1513-0113 Ss (2-12-08)

-8-

DEPARTMENT OF THE TREASURY

ALCOHOL AND TOBACCO TAX AND TRADE BUREAU

SUPPORTING STATEMENT – INFORMATION COLLECTION REQUREST

OMB Control No. 1513‑0113

TTB F 5630.5R - Special Tax "Renewal" Registration and Return/Special Tax Location Registration Listing

Justification

1. What are the circumstances that make this collection of information necessary and what legal or administrative requirements necessitate the collection?

Statutory sections of Chapters 51, 52, and sections 4181 and 4182 of 26 U.S.C. authorize the collection of an occupational tax from persons engaging in certain alcohol and tobacco businesses. In the Internal Revenue Code, there are several excise tax sections that require persons to register and/or pay a special occupational tax before conducting business in certain alcohol and tobacco categories. The following is a list of statutory sections of 26 U.S.C. which impose the collection of special occupational taxes:

5081 5091 5111 5121 5131 5142 5276 5731 5801

The following are regulatory sections of 27 CFR which implement the above statutory sections:

17.21 17.22 17.23 17.24 17.31 17.32 17.33 17.34 17.51 17.52 17.53 17.54 17.55 17.61 17.62 17.63 17.71 17.73 17.74 17.91 19.49 19.50 19.51 19.52 19.53 19.54 19.906 20.38 20.38a 20.39 20.40 20.40a 20.241 22.37 22.38 22.38a 22.39 22.40 22.171

24.50 24.51 24.52 24.53 24.54 24.55 25.111 25.111a 25.111b 25.112 25.113 25.114 25.117 25.118 25.119 25.120 25.121 25.122 25.123 25.125 25.126 25.131 25.132 25.133 25.134 26.44 26.45 26.46 26.47 26.171 26.307 27.30 27.31

31.1 31.21 31.23 31.24 31.25 31.26 31.27 31.29 31.30 31.31 31.32 31.33 31.34 31.35 31.51 31.52 31.53 31.54 31.55 31.56 31.57 31.58 31.59 31.71 31.72 31.92 31.93 31.94 31.101 31.103 31.104 31.104a 31.105 31.106 31.107 31.121 31.121a 31.124 31.125 31.126 31.127 31.131 31.134 31.135

31.136 31.137 31.139 31.151 31.152 31.161 31.162 31.163 31.165 31.166 31.167 31.168 31.169 31.170 40.31 40.32 40.33 40.34 40.35 40.36 40.371 40.372 40.373 40.374 40.375 44.31 44.32 44.33 44.34 44.35 44.36 53.61

2. How, by whom and for what purpose is this information used?

TTB F 5630.5R is used both to compute and report the tax, and as an application for registry as required by statute. TTB staff will examine the returns and use automated methods to determine:

(a) whether the return was timely filed;

(b) whether the return is mathematically correct;

(c) whether the taxpayer has properly registered;

(d) whether the taxpayer has accounted for all businesses and any change of the number of locations, or if there has been a change in control of the business;

(e) whether the taxpayer has notified TTB that the business has been discontinued; and

(f) whether the taxpayer has satisfied his/her full SOT liability.

In the case of a late filed return or an underpayment, our computer will initiate an assessment of applicable penalties and interest. In addition, TTB field inspectors will upon occasion examine the taxpayers' tax stamps and ensure compliance.

All the information requested on TTB F 5630.5R is essential to the functions of collecting, processing, and accounting for alcohol and tobacco special tax payments.

The form identifies the taxpayer, tax classes, and the particular premises covered by the return. Without this form, the Federal special occupational tax on alcohol and tobacco products could not be collected. These payments and collections are mandated by legislation.

3. To what extent does this collection of information involve the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology? What consideration is given to use information technology to reduce burden?

Alcohol and tobacco SOT taxes are required by statute to be collected on the basis of a return. TTB F 5630.5R is computer generated by TTB with taxpayer identifying information (e.g., name, trade name, address, employer identification number, etc.) along with tax computations reflecting tax class(es), number of business locations, tax rate(s), and total tax due. We have approved and will continue to approve, on a case-by-case basis, the use of improved information technology for the collection of required information.

4. What efforts are used to identify duplication? Why can’t any similar information

already available be used or modified for use for the purposes described in Item 2

above?

We search an agency subject classification system to identify duplication, and no similar information is available from any other source.

5. If this collection of information impacts small businesses or other small entities,

what methods are used to minimize burden?

The information collected is not susceptible to reduced requirements for small business.

6. What consequences to Federal program or policy activities and what, if any, technical or legal obstacles to reducing burden will occur if this collection is not conducted or is conducted less frequently?

The tax collections and registration for which this form is used are required by statute.

Less frequent collection of this information would pose jeopardy to the revenue.

7. Are there any special circumstances associated with this information collection?

There are no special circumstances associated with this information collection.

8. What effort was made to notify the general public about this collection of information?

A 60-day Federal Register notice was published for this information collection on Wednesday, November 21, 2007, 72 FR 65646. The notice solicited comments from the general public. TTB received no comments.

9. What decision was made to provide any payment or gift to respondents, other than reenumeration of contractors or grantees?

No payment or gift is associated with this collection.

10. What assurance of confidentiality was provided to respondents and what was the basis for the assurance in statute, regulations, or agency policy?

Disclosure of this tax return information to persons outside of TTB is restricted and governed by the procedural requirements of 26 U.S.C. 6103.

11. What justification is there for questions of a sensitive nature?

We ask no questions of a sensitive nature.

12. What is the estimated hour burden of this collection of information?

We estimate that this recordkeeping requirement will take each of the 350,000 respondents 15 minutes to prepare this form once per year, resulting in a total burden of 87,500 hours.

13. What is the estimated total annual cost burden to respondents or recordkeepers resulting from this collection of information?

Our estimate of the cost to the respondent is as follows:

Capital Costs – None

Operation and Maintenance Cost –

Labor - $ 2,625,000 (350,000 X .25 X $30/hr)

Mailing - 170,000

Overhead - 340,000

Total $3,135,000

14. What is the annualized cost to the Federal Government?

Cost to the Federal Government is as follows:

Labor - $ 768,800

Overhead - 76,800

Printing and Mailing - 175,000

Total $1,020,600

15. What is the reason for any program changes or adjustments reported in Items 13 or 14 of the OMB Form 83-I?

There are adjustments associated with this collection due to the miscalculation of the burden hours in Items 13 and the annual cost in 14 of OMB Form 83-I. In Item 13, the actual total annual hours requested is 87,500 rather than 100,500, which was previously reporter. In Item 14, the labor cost, that was used to calculate the Operation and Maintenance Cost, was calculated incorrectly (see calculations in Item 13 above). There are, however, no changes in the information being collected.

16. Outline plans for tabulation and publication for collections of information whose results will be published.

The results of this collection will not be published.

17. If seeking approval to not display the expiration date for OMB approval of this information collection, what are the reasons that the display would be inappropriate?

We will display the expiration date of OMB approval for this collection.

18. What are the exceptions to the certification statement?

There are no exceptions to the certification statement.

B. Collections of Information Employing Statistical Methods.

This collection does not employ statistical methods.