SUPPORTING STATEMENT
(Revenue Procedure 2003-11)
CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
The Internal Revenue Service has determined that some taxpayers have used offshore credit cards or offshore financial arrangements to avoid United States income taxes. The Offshore Voluntary Compliance Initiative described in Revenue Procedure 2003-11 affords taxpayers that have used these devices an opportunity to avoid certain penalties that would otherwise apply. As its name implies, the Offshore Voluntary Compliance Initiative is a voluntary compliance program. Taxpayers who choose to participate in the project and who are eligible to do so must provide to the Service the information and material described in the revenue procedure.
USE OF DATA
The data collected from the Voluntary Compliance Initiative will be used to enhance collection with the tax laws.
USE OF IMPROVED TECHNOLOGY TO REDUCE BURDEN
Taxpayers have the option of requesting to participate in the Voluntary Compliance Initiative by email.
EFFORTS TO IDENTIFY DUPLICATION
We have attempted to eliminate duplication within the agency wherever possible.
METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER 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 THE AGENCY ON AVAILABILITY OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS, AND DATA ELEMENTS
Revenue Procedure 2003-11 was published in the Internal Revenue Bulletin on January 27, 2003 (2003-4 IRB 311).
In response to the Federal Register Notice dated March 12, 2009 (74 FR 10809), we received no comments during the comment period regarding Rev. Proc. 2003-11.
EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
Not applicable.
ASSURANCE OF CONFIDENTIALITY OF RESPONSES
Generally, tax returns and returns information are confidential as required by 26 USC 6103.
JUSTIFICATION OF SENSITIVE QUESTIONS
Not applicable.
ESTIMATED BURDEN OF INFORMATION COLLECTION
The collection of information in Revenue Procedure 2003-11 is in Section 3 (APPLICATION PROCESS), Section 6 (ADDITIONAL REQUIREMENTS THAT A TAXPAYER MUST SATISFY WITHIN 90 DAYS AFTER THE SERVICE PRELIMINARILY DETERMINES THAT THE TAXPAYER IS ELIGIBLE TO PARTICIPATE IN THE OFFSHORE VOLUNTARY COMPLIANCE INITIATIVE), Section 7 (FINAL ACCEPTANCE OF A TAXPAYER’S REQUEST TO PARTICIPATE IN THE OFFSHORE VOLUNTARY COMPLIANCE INITIATIVE), and Section 8 (TREATMENT OF TAXABLE YEARS ENDING PRIOR TO JANUARY 1, 1999). This information will be used to determine whether a taxpayer is eligible for the Offshore Voluntary Compliance Initiative and to apply the terms of the initiative. This information will also further the Service understanding of how offshore credit cards and offshore financial arrangements have been promoted and solicited.
The estimated total annual reporting burden is 100,000 hours. The estimated annual burden per respondent will vary from 25 hours to 75 hours, depending on individual circumstances, with an estimated average of 50 hours. The estimated number of respondents is 2,000.
Estimates of the annualized cost to respondents for the hour burdens shown are not available at this time.
ESTIMATED TOTAL ANNUAL COST BURDEN TO TAXPAYERS
As suggested by OMB, our Federal Register Notice dated March 12, 2009 (74 FR 10809), 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.
15. 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.
16. PLANS FOR TABULATION, STATISTICAL ANALYSIS, AND PUBLICATION
Not applicable.
17. 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 procedure 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.
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 the 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 | TQ1FB |
| Last Modified By | 5pqgb |
| File Modified | 2009-05-14 |
| File Created | 2009-05-14 |