Supporting Statement

SUPPORTING STATEMENT
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
The collection of information is required by 26 CFR 301.6325-1(b)(5) for consideration of the United States discharging
property from the federal tax lien and is required by 26 CFR 301.6325-1(d)(4) for consideration that the United States
subordinate its interest in property. * See attached copy of the regulations.

2. USE OF DATA
The information is investigated by Collection personnel in order that the appropriate official may ascertain the accuracy
of the application and make a determination whether to issue a discharge or subordination.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
The applications provide a standardized PDF fillable format. If system improvements are available in the future, electronic
submission will be considered. Development plans are under way for video examples walking applicants through the application.

4. EFFORTS TO IDENTIFY DUPLICATION
Currently, when applicants do not provide information the appropriate official needs to make a determination, the
applicant is informed and given additional time. If the information is not provided within the time designated, the
application is closed. Further consideration requires a new application. The standardized application forms represent
a collaboration between practitioner groups and IRS to develop a product that increases the chances applicants will
provided a complete application the first time. They represent burden reduction in time and money spent for all parties
involved in the property transaction. Additionaly, information that the IRS can gather internally will not be asked of the
applicants another duplication reduction.

5. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES
The collection information impacts any property owner and or taxpayer where a federal tax lien attaches their property
and they need to sell or refinance the property. This would include small businesses. *see #4 above for burden and
duplication reduction.

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR
POLICY ACTIVITIES
If the collection is not conducted as needed, the appropriate official would be unable to make discharge and
subordination decisions. Some negative impacts if the IRS is unable to issue discharges and subordination would be
be an increase in foreclosures, bankruptcies, business defaults, and inablility of property owners to change jobs if it
involves selling a home and moving.

Form 14029 (Rev. 4-2009) Catalog Number 51944B Page 4

Department of the Treasury–Internal Revenue Service

7. SPECIAL CIRCUMSTANCES REQUIRING DATA COLLECTION TO BE INCONSISTENT
WITH GUIDELINES IN 5 CFR 1320.5(d)(2)
The successfull result of these information collections are publically recorded documents in the locations designated by the states
for such property recordations. An applicant may need to prepare a writen interim response and / or appeal a determination made
by the appropriate official. The application closed files have a two-year record retention.

8. CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY
OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS,
AND DATA ELEMENTS
The IRS met with practitioners through the National Public Liaison meetings and specific feedback calls after the NPL
meeting. IRS Research conducted focus groups with practitioners during the 2009 Tax Forums. Through IRS
Stakeholder Relations, practitoners have had the opportunity to comment on the revised publications and application
forms. Their comments will also be sought again during the clearance process. In addition, the IRS consulted with the
IRS Advisory Council (IRSAC) who approved of the application forms in draft form.
Comments provided centered around the lack of frequency any one practitioner or applicant might need to go through
the application process and the need for something to help lead applicants through successfully.

9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
N/A

10. ASSURANCE OF CONFIDENTIALITY OF RESPONSES
The IRS Office of Chief Counsel has provided language for Privacy statements. See Attached

11. JUSTIFICATION OF SENSITIVE QUESTIONS
The questions asked relate to property transfers and values which are public in nature.

12. ESTIMATED BURDEN OF INFORMATION COLLECTION
Estimated burden of collection information for discharge applications is two-hours. If a sale is planned, then the bank,
title, or real estate company will have been compiling a file which will contain the information needed for the
application.
Discharges = 8421 x 2/hrs per applicant = 16,842 total estimated burden hours.
Estimated burden of collection information for subordination applications is three-hours. The information may be for a
simple home refinance but could also be for a business adjusting financing to obtain more inventory or equipment.
Subordinations = 1941 x 3/hrs per applicant = 5,823 total estimated burden hours.

Form 14029 (Rev. 4-2009) Catalog Number 51944B

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Department of the Treasury–Internal Revenue Service

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
There is no annual cost burden to applicants. It would be the cost of an one time or rare event. Costs associated with
an application event would include attorney or accountant consultation as well as copying and mailing costs. There is
no application cost paid to the IRS.
Discharges = 8421 x ($10 fed-ex mailing cost + $5 copying costs + $80 / 1hr with accountant or attorney)
Subordinations = 1941 x ($10 fed-ex mailing cost + $5 copying costs + $120 / 1.5 hr with accountant or attorney)

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
AWSS 2009 cubicle cost $7000/cubicle (includes all computer, overhead and maintenance); 146 IRS personnel with average salary of $89450/year.
Target FY10 time to work a discharge 4.8 hours, Target FY 10 time to work a subordination 5.1 hours of a 2000 hr/yr . Discharge cost: Facility
$141,036 ; Salary $1,802,239 ;Total = $1,943,275 : Subordination cost : Facility $34,748 ; Salary $444,030 ; Total = $478,778

15. REASONS FOR CHANGE IN BURDEN
This collection is current required under 26 CFR 201.6325-1(b)(5) & (d)(4) and guidance for applying for a certificate is
available in IRS Publications 783 and 784.
Because the information collected involves actions taken during an audit, this collection was determined exempt under 5
CFR 1320.4(a). Form 14134, Application for Certificate of Subordination of Federal Tax Lien, and Form 14135,
Application for Certificate of Discharge of Property from Federal Tax Lien, are being introduced at this time because
applicants had been providing incorrect information in their written applications, which would require additional time and
resources to correct mistakes; potentially resulting in adverse financial impact on the taxpaying public. OMB review is
being requested at this time to assure compliance with PRA, thus the submission as a collection existing without an
OMB number.
The 22,665 hours requested under this collection are changes due to agency discretion.

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
N/A

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
See attached.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB PRA SUBMISSION FORM
N/A

19. REASON FOR EMERGENCY SUBMISSION
N/A

Form 14029 (Rev. 4-2009) Catalog Number 51944B

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Department of the Treasury–Internal Revenue Service