Sup. Stat. (Form 706-A)

SUPPORTING STATEMENT

Form 706-A

OMB # 1545-0016

1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION

Form 706-A is used by individuals to compute and pay the additional

estate taxes due under Code section 2032A(c). IRS uses the

information to determine that the taxes have been properly computed.

The form is also used for the basis election of section 1016(c)(1).

_{2. USE OF DATA}

This form is used to report all dispositions or cessations of

qualified use under Section 2032A of the Internal Revenue Code.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN

We have no plans at this time to offer electronic filing because of

the low volume compared to the cost of electronic enabling.

_{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

There are no small entities affected by this collection.

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR

POLICY ACTIVITIES

If the IRS did not collect this information, the IRS would not be able to report all dispositions or cessations of qualified use under Section 2032A of the Internal Revenue Code.

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

There are no special circumstances requiring data collection to be inconsistent with Guidelines in 5 CFR 1320.5(d)(2).

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 706-A.

In response to the Federal Register notice dated May 5, 2016

(81 FR 27197), we received no comments during the comment period regarding Form 706-A.

_{9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS}

No payment or gift has been provided to any respondents.

10. ASSURANCE OF CONFIDENTIALITY OF RESPONSES

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

_{11. JUSTIFICATION OF SENSITIVE QUESTIONS}

A privacy impact assessment (PIA) has been conducted for information collected under this request as part of the “Estate/Inheritance and Gift Non-filer and Under-reporter” system and a Privacy Act System of Records notice (SORN) has been issued for this system under IRS 42.021-Compliance Programs and Project Files. The Department of Treasury PIAs can be found at http://www.irs.gov/uac/Privacy-Impact-Assessments-PIA .

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.

12. ESTIMATED BURDEN OF INFORMATION COLLECTION

The burden estimate is as follows:

Number of Time per Total

Form Responses Response Hours

706-A 180 9.32 1,678

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

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS

There are no start-up costs associated with this collection.

_{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 $8,000.

15. REASONS FOR CHANGE IN BURDEN

There is no change in the paperwork burden previously approved by OMB. We are making this submission for renewal purposes.

We had a change to the form during the 2013 Cycle that was already accounted for. The change is now being included during this renewal process. The new estimated time will be reflected in the next revision of the Instructions.

_{16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION}

There are no plans for tabulation, statistical analysis and publication.

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 form sunsets 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 one expires.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT

There are no exceptions to the certification statement for this collection.