Supporting Statement

SUPPORTING STATEMENT
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
In Fiscal Year (FY) 2009, the IRS initiated a formal effort to collaborate with financial institutions (banks) and Volunteer
Income Tax Assistance (VITA) sites to encourage taxpayers who do not request direct-deposited refunds to opt for a
prepaid card sponsored by the financial institutions. These taxpayers are likely to be unbanked and without means of
freely cashing their refund check. The perceived benefits of the prepaid card program are 1) faster transfer of refunds
to the taxpayer compared to the paper check mode, and 2) low-cost transactions to use the refund amount. To help
improve participation, IRS is hoping to leverage the theory and principles of social marketing. Social marketing
principles and practices apply marketing principles to social programs. This data will provide the IRS with practical
information to be used to determine the value of offering the prepaid card to taxpayers in the future.

2. USE OF DATA
Data will be used to evaluate any influences from the set of variables from the questionnaire to adoption of the prepaid
card over the paper check. In addition, description information from the responses will provide means to adjust the
product and determine segments for targeted marketing approaches. All data analysis will be at the aggregate level,
and the collection process and data fields are designed to help ensure privacy of taxpayers.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
Not applicable. The methodology used will be a paper-and-pencil questionnaire administered to taxpayers utilizing
VITA sites for tax preparation.

4. EFFORTS TO IDENTIFY DUPLICATION
Efforts have been taken to avoid duplication. VITA volunteers will ask eligible taxpayers at the end of their return
preparation to complete the questionnaire.

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 various professional groups to discuss tax
law, tax forms, and programs. During these meetings, there is an opportunity for those attending to make comments
regarding the collection requirements under this questionnaire.
In response to the Federal Register notice (76 FR 16038), dated March 22, 2011, we received no comments during the
comment period regarding these proposed and temporary regulations.

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

10. ASSURANCE OF CONFIDENTIALITY OF RESPONSES
The questionnaire answers will remain private, and will not ask any information that could identify personal
information such as the individuals name.

11. JUSTIFICATION OF SENSITIVE QUESTIONS
Not applicable.

12. ESTIMATED BURDEN OF INFORMATION COLLECTION
Based on a sample of potential respondents of 12,600 and a response rate of 60%, we expect 7,560 survey
participants leaving 5,040 non-participants.
The contact time to determine non-participation could be up to 1 minute, with the resulting burden for non-participants
being 5,040 x 1 = 5,040 minutes / 60 minutes = 84 burden hours. For participants, the time to complete the survey is
between 2 to 5 minutes. The maximum estimated time burden for this group being 7,560 x 5 minutes = 37,800 total
minutes / 60 minutes = 630 burden hours. Thus, the total burden hours for the study will be (84+ 630) 714 hours.

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
Participation in the questionnaire is completely voluntary. All questionnaire responses will be released only as
aggregated data. No individual answers will be reported and survey responses will have no effect on individual tax
accounts. Taxpayers are under no obligation to participate in the questionnaire, it is completely voluntary. However,
the VITA volunteer will encourage their participation so that their answers will help the IRS provide better service to the
unbanked and low income community.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
The cost to conduct this study is as follows: Box of paper (5,000 sheets) costs $43.00 ..........$344.00; Postage &
Shipping Labels ......$4000.00. Therefore, the total estimated cost of conducting this study is $4344.00.

15. REASONS FOR CHANGE IN BURDEN
There were no changes made to the document that resulted in any change to the burden previously reported to OMB.
We are making this submission to renew the OMB approval.

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
Given the inability to randomly select the VITA sites that adopt bank supported prepaid cards, the research design is
quasi-experimental. Those sites that voluntarily agree, or are randomly selected, to participate will receive social
marketing materials to be placed within their facility. A questionnaire will be given to all taxpayers who choose the
prepaid card option or the paper check option. All questionnaires will be uploaded into Teleform for coding.

17. REASONS WHY DISPLAYING THE OMB EXPIRATION DATE IS INAPPROPRIATE
We believe that displaying the OMB expiration date is inappropriate because it could cause confusion by leading
taxpayers to believe that the regulation sunsets as of the expiration date. Taxpayers are not likely to be aware that the
Service intends to request renewal of OMB approval and obtain a new expiration date before the old one expires. The
new OMB approval number will be included in the survey.

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

19. REASON FOR EMERGENCY SUBMISSION

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

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Department of the Treasury–Internal Revenue Service