Form 14242 - Reporting Abusive Tax Promotions or Preparers

Forms and Documents

Document Name	Status
Form 14242 Form 14242 - Reporting Abusive Tax Promotions or Preparers Form	Modified
ombat2.doc Supplementary Document	2011-10-06
LDC Supporting Statement.pdf Supporting Statement A	2012-02-08

IC Document Collections

IC ID	Document Title	Status
199681	Form 14242 - Reporting Abusive Tax Promotions or Preparers Form	Modified

ICR Details

OMB Control No: 1545-2219	ICR Reference No: 201202-1545-003
Status: Historical Inactive	Previous ICR Reference No: 201110-1545-019
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Form 14242 - Reporting Abusive Tax Promotions or Preparers
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Improperly submitted and continue	Conclusion Date: 09/25/2012
	Date Received in OIRA: 04/30/2012
Terms of Clearance: Agency will resubmit the collection to address the following two questions: 1. The burden calculation from the short statement looks incorrect. Did IRS means to say 10 minutes for the burden associated with the form and not 10 hours. If so, the burden reported is significantly off. Please address this. The burden for the collection of information is shown as an estimated 10 hours in the Taxpayer Paperwork Reduction statement on the form 14242. 2. Shouldn’t the form also include a section (or where it asks for the SSN of the tax promoter) that requests the PTIN of the tax preparer as IRS is using this now to identify tax return preparers?

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	04/30/2012	36 Months From Approved	09/30/2012
Responses	360	0	360
Time Burden (Hours)	3,600	0	3,600
Cost Burden (Dollars)	0	0	0

---

Abstract: The form is used to report an abusive tax avoidance scheme and tax return preparers who promote such schemes. The information is collected to combat abusive tax promoters. Respondents can be individuals, businesses and tax return preparers.

---

Authorizing Statute(s): US Code: 26 USC 6700 Name of Law: Promoting abusive tax shelters, etc.
   US Code: 26 USC 6701 Name of Law: Penalties for aiding and abetting understatement of tax liability
   US Code: 26 USC 7408 Name of Law: Actions to enjoin specified conduct related to tax shelters and reportable transactions
  

Citations for New Statutory Requirements: None

---

Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

---

Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	76 FR 77592	12/13/2011
30-day Notice:	Federal Register Citation:	Citation Date:
	77 FR 25230	04/27/2012
Did the Agency receive public comments on this ICR? No

---

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

IC Title	Form No.	Form Name
Form 14242 - Reporting Abusive Tax Promotions or Preparers	14242	Reporting Abusive Tax Promotions or Preparers

---

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:

---

Annual Cost to Federal Government: $0

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

---

Common Form ICR:  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:

(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: 04/30/2012

---