Supporting Statement

SUPPORTING STATEMENT
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
Form 5884-B, New Hire Retention Credit, was developed to carry out the provisions of section 102 of the Hiring
Incentives to Restore Employment (HIRE) Act (Public Law (P.L.) 111-147). The new form provides a means for for
employers to calculate and claim the credit. This credit is a new non-Code general business credit and the form is
required to be attached to the tax return.

2. USE OF DATA
Form 5884-B will provide elgible employers a standardized format to claim this credit.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
Upon approval, there are plans to offer electronic filing with the Forms 1040 and 1120.

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
The form is designed for all employer types, including small businesses and other small entities, concerns due to the
statutory restrictions for eligibility.

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
Periodic meetings are held between IRS personnel and representatives of the American Bar Association, the National
Society of Public Accountants, the American Institute of Certified Public Accountants, and other professional groups to
discuss tax law and tax forms. During these meetings, there is an opportunity for those attending to make comments
regarding Form 5884-B.
We will publish a notice in the Federal Register in the near future to solicit public comments on Form 5884-B.

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
List the number of responses, time per response, and total burden for each form included in the submission.
Number of
Time per
Total
Form
Responses
Response
Hours
5884-B
1,125,000
12.28 hours
13,815,000
Estimates of the annualized cost to respondents for the hour burdens shown are not available at this time.

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
After consultation with various functions within the Service, we have determined that the cost of developing,
printing, processing, distribution and overhead for the form is $6,700.

15. REASONS FOR CHANGE IN BURDEN
This is a new collection. Based on legislative action on March 18, 2010, as part of the Hiring Incentives To Restore
Employment Act, Public Law (P.L.) 111-147, Title I, Incentives for Hiring and Retaining Unemployed Workers, Section
102, Business Credit for retention of certain newly hired individuals in 2010, required the creation of the new Form
5884-B, New Hire Retention Credit. The new form reflects this new non-Coded general business credits under section
38, This will result in increase in estimated responses by 1,125,000 and the number of total burden hours by
13,815,000.

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

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
See attached.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB PRA SUBMISSION FORM
Not appliable.

19. REASON FOR EMERGENCY SUBMISSION
The late availability of the form would not allow taxpayers to timely understand the new form and instructions. This
would then place undue burden on both the taxpayer and the Service as extensions may have to be prepared by
taxpayers and the Service would have to process them. Alternatively, the taxpayer could file their return on time and
then have to file an amended return at a later date. This would also add undue taxpayer burden and burden the
Service with additional processing costs for the second return.
.

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

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Department of the Treasury–Internal Revenue Service