Attachment B_Refund Anticipation Loans

Attachment B:

Collections of Information Employing Statistical Methods

1. Describe (including a numerical estimate) the potential respondent universe and any sampling or other respondent selection methods to be used. Data on the number of entities (e.g., establishments, State and local government units, households, or persons) in the universe covered by the collection and in the corresponding sample are to be provided in tabular form for the universe as a whole and for each strata in the proposed sample. Indicate expected response rates for the collection as a whole. If the collection has been conducted previously, include the actual response rate achieved during the last collection.

Response:

The universe will be taxpayers who the IRS shows as obtaining a RAL on their 2006 Federal income tax return. Population will be stratified by income and geographic locations to obtain a representative sample. We will randomly select from our stratified population 507 taxpayers. From the 507 taxpayers, we will systematically make calls until we reach our target sample of 203. We will weight the results.

2 Describe the procedures for the collection of information including:

• Statistical methodology for stratification and sample selection,

• Estimation procedure,

• Degree of accuracy needed for the purpose described in the justification,

• Unusual problems requiring specialized sampling procedures, and

• Any use of periodic (less frequently than annual) data collection cycles to reduce burden.

Response:

A sample size of 203 taxpayers will be used based on a random sample, 95 percent confidence level, 5 percent precision, and 25 percent error rate.

3. Describe methods to maximize response rates and to deal with issues of non-response. The accuracy and reliability of information collected must be shown to be adequate for intended uses. For collections based on sampling, a special justification must be provided for any collection that will not yield “reliable” data that can be generalized to the universe studied.

Response:

To maximize the response rate we will mail introductory letters to explain the purpose of the survey and who we are. We will keep questions concise as possible to require a minimal imposition on the taxpayer. We will stagger our calling times so that we are able to call taxpayers when it is convenient for them to have a brief conversation and respond to the questions.

4. Describe any tests of procedures or methods to be undertaken. Testing is encouraged as an effective means of refining collections of information to minimize burden and improve utility. Tests must be approved if they call for answers to identical questions from 10 or more respondents. A proposed test or set of tests may be submitted for approval separately or in combination with the main collection of information.

Response: Not applicable.

5 Provide the name and telephone number of individuals consulted on statistical aspects of the design and the name of the agency unit, contractor(s), grantee(s), or other person(s) who will actually collect and/or analyze the information for the agency.

Contact Point for Data Collection / Analysis:

A. Randee Cook

Director, Customer Service

Office of Audit

Treasury Inspector General for Tax Administration

770.270-1304