2024 Supporting Statement (1545-0429)-FINAL

SUPPORTING STATEMENT

Internal Revenue Service

Form 4506, Request for Copy of Tax Return

OMB Control Number 1545-0429

1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION

Internal Revenue Code (IRC), Section 7513, Reproduction of returns and other documents; is the authority to have any Federal agency or any person process films or other photoimpression of any return, document, or other matter, and make reproductions from films or photoimpressions of any return, document, or other matter.

Form 4506 is used by taxpayers to request copies of their tax return, such as Form 1040, Form 1040-A, or Form 1120. The information requested (name and address, taxpayer identification number(s), tax period, and the taxpayer’s signature) is needed to assure the Internal Revenue Service (IRS) that it is not violating the confidentiality and disclosure requirements.

2. USE OF DATA

The information on Form 4506 is used by the IRS to locate the requested tax return(s) and ensure that the taxpayer has authorized the release of the return.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN

Form 4506 has been enabled for an electronic option to taxpayers requesting a transcript of their tax return through IRS.gov, at no charge (https://www.irs.gov/Individuals/Get-Transcript). This option provides for electronic receipt or by mail. If the taxpayer wishes a photocopy of their return, a completed Form 4506 must be mailed, along with payment, to the address provided in the instructions. The instructions to Form 4506 encourages taxpayers to use the electronic option (Form 4506-T, Request for Transcript of Tax Return; OMB No. 1545-1872).

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

The IRS proactively works with both internal and external stakeholders to minimize the burden on small businesses, while maintaining tax compliance. The Agency also seeks input regarding the burden estimates from the public via notices and tax product instructions. Filers can electronically request a transcript of their tax return, which further reduces any burden to small businesses.

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

If the information were not collected, the IRS would not be able to fulfill the taxpayers request for a copy of their tax return. This would affect both the taxpayer and the government in ensuring proper tax compliance.

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

In response to the Federal Register Notice (89 FR 77238), dated September 20, 2024, we received no comments during the comment period regarding Form 4506.

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 “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 Internal Revenue Service PIAs can be found at https://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 estimates as follows:

Authority	Document	# of Respondents	# Responses Per Respondent	Annual Responses	Time Per Response	Total Burden
IRC §7513	Form 4506	325,000	1	325,000	.80	260,000
Totals				325,000		260,000

The following regulations impose no additional burden. Please continue to assign OMB number 1545-0429 to these regulations:

601.702(c)(4)

601.702(c)(8)

601.702(f)(5)

301.7513-1

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS

There is a $30 fee for each return requested. Therefore, the total out-of-pocket cost to respondents would be $9,750,000 (325,000 request/response per year x $30 = $9,750,000).

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT

The Federal government cost estimate 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 government computes cost using a multi-step process. First, the government creates a weighted factor for the level of effort to create each information collection product based on variables such as; complexity, number of pages, type of product and frequency of revision. Second, the total costs associated with developing the product such as labor cost, and operating expenses associated with the downstream impact such as support functions, are added together to obtain the aggregated total cost. Then, the aggregated total cost and factor are multiplied together to obtain the aggregated cost per product. Lastly, the aggregated cost per product is added to the cost of shipping and printing each product to IRS offices, National Distribution Center, libraries and other outlets. The result is the Government cost estimate per product.

The government cost estimate for this collection is summarized in the table below.

Product	Aggregate Cost per Product (factor applied)		Printing and Distribution		Government Cost Estimate per Product
Form and Instructions	$12,895	+	$0	=	$12,895
Total	$12,895	+	$0	=	$12,895
Table costs are based on 2024 actuals obtained from IRS Chief Financial Office and Media and Publications

15. REASONS FOR CHANGE IN BURDEN

There are no changes being made to the form at this time. We are making this submission to renew the OMB approval.

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 regulations sunset 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.