is announcing significant 
changes to (1) the manner in which tax forms used by employers will be 
approved under the PRA and (2) its method of estimating the paperwork 
burden imposed on all employers.

Tax Compliance Burden

    Tax compliance burden is defined as the time and money taxpayers 
spend to comply with their tax filing responsibilities. Time-related 
activities include recordkeeping, tax planning, gathering tax 
materials, learning about the law and what you need to do, and 
completing and submitting the return. Out-of-pocket costs include 
expenses such as purchasing tax software, paying a third-party 
preparer, and printing and postage. Tax compliance burden does not 
include a taxpayer's tax liability, economic inefficiencies caused by 
sub-optimal choices related to tax deductions or credits, or 
psychological costs. The TCBM estimates the aggregate burden imposed on 
business taxpayers, based upon their tax-related characteristics and 
activities. IRS therefore will seek OMB approval of all 50 Employment 
Tax forms as a single ``collection of information.'' The aggregate 
burden of these tax forms will be accounted for under OMB Control 
Number 1545-0029, which is currently assigned to Form 941, 941-PR, 941-
SS, 941-X, 941-X(PR), Schedule B (Form 941), Schedule B (Form 941-PR), 
Schedule R (Form 941), 941-SS-V, 941-V, 941-X, 941-X(PR) and its 
related schedules. OMB Control Number 1545-0029 will be displayed on 
all employment-tax forms and other related information collections. As 
a result, employment tax burden-related estimates will be displayed 
differently in PRA Notices on tax forms and other information 
collections, and in Federal Register notices. This way of displaying 
burden is presented below under the heading ``Proposed PRA Submission 
to OMB.'' For more information about tax compliance burden and the TBM, 
go to the article ``Tax Compliance Burden'' posted on the IRS website 
at https://www.irs.gov/pub/irs-soi/d13315.pdf.

Taxpayer Burden Estimates

    The estimates are subject to change as new forms and data become 
available.

Proposed PRA Submission to OMB

    Title: U.S. Employment Tax Returns and related Forms.
    OMB Number: 1545-0029.
    Form Numbers: Forms CT-1, CT-1X, CT-2, SS-8, SS-8 (PR), W-2, W-2 
AS, W-2 C, W-2 GU, W-2 VI, W-3, W-3 (PR), W-3 C, W-3 C (PR), W-3 SS, 
940, 940 (PR), 940 SCH A, 940 SCH A (PR), 940 SCH R, 941, 941 (PR), 941 
SCH B, 941 SCH B (PR), 941 SCH D, 941 SCH R, 941 SS, 941 X, 941 X (PR), 
943, 943 (PR), 943 A, 943 A (PR), 943 SCH R, 943 X, 943 X (PR), 944, 
944 X, 945, 945 A, 945 X, 2032, 2678, 8027, 8027 T, 8453 EMP, 8879 EMP, 
8922, 8952, and 8974.
    Abstract: These forms are used by employers to report their 
employment tax related activity. The data is used to verify that the 
items reported on the forms are correct.
    Current Actions: The burden estimation methodology for employment 
tax is being transitioned from the legacy ADL model to the Taxpayer 
Burden Model. The changes discussed above result in a burden hour 
estimate of 575,000,000 hours, a decrease in total estimated time 
burden of 53,519,249 hours. The newly-reported total out-of-pocket 
costs is $15,030,000,000 and total monetized burden is $25,200,000,000. 
These changes are solely related to the transition of the burden 
estimate from the legacy Arthur D. Little Model methodology to the RAAS 
Taxpayer Burden Model. This is a one-time change.
    Type of Review: Revision of currently approved collections.
    Estimates Total Time (Hours): 575,000,000.
    Estimated Total Out-of-Pocket Costs: $15,030,000,000.
    Estimated Total Monetized Burden: $25,200,000,000.
    Affected Public: Employers.
    Estimated Number of Respondents: 7,000,000.
    Total Estimated Time: 575,000,000 hours.
    Estimated Time Per Respondent: 82 hours.
    Total Estimated Out-of-Pocket Costs: $15,030,000,000.
    Estimated Out-of-Pocket Cost Per FY2020 Respondent: $2,147.
    Total Estimated Monetized Burden: $25,200,000,000.
    Estimated Monetized Burden Per FY2020. Respondent: $3,600.

    Note:  Amounts below are for FY2020. 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.


