This document contains proposed
regulations relating to the requirement for specified tax return
preparers, generally tax return preparers who reasonably expect to
file more than 10 individual income tax returns in a calendar year,
to file individual income tax returns using magnetic media pursuant
to section 6011(e)(3) of the Internal Revenue Code (Code). The
proposed regulations reflect changes to the law made by the Worker,
Homeownership, and Business Assistance Act of 2009. The proposed
regulations affect specified tax return preparers who prepare and
file individual income tax returns, as defined in section
6011(e)(3)(C). For calendar year 2011, the proposed regulations
define a specified tax return preparer as a tax return preparer who
reasonably expects to file (or if the preparer is a member of a
firm, the firms members in the aggregate reasonably expect to
file) 100 or more individual income tax returns during the year,
while beginning January 1, 2012 a specified tax return preparer is
a tax return preparer who reasonably expects to file (or if the
preparer is a member of a firm, the firms members in the aggregate
reasonably expect to file) 11 or more individual income tax returns
in a calendar year. The proposed regulations are unrelated to and
are not intended to address the requirements for obtaining a
preparer tax identification number (PTIN) under section 6109. See
the final regulations under section 6109 published in the Federal
Register (75 FR 60309-01). This document also provides a notice of
a public hearing on these proposed regulations.
Emergency approval of a
collection of information is requested by the Commissioner of
Internal Revenue under 44 U.S.C § 3507(j)(1) for a notice of
proposed rulemaking (attached) that implements new section
6011(e)(3) of the Internal Revenue Code, with a statutory effective
date of January 1, 2011. As explained below, all of the
requirements of section 3507(j)(1) for emergency approval are
satisfied. The collection of information falls within both prongs
of section 3507(j)(1)(A). 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 April
2011). The Act requires returns filed after December 31, 2010, by
STRPs be filed electronically. The proposed regulations are to be
effective on January 1, 2011; however, to promote the effective and
efficient administration of the new requirements, they provide a
phased-in application period. The proposed regulations will apply
on January 1, 2011, to every STRP who reasonably expects (if the
preparer is a member of a firm, the firms members in the aggregate
reasonably expect) to file 100 or more returns in calendar year
2011. The proposed regulations apply to all other STRPs beginning
January 1, 2012. The taxpayer choice statements are a key component
to the IRS interpretation and implementation of the section
6011(e)(3) electronic filing requirement. Second, as required by
section 3507(j)(1)(A)(ii), the collection of information is
essential to the IRS administering the internal revenue laws and
implementing the statutory requirement under new section
6011(e)(3). The Treasury Department and the IRS anticipate that
final regulations under section 6011(e)(3) and the revenue
procedure will be published in January 2011. Section 3507(j)(1)(B)
Pursuant to section 3507(j)(1)(B), the IRS cannot reasonably comply
with the nonemergency procedures of section 3507. Section
3507(j)(1)(B) sets forth three criteria, at least one of which must
apply: (i) public harm is reasonably likely to result if normal
clearance procedures are followed; (ii) an unanticipated event has
occurred; or (iii) the use of normal clearance procedures is
reasonably likely to cause a statutory or court-ordered deadline to
be missed. As previously discussed above, the third criterion
applies in this instance statutory deadline. The Act requires
returns filed after December 31, 2010, by STRPs be filed
electronically. Regulations, including this provision on taxpayer
choices to file in paper format, must be finalized and in place
before or shortly after the beginning of the tax filing season so
that tax return preparers will know how the new law affects them.
For the provisions of the regulations, as well as the anticipated
additional guidance, to be effective for the next filing season
(January April 2011), the approval of the collection of
information in the NPRM is needed as quickly as possible and before
it would ordinarily be granted under the standard procedures.
US Code:
26
USC 6011 Name of Law: General requirement of return, statement,
or list
US Code: 26 USC 6011 Name of Law: General
requirement of return, statement, or list
These documents detail how,
starting Jan. 1, 2011, paid tax return preparers can comply with a
new law that requires paid tax return preparers who meet the
definition of specified tax return preparer under the new law to
electronically file (e-file) federal income tax returns that they
prepare and file for individuals, trusts and estates. Starting Jan.
1, 2011, paid preparers who prepare income tax returns for
individuals, trusts and estates, such as Forms 1040, 1040A, 1040EZ,
and Forms 1041, and who reasonably expect to file 100 or more of
these income tax returns in 2011 are specified tax return preparers
required to file these returns electronically. Tax return preparers
who are members of a firm are specified tax return preparers and
must electronically file the income tax returns they prepare and
file if the firms preparers, in the aggregate, expect to file 100
or more of these income tax returns in 2011. Starting Jan. 1, 2012,
the 100-return threshold will be reduced to 11 or more income tax
returns that the preparer, or the preparers firm in the aggregate,
expect to file in 2012 for individuals, trusts and estates. To
comply with this law and new threshold we estimate an increase of
312,000 responses and 1,689,930 burden hours.
$0
No
No
No
No
No
Uncollected
Keith Brau 202 622-3281
No
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:
(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;
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.
Emergency Justification Statement.doc
REG-100194-10 - Specified Tax Return Preparers Required to File Individual Income Tax Returns Using Magnetic Media