Supporting Statement

SUPPORTING STATEMENT
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
This form is a statement reported to the IRS and to taxpayers. It will be filed and furnished by State Housing Finance
Agencies (HFAs) and HUD to report the total amounts of mortgage assistance payments and homeowner mortgage
payments made to mortgage servicers. The requirement for the statement are authorized by Notice 2011-14,
supported by P.L. 111-203, sec. 1496, and P.L. 110-343, Division A, sec. 109.

2. USE OF DATA
Information will be used to identify taxpayers who may not be taking a correct mortgage interest deduction, since
mortage servicers processing mortgage payments may not be able to segregate payments received from government
funds versus payments made by individual mortgagees.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
Form 1098-MA will be effective only for 2011 and 2012 only, therefore no electronic reporting program will be
implemented.

4. EFFORTS TO IDENTIFY DUPLICATION
To date, State HFAs and HUD have not been required to report the mortgage assistance payments made to mortgage
servicers.

5. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES
The entities required to file Form 1098-MA are State HFAs and HUD. There are no small businesses or entities
required to file this form.

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR
POLICY ACTIVITIES
Less than annual collection would reduce efficiencies, accuracies, and compliance in identifying taxpayers who may
not be taking the correct mortgage interest deduction.

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)
N/A

8. CONSULTATION WITH INDIVIDUALS OUTSIDE OF THE AGENCY ON AVAILABILITY
OF DATA, FREQUENCY OF COLLECTION, CLARITY OF INSTRUCTIONS AND FORMS,
AND DATA ELEMENTS
Counsel has consulted with State HFAs and HUD to determine availability of the data required to be reported. For
ease in reporting and to ensure compliance, the IRS has developed this form to be used by all filers, in lieu of their
needing to develop their own reporting statement. In filing and furnishing this form, the IRS will not assert any penalties
under section 6721 and section 6722 for failure to file a Form 1098 for 2011 and 2012.
In response to the Federal Register notice (76 FR 77591), dated December 13, 2011, we received no comments
related to the burden during the comment period regarding this form. However, we received one request for a copy of
form. A current draft was sent to the taxpayer.

9. EXPLANATION OF DECISION TO PROVIDE ANY PAYMENT OR GIFT TO RESPONDENTS
N/A

10. ASSURANCE OF CONFIDENTIALITY OF RESPONSES
Generally, tax returns and tax return information are confidential as required by 26 U.S.C. 6103.

11. JUSTIFICATION OF SENSITIVE QUESTIONS
N/A

12. ESTIMATED BURDEN OF INFORMATION COLLECTION
The burden estimate is as follows:
Estimated
Responses
Form

1098-MA

Estimated
Time per Response

Total
Burden

2.84 hours

170,400

60,000

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
As suggested by OMB, our Federal Register notice dated December 13, 2011, requested public comments on
estimates of cost burden that are not captured in the estimates of burden hours, i.e., estimates of capital or start-up
costs and costs of operation, maintenance, and purchase of services to provide information. However, we did not
receive any responses from taxpayers on this subject. As a result, estimates of these cost burdens are not available at
this time.

14. ESTIMATED ANNUALIZED COST TO THE FEDERAL GOVERNMENT
After consultation with various functions within the Service, we have determined that the cost of developing,
printing, processing, distribution and overhead for the form is $7,500.

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
N/A

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

18. EXCEPTIONS TO THE CERTIFICATION STATEMENT ON OMB PRA SUBMISSION FORM
N/A
Note: The following paragraph applies to all of the collections of information in this submission:
An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless
the collection of information displays a valid OMB control number. Books or records relating to a collection of
information must be retained as long as their contents may become material in the administration of any internal
revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.

19. REASON FOR EMERGENCY SUBMISSION

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

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Department of the Treasury–Internal Revenue Service