Supporting Statement - 1545-2024 AG

SUPPORTING STATEMENT

Internal Revenue Service

Limited Payability Claim Against the United States

for the Proceeds of an Internal Revenue Refund Check

OMB # 1545-2024

1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION

When a refund check is lost, stolen, destroyed, or not received by the taxpayer, a refund trace can be initiated. Pursuant to 31 CFR 245.5, the Internal Revenue Service (IRS) is authorized to certify second payments to payees who did not receive their refund checks or whose check was lost, stolen, or destroyed. A check that has been cancelled pursuant to Limited Payability rules for failing to negotiate within the time limits set by 31 USC 3328(a).

This request covers the collection of information on Form 13818. Form 13818, Limited Payability Claim Against the United States for the Proceeds of an Internal Revenue Refund Check, is sent to the payee (taxpayer). This form is designed to provide taxpayers a method to file a claim for a replacement check when the original check is over 12 months old.

This is a request to renew the OMB approval of an existing Information Collection (IC) tool (Form 13818).

2. USE OF DATA

The data collected from Form 13818 is used during the payment tracing process of a lost, stolen or destroyed refund check, if the check is more than 12 months old.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN

There are no plans to provide electronic filing because electronic filing is not appropriate for the collection of information in this submission. IRS has determined that the relatively low volume does not justify the cost of electronic enabling.

3. EFFORTS TO IDENTIFY DUPLICATION

The information obtained through this collection is unique and is not already available for use or adaptation from another source.

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

There are no small entities affected by this collection.

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

With a less frequent collection, taxpayers will be unable to complete their claim against the United States for the proceeds of an Internal Revenue refund check in a timely manner thereby hindering the IRS from meeting its mission.

3. 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).

3. CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS

In response to the Federal Register notice (89 FR 15262), dated March 1, 2024, we received no comments during the comment period regarding this form.

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

No gifts or payments are being provided to any respondents.

3. ASSURANCE OF CONFIDENTIALITY OF RESPONSES

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

3. JUSTIFICATION OF SENSITIVE QUESTIONS

A privacy impact assessment (PIA) has been conducted for information collected under this request as part of the “Individual Master File (IMF)”, and a Privacy Act System of Records Notices (SORN) has been issued for this system under Treasury/IRS 24.030–Individual Master File.  The Internal Revenue Service PIAs can be found at

https://www.irs.gov/privacy-disclosure/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. 

3. ESTIMATED BURDEN OF INFORMATION COLLECTION

This form is designed to provide taxpayers a method to file a claim for a replacement check when the original check is over 12 months old. The burden estimate is as follows:

Authority	Description	# of Respondents	# Responses per Respondent	Annual Responses	Hours per Response	Total Burden
31 USC 3331	Form 13818	6,000	1	6,000	1	6,000
Totals				6,000		6,000

3. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS

From our Federal Register notice dated March 1, 2024, no public comments were received on the 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. As a result, estimates of these cost burdens are considered nominal.

3. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT

Cost estimate for product development is based on a model that considers the following three cost factors for each information product: aggregate labor costs for development, including annualized startup expenses, operating and maintenance expenses, and distribution of the product that collects the information. The costs to the Federal government will vary depending on whether the IRS will incur printing or copying costs for all the materials. These costs do not include any activities such as taxpayer assistance and enforcement. IRS estimates have determined that the cost of developing, printing, distribution and overhead for the form is $12,895.

3. REASONS FOR CHANGE IN BURDEN

There are no changes being made to the burden previously approved.

	Requested	Program Change Due to New Statute	Program Change Due to Agency Discretion	Change Due to Adjustment in Agency Estimate	Change Due to Potential Violation of the PRA	Previously Approved
Annual Number of Responses	6,000	0	0	0	0	6,000
Annual Time Burden (Hr.)	6,000	0	0	0	0	6,000

This submission is being made for renewal purposes.

3. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION

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

3. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE

IRS believes that displaying the OMB expiration date is inappropriate because it could cause confusion by leading taxpayers to believe that the form and / or regulation 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.

3. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB FORM 83-I

There are no exceptions.

Note: The following paragraph applies to all 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 if 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.