Supporting_Statement_REV

SUPPORTING STATEMENT
1. CIRCUMSTANCES NECESSITATING COLLECTION OF INFORMATION
Form 5884-C was developed as a result of VOW to Hire Heroes Act of 2011, PL 112-56. Section 261 of PL 112-56
expanded the Work Opportunity Credit to tax-exempt organizations that hire unemployed veterans. The tax credit
is a reduction in payroll taxes paid by the tax-exempt organization. Form 5884-C allows a tax-exempt organization a
way to claim the credit and provides the IRS the information to process the tax credit.

2. USE OF DATA
Form 5884-C will provide tax-exempt employers with a tax form to claim the new tax credit. The data on Form 5884-C
will be used to adjust the payroll taxes of the employer that claims the Work Opportunity Credit.

3. USE OF IMPROVED INFORMATION TECHNOLOGY TO REDUCE BURDEN
Form 5884-C is a new tax form and the IRS will not offer electronic filing with the payroll tax returns.

4. EFFORTS TO IDENTIFY DUPLICATION
We coordinated several related tax forms, such as Form 5884 and Form 8850, in an effort to reduce duplication
of taxpayer work.

5. METHODS TO MINIMIZE BURDEN ON SMALL BUSINESSES OR OTHER SMALL ENTITIES
We limited the quesitons on Form 5884-C to obtain only necessary information to process the tax form.
All taxpayers, including small entities, complete the same tax form.

6. CONSEQUENCES OF LESS FREQUENT COLLECTION ON FEDERAL PROGRAMS OR
POLICY ACTIVITIES
The taxpayer determines the frequency of filing Form 5884-C. The filing of the form depends on when the credit is
claimed. The credit can be claimed either quarterly or annually.

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 and tax forms. During these meetings, there is an opportunity for those attending to make comments regarding the
collection requirements under this notice.
In response to the Federal Register notice (77 FR 32715), dated June 1, 2012, we received no comments during the
comment period regarding this form.

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

10. ASSURANCE OF CONFIDENTIALITY OF RESPONSES
In general, information on tax returns is not disclosed to the public. The IRS has strict rules on disclosure
and confidentiality.

11. JUSTIFICATION OF SENSITIVE QUESTIONS
Form 5884-C does not contain any sensitive questions.

12. ESTIMATED BURDEN OF INFORMATION COLLECTION
The estimated burden is based on the number of projected filers and the time to complete Form 5884-C.
Number of
Time for
Time for
Time for preparing
Total
Form
Responses
Recordkeeping
Learning
and Sending
Hours
5884-C

60,530

5.26 hours

.59 hours

.71 hours

397,683

Estimates of the annualized cost to respondents for the tax burden 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 June 1, 2012, 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
The Federal Government has costs of the professional staff in Forms and Pubs to write Form 5884-C.
In addition, there will be processing, developing and distribution costs. These costs would total $11,000.

15. REASONS FOR CHANGE IN BURDEN
New legislation from PL 112-56 passed new Internal Revenue Code section 3111(e). This allows tax-exempt
organizations a tax credit for hiring unemployed veterans. It is more a tax benefit in the reduction in payroll taxes.
However, there is additional burden in certifying a veteran qualifes as an unemployed veteran. An organization may
have to track the hours worked by a veteran as well as the wages paid to the veteran applied to the credit.
The burden is due to the new tax law, recordkeeping and completing Form 5884-C

16. PLANS FOR TABULATION, STATISTICAL ANALYSIS AND PUBLICATION
Not applicable.

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

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