                            Fiscal Year 2020 ICB Estimates for Form 94X Series and Related Forms, Schedules, and Regulations
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                                                                                        ADL 2020 to Taxpayer Burden Model 2020
                                                             -------------------------------------------------------------------------------------------
                                                                                    Program change    Program change  Program change
                                                                  ADL method       due to adjustment     due to new    due to agency    Taxpayer burden
                                                               (legacy) FY 2020       in estimate       legislation     discretion       model FY 2020
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Number of Taxpayers.........................................         333,600,411         326,600,411  ..............  ..............           7,000,000
Burden in Hours.............................................         628,519,249        (53,519,249)               0               0         575,000,000
Burden in Dollars...........................................  ..................     $15,030,000,000               0               0     $15,030,000,000
Monetized Total Burden......................................  ..................     $25,200,000,000               0               0     $25,200,000,000
--------------------------------------------------------------------------------------------------------------------------------------------------------
Detail may not add due to rounding.
Source RAAS:KDA:TBL 7/10/2019.


[[Page 37713]]

    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: July 22, 2019.
Laurie Brimmer,
Senior Tax Analyst.

Appendix A

------------------------------------------------------------------------
              Form                  Title/description       OMB number
------------------------------------------------------------------------
CT-1...........................  Employer's Annual             1545-0001
                                  Railroad Retirement
                                  Tax Return.
CT-1X..........................  Adjusted Employer's           1545-0001
                                  Annual Railroad
                                  Retirement Tax Return
                                  or Claim for Refund.
CT-2...........................  Employee                      1545-0002
                                  Representative's
                                  Quarterly Railroad Tax
                                  Return.
SS-8...........................  Determination of Worker       1545-0004
                                  Status for Purposes of
                                  Federal Employment
                                  Taxes and Income Tax
                                  Withholding.
SS-8 (PR)......................  Determination of              1545-0004
                                  Employee Work Status
                                  for Purposes of
                                  Federal Employment
                                  Taxes and Income Tax
                                  (Puerto Rican Version).
W-2............................  Wage and Tax Statement.       1545-0008
W-2 AS.........................  American Samoa Wage and       1545-0008
                                  Tax Statement.
W-2 C..........................  Corrected Wage and Tax        1545-0008
                                  Statement.
W-2 GU.........................  Guam Wage and Tax             1545-0008
                                  Statement.
W-2 VI.........................  U.S. Virgin Islands           1545-0008
                                  Wage and Tax Statement.
W-3............................  Transmittal of Wage and       1545-0008
                                  Tax Statements.
W-3 (PR).......................  Transmittal of                1545-0008
                                  Withholding Statements
                                  (Puerto Rican Version).
W-3 C..........................  Transmittal of                1545-0008
                                  Corrected Wage and Tax
                                  Statements.
W-3 C (PR).....................  Transmittal of                1545-0008
                                  Corrected Wage and Tax
                                  Statements (Puerto
                                  Rican Version).
W-3 SS.........................  Transmittal of Wage and       1545-0008
                                  Tax Statements.
940............................  Employer's Annual             1545-0028
                                  Federal Unemployment
                                  (FUTA) Tax Return.
940 (PR).......................  Employer's Annual             1545-0028
                                  Federal Unemployment
                                  (FUTA) Tax Return
                                  (Puerto Rican Version).
940 SCH A......................  Multi-State Employer          1545-0028
                                  and Credit Reduction
                                  Information.
940 SCH A (PR).................  Multi-State Employer          1545-0028
                                  and Credit Reduction
                                  Information (Puerto
                                  Rican Version).
940 SCH R......................  Allocation Schedule for       1545-0028
                                  Aggregate Form 940
                                  Filers.
941............................  Employer's Quarterly         *1545-0029
                                  Federal Tax Return.
941 (PR).......................  Employer's Quarterly         *1545-0029
                                  Federal Tax Return.
941 SCH B......................  Report of Tax Liability      *1545-0029
                                  for Semiweekly
                                  Schedule Depositors.
941 SCH B (PR).................  Supplemental Record of       *1545-0029
                                  Federal Tax Liability
                                  (Puerto Rican Version).
941 SCH D......................  Report of Discrepancies      *1545-0029
                                  Caused by
                                  Acquisitions,
                                  Statutory Mergers, or
                                  Consolidations.
941 SCH R......................  Reconciliation for           *1545-0029
                                  Aggregate Form 941
                                  Filers.
941 SS.........................  Employer's QUARTERLY         *1545-0029
                                  Federal Tax Return
                                  (American Samoa, Guam,
                                  the Commonwealth of
                                  Northern Mariana
                                  Islands, and the U.S.
                                  Virgin Islands).
941 X..........................  Adjusted Employer's          *1545-0029
                                  QUARTERLY Federal Tax
                                  Return or Claim for
                                  Refund.
941 X (PR).....................  Adjusted Employer's          *1545-0029
                                  QUARTERLY Federal Tax
                                  Return or Claim for
                                  Refund (Puerto Rico
                                  Version).
943............................  Employer's Annual Tax         1545-0035
                                  Return for
                                  Agricultural Employees.
943 (PR).......................  Employer's Annual Tax         1545-0035
                                  Return for
                                  Agricultural Employees
                                  (Puerto Rican Version).
943 A..........................  Agricultural Employer's       1545-0035
                                  Record of Federal Tax
                                  Liability.
943 A (PR).....................  Agricultural Employer's       1545-0035
                                  Record of Federal Tax
                                  Liability (Puerto
                                  Rican Version).
943 R..........................  Allocation Schedule for       1545-0035
                                  Aggregate Form 943
                                  Filers.
943 X..........................  Adjusted Employer's           1545-0035
                                  Annual Federal Tax
                                  Return for
                                  Agricultural Employees
                                  or Claim for Refund.
943 X (PR).....................  Adjusted Employer's           1545-0035
                                  Annual Federal Tax
                                  Return for
                                  Agricultural Employees
                                  or Claim for Refund.
944............................  Employer's ANNUAL             1545-2007
                                  Federal Tax Return.
944 X..........................  Adjusted Employer's           1545-2007
                                  ANNUAL Federal Tax
                                  Return or Claim for
                                  Refund.
945............................  Annual Return of              1545-1430
                                  Withheld Federal
                                  Income Tax.
945 A..........................  Annual Record of              1545-1430
                                  Federal Tax Liability.
945 X..........................  Adjusted ANNUAL Return        1545-1430
                                  of Withheld Federal
                                  Income Tax or Claim
                                  for Refund.
2032...........................  Contract Coverage Under       1545-0137
                                  Title II of the Social
                                  Security Act.
2678...........................  Employer/Payer                1545-0748
                                  Appointment of Agent.
8027...........................  Employer's Annual             1545-0714
                                  Information Return of
                                  Tip Income and
                                  Allocated Tips.
8027 T.........................  Transmittal of                1545-0714
                                  Employer's Annual
                                  Information Return of
                                  Tip Income and
                                  Allocated Tips.
8453 EMP.......................  Employment Tax                1545-0967
                                  Declaration for an IRS
                                  e-file Return.
8879 EMP.......................  IRS e-file Signature          1545-0967
                                  Authorization for
                                  Forms 940, 940-PR,
                                  941, 941-PR, 941-SS,
                                  943, 943-PR, 944, and
                                  945.

