[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
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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
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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
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Form Title/description OMB number
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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.
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*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
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Guidance title/description OMB number
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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