SUPPORTING STATEMENT
(1099-PATR)
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
IRS section 6044 requires payers of $10 or more of patronage dividends to file an information return. Regulations section 1.6044-2 states that the return to be used is Form 1099.
2. USE OF DATA
The form is used by IRS to verify compliance with the reporting rules and to verify that the recipient has included the proper amount of income on his or her income tax return.
3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
Form 1099-PATR is available for electronic filing.
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
Not applicable.
6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES
Not applicable.
7. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE
INCONSISTENT WITH GUIDELINES IN 5 CFR 1320.5(d)(2)
Not applicable.
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 1099-PATR.
In response to the Federal Register Notice dated July 17, 2006 (71 FR 40582), we received no comments during the comment period regarding Form 1099-PATR.
9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO
RESPONDENTS
Not applicable.
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
Not applicable.
12. ESTIMATED BURDEN OF INFORMATION COLLECTION
No.of Time per Total
Form Responses Response Hours
Form 1099-PATR 1,961,131 .26 509,895
Estimates of the annualized cost to respondents for the hour burdens shown above are not available at this time.
We have reviewed the following regulations and have
determined that the reporting requirements contained in them
are entirely reflected on the form. The justification
appearing in item 1 of the supporting statement applies both
to these regulations and to the form.
The following regulations impose no additional burden.
1.6044-2 through 1.6044-5
Please continue to assign OMB number 1545-0118 to these
regulations.
13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
As suggested by OMB, our Federal Register Notice dated July 17, 2006 (71 FR 40582), requested public comments on 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. However, we did not receive any responses from taxpayers on this subject. As a result, estimates of these cost burdens are not available at this time.
14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
The primary cost to the government consists of the cost of printing Form 1099-PATR. We estimate that the cost of printing the form is $7,274.00.
15. REASONS FOR CHANGE IN BURDEN
There are no changes being made to the form at this time.
This submission is being made for renewal purposes.
16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
Not applicable.
17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS
INAPPROPRIATE
See attachment.
18. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB FORM 83-I
Not applicable.
Note: The following paragraph applies to all of 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 as long as 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.
| File Type | application/msword |
| Last Modified By | J11FB |
| File Modified | 2006-09-20 |
| File Created | 2006-09-20 |