2019 Business Taxpayer Burden Survey

Business Taxpayer Burden Survey

Your experience matters to us.

BTB

Business Taxpayer Burden Survey
Frequently Asked Questions
What is the purpose of this survey?
The purpose of this survey is to measure what it costs
business taxpayers to comply with federal tax rules
and regulations. For most establishments, these costs
are a combination of time spent and out-of-pocket
expenses. Please be assured that you will not be
asked about the income or other financial details of
your business’s tax return.
This questionnaire relates to the activities associated
with federal income tax compliance during the most
recent tax year as well as the preparation and filing
of your 2016 federal income tax return. It does NOT
include any other tax returns (i.e., employment, excise,
information returns, state and local, etc.) filed for the
same period. This includes any filings completed in the
12 months leading up to the filing of your business’s
2016 federal income tax return.
Who should complete this survey?
The individual most responsible for maintaining the
financial records for your business or making the
financial and tax-related decisions for your business
should complete this questionnaire. You may need to
consult with others in your organization to complete the
survey and we encourage you to do so. This survey
concerns the time and costs spent by your business,
not the time and costs spent by your external service
provider if you had one. Please do not forward this
survey to your external service provider.
How was my business selected for this survey?
Your business was randomly selected from the millions of
businesses that filed a federal income tax return in 2016.

If you own more than one business, please look at the
address label of this mailing to see which business was
randomly selected to receive this survey.
How will my answers be used?
Please be assured that your responses will be used for
research and aggregate reporting purposes only and
will not be used for other non-statistical or non-research
purposes such as direct enforcement activities.
Why should I participate?
While participation is voluntary, information about
your business’s tax preparation experience will help
the IRS reduce taxpayer burden. We encourage you
to take a few minutes of your time to participate. By
doing so, you will make sure that businesses like
yours are represented.
How long will this survey take?
Public reporting burden for this collection of
information is estimated to average 15 to 20 minutes,
including the time for reviewing instructions, searching
existing data sources, gathering and maintaining
the data needed, and completing and reviewing the
collection of information.
Who can I contact with questions?
If you have questions about the content of this survey
please call Karen Stein at Westat by phone at 1-888450-8610 or send an email to IRS-BTB@westat.com. If
you would like to speak to someone at the IRS, please
email Brenda Schafer at Brenda.Schafer@irs.gov.

Web Survey Instructions

If you would prefer to complete the survey on the web, you may do so by following the instructions
below. Web responses are processed more quickly and will help ensure that you don’t receive
follow-up contacts.

1.

2.

Go to the website.
To take the survey online, please go to:

www.IRSBTBSurvey16B.org

You will need the following username
and password to access the survey:

Username: [UID]
Password: [PWD]

Log in.

Problems?

If you have any technical difficulties, including problems with the website, please call 1-888-450-8610 or send
an email to IRS-BTB@westat.com.

Si usted desea contestar esta encuesta en español, por favor llame al
1-888-450-8610 o envie un correo electrónico a IRS-BTB@westat.com.

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Instructions:
Please use a black or blue pen to complete this form.
Mark

to indicate your answer.

If you want to change your answer, darken the box

and mark the correct answer.

Tax Preparation Methods And Activities
This part of the survey collects general information about your business. Please answer all
questions with reference to the most recent tax return year. The most recent tax year
includes the 12 months leading up to the filing of your business's most recent federal income
tax return.
1. Which of the following methods did your business use to prepare its most recent federal
income tax return? Include activities done by external service providers.
Did your business use…
Mark all that apply.
A tax preparation service? (e.g., a CPA, a tax lawyer, an enrolled agent, a registered tax preparer)
A tax advisory/planning service?
Accounting and/or financial software?
Tax preparation software? (e.g., CCH® , OneSource™, CORPTAX, custom software)
Owners or employees of your business?
Any other method(s)? Please describe:

2. In addition to preparation of your business's federal income tax return, for which of the
following activities did your business engage an external service provider during the
most recent tax year?
Mark all that apply.
Accounting or bookkeeping?
Estimated income tax payments?
Tax advisory services?
Pre-tax fringe benefits? (e.g., pension plan, health care benefits)
Individual income tax preparation for owners or partners of your business?
Other activities? Please describe:

Form

14296 (Rev. 12-2016)

Catalog Number 58104B

irs.gov

1

Department of the Treasury - Internal Revenue Service

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Tax Department Personnel And Budget
As mentioned in the FAQs, the purpose of this survey is to measure what it costs business
taxpayers to comply with federal tax rules and regulations. For most establishments, these
costs are a combination of time spent and out-of-pocket expenses (e.g., fees paid to
external service providers, software costs). In the next few sections we will ask for
estimates of these costs.
3. Does your business have a dedicated in-house tax department?
Yes
No




Please go to question 4 below.
Please skip to question 7 on page 4.

4. What was the total annual budget for the tax department (including all consolidated
subsidiaries) in the most recent tax year?
4A. Total tax department budget?

$

.
Cents

Dollars
Don't know

4B. Of the amount in 4A, how much was
spent exclusively on federal income
tax compliance?

