Supporting Statement - Customer Satisfaction Surveys_1545-2250- 1-21-2025

Supporting Statement

Internal Revenue Service

Customer Satisfaction Information Collections for the period 2025-2028

OMB Control Number 1545-2250

1. Circumstances Necessitating Collection of Information

The Internal Revenue Service (IRS) is requesting a three-year approval that will allow us to continue to conduct specific customer satisfaction and opinion surveys (see the supplemental document “Descriptions” for a listing of the surveys and usage) and continue to use a data-driven approach to understanding customer satisfaction at the IRS. Collecting, analyzing, and using customer opinion data is a vital component of IRS’s Balanced Measures Approach, as mandated by Public Law 105-206 sec. 1101 (Internal Revenue Service Reform and Restructuring Act of 1998) and Executive Order 12862 (Setting Customer Service Standards).

The three-year approval will streamline our ability to provide for a wide range of initiatives that will better serve the public. This clearance will enable IRS to continue to gather critical baseline and trend data to monitor the results of these initiatives and gain the taxpayer’s perspective on the extent of the initiatives success and will enable IRS to continue to monitor the effectiveness of its initiatives from not only a business perspective, but also from the customer’s perspective. Particularly critical initiatives include correspondence improvements, filing services, taxpayer education and communication and increased e-file.

The information collected from taxpayers, practitioners, and a few small entities, will help ensure that users of IRS programs and services have an effective, efficient, and satisfying experience. Regarding online services, this feedback will provide insights into customer preferences for online information and services on IRS.gov that will meet their needs to resolve inquiries and their accounts on their own. This collection of feedback will contribute directly to the improvement of content and services provided online.

Clearance Procedures

This clearance is submitted by the Statistics of Income (SOI) Division on behalf of several IRS operating functions, including but not limited to Small Business/Self Employed (SB/SE), Large Business and International (LB&I), Tax Exempt and Government Entities (TEGE), and Wage Investment (W&I).

The surveys included in this clearance request have been reviewed by the Statistics of Income Division to ensure:

• Consistency with IRS’ mission and strategic objectives

• Technical adequacy as to frame, sample selection, expected response rates, quality control in data gathering, recording, and analysis of data

• Minimizing customer burden

• Ensuring that all surveys are truly voluntary and private to the extent allowed by law

• Consistency with clearance guidelines

• Consistency with applicable laws and regulations (e.g. the Paperwork Reduction Act of 1995, and the Privacy Act of 1974.)

• Consistency with the June 6, 2002, memorandum from the Office of Information and Regulatory Affairs (OIRA) Administrator Graham titled “Ensuring Full Compliance with the Paperwork Reduction Act”

• Timely submission to the Office of Management and Budget of the final data collection instrument, along with specific burden estimates and a summary of the objectives of the various data collection projects

Copies of the specific survey instruments are included within the OMB submission.

2. Use of the Data

Due to the varied nature of the customer data needed, a variety of data collection methods are being employed, including web and mail surveys, in-person written surveys, telephone surveys, and other means as appropriate. The data collected in these information collection efforts will indicate what our customers require of us and where we meet or fail to meet their needs. This customer feedback serves as a guide for making product and/or service improvement decisions.

See Appendix B, for a summary of the data collection findings, actions taken/lessons learned for the previous surveys from 2021-2024.

3. Use of Improved Information Technology

The methodology employed in each data effort was chosen for the minimization of burden on the public. This includes minimal length of the data collection instrument itself, along with the utilization of the smallest sample size necessary to obtain valid and reliable information that is consistent with the objectives of the data collection effort. Instead of standard mail surveys or face-to-face interviews, some data collection efforts will utilize live or automated telephonic interviews, e-mail, internet, or other available technologies.

Interviewers may receive specific training in techniques to obtain responses. Contractors may use social exchange principles to maximize survey response rates. These include establishing trust that the survey is legitimate, establishing the anonymity of the respondent, preparing a list of frequently asked questions to help address respondent concerns, explaining the value and uses of the survey data, making multiple contacts, using a respond-by date to help motivate timely responses, making it convenient to participate, and reduce participation burden.

Improving the service provided online requires assessment of the preferences of content and services online and require us to collect, analyze, and interpret information gathered to identify the online content and services of the highest interest to users of online products such as IRS.gov. This information will be used to prioritize web site development work. The solicitation of feedback will target areas such as: information taxpayers and practitioners would like to access online; tasks taxpayers and practitioners would like to complete online; and online services available in the private sector that taxpayers and practitioners would like to have available on IRS.gov. Responses will be assessed to plan and inform efforts to improve the usefulness of the content and services on IRS.gov for taxpayers and practitioners who want to resolve their inquiries and accounts. If this information is not collected, vital feedback from taxpayers and practitioners regarding their preferences and needs for online content and services will be unavailable.

