SOI-360 - Supporting Statement

OIC forms simplification qualitative focus group to
understand the effectiveness of OIC forms redesign

Internal Revenue Service
OMB # 1545-1349
August 28, 2009

Table of Contents
Table of Contents ..................................................................................................1
I. Introduction ..........................................................................................................
Background/overview ............................................................................................2
Objectives of testing ..............................................................................................2
II. Methodology ........................................................................................................
Data collection date ...............................................................................................3
Data to be collected...............................................................................................3
How data will be used ...........................................................................................3
How data will be analyzed .....................................................................................3
Who is conducting the research? ..........................................................................3
Location—region/city and facilities ........................................................................3
Stipend ..................................................................................................................3
Recruitment efforts ................................................................................................4
Expected response rates.......................................................................................4
Research structure ................................................................................................4
Efforts to not duplicate research ............................................................................4
III. Participant criteria.............................................................................................4
IV. Privacy/disclosure/security Issues ...................................................................5
V. Burden hours ....................................................................................................5
VI. Research cost ..................................................................................................5
Appendix
Screener................................................................................................................7
Packet instructions ................................................................................................9
Scenario description ............................................................................................13
Scenario answer sheet ........................................................................................15
Existing OIC forms and instructions ...................................................................17
Redesigned OIC forms and instructions ..............................................................63
Discussion guide .................................................................................................79

OMB # 15451349

OIC forms simplification qualitative focus group to understand the
effectiveness of OIC formsredesign
I. Introduction
Background/Overview:
From September 2009–October 2009, the Internal Revenue Service (IRS) OIC
redesign team, with assistance from Porter Novelli and Siegel+Gale will conduct a
qualitative research study to understand the effectiveness of IRS Offer In
Compromise (OIC) forms redesign.
Objectives of testing:
The primary objective of this research is to understand respondent perception and
comprehension of existing OIC forms and instructions (specifically Forms 433A, 656
and Worksheet) compared to their redesigned versions. A secondary objective is to
identify areas to refine and gain insights into any communications issues.

II. Methodology
Porter Novelli and Siegel+Gale will design and implement a qualitative research
study with up to 40 US taxpayers. We will conduct the study with 4 groups of
individuals, where each group will have up to 10 people and each will evaluate a
specific notice type:
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Business group evaluating original forms
Business group evaluating redesigned forms
General taxpayer group evaluating original forms
General taxpayer evaluating redesigned forms

Criteria will be established to qualify business and general taxpayer segments and
individuals will be recruited accordingly. Qualified participants would then be mailed a
package that would contain materials including instructions, a descriptive scenario,
answer sheet, and the appropriate OIC forms (see appendix ). They would be asked
to complete the forms to the best of their ability from the scenario and answers
provided as they would if they were actually applying for a compromise. Participants
will be asked to document their experience and attend a focus group with other
individuals that have filled out a similar form. In these groups, individuals will discuss
things such as but not limited to their experiences, perceptions, problem areas, how
they dealt with problems, and suggested improvements.

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Data collection date:
Testing will be conducted from mid-September 2009–early October, 2009.
Data to be collected:
The research study will collect answers related to perception and comprehension for
both “before” and “after” versions of the IRS OIC forms and instructions. More
specifically we will probe for the following:
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Strengths and weaknesses of each form
The ease with which they could complete the process
Areas of difficulty
Suggested improvements
Overall perceptions

How data will be used:
The research data and findings will be used to validate the improvement of the
redesigned IRS OIC forms and instructions, identify areas to further refine, and
create a benchmark.
How data will be analyzed:
Porter Novelli and Siegel+Gale will use the research collected as a source for form
and instruction redesign. The research will be reviewed, analyzed, and the answers
will be summarized. Siegel+Gale will document the summary findings and anecdotal
comments from the research and develop recommendations. Summary analysis will
validate the proposed content and design direction, with suggested areas for
improvement.
Who is conducting the research?
Porter Novelli, Siegel+Gale, IRS OIC and Savitz Field and Focus
Location:
Research respondents will be drawn from the Washington DC metro area.
Stipend:
A stipend of $250 will be offered to respondents who complete OIC forms relating to
a wage-earner scenario while a stipend of $300 will be offered to respondents who
work from a small-business scenario since the small business forms are lengthier.
The stipend aims to encourage participation and to thank respondents for sharing
their time and contributions to our research.