$

.
Dollars

Cents

Don't know

Form

14296 (Rev. 12-2016)

Catalog Number 58104B

irs.gov

2

Department of the Treasury - Internal Revenue Service

58424

5. Of the amount entered in question 4A, how much was allocated to costs related to
internal tax department costs and external (out-sourced) services provided to the tax
department?
5A. Internal tax department costs?

$

.
Dollars

Cents

Don't know

5B. Of the amount in 5A, how much was
spent exclusively on federal income
tax compliance?

$

.
Dollars

Cents

Don't know

5C. Cost(s) of external services provided
to tax department?

$

.
Dollars

Cents

Don't know

5D. Of the amount in 5C, how much was
spent exclusively on federal income
tax compliance?

$

.
Dollars

Cents

Don't know

6. Did any other departments allocate part of their budget to tax compliance activities?
These departments could include but are not limited to the following: IT, Payroll,
Comptroller, Human Resources, and Subsidiaries.
6A. Allocation to tax compliance
activities from other department(s)?

$

.
Dollars

Cents

Don't know

6B. Of the amount in 6A, how much was
spent exclusively on federal income
tax compliance?

$

.
Dollars

Cents

Don't know

Form

14296 (Rev. 12-2016)

Catalog Number 58104B

irs.gov

3

Department of the Treasury - Internal Revenue Service

58424

Time Spent On Income Tax-Related Activities
7.

As mentioned in the FAQs, the purpose of this survey is to measure what it costs
business taxpayers to comply with federal income tax rules and regulations. For most
establishments, these costs are a combination of time spent and out-of-pocket expenses
(e.g., fees paid to external service providers, software costs). In the next few sections we
will ask for estimates of these costs.
The next three questions focus on the time spent on activities related to filing your
business's federal income tax return.
Think about all the time your business spent on tax-related recordkeeping, tax planning,
gathering tax-related materials, learning about tax law, using IRS or non-IRS resources,
completing, reviewing, and submitting your 2016 federal income tax return, and
calculating and depositing estimated tax payments.

Please include:

Please do NOT include:

 Time spent on your federal income tax

 Time spent by your external service
provider(s)

return as well as any associated forms,
schedules, and worksheets that you
completed or filed

 Time spent on state or local income tax
returns

 Time throughout the tax year as well as

 Time spent on employment tax returns

the tax filing season

and payroll activities

 Time spent corresponding with your

 Time spent on excise tax

external service provider(s)

 Time spent on foreign tax
 Time spent on information returns
 Time spent on individual income tax returns
for owners, partners, or shareholders

 Time spent on retirement and pension related
activities

7A. How much TOTAL time did your business spend performing tax reporting compliancerelated activities for the 2016 tax year? For example, tax-related recordkeeping, tax
planning, gathering tax-related materials, learning about tax law, using IRS or non-IRS
resources, completing, reviewing, and submitting your business's 2016 federal income
tax return, and calculating and depositing estimated tax payments.
We encourage you to consult your records or others in your business, if necessary. If
these resources are unavailable, please provide your most accurate estimate.
Note: You may answer the question in number of hours OR full-time equivalents (FTE).
FTE = total hours/2,080 hours.

:
Hours

Form

14296 (Rev. 12-2016)

OR
Minutes

Catalog Number 58104B

.
FTE

irs.gov

4

Department of the Treasury - Internal Revenue Service

58424

The next item asks you to allocate the hours or FTE reported in question 7A across different
activities. For example, if you reported 1,000 hours in question 7A, then the hours you report
in parts 1 - 6 in the table below should add up to 1,000 hours.
7B. How would you distribute the time reported in question 7A across each of the following
tax-related activities? (Parts 1 - 6 should add up to the total number of hours or FTE
reported in question 7A.) Please note that this time is for in-house staff only, not any
external service providers.
1. Tax recordkeeping, including
reconciling financial and tax
records?

:
Hours

Hours

3. Gathering materials, learning
about tax law, and using IRS
or non-IRS resources?
4. Calculating and depositing
estimated income tax
payments?

5. Completing and submitting
your federal income tax return?

Minutes

Hours

Minutes

Hours

Minutes

irs.gov

5

.
FTE

OR
Minutes

.

FTE

OR

:

.

FTE

OR

:

.

FTE

OR

:

Hours

Catalog Number 58104B

Minutes

Hours

6. All other income tax-related
activities? Please describe:

14296 (Rev. 12-2016)

OR

:

.
FTE

Minutes

:

2. Tax planning?

Form

OR

.

FTE

Department of the Treasury - Internal Revenue Service

58424

The next item asks you to allocate the hours or FTE reported in question 7A across the
different types of individuals who did the work. For example, if you reported 1,000 hours
in question 7A, then the hours you report in parts 1 - 4 in the table below should add up
to 1,000 hours.
7C. How would you distribute the time reported in question 7A across each of the different
types of individuals listed below? (Total hours or FTE reported in parts 1 - 4 below
should add up to the total number of hours or FTE reported in question 7A.)
Note: Please do not include time spent by any external service providers.

