Work Opportunity Credit

Forms and Documents

Document Name	Status
Form 5884 Work Opportunity Credit Form and Instruction	Modified
Form_5884_OMB_Summary.pdf Justification for No Material/Nonsubstantive Change	2012-01-27

IC Document Collections

IC ID	Document Title	Status
39717	Work Opportunity Credit Form and Instruction	Modified

ICR Details

OMB Control No: 1545-0219	ICR Reference No: 201201-1545-018
Status: Historical Active	Previous ICR Reference No: 200911-1545-011
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Work Opportunity Credit
Type of Information Collection: No material or nonsubstantive change to a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 02/01/2012
	Date Received in OIRA: 01/30/2012
Terms of Clearance: The agency is reminded that it must make any necessary adjustments to the burden estimate to reflect the fact that the burden imposed on individual taxpayers by this dual-use form is accounted for under OMB Control Number 1545-0074.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	04/30/2013	04/30/2013	04/30/2013
Responses	59,819	0	11,677
Time Burden (Hours)	415,144	0	77,653
Cost Burden (Dollars)	0	0	0

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Abstract: IRC section 38(b) (2) allows a credit against income tax to employers hiring individuals from certain targeted groups such as welfare recipients, etc. The employer uses Form 5884 to figure the credit. IRS uses the information on the form to verify that the correct amount of credit was claimed.

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Authorizing Statute(s): US Code: 26 USC 51 Name of Law: Amount of credit
   US Code: 26 USC 38 Name of Law: General Business Credit
  

Citations for New Statutory Requirements: PL: Pub.L. 112 - 56 261 Name of Law: The Vow to Hire Heroes Act of 2011

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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:
	74 FR 39733	08/07/2009
30-day Notice:	Federal Register Citation:	Citation Date:
	74 FR 61407	11/24/2009
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Work Opportunity Credit	5884	Work Opportunity Credit

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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	59,819	11,677	500	0	47,642	0
Annual Time Burden (Hours)	415,144	77,653	20,672	0	316,819	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

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

Burden Increase Due to:

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

Burden Reduction Due to:

Short Statement: Form 5884 is used to figure the credit in accordance with IRC section 38(b)(2). This section allows a credit against income tax to employers hiring individuals from certain targeted groups such as welfare recipients, etc. The Vow to Hire Heroes Act of 2011, PL 112-56, Section 261, expanded the Work Opportunity Credit to two new categories of qualified veterans. The new law also increased the amount of first-year wages of qualified veterans that could be included in computing the Work Opportunity Credit. We added several "what's new" items to explain the effect of the new law. One item explained that the Work Opportunity Credit expires for other targeted groups at the end of 2011. However, for qualified veterans, the credit is available until December 31, 2012. Another item explained that veterans that were unemployed for more than 4 weeks may be eligible for this credit if hired after November 21, 2011. In the line 1 instructions, we added a new section to explain the new limits on the amount of wages that could be included in calculating the credit. The wage limits can range form $6,000 to $24,000 depending on how long the veteran was unemployed and if he was disabled. These wage amounts are significantly higher than in previous years. There were no line changes to the form only additions to the isntructions. -An adjustment in the number of respondents by 47,642 reflects an more accurate account of filers extracted form SOI's 2009 Estimated Data Line Counts Individual Income Tax Returns. -The changes to the form and to comply with the statutory requirements, will increase burden by 20,672. -Total burden requested is 59,819 responses; 415,144 burden hours.

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Annual Cost to Federal Government: $805

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)? No

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: 01/30/2012

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