Form W-12 - IRS Paid Preparer Tax Identification Number (PTIN) Application

Forms and Documents

Document Name	Status
Form W-12 Form W-12 - IRS Paid Preparer Tax Identification Number (PTIN) Application Form	New
Updated 2010 Burden Computation - W-12.PDF Supplementary Document	2010-09-01
Supporting Statement (Form-W-12).pdf Supporting Statement A	2010-09-01

IC Document Collections

IC ID	Document Title	Status
194416	Form W-12 - IRS Paid Preparer Tax Identification Number (PTIN) Application Form	New

ICR Details

OMB Control No: 1545-2190	ICR Reference No: 201008-1545-048
Status: Historical Active	Previous ICR Reference No:
Agency/Subagency: TREAS/IRS	Agency Tracking No: JG-1545-xxx-048
Title: Form W-12 - IRS Paid Preparer Tax Identification Number (PTIN) Application
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 09/01/2010
OIRA Conclusion Action: Approved with change	Conclusion Date: 09/01/2010
	Date Received in OIRA: 08/25/2010
Terms of Clearance: Treasury modified burden estimates to address recordkeeping burden and other inconsistencies with burden estimates, per OMB request. Agency should discontinue information collection associated with form W-7P, as the W-12 form is expected to replace this form.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	03/31/2011	6 Months From Approved
Responses	1,200,000	0	0
Time Burden (Hours)	1,464,000	0	0
Cost Burden (Dollars)	0	0	0

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Abstract: Paid tax return preparers will be required to get a preparer tax identification number (PTIN), and to pay the fee required with the application. A third party will administer the PTIN application process. Most applications will be filled out on-line. Form W-12 is being developed to replace Form W-7P. Form W-12 will be used to collect the information the new regs require, and to collect the information the third party needs to administer the PTIN application process.

Emergency Justfication: Emergency approval for this Information Collection is requested by the Commissioner of the Internal Revenue Service under the authority of 44 U.S.C § 3507(j)(1). Form W-12 has been created as one of several “Information Collection Instruments” for an already approved collection under OMB Control Number 1545-2176, as further guided by a Notice of Proposed Rulemaking, REG-134235-08 - Furnishing Identifying Number of Tax Return Preparer. (Attached as a Supplementary Document). Proposed Regs. 139343-08 allows the IRS to charge a $50 user fee to paid tax preparers applying for a preparer tax identification number (PTIN). It also allows a third party vendor to charge a yet-to-be-determined fee for administering the PTIN approval process. Proposed Regs. 134235-08 will require that paid tax returns preparers must apply to get a PTIN, even if they already have a PTIN. The approval process is set to start on 09/01/10. This request for an emergency approval is being made in order to make the form available both by online application and paper application by 09/01/10. This request for an emergency approval falls within both prongs of section 3507(j)(1): First, as required by section 3507(j)(1)(A)(i), the collection of information is needed prior to the expiration of the normal clearance period (approximately January 2010). The operational date for a new system to apply for a PTIN and register as a tax return preparer is September 1, 2010. Completion must be sufficiently in advance of the proposed effective date to allow a PTIN to be assigned to all tax return preparers who need one for use on tax returns and claims for refunds filed after December 31, 2010. Therefore, Form W-12 must be made available to the public by September 1, 2010. Second, as required by section 3507(j)(1)(A)(ii), the collection of information is essential to the IRS’s mission of administering the internal revenue laws and furthering tax compliance. Form W-12 is needed as part of the IRS’s efforts to better monitor tax return preparers and their preparation of tax returns. This effort will be directly enabled by each tax return preparer being required to submit an application for IRS-generated identifying number.

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Authorizing Statute(s): US Code: 26 USC 6109 Name of Law: Identifying Numbers
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Form W-12 - IRS Paid Preparer Tax Identification Number (PTIN) Application	W-12	Form W-12 - IRS Paid Preparer Tax Identification Number (PTIN) Application

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	1,200,000	0	0	1,200,000	0	0
Annual Time Burden (Hours)	1,464,000	0	0	1,464,000	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: This is a new Information Collection for a new form, Form W-12,which is being developed under the authority of proposed regulation REG-134235-08. Per Section 1.6109-2 of the Income Tax Regulations, tax return preparers must furnish a Preparer Tax Identification Number (PTIN) on tax returns and claims for refunds. A tax preparer will be required to apply for a PTIN by filing Form W-12.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Uncollected

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 08/25/2010

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