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Recruitment efforts:
Individuals will be recruited two weeks prior to conducting the groups. Recruiting will
be done via the phone. To qualify respondents must meet a set of pre-determined
criteria, including U.S. residency and have paid federal taxes in the last two years.
Those people that agree to participate will be mailed a packet that will contain forms
and instructions for them to fill out. Within a few days of mailing these forms, we will
follow-up with participants again by phone to ensure that they have received the
information and answer any questions. In addition, we will confirm that they are still
interested in participating in the groups. In the event that people drop out of the
exercise, we will conduct a second round of recruiting to make up for any shortfall.

Expected response rates:
This is qualitative research and response rates are not relevant
Research structure:
Porter Novelli, Siegel+Gale, and IRS OIC will test “before and afters” of IRS OIC
forms during the testing.
1
Form 656 with 656A
2
Form 433A and 433B
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Payment Worksheet
The average length of time to complete the forms in their homes will be 90 minutes
over a one-week period followed by in-person participation in focus group interview of
another 90 minutes.
16-20 participants will be mailed a packet of existing OIC forms and instructions
along with a scenario of data about a fictional wage-earner who wants to file an Offer
in Compromise. They will be asked to complete the forms following the scenario and
instructions and then bring their completed forms with them when they participate in a
focus group interview the following week. As they complete the forms, they will be
instructed to put red dots (“stickies”) next to any areas that they find particularly
confusing.
This process will be duplicated with another 16-20 participants who will receive a
scenario of data about a fictional small business owner instead.
Efforts to not duplicate research:
This research is not duplicative and is needed to understand the effect that
simplifying the OIC forms and instructions has on taxpayer behavior and
comprehension.

III. Participant criteria
Participants in this study will be limited to individuals over the age of 18 that reside in
the US and have filed a tax return in the last five (5) years.

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IV. Privacy/disclosure/security issues
Porter Novelli and Siegel+Gale will ensure compliance with the Taxpayer Bill of
Rights II. All participants will be treated fairly; Porter Novelli and Siegel+Gale will
maintain anonymity without attribution of respondent and protect their data from
inappropriate usage. Participants will be instructed not to provide any private or
taxpayer data, any identifying information, nor will any questions be asked about the
taxpayer’s specific situation. The research data will be protected on a survey
deployment server, its integrity maintained during data capture, analysis, and usage,
as well as sharing and transmission to the IRS.

V. Burden hours
Participants in the research study will be required to read a fictional taxpayer
scenario, complete the forms following the instructions based on the data in the
scenario and attend a focus group the following week to discuss the forms
completion experience. They will not have to provide any information prior to the
research, nor will they be contacted for additional information afterwards.
The desired response for the focus group is 40 participants. It is estimated the
potential burden to screen candidates will be nominal (less than one minute) as not
all candidates will qualify. For those who complete the study we estimate timing to
be as follows: 15 minute phone screening/follow-up, 90 minutes to complete the
packet, 90 minute focus group interview and 120 minutes in travel time.
Therefore, the total burden involved in the study will be 210 hours (40 participants X
315 minutes per notice equals 12,600 minutes; 12,600 minutes divided by 60
minutes/hour = 210 hours).
Estimated Burden Hours
210 hours
210 hours

For participants to be screened, complete forms, and
travel/attend focus group
Total estimated burden

VI. Research cost
$14,400
o Recruiting (4 groups…recruit 10 or 8 to show)

$5,000

o Incentives (4 groups…8 per group)

$6,400

o Facilities

$2,000

o Overages

$1,000

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