Supporting Statement

SUPPORTING STATEMENT
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
Section 5000B of the Internal Revenue Code imposes a tax on the use of indoor tanning services equal to ten percent
of the cost of the service. The provider of the service (provider) must collect the tax from the user of the service and
report and pay the tax to the government. Most providers offer a number of goods and services in addition to indoor
tanning services. Thus, these regulations provide that the provider may exclude charges for these other goods and
services from the tax computation if the charges are separable, do not exceed their fair market value, and are shown in
the exact amounts in the records pertaining to the indoor tanning services charge.

2. USE OF DATA
The information allows the provider to calculate and collect the correct amount of tax.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
There are no plans to provide electronic filing because electronic filing is not appropriate for the collection of
information in this submission.

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
Although most of the providers of indoor tanning services that will keep the required records are small entities, any
economic impact on them is minimal. The regulations implement the tax imposition of section 5000B of the Code. The
“application of tax” provisions in the regulations are designed to accommodate the wide variety of business models
used by the providers. The information necessary to prepare the records is readily available to the providers and the
provider’s recordkeeping will take little additional time to complete.

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR
POLICY ACTIVITIES
Not applicable.

Form 14029 (Rev. 4-2009) Catalog Number 51944B Page 4

Department of the Treasury–Internal Revenue Service

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
A notice of proposed rulemaking by cross-reference to temporary regulations will be published in the Federal Register
to provide the public a 90-day period in which to review and provide public comments relating to any aspect of the
proposed regulation. A public hearing may be held if requested with respect to the NPRM.

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 U.S.C. 6103.

11. JUSTIFICATION OF SENSITIVE QUESTIONS
Not applicable.

12. ESTIMATED BURDEN OF INFORMATION COLLECTION
The Internal Revenue Code requires all taxpayers, including providers of indoor tanning services, to maintain adequate
books and records to calculate the tax. These regulations provide a method for these providers to determine their
section 5000B liability if they keep adequate records that separately state the amount charged for indoor tanning
services.
We estimate that there are 20,000 providers of indoor tanning services per year that will file the quarterly Form 720
and pay the tax. We estimate that it will take an average of 30 minutes (between 15 minutes and 1 hour) for each for a
total burden estimated to be 10,000 hours.

Form 14029 (Rev. 4-2009) Catalog Number 51944B

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Department of the Treasury–Internal Revenue Service

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide
information are not available at this time.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
Not applicable.

15. REASONS FOR CHANGE IN BURDEN
The regulations implement a new provision of the Internal Revenue Code, which is effective July 1, 2010.

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
Not applicable.

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
We believe that displaying the OMB expiration date is inappropriate because it could cause confusion by leading
taxpayers to believe that the regulation sunsets as of the expiration date. Taxpayers are not likely to be aware that the
Service intends to request renewal of OMB approval and obtain a new expiration date before the old one expires.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB PRA SUBMISSION FORM
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.

19. REASON FOR EMERGENCY SUBMISSION
The effective date of the new statute (enacted 3/23/2010) is July 1, 2010. Publishing the final and temporary
regulations by June 1, 2010, after emergency OMB review, allows taxpayers time to adjust to the new law.

Form 14029 (Rev. 4-2009) Catalog Number 51944B

Page 6

Department of the Treasury–Internal Revenue Service