:

1. Owner(s) or executives?
Hours
2. In-house professionals or
managers?

3. Clerical or administrative
staff?

Minutes

:
Hours

Minutes

Hours

Hours

Minutes

.
FTE

OR
Minutes

.
FTE

OR

:

.
FTE

OR

:

4. Other types of employees?
Please describe:

OR

.

FTE

7D. Based on your responses in question 7C, what is the average hourly pay rate for all
individuals in your business who are responsible for federal income tax-related
activities?
Important: If you don't know the hourly pay rates for all of the individuals listed in
question 7C, please enter your best estimate of the average hourly pay rate.

$

.
Dollars

Cents

Don't know

Form

14296 (Rev. 12-2016)

Catalog Number 58104B

irs.gov

6

Department of the Treasury - Internal Revenue Service

58424

Fees Associated With Tax Compliance
Please think about how much money your business spent to comply with its tax obligations.
Costs associated with tax compliance are a very important part of assessing burden, so
please provide the most accurate estimate you can.
8. How much did your business pay all external service providers for tax and tax-related
services received during the most recent tax year?
8A. Total fee(s) paid to external service
providers for tax and tax-related services?
If no money was spent on external service
providers  Please skip to question 9.

$

8B. Of the amount in 8A, how much
was spent exclusively for federal
income tax planning?

$

.
Dollars

Cents

Don't know

.
Dollars

Cents

Don't know

8C. Of the amount in 8A, how much
was spent exclusively for federal
income tax return preparation?

$

.
Dollars

Cents

Don't know

9. How much money, if any, did your business spend during the most recent tax year on
tax-specific software?
Note: Include any costs your business may have incurred for annual maintenance and
updates.
Total money spent on all tax-specific
software?

$

.
Dollars

Cents

No money spent on
tax-specific software
Don't know

Form

14296 (Rev. 12-2016)

Catalog Number 58104B

irs.gov

7

Department of the Treasury - Internal Revenue Service

58424

10. If applicable, how much money was spent on other business-related tax activities not
included in questions 8 and 9 for the most recent tax year? This may include money
spent on electronic submission, photocopies, tax research services, tax publications
and journals, transportation, postage, or IRS user fees.
Note: Do NOT include money your business spent on external service provider(s), tax
software, or employee compensation.
10A. Total money spent on all other
business-related tax activities?

$

.
Dollars

Cents

Don't know

10B. Of the amount in 10A, how much
was spent exclusively for your
business's most recent federal
income tax return?

$

.
Dollars

Cents

Don't know

Import And Export Activities
11. During the most recent tax year, did your business prepare documents for use by United
States or foreign customs authorities related to taxes and duties for...
11A. Imports into the United States?
Yes
No
Don't know

11B. Exports from the United States?
Yes
No
Don't know

Form

14296 (Rev. 12-2016)

Catalog Number 58104B

irs.gov

8

Department of the Treasury - Internal Revenue Service

58424

Additional Questions
12. On average, how many full-time and part-time employees, if any, did your business have
during the most recent tax year? Please include partners or owners, but do not include
any independent contractors. Independent contractors are workers who are not treated
as employees for employment tax purposes.
12A. How many full-time employees?
Don't know

12B. How many part-time employees?
Don't know

13. How many state income tax returns did your business file during the most recent tax
year?
Number of returns
Don't know

14. How many people, if any, helped you answer the questions on this survey?
None
1
2
3
4 or more

Thank you for completing our survey.

Form

14296 (Rev. 12-2016)

Catalog Number 58104B

irs.gov

9

Department of the Treasury - Internal Revenue Service

Privacy and Paperwork Reduction Act Notice for Business Taxpayer Burden Model Data Collection
The Privacy Act of 1974 states that when we ask you for information, we must first tell you our legal right to
ask for the information, why we are asking for it, and how it will be used. We must also tell you what could
happen if you do not provide it and whether or not you must respond under the law.
Our legal right to ask for this information is 5 U.S.C. 301.
The primary purpose for requesting the information is to analyze the role of taxpayer burden in tax
administration. We will also use the information to fulfill the IRS’ statutory obligations to the Office of
Management and Budget and Congress for information required by the Paperwork Reduction Act, and to
provide tax policy analysis support to the Office of Tax Analysis at the Department of the Treasury. We will
also use the information provided to better understand taxpayer needs and burden reduction opportunities.
Tax information may be disclosed only as provided by 26 U.S.C. 6103. Providing the information is voluntary.
Not providing all or part of the information requested may reduce our ability to address taxpayer concerns
regarding paperwork reduction.
OMB No: 1545-2212. This report is authorized under the Paperwork Reduction Act. Data collected will be shared with
IRS staff, but your responses will be used for research and aggregate reporting purposes only and will not be used for
other non-statistical or non-research purposes such as direct enforcement activities. The information that you provide
will be protected to the fullest extent allowable under the Freedom of Information Act (FOIA). Public reporting burden
for this collection of information is estimated to average 15 to 20 minutes, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the
collection of information. Send comments regarding this burden estimate or any other aspect of this collection of
information, including suggestions for reducing this burden, to Special Services Section,SE:W:CAR:MP:T:M:S, Room
6129, 1111 Constitution Avenue, NW, Washington, DC 20224.

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