The IRS is developing improved methods
for measuring, estimating, and modeling taxpayer burden. The data
collected from this survey of individual taxpayers will be used as
an input to a micro-simulation model that estimates taxpayer
burden. The IRS will also publish the relevant updated burden
estimates in tax form instructions to inform taxpayers. Three types
of questions will be asked: questions framing the activities to be
measured, burden measurement questions, and questions to better
inform taxpayer needs related to their compliance burden. The
information collected via the IRS Burden Surveys will be used by
IRS to support or achieve several important goals: 1. Fulfill its
mission to provide top quality service to taxpayers 2. Better
understand taxpayer time and out-of-pocket burden 3. Improve the
accuracy and comparability of the information collection budget
estimates it provides under the Paperwork Reduction Act (44 U.S.C.
3501 et seq.) 4. Provide data to be used in micro-simulation models
to allow estimation of the impact of proposed legislation on
taxpayer burden before the legislation is enacted 5. Support
ongoing analysis of the role of compliance costs in influencing
taxpayer behavior and identifying taxpayer needs. 6. Provide
information to the Executives and Operating Divisions for assessing
the impact of programs on taxpayer burden 7. Support tax analysis
in the Treasury Department Offices 8. Assist the IRS in evaluating
the effectiveness and associated impact on taxpayer costs and
behavior of the following IRS initiatives: Return preparer e-file
initiative Return preparer regulation initiative Tax package
mailing cost reduction initiative
US Code:
26
USC 6103 Name of Law: Confidentiality and disclosure of returns
and return information
Each year, individual taxpayers
in the United States submit more than 140 million tax returns to
the Internal Revenue Service (IRS). The IRS uses the information in
these returns, recorded on roughly one hundred distinct forms and
supporting schedules, to administer a tax system whose rules span
thousands of pages. Managing such a complex and broad-based tax
system is costly but represents only a fraction of the total burden
of the tax system. Equally, if not more burdensome, is the time and
out-of-pocket expenses that citizens spend in order to comply with
tax laws and regulations. The IRS has conducted prior surveys of
individual taxpayers in 1984, 1999, 2000, 2007. Changes in tax
regulations, tax administration, tax preparation methods, and
taxpayer behavior continue to alter the amount and distribution of
taxpayer burden. To update our understanding of this burden, the
IRS contracted Westat to survey individual taxpayers regarding the
time and money taxpayers spend in response to their federal income
tax obligations. We intend to conduct an updated survey to better
reflect the current tax rules and regulations, the increased usage
of tax preparation software, increased efficiency of such software,
changes in tax preparation regulations, the increased use of
electronic filing, the behavioral response of taxpayers to the tax
system, the changing use of services, both IRS and external, and
related information collection needs. Entity Taxpayers The purpose
of the IRS entity surveys is to provide Congress and the President
with accurate estimates of the costs incurred by corporations,
partnerships, limited liability companies, tax-exempt
organizations, and government entities in complying with federal
rules and regulations. The critical items on the survey concern
respondents' time and cost burden estimates for complying with tax
filing regulations. Additional items on the survey will serve as
contextualizing variables for interpretation of the burden items.
These items include information regarding tax preparation methods
and activities, tax-related recordkeeping, gathering materials,
learning about tax law, using IRS and/or non-IRS taxpayer services,
and tax form completion. The creation of these new surveys will
result in an total estimated burden increase of 13,492 hours and
40,200 annual responses.
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
IRS 2012 ITB Westat Letter 111312.pdf
2010 ITB Questionnaire 061511 Span.doc
2012 Post-Filing Burden Survey