1545-2254_Supporting Statement_REV-09OCT14

1545-2254_Supporting Statement_REV-09OCT14.doc

Form 4219 - Statement of Liability of Lender, Surety, or Other Person for Withholding Taxes

OMB: 1545-2254

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SUPPORTING STATEMENT

Form 4219

OMB # 1545-2254


  1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION


Third parties who directly pay another's payrolls can be held liable for the full amount of taxes required to be withheld but not paid to the Federal Government (subject to the 25% limitation). IRC 3505 deals with persons who supply funds to an employer for the purpose of paying wages. The notification that a third party is paying or supplying wages will usually be made by filing of the Form 4219, Statement of Liability of Lender, Surety, or Other Person for Withholding Taxes. The Form 4219, Statement of Liability of Lender, Surety, or Other Person for Withholding Taxes is to be submitted and associated with each employer and for every calendar quarter for which a liability under section 3505 is incurred.


  1. USE OF DATA


The Form 4219 may be received from the third party or taxpayer and subsequently associated with the applicable quarterly filed Form 941 to either confirm payment or nonpayment of the tax liability. If full payment of tax is not received, the Form 4219 can be used to assist with the necessary investigation and potential initiation of a suit against the third party for tax collection under Section 3505 within ten years after the assessment of the tax against the employer.


  1. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN


IRS Publications, Regulations, Notices and Letters are to be electronically enabled on an as practicable basis in accordance with the IRS Reform and Restructuring Act of 1998. We have no plans at this time to offer electronic filing because of the low volume compared to the cost of electronic enabling.


  1. EFFORTS TO IDENTIFY DUPLICATION


We have attempted to eliminate duplication within the agency wherever possible.


  1. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES


We have attempted to minimize the burden on small businesses or other small entities wherever possible.


  1. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES


Not applicable.


  1. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT WITH GUIDELINES IN 5 CFR 1320.5(d)(2)


Not applicable.


  1. 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 various professional groups to discuss tax law and tax forms. During these meetings, there is an opportunity for those attending to make comments regarding the collection requirements under this form.


We received no comments during the comment period in response to the Federal Register notice dated July 21, 2014 (79 FR 42397).

  1. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS


Not applicable.


  1. ASSURANCE OF CONFIDENTIALITY OF RESPONSES


Generally, tax returns and tax return information are confidential as required by 26 USC 6103.


  1. JUSTIFICATION OF SENSITIVE QUESTIONS


In accordance with the Privacy Act of 1974, Treasury has published its complete Privacy Act systems of records notices, which include all maintained records systems as of January 2, 2014; six systems have been amended, altered, or added since April 20, 2010, when the complete notices were last published. See 79 F.R. 209-261 and 79 F.R. 183-206, which was published on January 2, 2014.


A privacy impact assessment (PIA) has been conducted for information collected under this request as part of the “Business Master File (BMF)” system and a Privacy Act System of Records notice (SORN) has been issued for this system under IRS 24.046-Customer Account Data Engine Business Master File. The Department of Treasury PIAs can be found at http://www.treasury.gov/privacy/PIAs/Pages/default.aspx.


Title 26 USC 6109 requires inclusion of identifying numbers in returns, statements, or other documents for securing proper identification of persons required to make such returns, statements, or documents and is the authority for social security numbers (SSNs) in IRS systems.

  1. ESTIMATED BURDEN OF INFORMATION COLLECTION


Number of Time per Total

Responses Response Hours


Form 4219 1,000 12.8333 hours 12,833


Estimates of the annualized cost to respondents for the hour burdens shown are not available at this time.


  1. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS


As suggested by OMB, our Federal Register Notice dated

July 21, 2014 (79 FR 42397), requested public comments on estimates of cost burden that are not captured in the estimates of burden hours, i.e., estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information. However, we did not receive any response from taxpayers on this subject. As a result, estimates of the cost burdens are not available at this time.


  1. 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 $5,000.


  1. REASONS FOR CHANGE IN BURDEN


There are no changes go the paperwork burden previously approved by OMB. This submission is for renewal purposes only.


  1. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION


Not applicable.


  1. 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 information collection will sunset as of the expiration date. Taxpayers are not likely to be aware that the Service intends to request renewal of the OMB approval and obtain a new expiration date before the old OMB approval expires.


  1. EXCEPTIONS TO THE CERTIFICATION STATEMENT


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.



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AuthorJ11FB
Last Modified ByWolfgang, Dawn
File Modified2014-10-09
File Created2014-10-09

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