[[Page 37714]]

 
8922...........................  Third-Party Sick Pay         *1545-0123
                                  Recap.
8952...........................  Application for               1545-2215
                                  Voluntary
                                  Classification
                                  Settlement Program
                                  (VCSP).
8974...........................  Qualified Small               1545-0029
                                  Business Payroll Tax
                                  Credit for Increasing
                                  Research Activities.
------------------------------------------------------------------------
*1545-0123 will not be discontinued. It is the Business collection and
  8922 will be included in both the Business collection and the
  Employment Tax collection.
*1545-0029 will not be discontinued it will be the number assigned to
  all Forms within the employment tax collection.

Appendix B

------------------------------------------------------------------------
               Guidance title/description                   OMB number
------------------------------------------------------------------------
26 CFR 31.6001-1 Records in general; 26 CFR 31.6001-2          1545-0798
 Additional Records under FICA; 26 CFR 31.6001-3,
 Additional records under Railroad Retirement Tax Act;
 26 CFR 31.6001-5 Additional records....................
Tip Reporting Alternative Commitment (TRAC) Agreement          1545-1529
 for Use in the Cosmetology and Barber Industry to
 Employment Tax.........................................
Reg-111583-07(TD 9405)(Final)--Employment Tax                  1545-2097
 Adjustments; REG-130074-11--Rules Relating to
 Additional Medicare Tax................................
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[FR Doc. 2019-16381 Filed 7-31-19; 8:45 am]
BILLING CODE 4830-01-P