Supp Statmnt Form 15597

SUPPORTING STATEMENT
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
Form 15597, Foreclosure Sale Purchaser Contact Information Request, is information requested of individuals or
businesses that have purchased real property at a third party foreclosure sale. If the IRS has filed a "Notice of Federal
Tax Lien" publically notifying a taxpayer's creditors that the taxpayer owes the IRS a tax debt, AND a creditor senior to
the IRS position later forecloses on their creditor note (such as the mortgage holder of a TP's primary residence) THEN
the IRS tax claim is discharged or removed from the property (if the appropriate foreclosure rules are followed) and the
foreclosure sale purchaser buys the property free and clear of the IRS claim EXCEPT that the IRS retains the right to
"redeem" or buy back the property from the foreclosure sale purchaser w/in 120 days after the foreclosure sale.
Collection of this information is authorized by 28 USC 2410 and IRC 7425.

2. USE OF DATA
The IRS needs to be able to be in touch with and deliver the "redemption" check to buy the property. The form asks for
that information to be able to complete the sale. There have been situations where the foreclosure sale purchaser has
"evaded" the IRS - in these cases Counsel has accompanied the advisor to redeem the property and proffer the check.
The information is kept in the taxpayer case file. There is a 2 yr retention on closed case files. If the IRS purchases
the property from the foreclosure sale purchaser, then there will be paperwork filed at the register of deeds (IRS can
only redeem real estate - not personal property). The paperwork filed at the register of deeds will show the IRS name
and the foreclosure sale purchaser's name.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
Form 15597 is only utilized in situations where the IRS is contemplating redemption

4. EFFORTS TO IDENTIFY DUPLICATION
The IRS only "redeems" if, after an investigation, the IRS determines that the mortgage that was sold left enough
equity (and in today's depressed market) there is enough equity left in the property that if the IRS buys the property
from the foreclosure sale purchaser and resells that property - that the IRS sale will reach that extra equity and the IRS
then repays the revolving fund (a permanent fund the IRS has to make such purchases) and still has sufficient sale
dollars to apply to the taxpayers liability. If there was enough in the sale fund received - and the taxpayer's liability is
fully paid - and there are still sale funds available - then those funds can be claimed by other creditors.

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 meetings 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 15597.
We will publish a notice in the Federal Register in the near future to solicit public comments on Form 15597.

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

10. ASSURANCE OF CONFIDENTIALITY OF RESPONSES
Generally, collection case files are confidential as required by 26 USC 6103.
The IRS needs to be able to be in touch with and deliver the "redemption" check to buy the property. The form asks
for that information to be able to complete the sale. If there is any problem - the check is put in an escrow fund and
Counsel assists the IRS in crafting the redemption paperwork to be recorded with the appropriate registrar's office to
complete the redemption. Then moves forward with the IRS sale.

11. JUSTIFICATION OF SENSITIVE QUESTIONS
Not applicable.

12. ESTIMATED BURDEN OF INFORMATION COLLECTION
The burden estimate is as follow:
Form
15597

Number of Responses

Time per Response

550

5 mins.

Total Hours
49 hours

Estimates of the annualized cost to respondents for the hour burdens shown are not available at this time.

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
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
The primary cost to the government consists of the cost of mailing Form 15597. We estimate that the annual cost of
mailing the form is $1056.

15. REASONS FOR CHANGE IN BURDEN
This is a new form developed to meet the needs of the agency in adhering to 28 USC 2410 and IRC 7425.

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

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

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

19. REASON FOR EMERGENCY SUBMISSION
It was not know when the pattern letter was revised that the attachment would need to become a form or that the form
would need OMB clearance.

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

Page 6

Department of the Treasury–Internal Revenue Service