4. Efforts to Identify Duplication

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

5. Methods to Minimize Burden on Small Businesses or Other Small Entities

Small businesses may be surveyed on issues of concern to them as customers and users of IRS products and services; however, all data collection efforts will be voluntary, and no respondents will be required to consult or access business records for detailed information.

6. Consequences of Less Frequent Collection of Federal Programs or Policy Activities

Consequences of less frequent collection would result in the IRS being unable to revise products and services as needed to meet taxpayer needs. This would compromise the Agency’s ability to maintain voluntary compliance. Tax compliance is the cornerstone of the government’s ability to meet its mission and serve the public.

7. Special Circumstances Requiring Data Collection to be Inconsistent with Guidelines in 5 CFR 1320.5(d) (2)

The IRS will collect information under this clearance in a manner that complies with 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

We received no comments regarding the Federal Register notice (89 FR 66506) dated August 15, 2024.

9. Explanation of Decision to Provide any Payment or Gift to Respondents

At times, incentives are authorized as a thank you for, and to encourage participation in IRS surveys. Currently, respondents may be authorized up to $40 to encourage survey completion. However, it is requested that exemptions and exceptions to this payment amount be considered on a case-by-case basis.

10. Assurance of Privacy of Response

Agency policy dictates non-disclosure of taxpayer information. Survey respondents contacted by mail, internet, or some other form of written communication will be advised on the survey form, cover letter, or other accompanying document that participation is voluntary, and that the data provided will be kept private to the extent allowed by law. As part of the introduction to a data gathering effort during telephone or personal interview, the interviewer will inform respondents that the survey is voluntary, and that the data provided will be kept private to the extent allowed by law. For all surveys under this clearance, the IRS Office of Privacy Compliance will be consulted for a Privacy Impact Assessment (PIA) and adherence to privacy rules.

11. Justification of Sensitive Questions

Questions are not normally of a sensitive nature and should not pose a problem to respondents. However, on occasion, some respondents may consider some of the standard demographic questions as sensitive in nature (e.g., questions that request the respondent’s age, gender, education, or household income). Demographic questions are useful in profiling and tracking the responses and are helpful in evaluating the results; therefore, respondents will be encouraged to answer these questions, but assured that their participation is completely voluntary.

12. Estimated Burden of Information Collection

The total annual respondent burden during this three-year approval period is estimated to be 41,739 hours, which annualized is 13,913. This estimate is based on our experience from prior years as support with information from Appendix B.

A variety of questionnaires will be used in these data gathering efforts. Appendix A provides a detailed breakdown of the burden estimates.

Description	# of Respondents	# Responses per Respondent	Annual Responses	Hours per Response	Total Annual Burden
Customer Satisfaction Information Collections	118,000	1	118,000	.117907 (approx. 7 minutes)	13,913
Total	118,000		118,000		13,913

13. Estimated Total Annual Cost Burden to Respondents

There is no monetary cost to respondents for participating in these data gathering efforts. All costs associated with these efforts are born by the IRS.

14. Estimated Annualized Cost to the Federal Government

The estimated cost, based on prior years, for these surveys is $2,193,835.

15. Reasons for Change in Burden

There are changes in burden to remove, from this OMB approval, surveys that will no longer be used and surveys that have been moved to OMB #1545-1432. It is estimated that 13,913 burden hours will be used annually. The revision to remove the surveys from 1545-2250 decreases the burden hours by -6,087 due to Agency Discretion.

16. Plans for Tabulation, Statistical Analysis and Publication

Data analysis techniques used will include frequency distributions, calculation of mean scores, improvement prioritization analysis, select cross-tabulations, significance testing, and analysis of open-ended comments. In most cases, data is transferred to the contractor to conduct analysis and to prepare reports. If not, the analysis and reporting will be conducted by the IRS business unit sponsoring the survey.

Basically, survey scoring is based on the Customer Satisfaction Survey Score response average to the keystone question – “Everything considered, rate your overall satisfaction with the service you received during.” Questions utilize a 5-point rating scale, with 1 being very dissatisfied and 5 being very satisfied.

The data collected will be used to survey and track customer satisfaction for IRS customers at the site level and nationally. The respondent data is analyzed with a view to:

• Provide insight from the customer’s perspective about possible improvements.

• Provide useful input for program evaluation and execution at the programmatic and area office level of service delivery.

• Provide additional information on important “drill down” areas.

The contractor will hold the identities of respondents private to the extent allowed by law. The contractor will not provide the IRS with data or status updates that are linked to individual respondents. Upon completion of data collection and cleaning, the Contractor will provide de-identified survey data to the IRS. This data will not include any individually identifying information such as name, address, or taxpayer identification number.

The information will be collected on an annual or semi-annual basis and in most cases will be for internal use. Where appropriate, as in the case of summary data on general satisfaction with IRS performance, some information may be released outside the agency.

17. 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 regulation sunsets as of the expiration date. Taxpayers are not likely to be aware that the IRS 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.