Supporting Statement (Form-W-12)

SUPPORTING STATEMENT
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
Proposed Regs. 134235-08 requires all paid tax return preparers to get a preparer tax identification number (PTIN).
Proposed Regs. 139343-08 requires that as part of the PTIN application process, the preparer must pay a fee. The fee
will consist of a $50 fee plus an as-yet-to-be-determined fee charged by the third party vendor administering the
application process. Form W-12 is being developed to replace Form W-7P, to collect the information the new regs
require, and collect the information the third party needs to administer the PTIN application process.

2. USE OF DATA
The information will be used by the IRS to establish the identity and good standing of paid tax return preparers applying
for a PTIN.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
The third party vendor administering the application process will gather most of the information online. A small number
of the overall preparer population will file this form on paper.

4. EFFORTS TO IDENTIFY DUPLICATION
We have attempted to eliminate duplication within the agency whenever possible.

5. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES
Not applicable.

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR
POLICY ACTIVITIES
Not applicable.

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)
Not applicable.

8. CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY
OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS,
AND DATA ELEMENTS
Periodic meeting are held between IRS personnel and representatives of the American Bar Association, the National
Society of Public Accountants, the American Institute of Certified Public Accountants, and other professional groups to
discuss tax law and tax forms. During these meetings, there is an opportunity for those attending to make comments
regarding Form W-12.

9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
Not applicable.

10. ASSURANCE OF CONFIDENTIALITY OF RESPONSES
Generally, tax returns and tax return information are confidential as required by 26 USC 6103.

11. JUSTIFICATION OF SENSITIVE QUESTIONS
Not applicable

12. ESTIMATED BURDEN OF INFORMATION COLLECTION
We expect to receive up to 1,200,000 responses. We expect the time per response to be 1.22 hrs. Therefore, we
expect the total hours to be 1,464,000
Estimates of the annualized cost to respondents for the hour burdens are not available at this time.

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

Page 5

Department of the Treasury–Internal Revenue Service

13. ESTIMATED TOTAL ANNUAL COST BURDEN TO RESPONDENTS
Estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide
information are not available at this time.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
Since a third party vendor will administer both on-line and paper applications, and since we are not planning to print the
form, we expect the annualized cost to the government to be minimal.

15. REASONS FOR CHANGE IN BURDEN
Not applicable.

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
Not applicable.

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
Se attachment.

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB PRA SUBMISSION FORM
Not applicable.

19. REASON FOR EMERGENCY SUBMISSION
Paid preparers will be required to enter their PTIN on returns they are paid to prepare that are filed after 12/31/10. We
need to have this form available by September 1, 2010, so paid prepares can apply in time to receive the PTIN that
they will be required to enter on the return.

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

Page 6

Department of the Treasury–Internal Revenue Service