SUPPORTING STATEMENT
CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
The Treasury Department has determined that Revenue Ruling 2000-33 is needed to provide guidance to section 457 plan administrators, plan sponsors, etc. to encourage increased voluntary savings for retirement through a voluntary, automatic enrollment in the sponsor’s section 457 plan. The Department has also determined that to ensure that a plan participant’s automatic enrollment in the plan is truly voluntary, the employee must be provided with reasonable notice and a realistic opportunity to opt out of such automatic enrollment or to elect to defer a different percentage of his/her compensation to the plan account.
USE OF DATA
The section 457 plan sponsors and administrators will use the data to determine which employee will participate in its section 457 plan when they establish an automatic enrollment program such as the one approved in Revenue Ruling 2000-33.
USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
We have no plans to offer electronic filing. IRS publication, regulations, notices and letters are to be electronically enabled on an as practicable basis in accordance with the IRS Reform and Restructuring Act of 1998.
EFFORTS TO IDENTIFY DUPLICATION
We have attempted to eliminate duplication within the agency wherever possible.
METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES
Not applicable.
CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR POLICY ACTIVITIES
Not applicable.
SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT WITH GUIDELINES IN 5 CFR 1320.5(d)(2)
Not applicable.
CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS
Revenue Ruling 2000-33 was published in the Internal Revenue Bulletin on July 31, 2000 (2000-31 IRB 142).
In response to the Federal Register Notice dated August 7, 2006 (71 FR 44777), we received no comments during the comment period regarding Rev. Rul. 2000-33.
EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
Not applicable.
ASSURANCE OF CONFIDENTIALITY OF RESPONSES
Submissions for private letter rulings and technical advice under this revenue ruling may be considered tax returns and tax return information that are confidential as required by 26 U.S.C. § 6103. In general, certain matters relating to taxability and deductibility are disclosable under 26 U.S.C. § 6110.
JUSTIFICATION OF SENSITIVE QUESTIONS
Not applicable.
ESTIMATED BURDEN OF INFORMATION COLLECTION
The revenue ruling involves the collection of one type of information.
The third, fourth and fifth paragraphs in the section headed “FACTS” describe a notice that is to be given to employees at the time of hire, at the time of plan amendment, and annually thereafter. The notice informs employees that, unless they make an affirmative election to have a different amount (including no amount) withheld from their compensation, a certain amount will automatically be withheld and deposited on their behalf to the employer’s section 457(b) plan.
We estimate that 500 plans will annually provide the notice described above. The estimated annual burden per respondent is 1 hour for a total estimated burden of 500 hours.
Estimates of the annualized cost to respondents for the hour burdens shown are not available at this time.
ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
As suggested by OMB, our Federal Register notice dated August 7, 2006 (71 FR 44777), 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 response from taxpayers on this subject. As a result, estimates of the cost burdens are not available at this time.
ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
Not applicable.
REASONS FOR CHANGE IN BURDEN
There is no change in the paperwork burden previously approved by OMB. We are making this submission to renew the OMB approval.
PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
Not applicable.
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 revenue ruling 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.
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 |
| Author | J11FB |
| Last Modified By | J11FB |
| File Modified | 2006-10-19 |
| File Created | 2006-07-20 |