Form 4562 - Depreciation and Amortization (Including Information on Listed Property)

Forms and Documents

Document Name	Status
Supporting Statement [Form 4562].doc Supporting Statement A	2011-02-01
2010 Summary of Changes.pdf Supplementary Document	2010-11-17

IC Document Collections

IC ID	Document Title	Status
39663	Depreciation and Amortization (Form) Instruction	Modified
194535	Depreciation and Amortization (Worksheet) Other-Worksheet	New

ICR Details

OMB Control No: 1545-0172	ICR Reference No: 201009-1545-010
Status: Historical Active	Previous ICR Reference No: 200906-1545-044
Agency/Subagency: TREAS/IRS	Agency Tracking No: EC-0172-010
Title: Form 4562 - Depreciation and Amortization (Including Information on Listed Property)
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved with change	Conclusion Date: 02/01/2011
	Date Received in OIRA: 11/30/2010
Terms of Clearance: IRS modified the short statement and supporting statement to address changes due to new tax laws and changes due to discretionary actions, as well as more recent estimates of respondents and burden.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	02/28/2014	36 Months From Approved	01/31/2011
Responses	12,313,626	0	4,800,000
Time Burden (Hours)	448,368,447	0	217,872,000
Cost Burden (Dollars)	0	0	0

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Abstract: Taxpayers use Form 4562 to: (1 claim a deduction for depreciation and/or amortization; (2) make a section 179 election to expense depreciable assets; and (3) answer questions regarding the use of automobiles and other listed property to substantiate the business use under section 274(d).

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Authorizing Statute(s): US Code: 26 USC 179 Name of Law: Election to expense certain depreciable business assets
   US Code: 26 USC 274(d) Name of Law: Disallowance of certain entertainment, etc., expenses
   US Code: 26 USC 280F Name of Law: Limitation on depreciation for luxury automobiles
   US Code: 26 USC 164 Name of Law: Taxes
   PL: Pub.L. 111 - 5 1201(a) Name of Law: American Recovery and Reinvestment Act of 2009
   PL: Pub.L. 111 - 5 1201(b) Name of Law: American Recovery and Reinvestment Act of 2009
  

Citations for New Statutory Requirements: PL: Pub.L. 111 - 240 2021(a)(1)(B) Name of Law: Small Business Jobs Act of 2010
PL: Pub.L. 111 - 240 2021(a)(2)(B) Name of Law: Small Business Jobs Act of 2010

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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
60-day Notice:	Federal Register Citation:	Citation Date:
	75 FR 38869	07/06/2010
30-day Notice:	Federal Register Citation:	Citation Date:
	75 FR 71488	11/23/2010
Did the Agency receive public comments on this ICR? Yes

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Number of Information Collection (IC) in this ICR: 2

IC Title	Form No.	Form Name
Depreciation and Amortization (Form)	4562	Depreciation and Amortization
Depreciation and Amortization (Worksheet)

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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	12,313,626	4,800,000	0	0	7,513,626	0
Annual Time Burden (Hours)	448,368,447	217,872,000	-100,324,412	331,293,584	-472,725	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: Miscellaneous Actions

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

Burden Reduction Due to:

Short Statement: Form 4562 is used to; claim the deduction for depreciation and amotization, make the election under section 179to expense certain property, and provide information on the business/investment use of automobiles and other listed property. Adjustments have been made to this collection to more accurately reflect the Agency estimates of the number of filers to the form and the associated burden. This includes; * An increase in the estimated number of filers of the form by 7,331,126. * The creation of a new IC to account for the burden associated with the use and completion of the Depreciation and Amortization Worksheet (located in the instructions). This results in an adjustment increase of 182,500 responses and 487,275 burden hours. * A correction was also made to the burden associated with the Form 4562 to account for inconsistencies within this collection by decreasing the burden by 960,000 hours. The end result of these adjustments results in a total adjustment increase of 7,513,626 estimated responses and a total burden decrease adjustment of 472,725 hours. Changes were also made to the form and instructions to account for changes in the tax laws; For tax years beginnin after 2009, cellular telephones and similar telecommunications equipment have been removed from the definition of listed property. For tax years beginning in 2010; the maximum section 179 esxpense deduction changed to $500,000, the definition of section 179 property has been expanded to include certain qualified real property, and for qualified property aquired after September 8, 2010, taxpayer may be able to take a depreciation deduction of 100% of the cost of the property. The changes made to the form and instructions have resulted in total burden increase of 331,293,584 hours as a result of agency discretion and a total burden decrease of 100,324,412 hours related to the changes in Statute.

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Annual Cost to Federal Government: $39,100

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]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? Yes

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: 11/30/2010

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